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`Extend DEPB scheme without any terminal date'
February, 10th 2007
The Federation of Indian Export Organisations (FIEO) has urged the Government to extend the duty entitlement passbook (DEPB) scheme without any terminal date.

The Revenue Department had specified that the DEPB scheme, which serves over 50 per cent of the country's merchandise exports, would be valid only up to March 31, 2007.

India's merchandise exports are expected to cross $125 billion this year.

Future Orders

The FIEO President, Mr Ganesh Kumar Gupta, said in a statement that small and medium exporters would be particularly affected in the absence of any decision on extending the scheme.

He highlighted that exporters would not be able to do their costing for future shipments if there was uncertainty on this front. "Such unstable policy regime does not augur well for exports," Mr Gupta said.

Alternatively, the FIEO President has suggested that the DEPB scheme could be withdrawn after one year from the date of announcement of the new scheme.

"Such an optional arrangement would provide adequate time to the exporters to adopt the new scheme and do their costing for future orders," he said.

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