Policy Circular No, 18/97.98 dt, 11th August, 1997
DEPB eligible on exports made prior to 21/5/97 where no PMVDeclaration was given -Indemnity Bond Subject:- PMV under DEPB scheme
1. Attention is invited to paragraph 7.36A of the Handbook of Procedures (Vol.1), 1997-2002Introduced vide Public Notice No. 10/97-2002 dated 21.5.97 wherein’ it was envisaged that in respect of products where the rate of credit entitlement under DEPB scheme comes to 15%, 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 shalldeclare un the Shipping bills 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 case where rate of credit under DEPB is 15% or more.
2. Representation have been received by exporters with regard to the shipments that took place prior to 21st May 1997 wherein such declaration has been given by the exporter on the Shipping Bill.
3. The matter has been considered and it has been decided that in cases where, the shipments have taken place prior to 21st May 1997 and the declaration with regard to PMV has notBeen given on the shipping may be allowed the benefit of DEPB provided the following conditions are fulfilled:
(a) The exporter furnishes a self-declaration to the licensing authority that credit under DEPB against the export product exported under Shipping Bill. No. ___________________ dated _____________ does not exceed 50% of the Present Market Value (PMV) of such export
(b) The exporter also furnishes to the licensing authority an Indemnity Bond duly notorised to the effect that if at any point of time, it is found that benefit under DEPB scheme against the export product________________ exported under Shipping Bills No. ___________ Dated _____________ has exceeded 50% of the PMV of the export product, the exporter will refund the amount of credit in cash within a period of 30 days from the date of issue of demand notice for refund.
4. This issue with the approval of DGFT.
Sd/-
(Ajay Sahai)
Dy. Director General of Foreign Trade
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