|
1 EPCG scheme
(a) The scheme shall now allow import of capital goods for pre-production and post-production facilities also.
(b) The Export Obligation under the scheme shall now be linked to the duty saved and shall be 8 times the duty saved.
(c) To facilitate upgradation of existing plant and machinery, import of spares shall also be allowed under the scheme.
(d) To promote higher value addition in exports, the existing condition of imposing an additional Export Obligation of 50% for products in the higher product chain to be done away with.
(e) Greater flexibility for fulfillment of export obligation under the scheme by allowing export of any other product manufactured by the exporter. This shall take care of the dynamics of international market.
(f) Capital goods upto 10 years old shall also be allowed under the scheme.
(g) Royalty payments received from abroad and testing charges received in free foreign exchange to be counted for discharge of export obligation under EPCG scheme.
2
DFRC Scheme
(a) Duty Free Replenishment Certificate scheme extended to deemed exports to provide a boost to domestic manufacturer.
(b) Value addition under DFRC scheme reduced from 33% to 25%.
3 DEPB Scheme
(a) Facility for provisional DEPB rate introduced to encourage diversification and promote export of new products.
(b) DEPB rates rationalised in line with general reduction in Customs duty.
4 Advance License
(a) Advance Licensing Scheme continues
(b) Annual Advance License facility introduced to status holders to enable them to plan for their imports of raw material and components on an annual basis and take advantage of bulk purchases.
(c) Anti-dumping and safeguard duty exemption to advance license for deemed exports for supplies to
EOU/SEZ/EHTP/STP
5 Benefit to Status Holders
Duty-free import entitlement for status holders having incremental growth of more than 25% in FOB value of exports (in free foreign exchange).
This facility shall however be available to status holders having a minimum export turnover of Rs.25 crore (in free foreign exchange). The duty free entitlement shall be 10% of the incremental growth in exports and can be used for import of capital goods, office equipment and inputs for their own factory or the factory of the associate/supporting manufacturer/job worker. The entitlement/ goods shall not be transferable. This facility shall be available on the exports made from 1.4.2003.
6 Reduction of Transaction Cost
(a) High priority being accorded to the EDI implementation programme covering all major community partners in order to minimize transaction cost, time and discretion. We are now gearing ourselves to provide on line approvals to exporters where exports have been effected from 23 EDI ports.
(b) Online issuance of Importer-Exporter Code (IEC) number by linking the DGFT EDI network with the Income Tax PAN database is under progress.
(c) Applications filed electronically shall have a 50% lower processing fee as compared to manual applications.
7 Special Economic Zones Scheme
(a) Sales from Domestic Tariff Area (DTA) to SEZs to be treated as export. This would now entitle domestic suppliers to Drawback/ DEPB benefits, CST exemption and Service Tax exemption.
(b) Foreign bound passengers will now be allowed to take goods from SEZs to promote trade, tourism and exports.
(c) Domestic sales by SEZ units will now be exempt from SAD.
(d) Restriction of one year period for remittance of export proceeds removed for SEZ units.
(e) Netting of export permitted for SEZ unit provided it is between same exporter and importer over a period of 12 months.
(f) SEZ units permitted to take job work abroad and exports goods from there only.
(g) SEZ units can capitalize import payables.
(h) Export/import of all products through post parcel/courier by SEZ units will now be allowed.
(i) The value of capital goods imported by SEZ units will now be amortized uniformly over 10 years.
(j) SEZ units will now be allowed to sell all products through exhibitions and duty free shops or shops set up abroad
(k) Goods required for operation and maintenance of SEZ units will now be allowed duty free.
8 EOU Scheme
(a) EOUs are now required to be only net positive foreign exchange earner and there will now be no export performance requirement.
(b) Foreign bound passengers will now be allowed to take goods from EOUs to promote trade, tourism and exports.
(c) The value of capital goods imported by EOUs will now be amortized uniformly over 10 years.
(d) Period of utilisation of raw materials prescribed for EOUs increased from 1 year to 3 years.
(e) Export/import of all products through post parcel/courier by EOUs will now be allowed.
(f) EOUs will now be allowed to sell all products through exhibitions and duty free shops or shops set up abroad
9 Export Clusters
(a) Upgradation of infrastructure in existing clusters/industrial locations under the Department of Industrial Policy & Promotion (DIPP) scheme to increase overall competitiveness of the export clusters.
(b) Supplemental efforts to be made under the ASIDE scheme and similar schemes of other Ministries to bridge technology and productivity gaps in identified clusters.
(c) 10 such clusters with high growth potential to be reinvigorated based on a participatory approach.
10 Miscellaneous
(a) Actual user condition for import of second hand capital goods upto 10 years old dispensed with.
(b) Reduction in penal interest rate from 24% to 15% for all old cases of default under Exim Policy.
(c) Restriction on export of warranty spares removed.
(d) IEC holder to furnish online return of imports/exports made on yearly basis.
(e) Export of ‘free of cost’ goods for export promotion @ 2% of average annual exports in preceding three years, subject to ceiling of Rs.5 lakh permitted
|
