Restoration of DEPB Rates w.e.f. 5.1.2008

No. CLE/POL/DEPB/2009                                                
January 5, 2009

Members of the Council

Sub : Second Economic Stimulus package announced by Government of India – restoration of DEPB rates – reg.

Dear Member

Your kind attention is invited to the Council’s circular dated Jan. 3, 2009 informing about the details of announcements made in Second Economic Stimulus package announced by Government of India on Jan. 2, 2009. One of the announcements made was to restore DEPB rates to those prevailing prior to November 2008 and to extend the DEPB Scheme till 31.12.2009.

The Director General of Foreign Trade (DGFT) has now issued a Public Notice No. 124 dated 3.1.2009 (copy enclosed) withdrawing the amendments made in DEPB rates for certain items notified vide Public Notice No. 102 dated 5.11.2008 and restoring DEPB rates notified prior to 5.11.2008 for such items. You are aware that the DGFT Public Notice No. 102 dated 5.11.2008 reduced the DEPB rates for the certain items concerning leather sector by 1%. These items were Gents leather Sandals with PU Soles/ Rubber sole/PVC Soles; Ladies leather shoe/ boot uppers; Ladies Rubber and Canvas shoes with moulded soles including in CKD/SKD; Rubber and Canvas footwear with rolled soles ; Sports shoes with leather upper and moulded sole/ PVC sole including in CKD/SKD and PU Unit sole. The Council has since represented the issue to the Government requesting for restoration of old DEPB rates.

Now, on account of issue of the Public Notice No. 124, the DEPB rates for leather and leather products have been restored prior to 5.11.2008 i.e to the DEPB rates notified by Public Notice No. 17 dated 12.7.2007. Thus, the 1% reduction in DEPB rates for certain products as mentioned above, has now been withdrawn with effect from 5.11.2008.

The DEPB rates for leather and leather products  as notified by Public Notice No. 17 dated 12.7.2007 are enclosed herewith for information of members.
 
The DGFT has also issued a Public Notice No. 125/2008 extending the DEPB scheme till 31.12.2009 (copy enclosed).

Member exporters may kindly note the above

With regards
Yours sincerely


ALI AHMED KHAN
EXECUTIVE DIRECTOR
COUNCIL FOR LEATHER EXPORTS

Circular1

Circular2