DEPB Licence

[CHITRA RAGURAM]

A company is not a manufacturing unit but is doing only extraction and exporting the output. The unit is also a 100% eou unit and availing customs duty exemptions on packing materials imported. Can this unit obtain DEPB licence for the exports made and sell the licences.

AI Summary

100% Export Oriented Units Cannot Obtain DEPB Licenses Due to Existing Customs Duty Exemptions on Imports A company engaged in extraction and export, operating as a 100% Export Oriented Unit (EOU), inquired about eligibility to obtain and sell Duty Entitlement Pass Book (DEPB) licenses, despite already receiving customs duty exemptions on imported packing materials. The response clarified that DEPB licenses, intended to offset customs duties on import content of export products, cannot be obtained by EOU units since they already benefit from such duty exemptions.