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14. Addressing the first issue first, we may note that DEPB scheme is a part of Exim policy of the Government of India formulated under section 5 of the Foreign Trade (Development and Regulation) Act, 1992. The policy outlines the objectives as to include those to accelerate the country's transition to globally oriented vibrant economy with a view to derive maximum benefits from expanding global market opportunities and to stimulate sustained economic growth by providing access to essential raw materials, intermediates, components, consumables and capital goods required for augmenting production. Chapter 7 of the Export and Import Policy, prevalent at the relevant time, provides that the duty exemption scheme enables import of inputs for export production. The duty remission scheme enables post export replenishment/remission of duty on inputs used in the export product. Such duty remission scheme consists of Duty Free Replenishment Certificate and Duty Entitlement Passbook Scheme. Para 7.14 of the policy explains the duty entitlement to pass book scheme and provides inter alia that for exporters not desirous of going through licensing route, an optional facility is given under DEPB. The objective of DEPB Scheme is to neutralise the incidence of Customs duty on the import content of the export product. The neutralization would be provided by way of grant of duty credit against the export product. Under the said scheme, 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 specified by the Director General of Foreign Trade. Such DEPB is valid for a period of 12 months from the date of the issue. It is freely transferable subject to certain conditions. In para 7.32 it is further clarified that the duty credit under the scheme shall be calculated by taking into account the deemed import content of an export product as per SION and the basic customs duty payable on such deemed imports. The value addition achieved by export of such product shall also be taken into account while determining the rate of duty credit under the scheme. Para 7.38 of the Policy further provides that DEPB shall be initially issued with non transferable endorsement where realization has not taken place to enable the exporter to effect import for his own use. However, upon receipt of realization, the DEPB shall be endorsed transferable. In case where the DEPB is applied after realization, the DEPB shall be issued with transferable endorsement.