Duty Entitlement Passbook Scheme – DEPB

Duty Entitlement Passbook Scheme :

For exporters not desirous or going through the licensing route, an optional facility is given under DEPB. The objective of Duty Entitlement Passbook Scheme is to neutralize the incidence of Customs duty on the import content or the export product. The neutralization shall be provided by way of grant or duty credit against the export product.

Under the Duty Entitlement Passbook Scheme (DEPB), an exporter may apply for credit, as a specified percentage of FOB value of exports, made in freely convertible currency. The credit shall be available against such export products and at such rates as may be speci tied by the Director General of Foreign Trade by way of public notice issued in this behalf, for import of raw materials, intermediates, components, parts, packaging material etc.

The holder of Duty Entitlement Passbook Scheme (DEPB) shall have the option to pay additional customs duty, if any, in cash as well.

The DEPB shall be valid for a period of 12 months from the date of issue and is freely transferable as also the items imported against it.

An application for grant of credit under DEPB may be made to the licensing authority concerned in the form along with the prescribed documents. Such application may be made by the Registered Office / Head Office or a branch office or manufacturing unit of the eligible exporter.

The application for obtaining credit should be filed within a period of 180 days from the date of exports or within 90 days from the date of realization, whichever is later, reckoned from the last date of realization / exports, in respect of shipments, for which the claim has been filed.

An applicant may file one or more applications subject to the condition that each application shall contain not more than 25 shipping bills. Such bills must relate to exports made from one Customs House only. This limit shall not apply to the application filed through EDl mode.

The DEPB shall be issued with single port of registration i.e. the port from where the exports have been made.

It may be noted that no exports shall be allowed under DEPB schemes unless the DEPB rate of the concerned export product is notified.

Handbook of Procedures prescribes the form regarding fixation of DEPB rates. All applications for fixation of DEPB rates shall be routed through the concerned Export Promotion Council which shall verify the FOB value of exports as well as the international price of inputs covered under SION.

For duty exemption, the Ministry of Finance has issued Notification.

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