The Union Ministry of Commerce and Industry has decided to review the Duty Entitlement Pass Book Scheme (DEPB) rates of all products including drugs and pharmaceuticals where the currents rates are 15% or more.

The Directorate General of Foreign Trade (DGFT) is in the process of collecting representative data from the trade and industry to analyse the FOB value of exports and CIF value of inputs used in the export products. The authority has warned that failure on the part of the industry to furnish necessary data may result in the slashing of the DEPB rates of those products to 5%.

According to informed sources, the warning for slashing of DEPB rates are to ensure maximum participation from the exporters who are otherwise reluctant to part with the necessary data for the purpose of such reviews.

In a recent circular (RE-2003)/2002-2007 Dated: 20.06.2003, DGFT has given 45 days time for the industry to respond to its directive. The pharmaceutical industry is to submit its representative data through the Basic Chemicals and Pharmaceuticals Export Promotion Council (Chemexcil).

The Regional offices of DGFT have prepared a list of drug exporters (export product wise) who obtained the DEPB on export of products having rate 15% or more. The list so prepared has been forwarded to Chemexcil. The list will help the council in monitoring the collection of required data from all the concerned exporters and to consolidate and compile the same before it is forwarded to DGFT. The Export Promotion councils have been given two months time to verify and forward this consolidated data to the office of DGFT. Based on the data, the DEPB Committee would re-work on the DEPB rates and make necessary adjustments in the DEPB rates wherever required.

The authority has informed that only those data related to imports/exports made within one year from the date of application are to be accepted. Copies of Shipping bills and Bills of Entry are required to be enclosed along with application. The applicants are also free to submit copies of Customs data for imports in lieu of copies Bills of Entry. A minimum of 5 Bills of Entry/Shipping Bills should be submitted for each product.