The drug exporters of the country have expressed concern over the delay in the announcement of the new scheme meant to replace the Duty Entitlement Pass Book (DEPB) scheme, which is expected to expire by 2005 end. The exporters feel an urgent need for the continuation of the scheme for some time even after the announcement of the new scheme to help them avoid the possible hazards at the customs end.
Recalling the issues that plagued the exporting community soon during the time gap between the earlier expiry of DEPB and its renewal in October, the drug exporters wanted the government to take precautionary measures to avoid similar confusion.
With the office of the Director General of Foreign Trade (DGFT) working on the new scheme, the exporters wanted the continuation of DEPB scheme for another six months announced without delay. The Pharmaceutical Export Promotion Council (Pharmexcil) is known to have taken up the matter with the commerce ministry.
It should be noted that the Federation of Indian Export Organisations (FIEO), set up by Ministry of Commerce had also voiced concern over the nearing deadline for DEPB scheme. FIEO had also wanted the scheme to continue for some time after the announcement of the new scheme. FIEO had pointed out that the exporting community was expecting extension in the existing scheme till 31st March, 2005, as the nitty-gritty of the new scheme have still not been finalised. Delay in finalising the new replacement scheme and giving extension to the existing scheme only upto 31st December, 2005, may put the exporters in uncertainty in booking future orders, FIEO observed.
The exporters hope that the government would provide some transitional arrangements for the DEPB scheme to enable the exporters to do their export costing for export orders to be finalised for 2006.
It is known that the commerce ministry is working on another scheme to succeed the DEPB that would be an equally exporter-friendly instrument. The ministry attempt is to put in place WTO-compliant instrument of remission that would take into account un-rebated taxes at various levels. There is a strong feeling in the government for a durable mode that retained the elements of DEPB and enabled exporters to get the benefit of 10-12% of un-rebated taxes.