In a decision that can bring in major relief to the drug exporters of the country, the government is likely to extend the validity of Duty Entitlement Pass Book Scheme beyond December 31, 2005. A government notification, extending the scheme upto March 31, 2006 as desired by the exporting community is expected soon.

According to sources at the Directorate General of Foreign Trade (DGFT), the notification is expected any time now. The drug exporters under the banner of Pharmaceutical Export Promotion Council (Pharmexcil) had sought for the continuation of the scheme for some time to help them avoid the possible hazards at the customs end, even after the announcement of the new scheme.

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. The Pharmexcil had wanted status quo until the office of the Director General of Foreign Trade (DGFT) is prepared with the new scheme, and the exporters are familiar with it.

As pharmabiz had reported earlier, 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 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 had still not been finalised. Delay in finalising the new replacement scheme and giving extension to the existing scheme only till 31st December, 2005, create uncertainty for the exporters in booking future orders, FIEO had warned.

The government decision to extend the time will now be of immense help to the exporters to make transitional arrangements for the DEPB scheme to enable them to extend their export orders beyond December 2005 without any confusion.