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Announcement on Foreign Trade Policy 2009-14 made on October 13, 2011

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No.CLE/ED/CIRCULAR/2011

October 14, 2011

Members of the Council.

Sub : Announcement on Foreign Trade Policy 2009-14 made on October 13, 2011

Dear Member

The Hon-ble Union Minister for Commerce, Industry and Textiles Shri Anand Sharma announced certain additional benefits to the exporters under Foreign Trade Policy 2009-14 on October 13, 2011. The following are the details of general benefits which will be applicable to the leather sector.

1 SPECIAL FOCUS MARKET SCHEME

The exporters are currently given a duty credit scrip of 3% under Focus Market Scheme (FMS) for exports to notified countries in Latin American, African and Commonwealth of Independent States (CIS), Eastern Europe and Asia-Oceania regions.

A new scheme called Special Focus Market Scheme has been introduced which would provide additional @1% duty credit when exports are made to 41 countries in Latin American, African and CIS regions notified in Table 3 of Appendix 37 C of Handbook of Procedures- Vol. 1. List of Latin American Countries include Argentina, Colombia, Costa Rica, Cuba, Ecuador, Haiti, Mexico, Nicaragua, Panama Republic, Paraguay, Peru and Uruguay (Total 12 countries). The list includes Cuba and Mexico as new entrants. List of African Countries include Angola, Cameroon, Congo D. Republic, Congo P Republic, Cote D’Ivoire, Ethiopia, Gabon, Gambia, Ghana, Liberia, Madagascar, Malawi, Mali, Namibia, Rwanda, Senegal, Sierra Leone, Sudan, Tunisia, Uganda, Zambia and Zimbabwe (Total 22 countries). List of CIS Countries include Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan (Total 7 countries).

The total duty credit scrip applicable under the Special Focus Market Scheme would be 4% for exports made with effect from 1.4.2011, which has been notified vide DGFT Notification No.79(RE-2010)/2009-2014 dated 13th October 2011 (serial no. 1). The list of countries are notified vide DGFT Public Notice No.80 (RE2010)/2009-14 dated 13th October 2011 (serial no. 7). Copies of the afore-mentioned DGFT Notification and Public Notice are enclosed herewith.

2 NEW FOCUS PRODUCTS UNDER FOCUS PRODUCT SCHEME

The following new products concerning leather sector have been added in Table 4 of Appendix 37 D under Focus Product Scheme.

Sr. No.FPS Product CodeITC (HS) CodeDescription
2942946401Waterproof footwear with outer soles and uppers of rubber or of plastics
2952956402Other footwear with outer soles and uppers of rubber or plastics - Sports footwear
29729742022910Handbags of Other Materials Excluding Wicker Work or Basket Work
29829842023110Jewellery Box - Surface of Leather
29929942023910Jewellery Box - Other Surface of Leather
30730764061010Embroidered Uppers of Textiles Materials

All products listed under Table 4 are eligible for 2% Duty Credit Scrip and hence the new products will also be eligible for 2% duty credit scrip for exports made from 1.4.2011 onwards under Focus Product Scheme.

3 FOCUS PRODUCT SCHEME

As far as the leather sector is concerned, there is no change in the existing Focus Product Scheme wherein notified leather products & Footwear under Table 7 of Appendix 37 D are being granted 4% duty credit scrip.

4 ONLINE TRANSMISSION OF DFIA AUTHORISATIONS FROM DGFT TO CUSTOMS

In furtherance of the EDI initiatives, online message exchange of DFIA Authorization with Customs has started from October 13, 2011. Thus, Advance Authorization, EPCG and DFIA are now completely EDI enabled. On account of this, DFIA authorizations issued on or after 13.10.2011 will be transmitted by DGFT -on-line- to Customs. This will not involve any change on the part of exporters/ importers. Accordingly, the existing system of -on-line- filing of application for issue of Duty Free Import Authorization (DFIA) would continue without any procedural change. The physical copy of DFIA will continue to be issued, for some more time, so as not to inconvenience any one till a smooth transition is completed. As in other schemes, the status of DFIAs issued by DGFT on or after 13.10.2011, and transmitted to Customs, would be available on DGFT website

www.dgft.gov.in
The DGFT has issued a Policy Circular No. 41 (RE-2010)2009-14 dated October 13, 2011 in this regard, a copy of which is enclosed herewith.
5 CLUBBING OF ADVANCE AUTHORISATIONS

The procedure for clubbing of advance authorisations has now been simplified and the powers have been delegated to the Regional Authorities of DGFT. The DGFT has issued a Public Notice No. 79 (RE-2010)/2009-14 dated 13th October 2011 (copy enclosed) which states the following.

  • In case of Authorisations issued on or after 1.4.2004, Advance Authorisations with different customs notification can be clubbed. Advance authorisation for annual requirement can also be clubbed with the advance authorisation.
  • Only such Advance Authorisations shall be clubbed which have been issued within 36 months from the date of issue of the earliest Authorisation that is sought to be clubbed, whether such Authorisations are valid or not.
  • Upon clubbing wherever exports are accounted beyond the EO period of the earlier Authorisation, a composition fee of 0.5% of the shortfall in EO shall be levied.
  • Notwithstanding provisions of para 4.20.3 of Handbook of Procedures-Vol.1, clubbing of the Authorisations issued during Exim Policy period 1992-1997 & 1997-2002 i.e., 1st April 1992 to 31st March, 2002 be allowed. This facility will be available only till 31st March 2012, thereafter no clubbing of Authorisations issued before 31st March 2002 shall be allowed. No clubbing of erstwhile Value Based Advance licences shall be allowed.

Members may kindly note the above.

With regards

Ali Ahmed Khan
Executive Director
COUNCIL FOR LEATHER EXPORTS

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