Duty Entitlement Pass Book

This query is : Resolved

Satyanarayanan (Querist)
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22 May 2010 Under Duty Entitlement Pass Book based on the FOB value at a predetermined Rate credit is given. Is it the utilisation of such credit can be only used to Import Duty including Capital Goods, which are free to import. If yes suppose if the company uses EPCG - (where import duty is waived from import of capital goods provided it exports the goods manufactured from that capital goods) then where is the benefit for the company from DEPB.

In other words What are the ways the Credit of Duty Entitlement of Pass Book can be made?.

Thanks for all the experts...

Kishor Darole

Kishor Darole (Expert)
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22 May 2010 Dears,
DEPB & EPCG Custom benefit schemes are different. DEPB credit is receiving against the Export done & the same can be used for Import to exempt the Custom duties. EPCG is only to procure Capital goods under ZERO duty scheme with the Export obligation of XYZ time of duties which saved.
Hope this may clear to you.

CMA.Palani Arumugam

CMA.Palani Arumugam (Expert)
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22 May 2010 Agree with the Expert. DEPB in an incentive for the exports. DEPB can be sold in the market(as it is freely transferable) or it can be used for import as an alternative to custom duty payment.

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