1. 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).

2. The value cap, wherever existing shall be with reference to the FOB value of exports. The DEPB rate shall be applied on the FOB value or value cap whichever is lower. For example, if the FOB value is Rs.500/- per piece, and the value cap is Rs.300/- per piece, the DEPB rate shall be applied on Rs.300/-.

3. Wherever any specific rate exists for a particular item under DEPB rate list as given in appendix 28A, the items shall not be covered under any generic description of the DEPB rate list.

4. The DEPB rate aims to neutralise the incidence of duty on the inputs used in the export product. Therefore, the DEPB rates as given in appendix 28A refer to normally tradable/exportable product. 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.

5. The DEPB rates given for various galvanised Engineering product shall cover non galvanised products and vice-a-versa.

6. The DEPB rate given for various types of garments do not cover Silk as well as woollen garments unless specifically mentioned in the DEPB description.

7. Portable Products at S.No.266, 267, 268, 269, 270 & 316 of Product Group: Engineering (Product Code 61) exported in the form of incomplete CKD/SKD Kit, but consisting of (I) Engine (ii) Chasis (iii) Gear Box (iv) Transmission Assembly system (v) Axle (Front & Rear) and (vi) Suspension System or Body/Cab or both shall be treated at par with complete CKD/SKD Kit for the purpose of relevant DEPB benefits.

8. The DEPB rate for formulations consisting of more than one bulk drug would be calculated as per provisions of Policy Circular No.20 dated 31st July, 2000.

9. Wherever the letters (a), (b), (c) ------- etc. have been used to denote sub-categories of the DEPB product, these would be replaced by the letters a, b, c,------- and so on. Similarly the numerals 37A and 37B under the Chemicals Product Group pertaining to specific DEPB entries would be replaced by the numerals 37a and 37b respectively.

(Sl. No. 9 has been added vide PN. No. 60(RE-01), Dt. 07/01/2002.)