Duty Entitlement Passbook (DEPB) Scheme

4.3.1

An exporter may apply for credit, at specified percentage of FOB value of exports, made in freely convertible currency. In case of supply by a DTA Unit to a SEZ Unit /SEZ Developer / Co-Developer, an exporter may apply for credit for exports made in freely convertible currency or payment made from foreign currency account of SEZ Unit / SEZ Developer /Co-Developer. In addition, the exporter shall also be entitled for DEPB benefit in case payment is made in Indian Rupees by SEZ Developer / Co-Developer for supplies received w.e.f 10.2.2006.

(Above 1st sub-paragraph has been amended vide NTF. NO. 42/2008, DT. 18/09/2008)

Credit shall be available against such export products and at such rates as may be specified by DGFT by way of public notice. Credit may be utilized for payment of customs duty on freely importable items and / or restricted items. DEPB scrips can also be utilized for payment of duty against imports under EPCG scheme.

(Above 2nd sub-paragraph has been amended vide NTF. NO. 88/2008, DT. 26/02/2009)

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An exporter may apply for credit, at specified percentage of FOB value of exports, made in freely convertible currency or payment made from foreign currency account of SEZ unit / SEZ Developer in case of supply by DTA.

Credit shall be available against such export products and at such rates as may be specified by DGFT by way of public notice. Credit may be utilized for payment of Customs Duty on freely importable items. DEPB Scrips can also be utilized for payment of duty against imports under EPCG Scheme w.e.f 1.1.2009.]

Prohibited items of exports mentioned in ITC(HS) Book (as amended from time to time) shall not be entitled for DEPB credit except for the exports effected under transitional facility, wherever allowed, in terms of paragraph 1.5 of FTP.

(Above clause has been added vide NTF. NO. 87/2008, DT. 17/02/2009)