New DEPB norm irks garment exporters

MUMBAI: Exporters are in a dilemma as they face another jolt from the Union finance ministry. The department of revenue has issued a circular stating that the present market value, which includes retail margins and excise duty, will form the basis for DEPB export valuation in all cases irrespective of whether DEPB rate is 10% or less.
Moreover when the PMV is less than FOB value, the DEPB entitlement will be restricted to 50% of PMV.
“The circular circumvents the provision of Hand Book of Procedures which requires PMV declaration on shipping bills only when the DEPB rate of 10% or more,� said the Synthetic & Rayon Textiles Export Promotion Council chairman Sanjeev Saran. “After the withdrawal of SAD exemption under DEPB six months ago, this is another shock for exporters.�
Although the department has issued another circular thereafter specifying the conditions and circumstances under which the earlier circular will be implemented, it is likely to be interpreted in various ways by different customs officers, he added.