DEPB stands for Duty Entitlement Pass Book. It is a scheme initiated by the government of India to provide export incentives to the exporters in India. It was launched on 01/04/1997. Then, it had two types.
- Pre-export DEPB
- Post-export DEPB
The ‘Post Export DEPB’ continues to exist while ‘Pre Export DEPB’ got discarded on 01/04/2000.
After the exports, the exporter is issued with the DEPB at a pre-determined credit o the FOB value. It permits the import of all the items except the restricted ones under ITC (HS) classification on import and export items. For example- gold and silver items (other than ornaments)- gold nib, gold watch etc.
The DEPB rates are applied on the Free on Board (FOB) value or cap value; whichever is lower among the two. For example- if the FOB value is 1500 per item and the cap value is 1100 per item ; the DEPB rate will be applicable on the cap value i.e. on 1100.
The benefit of DEPB is allowed only on post export basis. Also, it is granted only after the proceeds have been received by the exporter. The exporter is eligible for the credit claims as a mentioned value percentage of exported product. It is available at the rate of exported products as determined by the Director General of Foreign Trade.
ELIGIBILITY: Merchant exporter and Manufacture Exporter have the eligibility for DEPB on the basis of post-export.
VALIDITY: The DEPB is valid for a period of 12 months from the date it is issued.