To foster the growth of Indian trade and to support exporter community, the Government of India has launched various fiscal incentives and schemes. These incentive schemes benefit exporters by offering a range of financial and non-financial incentives. Under these schemes, the government collects fewer taxes on input products used in the making of export products
, thereby cutting down manufacturing cost. One such scheme is the Duty Entitlement Passbook Scheme (DEPB), which was notified on April 17th, 19971
What is Duty Entitlement Passbook Scheme?
The Duty Entitlement Passbook Scheme (DEPB) is an export incentive scheme issued by the Government of India where exporters can avail the scheme at a pre-determined credit on the FOB value. The duties are refunded in the form of a credit against exported products as a specified percentage of the Free on Board (FOB) value of those products. An exporter can claim DEPS at a pre-determined FOB value. These rates depend on the basis of FOB value and the value cap of the product, whichever is lower. The benefit of DEPB can be availed on all import items except restricted goods like gold nibs, gold pens, gold watches, etc2.
The key objective of the DEPB scheme is to balance the impact of customs duties imposed on importing products, which in turn are used for the export products. The duty credit is granted as a part of DEPB scheme against the products exported.
There are some additional implementations in the DEPB rates like fixing of value caps for certain items and addition of the number of ports for availing the Duty Entitlement Passbook Scheme. Following is the list of ports where DEPB can be availed3:
Sea ports: Mumbai, Kolkata, Cochin, Dahej, Kakinada, Kandla, Mangalore, Mormugao, Mundra, Chennai, Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin Vishakhapatnam, Surat (Magdalla), Nagapattinam, Okha, Dharamtar and Jamnagar.
Airports: Ahmedabad, Bangalore, Bhubaneshwar Mumbai, Kolkata Coimbatore Air Cargo Complex, Cochin, Delhi, Hyderabad, Jaipur, Srinagar, Trivandrum, Varanasi, Nagpur and Chennai.
ICDs : Agra, Ahmedabad, Bangalore, Bhiwadi, Coimbatore, Daulatabad, (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Faridabad, Guntur, Hyderabad, Jaipur, Jallandhar, Jodhpur, Kanpur, Kota, Ludhiana, Madurai and the land Customs station at Ranaghat Mallanpur, Moradabad, Meerut Nagpur, Nasik, Gauhati (Amingaon), Pimpri (Pune), Pitampur (Indore), Rudrapur (Nainital), Salem Singanalur, Surat, Tirupur, Udaipur, Vadodara, Varanasi, Waluj, Bhilwara, Pondicherry, Garhi-Harsaru, Bhatinda, Dappar, Chheharata (Amritsar), Karur, Miraj and Rewari.
LCS: Ranaghat, Singhabad, Raxaul, Jogbani, Nautanva (Sonauli), Petrapole and Mahadipur.
SEZ: Santacruz, Kandla, Kochi, Vishakhapatnam, Chennai, Falta, Surat, Noida.
Export incentive schemes
like DEPB can benefit your export business in the long run. The Government of India has introduced many such schemes and incentives to assist exporters and accelerate export growth from India. With e-commerce exports programs, Indian exporters can grow their businesses and take their local products across the world with ease .
To make exporting from India
easy for sellers and MSMEs, Amazon Global Selling
, an e-commerce exports program, provides assistance at every step of export journey. From obtaining export documents to easy product listing and international shipping
, Amazon Global Selling enables Indian exporters to sell internationally in a simple way via e-commerce. By registering as an Amazon Global Seller, your products can reach over 300 million customers across the world.
The more the customers view your product; there are higher the chances of your sales.