Highlights Pf Exim Policy 2009-14 Final

7/29/2019 Highlights Pf Exim Policy 2009-14 Final

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Incentive schemes under Chapter 3 havebeen expanded by way of addition of new

products and markets. 26 new markets have been added under

Focus Market Scheme (FMS).

Incentive available under FMS raised from2.5% to 3%.

Incentive available under Focus ProductScheme (FPS) raised from 1.25% to 2%.

Widens scope for products to be includedfor benefits under FPS. Additionalengineering products, plastic and someelectronics get a look in.


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Market Linked Focus Product Scheme

(MLFPS) expanded by inclusion of productslike pharmaceuticals, textile fabrics, rubberproducts, glass products, auto components,motor cars, bicycle and its parts.etc.

Benefits to these products will be provided,if exports are made to 13 identified markets(Algeria, Egypt, Kenya, Nigeria, SouthAfrica, Tanzania, Brazil, Mexico, Ukraine,

Vietnam, Cambodia, Australia and NewZealand).


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Common simplified application formintroduced for taking benefits under FPS,FMS, MLFPS and VKGUY.

Higher allocation for Market DevelopmentAssistance (MDA) and Market AccessInitiative (MAI)

To aid technological upgradation of exportsector, EPCG Scheme at Zero Duty hasbeen introduced

Jaipur, Srinagar and Anantnag have been

recognised asTownsof Export Excellencefor handicrafts; Kanpur,Dewas and Amburfor leather products; and Malihabad forhorticultural products.


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Export obligation on import of spares,moulds etc. under EPCG Scheme has been

reduced by 50%. Taking into account the decline in exports,

the facility of Re-fixation of Annual AverageExport Obligation for a particular financial

year in which there is decline in exportsfrom the country, has been extended forthe 5 year Policy period 2009-14. Support forGreen products and products from North

East Focus Product Scheme benefit extended

for export of green productsand someproducts from the North East.


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To accelerate exports and encouragetechnological upgradation, additional DutyCredit Scrips shall be given to Status Holders @

1% of the FOB value of past exports. The dutycredit scrips can be used for procurement ofcapital goods with Actual User condition. Thisfacility shall be available for sectors of leather(excluding finished leather), textiles and jute,

handicrafts, engineering (excluding Iron & steel& non-ferrous metals in primary andintermediate form, automobiles & twowheelers, nuclear reactors & parts, and ships,boats and floating structures), plastics and

basic chemicals (excluding pharma products)[subject to exclusions of current beneficiariesunder Technological Upgradation FundSchemes (TUFS)]. This facility shall be availableupto 31 March, 2011.


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Transferability for the Duty Credit scripsbeing issued to status holders under

paragraph 3.8.6 of FTP under VKGUYScheme permitted on condition thatscrips would be utilized for theprocurement of coldchain equipments

only.


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To impart stability to the Policy regime, DutyEntitlement Passbook (DEPB) Scheme isextended beyond 31-12-2009 till 31.12.2010.

Interest subvention of 2% for pre-shipmentcredit for 7 specified sectors has beenextended till 31.3.2010 in the Budget 2009-10.

Income Tax exemption to 100% EOUs and to

STPI units under Section 10B and 10A of IncomeTax Act, has been extended for the financialyear 2010-11 in the Budget 2009-10.

The adjustment assistance scheme initiated in

December, 2008 to provide enhanced ECGCcover at 95%, to the adversely affectedsectors, is continued till March, 2010.


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Fisheries have been included in the sectorswhich are exempted from maintenance of

average EO under EPCG Scheme, subjectto the condition that Fishing Trawlers, boats,ships and other similar items shall not beallowed to be imported under this provision.This would provide a fillip to the marinesector which has been affected by thepresent downturn in exports.

Additional flexibility under Target PlusScheme (TPS) / Duty Free Certificate ofEntitlement (DFCE) Scheme for StatusHolders has been given to Marine sector.


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To neutralize duty incidence on gold Jewelleryexports, it has now been decided to allow DutyDrawback on such exports.

In an endeavour to make India a diamondinternational trading hub, it is planned toestablish Diamond Bourse(s).

A new facility to allow import on consignmentbasis of cut & polished diamonds for the purpose

of grading/ certification purposes has beenintroduced.

To promote export of Gems & Jewelleryproducts, the 13 value limits of personal carriagehave been increased from $ 2 million to US$ 5million in case of participation in overseasexhibitions. The limit in case of personalcarriage, as samples, for export promotion tours,has also been increased from US$ 0.1 million toUS$ 1 million.


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To reduce transaction and handlingcosts, a single window system to

facilitate export of perishable agriculturalproduce has been introduced. Thesystem will involve creation of multi-functional nodal agencies to be

accredited by APEDA.


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Leather sector shall be allowed re-export

of unsold imported raw hides and skinsand semi finished leather from publicbonded ware houses, subject topayment of 50% of the applicable export

duty. Enhancement of FPS rate to 2%, would

also significantly benefit the leather

sector.


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Minimum value addition under advance

authorisation scheme for export of tea hasbeen reduced from the existing 100% to50%.

DTA sale limit of instant tea by EOU unitsincreased from 30% to 50%.

Export of tea has been covered underVKGUY Scheme benefits


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Export Obligation Period for advance

authorizations issued with 6-APA as inputincreased from existing 6 months to 36months.

Pharma sector extensively coveredunder MLFPS for countries in Africa andLatin America; some countries inOceania and Far East.


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To simplify claims under FPS, requirementof Handloom Mark for availing benefits

under FPS has been removed.


