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.
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
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
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
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
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.
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
7 new markets are
being added to Focus Market Schemes (FMS). These countries are
Algeria, Aruba, Austria, Cambodia, Myanmar, Netherland, Antilles,
7 new markets are
being added to the Special Focus Market Scheme (Special FMS). These
countries are Belize, Chile, El Salvador, Guatemala, Honduras, Morocco
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).
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
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.
authorization is required for supply of comet items from DTA to SEZ
except a monthly report to be submitted by SEZ to Development
Ratification issued by
D.G.F.T. is now valid for 2 years instead of 1 year.
Policy is continued and the ceiling is same.
100% retention of Foreign Exchange in EFC A/c has withdrawn.