1B.1
Special Focus Initiatives |
(a) With a view to continously increasing our percentage share of global
trade and expanding employment opportunities, certain special focus initiatives
have been identified/continued for Market Diversification, Technological
Upgradation, Support to status holders, Agriculture, Handlooms, Handicraft,
Gems & Jewellery, Leather, Marine, Electronics and IT Hardware manufacturing
Industries, Green products, Exports of products from North-East, Sports
Goods and Toys sectors. Government of India shall make concerted efforts
to promote exports in these sectors by specific sectoral strategies that
shall be notified from time to time. |
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(b) Further Sectoral Initiatives in other sectors will also be announced
from time to time. |
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(i) Market Diversification |
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During 2008-09 to 2011-12, weaker demand in developed economies, triggered
by falling asset prices and increased economic uncertainty had pulled down
the growth of India's exports to developed countries. To insulate Indian
exports from the decline in demand from developed countries, in this Policy
focus is on diversification of Indian exports to other markets, specially
those located in Latin America, Africa, parts of Asia and Oceania. To achieve
diversification of Indian exports, following initiatives have been taken
under this Policy. |
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(a) 29 new countries have been included within the ambit of Focus Market
Scheme. |
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(b) The incentives provided under Focus Market Scheme have been increased
from 2.5% to 3%. |
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(c) There has been a significant increase in the outlay under 'Market
Linked Focus Product Scheme' by inclusion of more markets and products.
This ensures support for exports to all countries in Africa and Latin America,
and major Asian markets like China and Japan. |
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(ii) Technological Upgradation |
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To usher in the next phase of export growth, India needs to move up
in the value chain of export goods. This objective is sought to be achieved
by encouraging technological upgradation of our export sector. A number
of initiatives have been taken in this Policy to focus on technological
upgradation; such initiatives include: (a) EPCG Scheme at zero duty has
been introduced for certain engineering products, electronic products, basic
chemicals and Pharmaceuticals, apparel and textile, plastics, handicrafts,
chemicals and allied products and leather and leather products. This scheme
is being expanded to cover more export product groups including marine products,
sports goods, toys, rubber & rubber products, additional chemicals / allied
products and additional engineering products. The scheme is also being extended
upto 31.3.2013. |
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(b) The existing 3% EPCG Scheme has been considerably simplified, to
ease its usage by the exporters. |
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(c) The facility of EPCG Scheme for Annual Requirement has been introduced
to reduce documentation and transaction time. |
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(d) To encourage value added manufacture export, a minimum 15% value
addition on imported inputs under Advance Authorisation Scheme has been
stipulated. |
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(e) A number of products including automobiles and other engineering
products have been included for incentives under Focus Product and Market
Linked Focus Product Schemes. |
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(f) Steps to encourage Project Exports shall be taken. |
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(iii) Support to status holders |
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The Government recognized 'Status Holders' contribute approx. 60% of
India's goods exports. To incentivise and encourage the status holders,
as well as to encourage Technological upgradation of export production,
additional duty credit scrip @ 1% of the FOB value of past export shall
be granted for specified product groups including leather, specific sub-sectors
in engineering, textiles, plastics, handicrafts and jute. This duty credit
scrip can be used for import / domestic procurement of capital goods by
these status holders. The SHIS scrip shall be subject to actual user condition.
However, transferability amongst status holders having manufacturing facility
has been allowed. The status holder incentive scrip scheme has been expanded
to cover more export product groups including marine products, sports goods,
toys, specified chemicals and allied products and additional engineering
products. The scheme is also being extended upto 31.3.2013. |
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(iv) Agriculture and Village Industry |
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(a) Vishesh Krishi and Gram Udyog Yojana |
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(b) Capital goods imported under EPCG will be permitted to be installed
anywhere in AEZ. |
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(c) Import of restricted items, such as panels, are allowed under various
export promotion schemes. |
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(d) Import of inputs such as pesticides are permitted under Advance
Authorisation for agro exports. |
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(e) New towns of export excellence with a threshold limit of Rs 150
crore shall be notified. |
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(f) Additional flexibility for agri-infra scrip by way of limited transferability
to other status holders and the units in Food Parks allowed. |
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(g) List of items allowed for import for "Park Houses" notified in Appendix
37 F. |
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(v) Handlooms |
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(a) 2% bonus benefits under focus product shceme. |
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(b) Specific funds are earmarked under MAI / MDA Schemes for promoting
handloom exports. |
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(c) Duty free import entitlement of specified trimmings and embellishments
is 5% of FOB value of exports during previous financial year. Handloom made-ups
have also been included for the entitlement. |
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(d) Duty free import entitlement of hand knotted carpet samples is 1%
of FOB value of exports during previous financial year. |
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(e) Duty free import of old pieces of hand knotted carpets on consignment
basis for re-export after repair is permitted. |
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(f) New towns of export excellence with a threshold limit of Rs 150
crore shall be notified. |
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(g) Machinery and equipment for effluent treatment plants is exempt
from customs duty. |
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(vi) Handicrafts |
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(a) Duty free import entitlement of tools, trimmings and embellishments
is 5%of FOB value of exports during previous financial year. Entitlement
is broad banded, and shall extend also to merchant exporters tied up with
supporting manufacturers. |
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(b) Handicraft EPC is authorized to import trimmings, embellishments
and consumables on behalf of those exporters for whom directly importing
may not be viable. |
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(c) Specific funds are earmarked under MAI & MDA Schemes for promoting
Handicraft exports. |
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(d) CVD is exempted on duty free import of trimmings, embellishments
and consumables. |
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(e) New towns of export excellence with a reduced threshold limit of
Rs 150 crore shall be notified. |
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(f) Machinery and equipment for effluent treatment plants are exempt
from customs duty. |
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(g) All handicraft exports would be treated as special Focus products
and entitled to higher incentives. |
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(h) In addition to above, 2% bonus benefits under Focus Product Scheme
for Handicraft exports. |
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(vii) Gems & Jewellery |
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(a) Import of gold of 8k and above is allowed under replenishment scheme
subject to import being accompanied by an Assay Certificate specifying purity,
weight and alloy content. |
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(b) Duty Free Import Entitlement (based on FOB value of exports during
previous financial year) of |
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Consumables, Tools and additional items allowed for: |
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(i) Jewellery made out of: a) Precious metals (other than Gold & Platinum)-
2% b) Gold and Platinum-1% c) Rhodium finished Silver-3% |
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(ii) Cut and Polished Diamonds - 1 % |
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(c) Duty free import entitlement of commercial samples shall be Rs.
