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Journalism of Courage
MUMBAI, Mar 22: Exporters have come out strongly against the rampant misuse of the duty entitlement passbook scheme DEPB which has been in vogue for the past two years. There has been a revenue leakage of around Rs 3,000 crore under the scheme as exporters have been making a fast buck on bogus exports.
Trade sources said export consignments worth nearly Rs 900 crore are stuck in Dubai alone following an enquiry by various government agencies. As various items get duty relief of 5 to 22 per cent under the DEPB scheme, exporters have been over-invoicing goods particularly garments, dyes and watches and claiming duty relief under the scheme. 8220;Instead of the country getting money through exports, the government ends up paying huge subsidies to exporters under various schemes like DEPB,8221; said an exporter.
The value addition achieved by export products shall also be taken into account while determining the rate of duty credit under the scheme. Under the scheme, an exportershall be eligible to claim credit as a percentage of FoB value of exports made in freely convertible currency.
According to a FIEO member, it can be negotiated with the state government to either give a quot;set-offquot; against total revenue they collect by way of DEPB or SIL special import licence and collection of sales tax thereon vis-a-vis refund of sales tax and octroi duty under the above scheme.
Alternatively in case the state government do not agree, then the Central government should issue quot;parallel currency notesquot; in the denomination of Rs 1000, 10,000, one lakh and 10 lakh in lieu of DEPB which should be valid only for payment of customs duty. Such currency notes will boost the image of the government and these currency notes are only payable against import for customs duty in the beginning and later on, can be extended.
