EPCG Scheme Relaxations

1. To enhance the life of prevailing plant and machinery, export obligation on import of spares, moulds, etc., under EPCG Scheme has been decreased to 50% of the normal specific export obligation.

2. Taking into consideration the decline in exports, the facility of Re-fixation of Annual Average Export Obligation for a specific financial year in which there is decrease in exports from the country, has been expanded for the Five year Policy period 2009-14.

 


Stability/Continuity of the Foreign Trade Policy

1. Income Tax exemption to 100% EOUs and to STPI units under Sections 10B and 10A of Income Tax Act has been expanded for the financial year 2010-11 in the Budget 2009-10.

2. Fisheries have been involved in the sectors which are exempted from maintenance of average EO under EPCG Scheme, subject to the circumstance that Fishing Trawlers, boats, ships and other similar items shall not be permitted to be imported under this provision. This would offer a fillip to the marine sector which has been influenced by the current downturn in exports.

3. Extra flexibility under Target plus Scheme (TPS)/Duty-Free Certificate of Entitlement (DFCE) Scheme for Status Holders has been offered to the Marine sector.

Notes: The Hon’ble Union Commerce & Industry Minister Mr Anand Sharma announced the new Foreign Trade Policy 2009–2014 in New Delhi on 27th August, 2009. Mr Jyothiraditya Madhavrao Scindia, Minister of State for Commerce; Dr Rahul Khullar, Commerce Secretary, Ministry of Commerce & Industry and other dignitaries were present on the occasion.

 

Gems and Jewellery Sector

1. In an effort to make India a diamond international trading hub, it is arranged to set up a ‘Diamond Bourse(s)’.

2. A new facility to permit import on consignment basis of cut and polished diamonds for the motive of grading/certification has been launched.

3. To encourage the export of Gems and Jewellery products, the value limits of personal carriage have been raised from US$ 2 million to US$ 5 million in instance of participation in overseas exhibitions. The limit in instance of personal carriage, as samples, for export promotion tours, has also been raised from US$ 0.1 million to US$ 1 million.

 

Agriculture Sector

1. To decrease transaction and handling costs, a single window system to enable the export of perishable agricultural produce has been launched. The system will include creation of multi-functional nodal agencies to be recognized by APEDA.

 

Leather Sector

1. Leather sector shall be permitted re-export of unsold imported raw hides and skins and semi-finished leather from public bonded warehouses, dependent on payment of 50% of the applicable export duty.

2. Enhancement of FPS rate to 2% would also vitally benefit the leather sector.

 

Tea

1. Minimum value addition under Advance Authorisation Scheme for export of tea has been decreased from the prevailing 100% to 50%.

2. DTA sale limit of immediate tea by EOU units has been enhanced from the prevailing 30% to 50%.

3. Export of tea has been included under VKGUY Scheme benefits.

 

Pharmaceutical Sector

1. Export Obligation Period for Advance Authorization published with 6-APA as input has been increased from the prevailing six months to 36 months, as is accessible for other products.

2. Pharma sector has been widely covered under MLFPS for countries in Africa and Latin America and for few countries in Oceania and Far East.

 

EOUs

1. EOUs have been permitted to sell products manufactured by them in DTA up to a limit of 90% instead of existing 75%, without altering the criteria of ‘similar goods’, inside the total entitlement of 50% for DTA sale.

2. To offer clarity to the customs field formations, DOR shall issue a clarification to facilitate the procurement of spares outside 5% by granite sector EOUs.

3. EOUs will now be permitted to procure finished goods for consolidation along with their manufactured goods, subject to specific safeguards.

4. EOUs will now be permitted CENVAT Credit facility for the component of SAD and Education Cess on DTA sale.

 

Simplification of Procedures

1. To enable duty-free import of samples by exporters, number of samples/pieces has been enhanced from the prevailing 15 to 50. Customs clearance of such samples shall be based on declarations provided by the importers with respect to the restriction of value and quantity of samples.

2. To permit exemption for up to two stages from payment of excise duty in place of refund, in case of supply to an Advance Authorisation holder (as opposed to invalidation letter) by the domestic intermediate manufacturer. It would permit exemption for supplies made to a manufacturer, in case such manufacturer, in turn, supplies the products to a final exporter. At present, exemption is permitted up to one stage only.

3. Greater flexibility has been allowed to permit conversion of Shipping Bills from one Export Promotion Scheme to other scheme. Customs shall now allow this conversion within three months, rather than the present limited period of only one month.

4. To decrease transaction costs, dispatch of imported goods straight away from the Port to the site has been permitted under Advance Authorisation scheme for deemed supplies. Currently, the duty-free imported goods could be taken only to the manufacturing unit of the authorisation holder or its supporting manufacturer.

5. Regional Authorities have now been sanctioned to issue licences for the import of sports’ weapons by ‘renowned shooters’, based on NOC from the Ministry of Sports & Youth Affairs. At present there will be no requirement to approach DGFT (Hqrs.) in such cases.

6. Automobile industry, having their own R&D establishment, would be permitted free import of reference fuels (petrol and diesel), up to a maximum of 5 KL per annum, which are not generated in India.

 

Directorate of Trade Remedy Measures

1. To facilitate support to Indian industry and exporters, particularly the MSMEs, in availing their rights via trade remedy instruments, a Directorate of Trade Remedy Measures shall be established.

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