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DGPM
DIRECTORATE GENERAL OF PERFORMANCE MANAGEMENT
DGPM
DIRECTORATE GENERAL OF PERFORMANCE MANAGEMENT
DGPM
DIRECTORATE GENERAL OF PERFORMANCE MANAGEMENT
DGPM
DIRECTORATE GENERAL OF PERFORMANCE MANAGEMENT
DGPM
DIRECTORATE GENERAL OF PERFORMANCE MANAGEMENT
DGPM
DIRECTORATE GENERAL OF PERFORMANCE MANAGEMENT
DGPM
DIRECTORATE GENERAL OF PERFORMANCE MANAGEMENT

Refund of Excise Duty to Royal Government of Bhutan

The work undertaken by DGPM in respect of Bhutan exports can be categorized in two parts:

1. Refund of excise duty to RGOB

2. Export to Bhutan for govt. aided projects.

As per the Agreement on Trade and Commerce between the Royal Government of Bhutan and Government of India, there is free trade and commerce between the two countries of goods produced in either country. Article VIII of the Agreement provides that :

"Each of the Government agree to provide appropriate refund to be mutually decided annually in respect of excise duties on goods of its origin exported to another."

In pursuance of the above provision, the GOI(MEA) has been annually paying refund of excise duties collected on goods exported from India to Bhutan. On reference from MEA, exercise to work out approximate refund amount is undertaken by DGPM. The documents regarding claim of refund from RGoB are sent from MEA to the Board which in turn are sent to DGPM. The amount of refund is worked out as under.

The documents for the imports from open market and directly from factories were verified as per exiting procedure, as adopted during the meeting between the Royal Government of Bhutan and Govt. of India delegates held on 19th March, 2002

For category (i) The Excise duty refund amount pertaining to the import made directly from the factories was verified on actual basis based on the Central Excise documents. b) For imports made from the open market and where exercise documents were not available, old scheme of the downsizing value by 40% was applied for the goods acctacting advalorem rates of duty. c) The amount of refund worked out by DGPM is sent to Board which in turn transmits the same to MEA. The Ministry of External Affairs grants the refund amount EXPORT TO BHUTAN FOR GOVT. AIDED PROJECTS As per the Notification No. 45/2001-E(N.T)dated 26/6/2001(as amended vide notification no. 2/2011-CE(N.T) dated 18/2/2011 export of all escisable goods without payment of duty to Punatsangchhu-I Hydroelectric Project, Punatsangchhu-II Hydroelectric Project, Mangdechhu Hydro-Electric Project in Bhutan has been allowed subject to the conditions mentioned there in the said Notification. One of the conditions is that the goods supplied against the contracts have to be registered with the Directorate General of Performance Management, Customs and Central Excise in the manner specified in the Annexure III. As per Annexure III the project authority shall apply in writing to the DGPM for registration of the contract through the Ministry of External Affairs along with the original deed of the contract & the list of the items duly approved by the MEA (ii) uniform rate of 25% is applied on the import value as submitted by RGoB without knocking down the import value.

The amount of refund worked out by DGPM is sent to Board which in turn transmits the same to MEA. The MEA grants the refund amount. The amount of refund granted by MEA has never been communicated to DGPM.


The entire text on the agreement on trade and commerce between the Government of the Kingdom of Bhutan & the Government of Indiaalong with other related documents can be downloaded in both pdf and Word format.

 

Minutes of the meeting held between the Bhutanese delegation led by Mr. Yonten NamGyel, Director, Department of Revenue & Customs, RGoB and The Indian Delegation led by Mr. Mahender Singh, Director General, DGPM, CBEC, Ministry of Finance, GoI on 29th June 2016 in Thimphu.
Minutes of the meeting held between the Bhutanese delegation led by Mr. Yonten NamGyel, Director, Department of Revenue & Customs, RGoB and The Indian Delegation led by Mr. P.K.Mohanty, Director General, DGPM, CBEC, Department of Revenue, GoI on 22 May, 2015 in Thimphu.
Minutes of the meeting held between the Bhutanese delegation led by Mr. Yonten NamGyel, Director, Department of Revenue & Customs, RGoB and The Indian Delegation led by Mr. P.K.Mohanty, Director General, DGPM, CBEC, Department of Revenue, GoI on 28th November, 2014 in Thimphu.
Minutes of the DG Level talks held in March2002

 

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