DEPB License (Duty Entitlement Pass Book)
Exporters who do not wish to go through the licensing route, an optional kind of facility is given under DEPB. The objective of Duty Entitlement Passbook Scheme is to neutralize the incidence of Customs duty on the import content of the export product. The neutralization shall be provided by way of grant of duty credit against the export product under the Duty Entitlement Passbook Scheme (DEPB), an exporter may apply for credit, as a stated percentage of FOB value of exports, made in freely exchangeable currency. The credit shall be accessible against export products and at such rates as may be stated by the Director General of Foreign Trade by way of public notice issued in this behalf, for import of raw materials, intermediates, components, parts, packaging material etc. The holder of Duty Entitlement Passbook Scheme (DEPB) shall have the option to pay extra customs duty, if any, in cash as well. Under the scheme Exporters are granted duty credits on the basis of pre notified entitlement rates which will allow them to import input duty free. Goods in the negative list of Exim policy cannot be exported under this scheme.
Advance License is supplied under Duty Exemption Scheme to allow import of inputs which are physically incorporated in the export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts etc. which are consumed in the course of their use to get the export product, may also be allowed under the scheme.
Advance License EPCG (Export Promotion Capital Goods)
With this scheme an exporter is allowable to import New Capital goods (CKD/SKD) in comprising computer software systems at 5% Customs duty subject to an export obligation corresponding to 5 times CIF value of capital goods to be satisfied over a period of 8 years calculated from date of issue of License over time of 8 year.
As per para 3.7.1 of EXIM Policy, Merchant manufacture Exporter, Service Provider, EOU, EHTP, STP are qualified for Status Certificate subject to achieving min export performance as follows: