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HIGHLIGHT OF THE IMPORT EXPORT POLICY

1. EPCG ZERO (0%) DUTY CONTINUE UPTO MARCH, 2013

2. CHAPTER 3 BENEFITS CONTINUED

3. ADVANCE AUTHORIZATION VALID UPTO 18 MONTHS ONLY.

EPCG Scheme

Import of machinery

under zero percent duty is continued upto 31st March, 2013.

The Textile sector can

avail 0% duty scheme, if the exporter will refund such benefit availment

under TUFS and also they are eligible for the EPCG if the machinery is

not covered under TUF.

The Government has

introduced new EPCG Scheme i.e. Post Export Duty Credit Scheme. In

the said provision the manufacturer can pay the full duty at the time of

import and after fulfill 85% E.O. they can apply for remittance and it is

freely transferrable duty credit scrip.

The Government has

given additional incentive for the unit located in north east region such

as Assam, Sikkim, Arunachal Pradesh etc. for import if Capital Goods

under EPCG

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In case of any exporter

has availed zero percent duty EPCG Authorization during the year they

shall not be eligible for SHIS for exports made during that particular

year.

CHAPTER 3

All Incentive Schemes

are continued such as Focus Product Scheme, Focus Market Scheme,

VKGUY, MLFPS, SHIS and SFIS.

Status Holder Incentive

Scheme (SHIS) 1% claim of export machinery is continued and also

there is no any changes in eligible sector.

The said scheme is

allowed only to the sector already mentioned in the Hand Book / Policy

Book.

The duty credit against

all the schemes can now be utilized for payment of import as well as

Excise duty (procurement of raw material / machinery from indigenous

manufacturers.

SHIS which is issued

with AU condition and now be made transferable provided the said

SHIS duty credit certificate is transferred to another Status Holder who

is also a manufacturer.

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Requirement of

Declaration of Intend for claiming benefit under Chapter 3 is dispensed

with immediate effect.

Incentives for Promoting Investment in Labour Intensive Sectors

Status holders are

issued Status Holders Incentive Scrip (SHIS) to import Capital goods for

promoting investment in up-gradation of technology of some specified

labour intensive sectors like Leather, Textile & Jute, Handicrafts,

Engineering, Plastics and Basic Chemicals. It is now decided that up to

10% of the value of these scrips will be allowed to be utilized to import

components and spares of capital goods imported earlier. Such a

dispensation was not available earlier.

Encouragement for Manufacturing Sector in Domestic Market

The present Policy

allows scrips under different schemes of Chater 3 of Foreign Trade

Policy. For import of goods as per conditions of these schemes, Now

these scrips shall be permitted to be utilized for payment of Excise Duty

for domestic procurement. Now all scrips would be permitted to source

from domestic market so as to encourage manufacturng, value addition

and employment.

7 new markets are

being added to Focus Market Schemes (FMS). These countries are

Algeria, Aruba, Austria, Cambodia, Myanmar, Netherland, Antilles,

and Ukraine.

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7 new markets are

being added to the Special Focus Market Scheme (Special FMS). These

countries are Belize, Chile, El Salvador, Guatemala, Honduras, Morocco

and Uruguay.

46 new items are being

added to Market Linked Focus Product Scheme (MLFPS). This would

have the effect of including 12 new markets for the first time.

MLFPS is being

extended till 31st March 2013 for export to USA and EU in respect of

items falling in Chapter 61 and Chapter 62.

110 new items are

being added to the Focus Product Scheme (FPS) list.

2 new items are being

added to VKGUY. These are roasted cashew kernel, and protein

concentrates & textured protein substances.

3 new towns are being

declared as Towns of Export Excellence (TEE). These are Ahmedabad

(Textiles), Kolhapur (Textiles), and Shaharanpur (Handicrafts).

Advance Authorization

Value Addition against Advance Authorization is same i.e. 15% V.A.

All licence including

Advance Authorization is now valid upto 18 months for export. For

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import, the licence is valid for 12 months or upto 31/03/2014 from issue

date whichever is more.

Duty free import of

samples up to Rs.1.00 lakh for all exporters and Rs. 3.00 Lakhs for

exporters of Gem & jewellery sector.

No export

authorization is required for supply of comet items from DTA to SEZ

except a monthly report to be submitted by SEZ to Development

Commissioner.

Ratification issued by

D.G.F.T. is now valid for 2 years instead of 1 year.

Export House

Policy is continued and the ceiling is same.

100% retention of Foreign Exchange in EFC A/c has withdrawn.