DEPB (Duty Entitlement Pass Book) Scheme is an export incentive scheme provided in Import and Export policy. The objective of the scheme is to neutralize the incidence of custom duty on the import content of the export products. It is given in the form of duty credit against the export product at specified rates. The scheme is easy to administer and more transparent.
Under the post-export DEPB, issued after exports, the exporter is given a duty entitlement Pass Book at a pre-determined credit on the FOB value. The DEPB allows import of any items except those under import restrictions.
The DEPB scheme will continue to be operative until it is replaced by a new scheme which will be drawn up in consultation with exporters.
1. The holder of DEPB shall have the option to pay additional customs duty, if any, in cash as well.
2. DEPB is issued only on post-exportation basis. Excise duty paid in cash on inputs will be eligible for brand rate of duty drawback.
3. The DEPB shall be valid for a period of 24 months from the date of issue.
4. The DEPB and/or the items imported against it are freely transferable.
5.Under normal conditions, exports made under the DEPB Scheme shall not be entitled for drawback. However, the additional customs duty/excise duty paid in cash or through debit under DEPB shall be adjusted as CENVAT Credit or Duty Drawback as per rules framed by the Department of Revenue.