DEPB SCHEME:

Duty Entitlement Pass Book Scheme in short DEPB is an export incentive scheme.
Notified on 1/4/1997, the DEPB Scheme consisted of (a) Post-export DEPB and (b) Preexport DEPB. The pre-export DEPB scheme was abolished w.e.f. 1/4/2000. Under the
post-export DEPB, which is issued after exports, the exporter is given a duty entitlement
Pass Book Scheme at a pre-determined credit on the FOB value. The DEPB rates allow
import of any items except the items which are otherwise restricted for imports. Items
such as Gold Nibs, Gold Pen, Gold watches etc. though covered under the generic
description of writing instruments, components of writing instruments and watches are
thus not eligible for benefit under the DEPB scheme. The credit shall be available against
such export products and at such rate as may be specified by the DGFT.

Implementation of the DEPB Rates:

Some additional facilities as listed below have been provided for better implementation
of the DEPB Rates

DEPB rates rationalized to account for the changes in Customs duties.

Caps fixed on certain items but there would be no verification of Present Market
Value (PMV) on such items.

A number of ports have been added for availing facilities under the Duty Exemption
Scheme, including DEPB.

The threshold limit of Rs. 200 million for fixing new DEPB rates removed.

Validity:
DEPB shall be valid for 12 months from the dates of its issue.

Eligibility:
Merchant-Exporter and manufacturer-exporter are eligible for DEPB

Types:
Pre-export basis: DEPB on pre-export basis aims to provide the facility to eligible
exporters to import inputs which are required for production.
Post export basis: DEPB on post-export basis shall be granted against exports already
made.

 DEEMED EXPORTS:
Deemed exports refer to those transactions in which the goods supplied do not leave the
country and the payment for such goods are made in India by the recipient of the goods in
Indian rupees. Deemed exports are not physical exports.
Categories of Supple:
1) Supply of goods against duty free licenses issued under the Duty Exemption
Scheme.
2) Supply of goods to:
a. Export Oriented Units (EOUs).
b. Export Processing Zones (EPZs).
c. Software Technology Parks (STPs).
d. Electronic Hardware Technology Parks (EHTPs).
3) Supply of capital goods to holders of license under the EPCG Scheme.
4) Supply of goods to the power, oil and gas sectors duly approved by Ministry of
Finance.
5) Supply of goods to any project approved by Ministry of finance which permits
import of such goods at zero customs duty.
6) Supply of capital goods and spares to fertilize plants if the supply is made under
the procedure of international competitive bidding.
7) Supply of goods to projects financed by multilateral or bilateral agencies/funds as
notified by the Department of Economic Affairs, Ministry of Finance under
international competitive bidding.
Benefits to Deemed Exporters:
1) The supplier can claim Special Import Licence at the rate of 6% of FOB value.
2) The supplier can claim duty drawback.
3) The supplier can claim refund of excise duty paid on raw materials which are used
in the production of end products.

 ASSITANCE TO STATES FOR INFRASTRUCTURE

DEVELOPMENT OF EXPORTS (ASIDE):
The department of commerce of government of India has established ASIDE with the
prime objective to motivate state governments to put in their mite to promote exports
from their states. The department of commerce has initiated the plan to encourage state
governments through allocation of funds so that they display readiness to contribute in
export promotion. The basis of getting funds is determined on (a gross exports and (b)
rate of growth of exports. States are free to use the funds to develop infrastructure. The
options for infrastructure development is given below:
a. To establish and develop special economic zones (SEZs).
b. To establish software technology park (STP) as 100% export scheme for export of
computer software and services using communication links.
c. To establish electronic hardware technology (EHTP) to encourage exports of
electronic hardware items like disks drivers, computers, televisions and so on.
d. To establish Agri-Business Zones and improve facilities in the existing zones.
e. To update transport industry with better infrastructure of roads and port facilities.
f. To improve power supply through additional transformers and earmarking
separate lives for export units.
g. To develop effluent treatment facilities.
h. To look into any other proposal of Department of Commerce.

 OTHER FINANCIAL INCENTIVES AVAILABLE TO INDIAN

EXPORTERS:
a. Blanket permits.
b. served from India scheme.
c. Vishesh Krishi Upaj Yojana.
d. IRMAC scheme.
e. Special Import Licenses.
f. VAT.

BLANKET PERMITS:
Blanket permits is a facility given to large scale exporters only such as export houses,
trading houses, star trading houses and super star trading houses. Blanket permits are
issued by RBI for a lump sum amount subject to its having fulfilled certain export
obligations.

SERVED FROM INDIA SCHEME:

The foreign trade policy 2004-09 has introduced Served from India scheme by
updating the existing Duty free import entitlement certificate scheme. This scheme aims
at promoting export of services from India. Duty credit equivalent to 10% of foreign
exchange earned in the preceding financial year is given to service providers.

 VISHESH KRISHI UPAJ YOJANA:

The foreign trade policy 2004-09 introduced Vishesh Krishi Upaj Yojana with the
objective to promote exports of fruits, vegetables, flowers, minor forest produce, dairy
products and poultry by giving incentives to exporters. Under this scheme, exporters of
eligible products are eligible to obtain Duty credit equivalent to 5% of the FOB value of
export for each licensing year starting from April 1, 2004.

IRMAC SCHEME:
IRMAC stands for Industrial Raw Material Assistance Centre. IRMAC supplies imported
raw materials particularly to small exporters. The centre imports raw materials in bulk
and distributes them to industry at competitive prices popularly known as :Off-the-Self
Price. Items like chemicals for finishing leather and for manufacture of pesticides are
imported and distributes through IRMAC.

SPECIAL IMPORT LICENCES (SIL):

One of the special incentives given to Indian exporters includes Special Import License
(SIL). SIL is freely transferable. SIL is available for the following categories of export:
a. EH/TH/STH/SSTH.
b. Deemed Exports.
c. Exports to ACU countries.
d. Manufacturer with ISO 9000 or BIS 14000.

VALUE ADDED TAX(VAT):

A value added tax (VAT) is a form of consumption tax. From the perspective of the buyer,
it is a tax on the purchase price. From that of the seller, it is a tax only on the value added
to a product, material, or service, from an accounting point of view, by this stage of its
manufacture or distribution. The manufacturer remits to the government the difference
between these two amounts, and retains the rest for themselves to offset the taxes they
had previously paid on the inputs.