I (Meaning and importance of Exports) Unit Structure

 
14.7 DUTY ENTITLEMENT PASS BOOK (DEPB) 
SCHEME 
The value based advance licensing scheme and the old 
pass book scheme have been replaced by a new scheme called 
the DEPB scheme in the EXIM policy 1997-2002. The DEPB 
scheme is likely to be withdrawn after May 2009. 
Under the Duty Entitlement Passbook (DEPB) scheme an 
exporter is eligible to claim credit at a specified percentage of FOB 
value of exports. The credit shall be available against such export 
products and at such rate as may be specified by the DGET. 
 
14.7.1 Applications 
The application for obtaining credit should be filed within a 
period of six months from the date of exports or within three months 
from the date of realization. The DEPB shall be issued with single 
part of registration i.e. the port from where the exports were made. 
No exports shall be allowed under DEPB scheme unless the DEPB 
rate of the concerned export product is notified. 
14.7.2 Validity
 
Duty Entitlement pass book scheme shall be valid for 12 
months from the date of its issue. 
14.7.3 Eligibility  
Merchant 
– exporter and manufacturer – exporter are eligible 
for DEPB. 
14.7.4 Types 
DEPB is of two types these one as follows
a) Pre-export basis 
– 
DEPB on pre-export basis aims to provide the facility to 
eligible exporters to import inputs which are required for production. 
b) Post 
– export basis – 
DEPB on post 
– export basis will be granted against exports 
already made and will be transferable. 

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The credit of DEPB on pre-export basis will be granted at the 
rate of 5% of the average export performance during the three 
preceding licensing years.