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It is a scheme which is offered by the Indian government to encourage exports from the country. DEPB means Duty Entitlement Pass Book to neutralise the incidence of basic and special customs duty on import content of export product. This is provided by way of grant of duty credit against the export product at specified rates. The DEPB Scheme which was notified on 1/4/1997 consisted of (a) Postexport DEPB and (b) Pre-export 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 at a pre-determined credit on the FOB value. The DEPB allows import of any items except the items which are otherwise restricted for imports. Source: Government of India, Department of Commerce
) is an export
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) Pre-export 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 predetermined credit on the FOB value. The DEPB rates allows 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 DEPB Rates are applied on the basis of FOB value or value cap whichever is lower. For example, if the FOB value is Rs.700/- per piece, and the value cap is Rs.500/- per piece, the DEPB rate shall be applied on Rs.500/-. The DEPB rate and the value cap shall be applicable as existing on the date of exports as defined in paragraph 15.15 of Handbook (Vol.1). DEPB Scheme is issued only on post-export basis and pre/export DEPB Scheme has been discontinued. The provisions of DEPB Scheme are mentioned in Para 4.3 and 4.3.1 to 4.3.5 of the Foreign Trade Policy or Exim Policy. One significant change in the new DEPB Scheme is that in terms of Para 4.3.5 of the Exim Policy even excise duty paid in cash on inputs used in the manufacture of export product shall be eligible for brand rate of duty drawback as per rules framed by Department of Revenue which was not mentioned in the earlier DEPB Scheme
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.
[edit]Provisional DEPB Rate The main objective behind the provisional DEPB rates is to encourage diversification and to promote export of new products. However, provisional DEPB rates would be valid for a limited period of time during which exporter would furnish data on export and import for regular fixation of rates. [edit]Maintenance of Record It is necessary for Custom House at ports to maintain a separate record[disambiguation details of exports made under DEPB Schemes. [edit]Port of Registration The exports/imports made from the specified ports given shall be entitled for DEPB. Sea Ports: Mumbai, Kolkata, Cochin, Dahej, Kakinada, Kandla, Mangalore, Mormugao, Mundra , Chennai, Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin Vishakhapatnam, Surat (Magdalla),Nagapattin am, Okha , Dharamtar and Jamnagar. Airports: Ahmedabad, Bangalore, Bhubaneshwar Mumbai, Kolkata Coimbatore Air Cargo Complex, Cochin, Delhi, Hyderabad, Jaipur, Srinagar, Trivandrum, Varanasi, Nagpu r and Chennai. ICDs : Agra, Ahmedabad, Bangalore, Bhiwadi, Coimbatore, Daulatabad, (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Faridabad, Guntur, Hyderabad, Jaipur, Jallandhar, Jodhpur, Kanpur, Kota,Ludhian a, Madurai and the land Customs station at Ranaghat Mallanpur, Moradabad, Meerut Nagpur, Nasik, Gauhati (Amingaon), Pimpri (Pune), Pitampur (Indore), Rudrapur (Nainital), Salem Singanalur, Surat, Tirupur, Udaipur, Vadodara, Varanasi, Waluj, Bhilwara, Pondicherry, Garhi-Harsaru, Bhatinda, Dappar, Chheharata (Amritsar), Karur, Miraj and Rewari. LCS: Ranaghat, Singhabad, Raxaul , Jogbani, Nautanva ( Sonauli), Petrapole and Mahadipur. The exports made to the following Special Economic Zones (SEZ) are also entitled to DEPB. SEZ : Santacruz, Kandla, Kochi, Vishakhapatnam, Chennai, FALTA, Surat, NOIDA
needed ]
of
[edit]Credit
In respect of products where rate of credit entitlement under DEPB Scheme comes to 10% or more, amount of credit against each such export product shall not exceed 50% of Present Market Value (PMV) of export product. During export, exporter shall declare on shipping bill that benefit under DEPB Scheme would not exceed 50% of PMV of export product.
However PMV declaration shall not be applicable for products for which value cap exists irrespective of DEPB rate of product. [edit]Utilization
of DEPB credit
Credit given under DEPB Schemes is utilized for payment of Indian customs duty including capital goods, which are free to import. [edit]Re-export
In case of return of any exported goods, which has been found defective or unfit for use may be again exported according to the exim guidelines as mentioned by the Department of Revenue.
In such cases 98% of the credit amount debited against DEPB for the export of such goods is generated by the concerned Commissioner of Customs in the form of a Certificate, containing the amount generated and the details of the original DEPB. On the basis of certificate, a fresh DEPB is issued by the concerned DGFT Regional Authority. It is important to note that the issued DEPB have the same port of registration and shall be valid for a period equivalent to the balance period available on the date of import of such defective/unfit goods.
