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No DEPB credit for exports through land customs: Govt

Our Bureau

NEW DELHI, May 20

THE Government has ruled out grant of export benefits such as duty entitlement pass book (DEPB) credit on exports made to Nepal, Bangladesh and Pakistan through the land customs route.

``Export benefits for exports through land borders cannot be possible,'' Mr N.L. Lakhanpal, Director-General of Foreign Trade (DGFT) told members of the Federation of Indian Export Organisations (FIEO) at a Open House on Exim Policy here.

A FIEO member suggested that exports to neighbouring countries - wherever bilateral trade agreement exists and payments for transactions are received in convertible foreign currency - should be at par with other countries, as regards the availing of expo rt benefits.

It had been suggested that Government should consider inclusion of all important land customs stations such as Jaigoan, Sunauli, Raxaul, Jogbani, Amritsar, Mahadipur, Phulwai in the list of ports specified under para 7.19 of the Handbook of Procedures so that supplies made through them would qualify for the export benefits.

The FIEO member contended that many Indian companies have secured export orders for supply of electrical equipment to the Government of Bhutan under the International Competitive procedure financed by ADB against competition from the companies from China , UK and Taiwan.

``All exports are to be made through Jaigaon Land Customs. However, Jaigaon Land Customs is not in the list of notified ports under para 7.19 of the Handbook of Procedure for availing export benefits such as DEPB. This would affect the competitive streng th of Indian project exporters vis-a-vis those of other countries,'' the FIEO member pointed out.