It aims at neutralising the incidence of customs duty and surcharge thereon on the import content of the export product. This neutralisation is provided by way of grant of duty credit on the deemed import content in the export product as per Standard input output norms and considering the value addition achieved. This scheme is allowed to be operated on pre and post export basis by a manufacturer exporter and merchant exporter. The scheme allows exporter to claim credit of customs duty at a specified percentage of the f.o.b. value of the exports made in freely convertible currency. DGFT issues public notice featuring eligible products along with the credit rates under this scheme. Although items outside the restricted list can be exported without Customs duty, DEPB holder may pay additional customs duty in cash, if any. (vide MoF Customs Notification No. 34/97 - Cus. Dated 7.4.1997 and Circular No. 10/97-Cus. Dt.17.4.1997). Third party exports are also permissible for grant of credit under this scheme and DEPB is valid for 12 months from the date of issue