Duty Entitlement pass book (DEPB) is a scheme by government of India which provides export incentives to exporters in India. The DEPB scheme is two types (a) Pre export DEPB and (b) Post export DEPB. The DEPB scheme allows to import any items in India except those item which are restricted to be imported in India. Items such as gold nibs, gold pen, gold watches etc.
The pre export DEPB scheme has been canceled but the post export scheme is continued in present. The DEPB rates are applied at the free on board (FOB) value for example if the FOB Value is 1000 and the cap value price is 700 then the DEPB Rates are applied on the cap value. The benefit of DEPB Scheme is available on export product which use extraneous material up to 8% materials up to 5% shell be ignored and DEPB as notified for the export product is be allowed.
The goods re –exported Under DEPB scheme when the goods is exported , the credited amount, 98% amount debited by the concerned commissioner of customs in the form of certificate detailed description of the DEPB scheme.
Export promotion capital goods (EPCG) scheme is also scheme from government of India, in this scheme which goods including spars are imported for pre-production or re–production and then export the goods at zero duty subject to an export obligation. it saves 6 times of duty on capital good imported under EPCG Scheme.it will be full filled under 6 years from authorization issue date.
The EPCG scheme covers manufacture exporters or without supporting manufactures, vendor, merchant exporter tied to supporting manufactures and service provider the scheme also covers service provider.
Under the EPCG Scheme Indian government gives incentives to promote the export business. There is a provision for authorization holder has full filled 75% or more specific goods export obligation and 100% of average export obligation till date, if any half or less than half export obligation period specified, remaining export obligation shell be condoned.
Authority holder is required to submit the detail 30th April every year, Report on fulfillment of export obligation.
The scheme authorize one or more request for grant of extension in export obligation period, on payment of composition fee equal to 2% of duty saved amount on unfulfilled export obligation imposed to 10% of total export obligation, the maximum period of extension is 2 years.
If the authority holder unfulfilled the export obligation then he shall pay duties of custom with interest. This facility availed by EPCG authorization holder to exit his option.