Policy Circular No. 12  (RE-2003)/2002-2007          Dated:  July 11, 2003                                     




          All Licensing Authorities,

          All Customs Authorities,

          All Export Promotion Councils


Subject:       Guidelines for the fixation of ad-hoc DEPB rates.


          Attention is invited to Para 4.38 of Handbook of Procedures, Vol.1, as amended upto 31.3.2003, which provides for fixation of DEPB rates applicable for a limited period by the DEPB Committee to promote and diversify the export of new products.  These ad-hoc DEPB rates would be valid for a limited period of time during which the exporter would furnish the data on export and import for the regular fixation of rates.


2.                 For implementation of the above provisions the following  guidelines are issued:


(i)                These DEPB rates are called ad-hoc DEPB rates.


(ii)              These ad-hoc DEPB rates would be notified in the form of Public Notice and these rates would be valid for a period of 6 months from the date of its publication.


(iii)            The ad-hoc DEPB rates would be fixed only for those products for which Standard Input Output Norms (SION) are available but the exporters are not able to give sufficient data/documents as required for fixation of regular DEPB rates.


(iv)            Application for fixation of DEPB rates should be made in the format given in Appendix 10A of Handbook of Procedures, Vol. 1, 2002-07 (as amended upto 31.3.2003).  However, in such cases instead of documents prescribed in the instruction No. (b) & (c) of Appendix 10A i.e. Shipping Bills and Bills of Entry etc., exporter would simply declare the FOB value per unit quantity of export product for which fixation of ad-hoc DEPB rates has been sought.  For the CIF value of inputs as per the SION, the applicant can also submit copies of Customs data of imports containing the name of raw materials, quantity, CIF value and port of import etc.  For this purpose, applicants may also quote CIF prices of the inputs from the recognized sources such as International Magazines, Journals etc.


(v)              Advance Licensing Committee would consider the case based on the information given in the application and may also take CIF value of the inputs if the same is available in earlier files where DEPB rates have already been fixed.   Taking all these into consideration, a value addition would be worked out by the ALC and the case would be placed in the DEPB Committee for fixation of the ad-hoc DEPB rate.


(vi)            DEPB Committee after taking into account the Customs Duty involved and the value addition so fixed by ALC, would work out the ad-hoc DEPB rate.  The FOB value taken in the calculations would be fixed as value cap invariably in all cases.


(vii)          These ad-hoc rates would be notified in the form of Public Notice and all the exporters utilising the ad-hoc DEPB rates would be required to furnish actual data of exports indicating Shipping Bills No., quantity and fob value of export actually made under DEPB within 4 months from the date of fixation of ad-hoc DEPB rates to enable this office to convert the ad-hoc the DEPB rates into permanent DEPB rates.


This issues with the approval of Director General of Foreign Trade.


(SBS Reddy)

Jt. Director General of Foreign Trade


( F.No-  03/83/162/474/AM04/DES-IV )

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