Duty entitlement passbook scheme It is an export incentive scheme of Indian Government provided to exporters in India. It is issued after export, at a predetermined credit on the FOB value. It came into existence on 01041997, then it had both pre-export and post-export DEPB. The latter is abolished on 01042000.
Thus the exporter is eligible to claim credit as a specified percentage of value of exported product and is available at a rate of exported products as may be determined by the Director General of Foreign Trade. The credit amount is entitled only to be adjusted to the amount to be paid as customs duty, and cannot be withdrawn or adjusted otherwise.
It is an optional facility for exporters not desiring to go through the licensing routine. The aim is to neutralize the incidence of customs duty on the import content of the export product, by way of grant of duty credit against the export product.
Under this scheme, an exporter may apply for credit as specified percentage of FOB value of exports, made in freely convertible currency or the payment made from the foreign currency account of the SEZ. The DEPB or the items imported against it are freely transferable. Normally the exports under the DEPB scheme shall not be entitled for drawback, however the additional customs duty paid in cash or through debit under DEPB shall be adjusted as CENVAT Credit duty/ Duty Drawbacks.