News and Events

DEPB for exporters unlikely to be extended DGFT

Source: The Hindu Business Line

Indian exporters are demanding for continuation of Duty Entitlement Pass Book (DEPB) scheme for another five years in this regard the Ministry of Commerce & Industries on April 6, 2011 indicated that the DEPB, popular duty benefit scheme for exporters, is not likely to continue beyond June 30.

“As of now, the government stated policy is that at June 30, 2011, DEPB shall end. If something comes, think that it is a bonus...but as of now, do not hope for anything,” Directorate General of Foreign Trade (DGFT) Mr Anup Pujari said here at an interactive session with exporters.

The DEPB scheme, under which companies get refunds of customs duty paid on imported raw material for manufacturing products meant to be exported, will be expired on June 30.

FIEO, an apex body of exporters said that the exporting community is facing uncertain future and there is no other equivalent scheme under the current Foreign Trade Policy (FTP) to replace DEPB scheme. Mr. J. K. Jain, Vice President of FIEO said “...the DEPB scheme should be extended for a further period of at least 5 years to provide a stable economic support for the Indian exporters.”

The government has made it clear that the popular DEPB scheme, which has been in vogue for over a decade, is being extended for the last time.

India’s exports during the April-January period of 2010-11 grew by 29.3 per cent to $184.63 billion vis-a-vis the year-ago period.