New Delhi, Sept 21: The Federation of Indian Export Organisations on Saturday said the government should immediately withdraw its circular which stipulates that Duty Entitlement Passbook (DEPB) credit should be given on the basis of present market value, saying the move would adversely hit exports. The Finance Ministry had in a circular dated September 9, stated that the PMV would be made the basis for granting of duty refund to exporters under the Duty Entitlement Passbook scheme.
"Such circulars as the Department of Revenue has issued, would greatly depress the exporters as their thin profit margin largely consists of duty refund," P D Patodia, president of FIEO said in a statement.
Patodia said value-added products and products of cottage industries particularly could suffer a great deal as it is difficult to assess PMV correctly in their case.

"The move to apply this principle (of PMV) even to export products having their DEPB rates less than 10 per cent would dampen exports of such items as they would become uncompetitive in the global market," he said.
He further said that by issuing the circular the department has actually authorised the Customs to go against the exim policy which clearly stipulates that PMV declaration would not be applicable in the case of products for which a value cap exists.
Bureau Report