New Delhi, July 18 (PTI): The CAG said there were lacunae in the implementation, monitoring and compliance of the Duty Entitlement Passbook Scheme (DEPB).
The CAG said despite earlier reports of the auditor, the scheme’s implementation remained in policy misinterpretations and malfunctions.
The CAG said the Directorate General of Foreign Trade did not carry out any outcome assessment of the efficacy of the scheme. There was also no revenue impact assessment before implementing the scheme on import duty neutralisation and financial benefits accrued to the beneficiaries.
The report also suggested that internal control and audit systems of regional authorities, customs and ports need strengthening for efficient implementation, monitoring and outcome of the incentive schemes.
DEPB, an export incentive, was implemented in April 1997. It initially had two sub-schemes — pre-export DEPB and post-export DEPB. The pre-export DEPB was abolished in April 2000 and the post-export scheme was phased out in September 2011.