Curbing DEPB misuse: Export valuation rules soon

New Delhi, Sept. 5 The Finance Ministry plans to soon come up with export valuation rules to ensure that there is no misuse of existing duty entitlement passbook (DEPB) or drawback schemes and also to curb money laundering through merchandise export activities.

Official sources said that the rule making process was at the last and final stage and they would soon be notified. The Central Board of Excise and Customs (CBEC) had in March this year come up with draft export valuation rules.

The exporting community had, however, opposed the introduction of such rules.
No EXISTING law Currently, the country does not have any specific export valuation rules under customs legislation. The Union Finance Minister, Mr P. Chidambaram, had in Budget 2007-08 announced that “transaction value” and “not deemed value” would be the basis for valuation of exports. The transaction value is to be determined in accordance with the rules to be framed in this regard.

India’s merchandise trade touched $125 billion in 2006-07. For 2007-08, the merchandise export target has been pegged at $160 billion.