DEPB Scrips - Verification of - Procedure streamlined.

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DEPB Scrips — Verification of — Procedure streamlined Circular No. 72/99-Cus. Dated 28-10-1999 F.No. 605/132/99-DBK Government of India Ministry of Finance (Department of Revenue) New Delhi Circular No. 14/99-Cus., dated 15th March, 1999 was issued by the Board to streamline the procedure for verification of DEPB scrips, subsequent to the detection of acquisition of DEPB scrips by unscrupulous exporters on the basis of forged documents. 2. The procedure was laid down vide Annexure attached to the said Circular, which is a copy of the Standing Order issued by Mumbai Custom House on this issue. Para 7 of this Standing Order has come in for close scrutiny, since it imposes a restriction that a DEPB scrip can be transferred only once from the original allottee to the importer, and not through third parties. 3. The issue mentioned in the preceding para has been reexamined in consultation with DGFT. Para 7.32 of Exim Policy states that “the DEPB on post export basis ………………are freely transferable”. Furthermore, no restriction has been placed on transfer of DEPB scrips in customs notifications, viz. Notification No. 34/97-Cus., dated 7-4- 1997, as amended, wherein condition no. (vii) uses the term ‘DEPB holder’, which cannot be restricted to mean an original allottee of the DEPB scrip who has obtained the same from DGFT’s issuing office. 4. In view of above, it has been decided that para 7 of the standing order annexed with Board’s Circular No. 14/99-Cus. is hereby deleted. The rest of the Standing Order and the Circular shall continue to be in force. 5. The receipt of this Circular may please be acknowledged.

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