Annual Supplement 2008-09 to Foreign Trade Policy 2004-09

Members of the Council.

Sub : Annual Supplement 2008-09 to Foreign Trade Policy 2004-09

Dear Members,

The Annual Supplement 2008-09 to the National Foreign Trade Policy (2004-09) was announced by Shri Kamal Nath, Hon’ble Union Minister for Commerce & Industry on April 11, 2008. 

As per the Annual Supplement 2008-09, Leather Sector continues to be classified as a Focus Sector for availing Special Focus Initiatives in the Foreign Trade Policy.  As a result, the major measures announced earlier for the leather sector under the Special Focus Initiatives will continue to be implemented. They are the 3% Duty Free Import Scheme (DFIS); exemption of basic customs duty for machinery and equipment for effluent treatment plants ; CVD exemption on lining and interlining materials as notified at serial no. 168 of Customs Notification No. 21/2002 and CVD exemption on raw, tanned and dressed fur skins falling under Chapter 43 of ITC (HS).

Other major  measures announced are the continuation of DEPB scheme till May 2009, reduction of customs duty under EPCG scheme from 5% to 3% , enhancement of duty credit scrip value under Focus Product Scheme from 1.25% to 2.5% for high value added manufactured products and enhancement of limit for duty free import of samples from Rs.75,000/- to Rs.1,00,000/-. Besides, certain measures have been announced to reduce transaction cost of the exporters and to ensure procedural simplication.

The Council had earlier submitted detailed proposals to the Government seeking duty concessions and procedural simplifications, which have been considered in this Annual Supplement to some extent.

The highlights of the  Annual Supplement 2008-09 to the National Foreign Trade Policy (2004-09)  are enclosed herewith for ready reference of members.  The various suggestions of the Council which were considered partially in the Annual Trade Supplement have been given in a tabulated form in the highlights.

The detailed Annual Supplement is hosted in the website of Director General of Foreign Trade (www.dgft.delhi.nic.in or www.dgftcom.nic.in ), which members may refer.

With regards

Elangovan K
Executive Director

Circular