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Duty Entitlement Pass Book : Under the Duty Entitlement Pass Book scheme, an exporter shall be eligible to claim credit as a specified percentage of FOB value made in freely convertible currency. The credit shall be available against such export products and at such rate as may be specified by the Director General of Foreign Trade. Any item except those appearing in the Negative List of Imports shall be allowed for import without payment of basic customs duty, special duty as well as additional customs duty against the credit under this scheme. The third party exports are admissible for grant of credit. The DEPB shall be valid for a period of 12 months from the date of its issue. The DEPB may be issued on post export basis or pre-export basis.
The DEPB holder shall be required to execute Bond with surety/security to the customs authority. The bond shall be for a value as may be specified in this behalf before the imports are effected under the DEPB on pre-export basis. The exports made under DEPB scheme shall not be entitled for drawback.
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INSTITUTIONAL FRAMEWORK : Institutional framework for providing finance comprises Reserve Bank of India, Commercial Banks, Export Import Bank of India and Export Credit and Guaran
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Exchange Control: Exchange control means official intervention with the foreign exchange of a country. It is a system of rationing foreign exchange among competing demands for it,
FINANCIAL GUARANTEES: Exporters require adequate financial support from banks to carry out their export contracts; ECGC's guarantees protect the banks from losses on account of th
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Rate of Interest: The interest payable on pre-shipment finance is usually lower than the normal rate, provided the credit is extinguished by lodging the export bills on remittance
INTRODUCTION : Export business has become very complex and highly risky. Insolvency rate is on the increase. Balance of payment difficulties have severely affected the capacity of
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