Presented by: Kalyani

INTRODUCTION
The Duty Entitlement Passbook (DEPB) scheme is one of the Duty Neutralization Scheme among exporters. Notified on 1/4/1997, the DEPB Scheme consisted of
 Post-export DEPB and 

Pre-export DEPB.

The pre-export DEPB scheme was abolished from 1/4/2000. The credit earned by the exporter by exporting the goods under DEPB is given by DGFT in the form of DEPB scrip against which the exporter can import any goods and in place of payments of custom duty, the exporter can get DEPB scrip debited.

The DEPB allows import of any items except the items which are otherwise restricted for imports. such as Gold Nibs, Gold Pen, Gold watches etc. DEPB validity period is of 12 months from the date of credit, Current validity of DEPB is 30th June 2011. Under the DEPB, an exporter may apply for credit, as a specified percentage of FOB value of exports, made in freely convertible currency. Credit given under DEPB Schemes is utilized for payment of Indian customs duty including capital goods, which are free to import. This license as well as goods imported against it are freely transferable only after export payment confirmation

The Director General Of Foreign Trade notifies the rates of DEPB. Caps fixed on certain items but there would be no verification of Present Market Value (PMV) on such items. Exports made under DEPB are not entitled for drawback.

The port from where goods are to be imported shall be stated on DEPB. The DEPB license can be transferred only for the import from the same port as specified in the license. Both merchant exporters and manufacturer exporters are eligible for this license.

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. LCS(logistics and customs services): Ranaghat, Singhabad , Raxaul , Jogbani, Nautanva ( Sonauli), Petrapole and Mahadipur.

ICDs (In land container depot): 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.

The

exports made Zones (SEZ) are

to the following also entitled

Special Economic to DEPB.

SEZ : Santacruz , Kandla, Kochi, Vishakhapatnam, Chennai, FALTA, Surat, NOIDA

CURRENT RATES OF PRODUCTS UNDER DEPB

GOODS Engineering Product Code: 61 ALL ALUMINIUM CONDUCTORS (AAC) BARE Chemicals Product Code: 62 CYANO COBALAMINE (VITAMIN B12) BP/USP Plastics Product Code: 63 FIRE HOSES 100% POLYESTER FILAMENT YARN JACKETTED SYNTHETIC RUBBER LINED Leather and Leather Products ProductCode: 64 ALL TYPES OF LEATHER GARMENTS INCLUDING COATS/JACKETS 6 5 5 RATES(%) 6

Sports Goods

Product Code: 65 CRICKET BATS

6 FISH, CRUSTACEANS, 8 MOLLUSCS, AQUATIC, INVERTEBRATES AND ANY AQUATIC ANIMAL PRODUCT WHITE SUGAR BRASS ART WARES 4 4

Fish and Fish Products

Product Code: 66

Food Products Handicrafts Electronics

Product Code: 67 Product Code: 68 Product Code: 83

COMPUTER PRINTER 7 RIBBON/ CARTIDGES/ CASSETTE 10

Textiles

Product Code: 89 GENTS BERMUDAS/MENS SHORTS MADE OF MAN-MADE TEXTILE ITEMS Product Code: 90 SAFETY MATCHES

Miscellaneous Products

DRAWBACKS OF DEPB 1997

The exporter will not be entitled to DEPB on export goods for which the inputs are imported on payment of duty through DEPB. In a case where the exporter sells the DEPB to another exporter, he gets cash of equivalent amount to pay customs duty on the import of raw materials and components. The latter exporter will be entitled to DEPB on his exports. The benefit of DEPB Scheme should be allowed on exports even though the inputs used in the manufacture of the export product were cleared through DEPB route from 12.4.2004.

ASSESSMENT OF THE SCHEMES

Exports have not risen after 1997, in the same rate after DEPB was introduced but about 30% of India s export share. In the years from 1991-92 to 1995-96, the average rate of growth was 26.2%. In the next five years after DEPB was introduced, from 1996-97 to 2001-02, the average rate of growth was 11.75%. Thus, the notion that after DEPB, export boomed is wrong.

A COMPARISON OF THE RATES OF GROWTH OF EXPORTS BEFORE AND AFTER THE INTRODUCTION OF DEPB ARE SHOWN AS:
Year 1991-92 1992-93 1993-94 1994-95 1995-96 Average: 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Average: Rate of growth of Exports y-o-y 35 21 29 18 28 26.2 11 9 7 14 27 2.5 11.75