Duty Entitlement Pass Book (DEPB) Scheme is an export incentive scheme provided in Import and Export policy. The objective of the scheme is to neutralize the incidence of basic custom duty on the import content of the exported products. Under the scheme, an exporter is eligible to claim credit as a specified percentage of value of exported product and is available at a rate of exported product as may be determined by Director General of Foreign Trade (DGFT).

The credit amount in DEPB only entitles you to adjust that amount for payment of customs duty and is not permitted to be withdrawn or adjusted in some other manner. There is no bar for transfer of this credit to another person and from him to another person i.e. this credit amount is freely tradable. 

DEPB on Exports

• Duty Entitlement Pass Book (DEPB) is a Licence in the form of a duty credit, issued for a specified percentage of FOB Value of exports. The objective of DEPB is to neutralize the incidence of customs duty on the import content of the export product.
   

• DEPB Licences are Freely Transferable and Tradeable. These licences are utilized towards payment of customs duties in lieu of cash, for imports.
   

• As a DEPB Buying and Selling House, we cater to specialized requirements of Buying or Selling DEPB Licences for the best of the value.
   

• We also provide assistance and co-ordinate to complete the documentation formalities of application and the speedy issue of DEPBs by the authorities.

Export & Import - Incentives

• As suggested by the Trade and Industry, instead of number of schemes like Quantity Based Advance Licence (QBAL), Value Based Advance Licence (VABAL), Special VABAL Schemes in respect of Electronics, Engineering, Ready-made Garments, Pharmaceuticals and Pass Book Scheme, the new EXIM Policy has only two schemes i.e. Advance Licensing Scheme corresponding to QBAL and a new scheme known as Duty Entitlement Pass Book Scheme (DEPB).
   

• DEPB Scheme incorporates the concept of the old Pass Book but with simplified procedures and greater coverage and transparency in the matter of giving credit entitlements. The entitlement rate will be pre-determined so that the exporters at the time of exports can do their costing accordingly. It is a transparent scheme and does away with any discretion to the Licensing Authority or Custom Authority and can be availed on Pre-Export/Post-Export basis.
   

• This scheme is very easy to operate and the exporter has to come to the Licensing Authority only once for getting the credit under post export DEPB. This should help the exporter to a great extent as there were many complaints of delay in getting credit under the old Pass Book Scheme.
   

• Trade and Industry had requested for extension of old Pass Book Scheme to other ports. Accordingly, DEPB has been extended to all the ports for which Advance Licences facility is available.
   

• Trade and Industry had asked for making the credit under the old Pass Book Scheme, transferable. Under DEPB, the credit can be transferred within the same port of Registration.

Instructions on import under DEPB

• The Customs department has issued fresh instructions with regard to import under DEPB (Duty Entitlement Pass Book) at Customs bonded warehouses through the TRA (Telegraphic Release Advice) procedure.
   

• Normally, goods stored in a Customs warehouse are cleared through adjustment of duty in a DEPB book/scrip. The trade has represented to the Central Board of Excise and Customs (CBEC) that the said facility be extended in view of extension of the DEPB sch eme to other Customs stations notified (Customs circular no. 85/99 dated December 23, 1999).
   

• Following a detailed examination of the issue, the board has now decided that clearances from those Customs bonded warehouses may be permitted by debiting DEPB scrips which fall within the jurisdiction of a Commissioner of Customs, who also has jurisdict ion over any one or more of the stations where TRA facility under DEPB is admissible. It is clarified that the DEPB scrip used for debit may be registered at a Customs station under the jurisdiction of the same Commissioner who also oversees the function ing of the warehouse, or at another Customs station from where a TRA may be issued.
   

• According to the Customs note, the facility will be operated through issue of TRA from the port of registration of the DEPB scrip, to the Commissionerate having jurisdiction over the warehouse from which the goods are proposed to be cleared.
  It is necessary to indicate details such as description, value and quantity of goods, DEPB serial number, date of issue and extent of duty entitlement in the DEPB book/scrip against which the duty debit is sought. The jurisdictional commissioner receivin g the TRA will send the details of imports to the Customs station issuing the advice, which in turn will maintain these details in the relevant register.