Adoption of FOB Value for calculation of DEPB credit - DGFT - 29/97-98

Policy Circular No. 29/97-98 Dated the 18.12.97 Adoption of FOB Value for calculation of DEPB credit Various representations have been received regarding the FOB value which is to be taken for calculation of DEPB entitlement while issuing DEPB at post export basis or offsetting the DEPB on pre export basis. The matter has b and it is clarified that for calculation of the DEPB credit, the FOB value of export, as given in bank certificate of export to be taken into account, as the exporter would be realising the FOB value as per the bank certificate of exports, except in case where the customs have reduced the FOB value of the Shipping Bills on account of Present Market Value (PVM) or for any specified reasons recorded in writing. The FOB value given in the Shipping Bill is endorsed on the DEPB only with a view to enable the customs authorities to verify the details of the Shipping Bills against which DEPB is issued/ offsetted before allowing import or releasing the Bond/Bank Guarantee against such DEPB. This issues with the approval of DGFT. Sd/- (Ajay Siahal) Dy. Director General of Foreign Trade