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EOUs have been allowed to sell productsmanufactured by them in DTA upto a limit of 90%instead of existing 75%, without changing the criteria

of similar goods, within the overall entitlement of50% for DTA sale. To provide clarity to the customs field formations,

DOR shall issue a clarification to enable procurementof spares beyond 5% by granite sector EOUs.

EOUs will now be allowed to procure finished goodsfor consolidation along with their manufacturedgoods, subject to certain safeguards.

During this period of downturn, Board of Approvals(BOA) to consider, extension of block period by oneyear for calculation of Net Foreign Exchange earning

of EOUs. EOUs will now be allowed CENVAT Credit facility for

the component of SAD and Education Cess on DTAsale.


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To encourage Value Added

Manufactured export, a minimum 15%value addition on imported inputs underAdvance Authorization Scheme has now

been prescribed. 42. Coverage of Project Exports and a

large number of manufactured goodsunder FPS and MLFPS.


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DEPB rate shall also include factoring ofcustom duty component on fuel wherefuel is allowed as a consumable inStandard Input-Output Norms.


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Payment of customs duty for Export Obligation(EO) shortfall under Advance Authorisation / DFIA/ EPCG Authorisation has been allowed by way ofdebit of Duty Credit scrips. Earlier the payment

was allowed in cashonly.

Import of restricted items, as replenishment, shallnow be allowed against transferred DFIAs, in linewith the erstwhile DFRC scheme.

Time limit of 60 days for re-import of exportedgems and jewellery items, for participation inexhibitions has been extended to 90 days in caseof USA.

Transit loss claims received from private approvedinsurance companies in India will now be allowedfor the purpose of EO fulfillment under ExportPromotion schemes. At present, the facility hasbeen limited to public sector general insurance

companies only.


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In cases, where RBI specifically writes off

the export proceeds realization, theincentives under the FTP shall now not berecovered from the exporters subject tocertain conditions.


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To facilitate duty free import of samples byexporters, number of samples/pieces hasbeen increased from the existing 15 to 50.Customs clearance of such samples shallbe based on declarations given by theimporters with regard to the limit of valueand quantity of samples.

To allow exemption for up to two stages

from payment of excise duty in lieu ofrefund, in case of supply to an advanceauthorisation holder (against invalidationletter) by the domestic intermediatemanufacturer. It wouldallow exemption for supplies made to amanufacturer, if such manufacturer in turnsupplies the products to an ultimateexporter. At present, exemption is allowed

upto one stage only.

G t fl ibilit h b itt d t ll


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Greater flexibility has been permitted to allowconversion of Shipping Bills from one ExportPromotion scheme to other scheme. Customsshall now permit this conversion within three

months, instead of the present limited period ofonly one month. To reduce transaction costs, dispatch of

imported goods directly from the Port to thesite has been allowed under Advance

Authorisation scheme for deemed supplies. Atpresent, the duty free imported goods couldbe taken onlyto the manufacturing unit of the authorisationholder or its supporting manufacturer.

Disposal of manufacturing wastes / scrap willnow be allowed after payment of applicableexcise duty, even before fulfillment of exportobligation under Advance Authorisation andEPCG Scheme.


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Regional Authorities have now been authorised toissue licences for import of sports weapons byrenowned shooters, on the basis of NOC from theMinistry of Sports & Youth Affairs. Now there will be no

need toapproach DGFT(Hqrs.) in such cases. 55. The procedure for issue of Free Sale Certificate

has been simplified and the validity of the Certificatehas been increased from 1 year to 2 years. This willsolve the problems faced by the medical devicesindustry.

56. Automobile industry, having their own R&Destablishment, would be allowed free import ofreference fuels (petrol and diesel), upto a maximumof 5 KL per annum, which are not manufactured in

India. 57. Acceding to the demand of trade & industry, the

application and redemption forms under EPCGscheme have been simplified.


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No fee shall now be charged for grant ofincentives under the Schemes in Chapter 3 ofFTP. Further, for all other 18 Authorisations/licence applications, maximum applicable fee

is being reduced to Rs. 100,000 from theexisting Rs 1,50,000 (for manual applications)and Rs. 50,000 from the existing Rs.75,000 (forEDI applications).

To further EDI initiatives, Export PromotionCouncils/ Commodity Boards have beenadvised to issue RCMC through a web basedonline system. It is expected that issuance ofRCMC would become EDI enabled before theend of 2009.

Electronic Message Exchange betweenCustoms and DGFT in respect of incentiveschemes under Chapter 3 will becomeoperational by 31.12.2009. This will obviate theneed for verification of scrips by Customsfacilitating faster clearances.

F EDI t ith ff t f D b 09


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For EDI ports, with effect from December 09,double verification of shipping bills by customsfor any of the DGFT schemes shall bedispensed with.

In cases, where the earlier authorization hasbeen cancelled and a new authorization hasbeen issued in lieu of the earlier authorization,application fee paid already for the cancelled

authorisation will now be adjusted against theapplication fee for the new authorisationsubject to payment of minimum fee of Rs 200.

An Inter Ministerial Committee will be formed to

redress/ resolve problems/issues of exporters. An updated compilation of Standard Input

Output Norms (SION) and ITC (HS) Classificationof Export and Import Items has been published.


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To enable support to Indian industry andexporters, especially the MSMEs, inavailing their rights through traderemedy instruments, a Directorate ofTrade Remedy Measures shall be set up.

Highlights Pf Exim Policy 2009-14 Final

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