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PROMOTIONAL MEASURES IN DEPARTMENT OF COMMERCE

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..... ort conclave. (iii) Equity participation in infrastructure projects including the setting up of SEZs. (iv) Meeting requiremens of capital outlay of EPIPs/EPZs/SEZs. (v) Development of complementary infrastructure such as, roads connecting the production centers with the ports, setting up of Inland Container Depots and Container Freight Stations. (vi) Stabilizing power supply through additional transformers and islanding of export production centre etc. (vii) Development of minor ports and jetties to serve export purpose. (viii) Assistance for setting up Common Effluent Treatment facilities and (ix) Any other activity as may be notified by DoC. Details of ASIDE Scheme are available at: http://www.commerce.nic.in 3.2 Market Access Initiative(MAI) (a) Under MAI scheme, Financial assistance is provided for export promotion activities on focus country, focus product basis. Financial assistance is available for Export Promotion Councils (EPCs), Industry and Trade Associations (ITAs), Agencies of State Government, Indian Commercial Missions (ICMs) abroad and other national level institutions/eligible entities as may be notified. (b) The activit .....

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..... ns of Export Excellence (TEE) (a) A number of towns have emerged as dynamic industrial clusters contributing handsomely to India s exports. It is necessary to grant recognition to these industrial clusters with a view to maximize their potential and enable them to move up the value chain and also to tap new markets. (b) Selected towns producing goods of Rs. 750 Crore or more will be notified as TEE based on potential for growth in exports. However for TEE in Handloom, Handicraft, Agriculture and Fisheries sector, threshold limit would be Rs 150 Crores. The following facilities will be provided to such TEE s: (i) Recognized associations of units will be provided financial assistance under MAI scheme, on priority basis, for export promotion projects for marketing, capacity building and technological services. (ii) Common Service Providers in these areas shall be entitled for EPCG scheme. (iii) The projects received from TEEs shall be accorded priority by SLEPC (State Level Export Promotion Committee) for financial assistance under ASIDE. (c) Notified Towns (TEEs) are listed in Appendix 7 of HBPv1. 3.6 Brand Promotion and Quality (a) IBEF (originally ca .....

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..... r recognition as a status holder. 3.10.2 Status Category Status recognition depends upon export performance. An applicant shall be categorized as status holder upon achieving export performance indicated in table below. The export performance will be counted on the basis of FOB value of export proceeds realized during current plus previous three years (taken together).For Export House (EH) Status, export performance is necessary in at least two out of four years. Status Category Export Performance FOB / FOR Value (Rupees in Crores) Export House (EH) 20 Star Export House (SEH) 100 Trading House (TH) 500 Star Trading House (STH) 2500 Premier Trading House (PTH) 7500 3.10.3 Double Weightage and other conditions for Grant of Status (a) Exporters in Small Scale Industry (SSI) / Tiny Sector / Cottage Sector, Units registered with KVICs / KVIBs, Units located in North Eastern States, Sikkim and Jammu Kashmir, Units .....

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..... eral Agreement on Trade in Services (GATS) are listed in Appendix 10 of HBP v1. If consideration is received in free foreign exchange, these would be considered as service exports. (b) All provisions of this Policy shall apply mutatis mutandis to export of services as they apply to goods. 3.11.2 Registration cum Membership Certificate (RCMC) for Service Providers Software exporters shall register themselves with Electronics and Software EPC. Exporters of 14 specific services listed at Sl. No. 22 of Appendix 2 of HBPv1 are required to register themselves with Services EPC. Other service exporters shall register themselves with Federation of Indian Export Organisations (FIEO). 3.11.3 Common Facility Centers Government shall promote establishment of Common Facility Centers, in State and District level towns, for use by home-based service providers, particularly in areas like Engineering Architectural Design, Multi-media operations, Software developers etc. to draw in a vast multitude of home-based professionals into services export arena. REWARD/INCENTIVE SCHEMES IN DGFT 3.12 SERVED FROM INDIA SCHEME (SFIS) 3.12.1 Objective Ob .....

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..... of Import/ domestic sourcing of motor cars, SUV s and all purpose vehicles as Professional Equipment by Hotels, Travel agents, Tour operators or tour transport operators and companies owning/operating golf resorts. Such vehicles (operating on road and requiring registration) will have to be registered for Tourist purpose only. Proof of registration will need to be submitted to RA concerned within 6 months of import/domestic procurement. ] (c) Duty Credit Scrip in case of hotels, clubs having residential facility of minimum 30 rooms, golf resorts and stand-alone restaurants having catering facilities, may also be used for import of consumables including food items and alcoholic beverages. 3.12.7 Non Transferability Entitlement /goods (imported / procured) shall be non-transferable (except within group company and managed hotels) and be subject to Actual User condition. 14 [However, these goods can be alienated on completion of 3 years from the date of import / procurement.] 3.12.8 Procurement from Domestic Sources Duty Credit Scrip shall be permitted to be utilised for payment of excise duty in terms of DoR notification issued in this behalf for procu .....

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..... ing etc.); for items notified in Appendix 37 F. (iii) Reefer Van / Containers; and (iv) Other Capital Goods / Equipment as may be notified in Appendix 37 F. (d) Imported capital goods/equipment shall be utilized for storage, packing etc. (as in (ii) above) and transportation of agricultural products (including agro- processed perishable products). (e) This additional benefit shall be subject to actual user condition and hence non-transferable. (f) For import of Cold Chain Equipment this Scrip shall be freely transferable amongst Status Holders as well as to Units (the term Units shall not include Developers) in the Food Parks. 9 [Transferability of the Agri Infrastructure Incentive Scrip shall be allowed to supporting manufacturer of the status holder. Such transferability would have to be endorsed on the Agri Infrastructure Incentive Scrip from relevant RA.] 3.14 FOCUS MARKET SCHEME (FMS) 3.14.1 Objective Objective of FMS is to offset high freight cost and other externalities to select international markets with a view to enhance India s export competitiveness in these markets. 3.14.2 Entitlement (a) Exporters of all p .....

