Duty free import exclusion: exporters using duty free imported inputs cannot claim DEPB and must declare this on shipping bills. DEPB benefit is available only when inputs used in the exported product have borne customs duty; inputs imported duty free under the duty free import notification against Bond/BG therefore disqualify the exporter from claiming DEPB. Customs must verify at export processing that duty free imports are not relied upon for DEPB credit, and exporters must declare on the shipping bill that specified materials were imported duty free, with trade notices and standing orders issued for guidance.