| Duty Entitlement
Passbook Scheme (DEPB) |
4.3 |
Objective
of DEPB is to neutralise incidence of customs
duty on import content of export product. Component
of Special Additional Duty and customs duty on
fuel shall also be allowed under DEPB (as a brand
rate) in case of non-availment of CENVAT credit.
Neutralisation shall be provided by way of grant
of duty credit against export product.
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4.3.1 |
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.
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4.3.2 |
DEPB holder shall have option to
pay additional customs duty in cash as well.
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| Validity |
4.3.3 |
Validity period of DEPB for import
shall be as prescribed in HBP v1.
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| Transferability |
4.3.4 |
DEPB and / or
items imported against it are freely transferable.
Transfer of DEPB shall however be for import at
specified port, which shall be the port from where
exports have been made. Imports from a port other
than the port of export shall be allowed under
TRA facility as per terms and conditions of DoR
notification.
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| Applicability of Drawback |
4.3.5 |
Additional customs
duty / Excise Duty and Special Additional Duty
paid in cash or through debit under DEPB may also
be adjusted as CENVAT Credit or Duty Drawback
as per DoR rules.
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