7.36

A. In respect of products where the rate of credit entitlement under DEPB Scheme comes to 10% or more, the amount of credit against each such export product shall not exceed 50% of the present market value (PMV) of the export product. At the time of export, the exporter shall declare on the shipping bill that the benefit under DEPB Scheme against the export product would not exceed 50% of the PMV of the export product.

Such declaration shall be required only in cases where rate of credit under DEPB is 10% or more. However PMV declaration shall not be applicable for products for which value cap exist irrespective of the DEPB rate of the product.

B. The credit under DEPB may also be utilised for payment of customs duty on any item which is freely importable except capital goods.