Safeguards Against Misuse

The credit will not be given until the case is cleared by the customs.

A joint committee of the DGFT and the customs will be constituted at every port to go into such cases.

Export under the scheme will be from the same port. Hence, before clearance of the import consignment against every duty entitlement passbook, the customs authorities will co-relate the credit given against shipping bills of exports.

Exports under duty entitlement passbook will be against a blue colour shipping bill so that the customs maintain a separate record of the shipping bills.

The licensing authority will ensure while giving credit under duty entitlement passbook that the shipping bill numbers, date, f.o.b. value and description of the export product are endorsed on the DEPB.

The scheme envisages that, since the details of the shipping bill will be indicated in the DEPB, it will be easier for the customs to verify the details of such exports. Since the exports will be from the same port, the chances of misuse and submission of forged shipping bills for getting credit should be minimised.

It has been specified that if the holder of a licence including duty entitlement passbook under the scheme violates any condition of the licence or fails to offset the export obligation, he will be liable to action.