Duty Entitlement Pass Book

Duty Entitlement Pass Book

DEPB (Duty Entitlement Pass Book ) is an export incentive scheme of Indian Government provided to Exporters in India.[1]

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 pre-determined 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.

Contents

Benefits of DEPB Rates

Review of DEPB Rates

The Government of India review[2] the DEPB rates after getting the appropriate an export import data on FOB (shipping) value of exports and Cost, Insurance and Freight (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

  • 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.

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[disambiguation needed ] of details of exports made under DEPB Schemes.

Port of Registration

The exports/imports made from the specified ports given shall be entitled for DEPB.

  • 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.

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.[3]

References

  1. ^ [1] Policy relating to the Duty Exemption/Remission Scheme is prescribed in Chapter 4 of the Policy-Source-Government of India
  2. ^ [2] DEPB scheme likely to be extended till March 31-Source-Financial Chronicle
  3. ^ http://www.cybex.in/DEPB_RATE.aspx

Links


Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • Domestic tariff area — (DTA) or Domestic Tariff Zone (DTZ) means an area within India that is outside the Special Economic Zones and EOU/EHTP/STP/BTP.[1] The units operating under certain specific schemes such as EPZ/SEZ/EOU are expected to carry out their activities… …   Wikipedia

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium

  • United Kingdom — a kingdom in NW Europe, consisting of Great Britain and Northern Ireland: formerly comprising Great Britain and Ireland 1801 1922. 58,610,182; 94,242 sq. mi. (244,100 sq. km). Cap.: London. Abbr.: U.K. Official name, United Kingdom of Great… …   Universalium

  • Victoria Cross for Australia — Infobox Military Award name= Victoria Cross for Australia caption= Obverse of the medal and ribbon. Ribbon: 32mm, crimson awarded by= Australia type= Military decoration eligibility= Australian military personnel for= ... most conspicuous bravery …   Wikipedia

  • Spain — /spayn/, n. a kingdom in SW Europe. Including the Balearic and Canary islands, 39,244,195; 194,988 sq. mi. (505,019 sq. km). Cap.: Madrid. Spanish, España. * * * Spain Introduction Spain Background: Spain s powerful world empire of the 16th and… …   Universalium

  • British nationality law — Coat of Arms of the United Kingdom British nationality law is the law of the United Kingdom that concerns citizenship and other categories of British nationality. The law is complex because of the United Kingdom s former status as an imperial… …   Wikipedia

  • New Zealand nationality law — Current New Zealand passport issued to citizens of New Zealand …   Wikipedia

  • United States debt-ceiling crisis — Part of a series of articles on Unit …   Wikipedia

  • South African contract law — is essentially a modernised version of the Roman Dutch law of contract, [1] which is itself rooted in Roman law. In the broadest definition, a contract is an agreement entered into by two or more parties with the serious intention of creating a… …   Wikipedia

  • Nobel Prizes — ▪ 2009 Introduction Prize for Peace       The 2008 Nobel Prize for Peace was awarded to Martti Ahtisaari, former president (1994–2000) of Finland, for his work over more than 30 years in settling international disputes, many involving ethnic,… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”