Govt to modify DEPB rules

NEW DELHI: In a move to de-incentivise steel exports to check rising local prices, the government decided to modify DEPB rules.
Steel producers exporting to countries with whom India has a preferential trading agreement or a free trade agreement at a preferential tariff, will get DEPB (duty entitlement passbook scheme) benefits, only to the extent of the duty paid. They will not be accorded a flat rate, which is usually higher. This move follows steel exporters claiming DEPB benefits despite exporting the commodity at 0% duty. – Agencies
The authorities hope that the new rules will curb misuse of the scheme. This will also check domestic prices, they added. The government is also examining the possibility of cutting DEPB rates for steel exports, sources said.