The main features of the DEPB scheme are as follows:
i) An exporter can import raw materials, intermediates, components, parts, packaging material etc. except those items mentioned as restricted item for imports in ITC (HS) classifications of export and imports items.
ii) DEPB benefit is available on post export basis only. The rates of import duty credit under DEPB scheme are given in the Hand Book of Procedures Vol.1. The DEPB on post export basis is granted only after the proceeds have been realized by the exporter.
iii) Merchant exporter and manufacture exporter are eligible for DEPB on the post export basis.
iv) The import of inputs is allowed without payment of basic customs duty and surcharge thereof as well as additional duty of customs, against the import duty credit granted under this scheme. The holder of DEPB has the option to pay additional customs duty, if any, in cash as well.
v) Third party exports are also admissible for grant of credit under DEPB.
vi) The DEPB shall be valid for a period of 12 months from the date of its issuance.
vii) The goods already imported/shipped/arrived in advance but not cleared from customs may also be cleared against the DEPB issued subsequently.
viii The DEPB on the post export basis and / or the items imported against it are freely transferable. The transfer of DEPB shall however, be for import at the port specified in the DEPB which shall be the port from where exports have been made.
ix) An exporter can file application for the grant of import duty credit under DEPB scheme within a period of 180 days from the date of exports or within 90 days from the date of realization of export proceeds, whichever is later. The numbers of days are calculated from the last date of realization/export, in respect of shipments for which the claim is filed.