Duty Entitlement Pass Book Scheme in short DEPB is an export incentive scheme. Notified on 1/4/1997, theDEPB Scheme consisted of (a) Post-export DEPB and (b) Pre-export 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 is allows 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 DEPB Rates are applied on the basis of FOB value or value cap whichever is lower. For example, if the FOB value is Rs.700/- per piece, and the value cap is Rs.500/- per piece, the DEPB rate shall be applied on Rs.500/-. The DEPB rate and the value cap shall be applicable as existing on the date of exports as defined in paragraph 15.15 of Handbook (Vol.1). DEPB Scheme is issued only on post-export basis and pre/export DEPB Scheme has been discontinued. The provisions of DEPB Scheme are mentioned in Para 4.3 and 4.3.1 to 4.3.5 of the Foreign Trade Policy or Exim Policy. One significant change in the new DEPB Scheme is that in terms of Para 4.3.5 of the Exim Policy evenexcise duty paid in cash on inputs used in the manufacture of export product shall be eligible for brand rate of duty drawback as per rules framed by Department of Revenue which was not mentioned in the earlier DEPB Scheme. Benefits of DEPB Rates The benefit of DEPB schemes is available on the export products having extraneous material up to 5% by weight. In such cases, extraneous material up to 5% shall be ignored and the DEPB rate as notified for that export product is be allowed.
Review
of
DEPB
Rates
The Government of India review the DEPB rates after getting the appropriate a export import data on FOB value of exports and CIF value of inputs used in the export product, as per SION. Such data and information is usually obtained from the concerned Export Promotion Councils. Implementation of the DEPB Rates Some additional facilities as listed below have been provided for better implementation of the DEPB Rates
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.
Provisional DEPB Rate The main objective behind the provisional DEPB rates is to encourage diversification and to promote export of new products. However, provisional DEPB rates would be valid for a limited period of time during which exporter would furnish data on export and import for regular fixation of rates. Maintenance of Record It is necessary for Custom House at ports to maintain a separate record of details of exports made underDEPB Schemes. Port of Registration
The exports/imports made from the specified ports given shall be entitled for DEPB. Sea Ports: Mumbai, Kolkata, Cochin, Dahej, Kakinada, Kandla, Mangalore, Marmagoa, Mundra, Chennai, Nhavasheva, Paradeep, Pipavav, Sikka, Tuticorin Vishakhapatnam, Surat (Magdalla), Nagapattinam, Okha , Dharamtar and Jamnagar. Airports: Ahmedabad, Bangalore, Bhubaneshwar Mumbai, Kolkata Coimbatore Air Cargo Complex, Cochin, Delhi, Hyderabad, Jaipur, Srinagar, Trivandrum, Varanasi, Nagpur and Chennai.
ICDs : Agra, Ahmedabad, Bangalore, Bhiwadi, Coimbatore, Daulatabad, (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Faridabad, Guntur, Hyderabad, Jaipur, Jallandhar, Jodhpur, Kanpur, Kota, Ludhiana, Madurai and the land Customs station at Ranaghat Mallanpur, Moradabad, Meerut Nagpur, Nasik, Gauhati (Amingaon), Pimpri (Pune), Pitampur (Indore), Rudrapur (Nainital), Salem Singanalur, Surat, Tirupur, Udaipur, Vadodara, Varanasi, Waluj, Bhilwara, Pondicherry ,Garhi-Harsaru, Bhatinda, Dappar, Chheharata (Amritsar), Karur, Miraj and Rewari. LCS: Ranaghat, Singhabad , Raxaul , Jogbani, Nautanva ( Sonauli), Petrapole and Mahadipur. The exports made to the following Special Economic Zones (SEZ) are also entitled to DEPB. SEZ : Santacruz , Kandla, Kochi, Vishakhapatnam, Chennai, FALTA, Surat, NOIDA Credit under DEPB and Present Market Value In respect of products where rate of credit entitlement under DEPB Scheme comes to 10% or more, amount of credit against each such export product shall not exceed 50% of Present Market Value (PMV) of export product. During export, exporter shall declare on shipping bill that benefit under DEPB Scheme would not exceed 50% of PMV of export product. However PMV declaration shall not be applicable for products for which value cap exists irrespective of DEPB rate of product. Utilization of DEPB credit Credit given under DEPB Schemes is utilized for payment of indian customs duty including capital goods, which are free to import. Re-export of goods imported under DEPB Scheme In case of return of any exported goods, which has been found defective or unfit for use may be again exported according to the exim guidelines as mentioned by the Department of Revenue. In such cases 98% of the credit amount debited against DEPB for the export of such goods is generated by the concerned Commissioner of Customs in the form of a Certificate, containing the amount generated and the details of the original DEPB. On the basis of certificate, a fresh DEPB is issued by the concerned DGFT Regional Authority. It is important to note that the issued DEPB have the same port of registration and shall be valid for a period equivalent to the balance period available on the date of import of such defective/unfit goods.
