DEPB Scheme, PMV,
Indemnity Bond
Policy Circular No. 18 dated 11th August 1997
1.���� Attention
is invited to paragraph 7.36A of the Handbook of Procedures (Vol.1), 1997-2002
Introduced vide Public Notice No. 10/ 97-2002 dated 21.5.97 wherein� it was
envisaged that in respect of products where the rate of credit entitlement
under DEPB scheme comes to 15%, or more, the amount of credit against each such
export product shall not exceed 50% of the ", present market value (PMV)
of the export product. At the time of export, the exporter shall declare on the
Shipping bills that the benefit under DEPB scheme against the export product
would not exceed 50% of the PMV of the export product. Such declaration shall
be required only in case where rate of credit under DEPB is 15% or more.
2.���� Representation
have been received by exporters with regard to the shipments that took place
prior to 21st May 1997 wherein such declaration has been given by the exporter
on the Shipping Bill.
3.���� The
matter has been considered and it has been decided that in cases where, the
shipments have taken place prior to 21st May 1997 and the declaration with
regard to PMV has not Been given on the shipping may be allowed the benefit of
DEPB provided the following conditions are fulfilled:
(a)��� The
exporter furnishes a self-declaration to the licensing authority that credit
under DEPB against the export product exported under Shipping Bill. No. -dated
does not exceed 50% of the Present Market Value (PMV) of such export
(b)��� The
exporter also furnishes to the licensing authority an Indemnity Bond duly
notori~9d to the effect that if at any point of time, it is found that benefit
under DEPB scheme against the export product exported under Shipping Bills No.
Dated has exceeded 50% of the PMV of the export product, the exporter will
refund the amount of credit in cash within a period of 30 days from the date of
issue of demand notice for refund.
4.���� This
issue with the approval of DGFT.