What is duty entitlement passbook scheme?

Duty Entitlement Passbook Scheme is an export promotion scheme established by the Government of India to the Indian exporters in the year 1997.

In the beginning, this project was composed of 2 parts:

1. Pre-export Duty Entitlement Passbook Scheme– got abrogated in 2000 and
2. Post- export Duty Entitlement Passbook Scheme– issued after the exports

The primary purpose of this scheme is to implement considerations in the import and export system of India and to repeal the required custom duty prices on the import content of the commodities exported.

 Following the Duty Entitlement Passbook Scheme, an exporter of the products is allowed to charge credit which can be an earlier established percentage of the amount of the products that are exported and are prepared at a rate of exported good which is prepared and published by the Director-General of Foreign Trade (DGFT).

 It needs to be stored in mind that the extension number which is created accessible to the exporters can simply be employed to pay off the price of customs duty which is likely to be given and the identical cannot be employed to adjust it with any additional responsibility nor can it be removed. Although there is no limitation on trading the product, i.e., it can be given to another body and then can thereafter be given to another body from him.

The Duty Entitlement Passbook Scheme (DEPS) allows the import of any commodity (excluding forbidden products example, Gold pens, Gold Nibs, Gold watches, etc). 

Duty Entitlement Passbook Scheme?

The Duty Entitlement Passbook Scheme standards are appropriate based on each FOB cost or the value cap, whichever value is lowest. For example, if a commodity’s FOB price is Rs. 1000/-, and the cover value is Rs. 600/-, then theDuty Entitlement Passbook Scheme rate shall be implemented on Rs. 600/- which is the cap value.

benefit of the DEPB rate? 

Now, to skip the ambit of the project the exporter must demonstrate certificates showing that the products exported include an inappropriate material of up to 5% by weight.

The government has executed it necessary for the Custom houses to keep an exclusive experience of the products that are or will be exported under the Duty Entitlement Passbook Scheme.

What are the transient rates?  

To stimulate the export of new products and additional cause multiplicity transient rates are possible. But these passing rates are simply genuine for a set period and are to be performed during import and export for the conventional fixation of the movements.

How to manage the rate? 

The GOI (Government Of India) estimates the Duty Entitlement Passbook Scheme on the basis of the import-export data on the FOB cost of the exports and the Cost Insurance Freight (CIF) value of the information.