Duty Entitlement Pass-book Scheme: exporters earn pre-notified duty credits usable to offset customs duties on eligible imports. The DEPB Scheme issues exporters duty-free entitlement credits in a pass-book at pre-determined ad valorem rates usable to offset basic and additional customs duties on imports except negative-list items. Pre-export DEPBs may carry provisional entitlement based on past performance, requiring set-off by subsequent exports or security (bond/bank guarantee) and recovery if entitlement is not earned within the DEPB validity. DEPBs are port-specific unless exceptional permission is granted; exports must use blue duty-free shipping bills with declared DGFT serial and claimed rate, and Customs must verify FOB values and maintain DEPB-wise ledgers and monthly duty-forgone reporting.