. Engineering Products Chemicals . Plastics . Leather and Leather Products . Sports Goods . Fish and Fish Products . Food Products . Handicrafts . Electronics Textiles . Miscellaneous Products
application for DEPB shall be filed within six months from date of release of such shipping bill or six months from date of realization, whichever is later. Frequency of Application All shipping bills in any one application must relate to exports made from one Custom House only. There is no limit on number of shipping bills which can be filed through EDI mode in a single aplication. Verification by Customs Before allowing imports against DEPB, Customs shall verify that details of exports, as given on DEPB, are as per their records. However, in case of EDI shipping bills issued on or after 1-10-2005 from EDI ports which are being transmitted electronically by Customs to DGFT, DEPBs issued shall be sent to Customs at port of registration through an electronic message exchange system and DEPB shall be registered at port of registration electronically. No verification of shipping bills against which such DEPBs have been issued, will be required before allowing imports against these DEPBs. Re-export of goods imported under DEPB Scheme Goods imported under DEPB scheme, which are found defective or unfit for use, may be re-exported, as per guidelines given in paragraph 3.23.6 of HBP v1. Issuance of DEPB and other duty credit certificates against lost EP copy of the Shipping Bills In case where EP copy of Shipping Bill has been lost, DEPB and other duty credit certificates, claim can be considered subject to submission of following documents:
A duplicate / certified copy of Shipping Bill issued by Customs authority in lieu original
An application fee equivalent to 2% of the DEPB or other duty credit entitlement in respect of lost Shipping Bills. However, no fee shall be charged when Shipping Bill is lost by Government agencies and a documentary proof to this effect is submitted;
An affidavit by exporter about loss of Shipping Bills and an undertaking to surrender it immediately to concerned RA, if found subsequently; and
An indemnity bond by exporter to the effect that he would indemnify Government for financial loss if any on account of DEPB or other duty credit certificate issued against lost Shipping Bills. Customs authority, before allowing clearance, shall ensure that no DEPB benefit has been availed against same shipping bill. Claim against lost Shipping Bill shall be preferred within a period of six months from date of release of duplicate copy of shipping bill and any application received thereafter will be
rejected. However, if a provisionally assessed DEPB shipping bill is lost, time period for filing an application for DEPB would be six months from the date of release of the finally assessed shipping bill. Loss of Original Bank Certificate In such cases where original Bank Realization Certificate (BRC) has been lost, the DEPB claim can be considered subject to submission of following documents:
A duplicate copy of BRC issued by bank authority in lieu of original loss; b) An application fee equivalent to 2% of the DEPB entitlement in respect of lost BRC;
An affidavit by exporter about loss of BRC and an undertaking to surrender it immediately to RA, if found subsequently;
An indemnity bond by exporter to the effect that he would indemnify Government for financial loss, if any, on account of DEPB issued against lost BRC. Claim against lost BRC shall be preferred within a period of six months from date of realization and application received thereafter will be rejected. In such cases, where both documents have been lost, exporter shall follow procedure laid down in paragraph 4.52 and 4.53. Time period for such application shall be as per paragraph 4.52 and 4.53, whichever is later. DEPb rates of textile products
S.No.
1A 1B 1C 2A 2B
Description Blouses made of cotton textile items Blouses made of blended textile items Blouses made of man-made textile items Blouson made of cotton textile items with lining Blouson made of blended textile items with lining
Value Cap 125.00/ Piece 125.00/ Piece 125.00/ Piece 125.00/ Piece 125.00/ Piece
1 Brass art wares 2 Brass fittings 3 Electro plated nickel silver ware (EPNS) Articles made solely of NYLON- 8 6 not elsewhere specified,and
4 4 4 Rs 40/ kg
12
13
14
Articles made solely of NYLON-66 not elsewhere specified,and covered under S.N. H-27 of Standard Input Output Norms Articles made solely of POLYCARBONATE not elsewhere specified,and covered under S.N. H-28 of Standard Input Output Norms Articles made solely of POLYPROPYLENE not elsewhere specified,and covered under S.N. H-30 of Standard Input Output Norms Articles made solely of POLYSTYRENE not elsewhere specified,and covered under S.N. H-31 of Standard Input Output Norms
Rs.25/Kg Rs.80/Kg.
67B
67C
Bright bars 7 made out of Stainless Steel Bright bars 5 made out of Mild Steel Bright bars 6 made out of items other than Stainless Steel and mild steel
Rs.23.50/Kg
Rs.24/Kg.
68A
Rs.105/Kg.