It has come to the notice of the Directorate of Drawback that M/s Marina Shoes Ltd., Chennai was wrongfully availing DEPB Credit on Leather Shoes exported by them. The modus operandi adopted by the exporter in this regard was that they imported Unit Soles under the DFRC Scheme availing exemption from basic customs duty. These inputs were subsequently used in their export product Leather Full Shoes exported under DEPB-cum-Drawback Shipping Bills intending to avail DEPB benefit wrongfully as they had not paid basic Customs Duty on Unit Soles which were imported duty free under DFRC Scheme.

This modus operandi is brought to your notice to prevent its recurrence. It may be noted that in such cases if DEPB scrips have already been verified and registered at your Port and imports have been allowed against them then recoveries of the DEPB benefits wrongfully availed may be made in this regard.

Sd/-
(Alok Jha)
Under Secretary to the Government of India
F.No. 601/6401/128/2002-DBK