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..... 18 [(i) Benefit of Incremental Export Incentivisation Scheme for the last quarter of 2012-13 will be limited to 25% growth or Incremental growth of Rs. 10 crores in value, whichever is less. (ii) Claims in excess of this value will be subjected to greater scrutiny by Regional Authority.] Eligibility Criteria (d) For the purpose of the scheme, export performance shall not be allowed to be transferred from any other IEC holder. Benefit under this scheme will not be allowed to an exporter who had made no export between 01/01/12 to 31/03/12 .The following exports shall not be taken into account for calculation of export performance or for computation of entitlement under the Scheme: (i) Export of imported goods or exports made through trans-shipment. (ii) Export from SEZ/ EOU /EHTP /STPI /BTP/FTWZ ( iii) Deemed Exports (iv) Service Exports (v) Third Party exports (vi) Diamond, Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery and other precious and semi-precious stones. (vii) Ores and concentrates of all types and in all fo .....

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..... subjected to greater scrutiny by Regional Authority.] Eligibility Criteria (d) For the purpose of the scheme, export performance shall not be allowed to be transferred from any other IEC holder. Benefit under the scheme will not be allowed to an exporter who had made no export during fiscal year 2011-12 and fiscal year 2012-13. The following exports shall not be taken into account for calculation of export performance or for computation of entitlement under the Scheme: (i) Export of imported goods or exports made through trans-shipment. (ii) Export from SEZ/ EOU /EHTP /STPI /BTP/FTWZ (iii) Deemed Exports (iv) Service Exports (v) Third Party exports (vi) Diamond, Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery and other precious and semi-precious stones. (vii) Ores and concentrates of all types and in all formations. (viii) Cereals of all types. (ix) Sugar of all types and all forms. (x) Crude / petroleum oil and crude / primary and base products of all types and all formulations. (xi) Export of milk and milk products. (xii) Export performance made by one exporter on behalf of other exporte .....

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..... when exported to the Linked Markets (countries), which are not covered in the present FMS list. Such products will be listed in Table 2 or Table 3 of Appendix 37D of HBPv1 , for exports made from 27.8.2009 onwards, unless a specific date of export/period is specified by public notice/notification.] 3.15.4 22 [ Incentive to the products listed in Table 3 will be in addition to any benefit which the same item may be entitled to under Table 1 or Table 2 of Appendix 37D . ] 3.16 Status Holders Incentive Scrip (SHIS) 3.16.1 (a) Objective of SHIS is to promote investment in upgradation of technology. (b) Status Holders of sectors specified in Para 3.16.4 below, shall be entitled to a Duty Credit Scrip @1% of FOB value of exports made during 2009-10, 2010-11,2011-12 and 2012-13. (c) Status Holders of additional sectors listed in Para 3.10.8 of HBPv1 2009-14 (RE-2010) shall also be eligible for this Status Holders Incentive Scrip on exports made during 2010-11, 2011-12 and 2012-13. (d) This shall be over and above any Duty Credit Scrip claimed/availed under this chapter. 3.16.2 Status Holders availing Technology Upgradation Fund Scheme .....

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..... hat exports originating in third country but transshipped through India; (iv) Deemed Exports; (v) Exports made by SEZ units or SEZ products exported through DTA units; and (vi) Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS). 3.17.3 Counting of Commission in FOB value of Exports (in free foreign exchange) FOB Value of Exports (in free foreign exchange) shall include up to 12.5% Foreign Agency Commission for computation of Duty Credit Scrip Benefit. 3.17.4 Free Transferability (a) Duty Credit Scrip (FPS including MLFPS, FMS and VKGUY) and items imported against it would be freely transferable. (b) Duty Credit Scrip under SFIS (Para 3.12) shall not be freely transferable. (c) Status Holder Incentive Scrip shall not be transferable except as permitted under Para 3.16.3 above. 3.17.5 Imports Allowed/Domestic Procurement (a) Duty Credit Scrip may be used for import of inputs or goods including capital goods, provided same is freely importable and / or restricted under ITC (HS). However, import of items listed in Appendix 37B of HBPv1 shall not be permitted to be debited. (b) Duty .....

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..... hall be required to be paid in cash. 19 [Scrips issued under SHIS, SFIS and AIIS cannot be utilised / debited for payment of Custom Duties in case of EO defaults for Authorizations issued under Chapters 4 of this Policy . ] 13 [Duty credit scrips can be used for payment of composition fee under FTP, for payment of application fee under FTP , if any and for payment of value shortfall in EO under para 4.28 (b) of HBP v1 2009-14 .] ------------------- Notes:- 1. Inserted vide Notification No: 27(RE-2012)/2009-2014, Dated 28/12/2012 2. Inserted vide Notification No: 27(RE-2012)/2009-2014, Dated 28/12/2012 3. Inserted vide Notification No: 27(RE-2012)/2009-2014, Dated 28/12/2012 4. A dded vide Notification No: 3 (RE-2013)/2009-2014 dated 18/4/2013 5. A dded vide Notification No: 3 (RE-2013)/2009-2014 dated 18/4/2013 6. A dded vide Notification No: 3 (RE-2013)/2009-2014 dated 18/4/2013 7. A dded vide Notification No: 3 (RE-2013)/2009-2014 dated 18/4/2013 8. Deleted vide Notification No: 3 (RE-2013)/2009-2014 dated 18/4/2013 , before it was read as, Applicability of Reduced R .....

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