300,000. |
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(d) Duty free re-import entitlement for rejected jewellery shall be
2% of FOB value of exports. |
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(e) Import of Diamonds on consignment basis for Certification/ Grading
& re-export by the authorized offices/agencies of Gemological Institute
of America (GIA) in India or other approved agencies will be permitted.
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(f) Personal carriage of Gems & Jewellery products in case of holding/participating
in overseas exhibitions increased to US$ 5 million and to US$ 1 million
in case of export promotion tours. |
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(g) Extension in number of days for re-import of unsold items in case
of participation in an exhibition in USA, increased to 90 days. |
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(h) In an endeavour an endeavour to make India a diamond international
trading hub, it is planned to establish "Diamond Bourse(s)". |
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(viii) Leather and Footwear |
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(a) Additional 2% bonus benefits under Focus Product Scheme. |
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(b) Finished Leather exports to be incentivised under Focus Product
Scheme. |
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(c) Duty free import entitlement of specified items is 3% of FOB value
of exports of leather garments during preceding financial year. |
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(d) Duty free entitlement for import of trimmings, embellishments and
footwear components for footwear (leather as well as synthetic), gloves,
travel bags and handbags is 3% of FOB value of exports of previous financial
year. Such entitlement shall also cover packing material, such as printed
and non-printed shoeboxes, small cartons made of wood, tin or plastic materials
for packing footwear. |
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(e) Machinery and equipment for Effluent Treatment Plants shall be exempted
from basic customs duty. |
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(f) Re-export of unsuitable imported materials such as raw hides & skins
and wet blue leathers is permitted. |
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(g) CVD is exempted on lining and interlining material notified at S.No
168 of Customs Notification No 21/2002 dated 01.03.2002. |
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(h) CVD is exempted on raw, tanned and dressed fur skins falling under
Chapter 43 of ITC (HS). |
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(i) Re-export of unsold hides, skins and semi finished leather shall
be allowed from Public Bonded warehouse without payment of export duty.
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(ix) Marine Sector |
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(a) Imports for technological upgradation under EPCG in fisheries sector
(except fishing trawlers, ships, boats and other similar items) exempted
from maintaining average export obligation. |
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(b) Duty free import of specified specialised inputs/chemicals and flavouring
oils is allowed to the extent of 1% of FOB value of preceding financial
year's export. |
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(c) To allow import of monofilament longline system for tuna fishing
at a concessional rate of duty and Bait Fish for tuna fishing at Nil duty.
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(d) A self removal procedure for clearance of seafood waste is applicable
subject to prescribed wastage norms. |
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(e) Marine sector included for benefits under zero duty EPCG scheme.
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(x) Electronics and IT Hardware Manufacturing Industries
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(a) Export of electronic goods to be incentivized under Focus Product
Scheme. |
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(b) Expeditious clearance of approvals required from DGFT shall be ensured.
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(c) Exporters /Associations would be entitled to utilize MAI & MDA Schemes
for promoting Electronics and IT Hardware Manufacturing Industries exports.
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(d) Electronics Sector included for benefits under SHIS scheme. |
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(xi) Sports Goods and Toys |
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(a) Duty free import of specified specialised inputs allowed to the
extent of 3% of FOB value of preceding financial year's export. |
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(b) Sports goods and toys shall be treated as a Priority sector under
MDA / MAI Scheme. Specific funds would be earmarked under MAI / MDA Scheme
for promoting exports from this sector. |
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(c) Applications relating to Sports Goods and Toys shall be considered
for fast track clearance by DGFT. |
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(d) Sports Goods and Toys are treated as special focus products and
entitled to higher incentives. |
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(e) In addition to above, 2% bonus benefits under Focus Product Scheme
for Sports Goods & Toys. |
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(f) Sports Goods & Toys included for benefits under zero duty EPCG and
SHIS schemes. |
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(xii) Green products and technologies |
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India aims to become a hub for production and export of green products
and technologies. To achieve this objective, special initiative will be
taken to promote development and manufacture of such products and technologies
for exports. To begin with, focus would be on items relating to transportation,
solar and wind power generation and other products as may be notified which
will be incentivized under Reward Schemes of Chapter 3 of FTP. |
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(xiii) Incentives for Exports from the North Eastern Region
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In order to give a fillip to exports of products from the north-eastern
States, notified products of this region would be incentivized under Reward
Schemes of Chapter 3 of FTP. |