Incremental Exports Incentivisation Scheme
NO.CLE-HO-POL/CIRCULAR/13-14
March 7, 2014
Members of the Council
Sub : Incremental Exports Incentivisation Scheme
1 THE SCHEME
The incremental Exports Incentivisation Scheme was announced in Dec. 2012. Under this scheme, the exporters are eligible for 2% duty credit scrip on the FOB value of exports to USA, Europe and Asia (excluding Singapore, UAE and Hong Kong) on the incremental growth during the period 01.01.2013 to 31.3.2013 compared to the period from 01.01.2012 to 31.3.2012.
This scheme was extended for the year 2013-14 on annual basis in the Annual Supplement 2013-14 to Foreign Trade Policy 2009-14 notified during April 2014. Also, exports to 53 notified countries Latin America and Africa have also been added under this scheme vide DGFT Public Notice No. 3 (RE 2013/2009-14 dated 18th April 2013 (copy enclosed) . The 2% incremental scrip will be only for incremental exports achieved during 2013-14 as compared to the year 2012-13 for notified countries. This scrip is transferable and can be used for domestic sourcing and for payment of Service Tax.
The following Latin American and African countries have been included under Incremental Exports Incentivization Scheme during 2013-14.
- Namibia
- Botswana
- Swaziland
- Lesotho
- Burkina Faso
- Mali
- Niger
- Gabon
- Gambia
- Mauritania
- Equatorial Guinea
- Guinea Bissau
- Cape Verde IS
- Sao Tome
- St. Helena
- Rwanda
- Burundi
- Chad
- C Africa REP
- Reunion
- Seychelles
- Comoros
- Canary IS
Latin American Countries:
- Trinidad
- Paraguay
- Costa Rica
- Haiti
- Netherland Antilles
- Nicaragua
- EL Salvador
- Bolivia
- Cuba
- Jamaica
- Suriname
- Belize
- Guyana
- Guadeloupe
- Martinique
- Barbados
- Dominica
- Virgin IS US
- Antigua
- Bermuda
- FR Guiana
- ST Lucia
- Grenada
- ST Kitts N A
- BR Virgin IS
- Cayman IS
- Turks C IS
- ST Vincent
- Montserrat
- Falkland IS
The enclosed application form ANF 3F (notified vide DGFT Public Notice no. 28 of 2013- copy enclosed) notifies the list of eligible countries also, wherein Hong Kong, Singapore and UAE are not mentioned under Asia.
2 CONDITIONS AND INELIGIBLE EXPORTS
The scheme is region specific and will be subject to the following conditions.
a) The exporter has to achieve growth in the financial year 2012-2013 vis a vis financial year 2011-2012 and during Jan. – March 2013 as compared to January – March 2012 and will not be applicable for “Nil”exports in the previous period.
b) The export performance shall not be allowed to be transferred from any other IEC holder nor combining the exports for Group Company.
The following exports shall not be taken into account for calculation of export performance or for computation of entitlement under the Scheme:
Export of imported goods or exports made through trans-shipment.
Export from SEZ/ EOU /EHTP /STPI /BTP/FTWZ
Deemed Exports
Service Exports
Third Party exports
Diamond, Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery and other precious and semi-precious stones.
Ores and concentrates of all types and in all formations.
Cereals of all types.
Sugar of all types and all forms.
Crude / petroleum oil and crude / primary and base products of all types and all formulations.
Export of milk and milk products.
Export performance made by one exporter on behalf of other exporter.
Supplies made to SEZ units.
Items, export of which requires an export authorisation (except SCOMET), will not be considered.
Export of Meat and Meat Products.
Exports to Singapore, UAE and Hong Kong.
Like any other duty credit scrips, the Application for obtaining Duty Credit Scrip shall be filed within a period of twelve months from the date of export or within six months from the date of realization or three months from the date of printing / release of shipping bill, whichever is later, in respect of shipments for which claim is being filed as per para 3.11.9 of HBP v1 and late cut provisions of para 9.3 of HBP v1 2009-14 will be applicable.
3 AMENDMENTS IN THE SCHEME
The DGFT subsequently notified the following amendments in the above schemes.
1. DGFT Notification No.43/(RE-2013)/2009-14 dated 25.9.2013
Para 3 of the aforesaid DGTF notification places the following restrictions.
i) Benefit of Incremental Export Incentivisation Scheme for the year 2013-14 will be limited to a scrip of a value not exceeding Rs.1 crore per IEC.
ii) Claims in excess of this value will be subjected to greater scrutiny by Regional Authority.
2. DGFT Notification No.44/(RE-2013)/2009-14 dated 25.09.2013
The said notification places the following restrictions.
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.
3. Public Notice No.28/2009-14 (RE-2013) dated 25.09.2013 –
This public notice notifies the application form ANF-3F for claiming benefits under Incremental Exports Incentivisation Scheme. This application form also has the list of eligible export destinations(country) which are covered under the scheme.
The aforesaid Public Notice also states that the following documents will be called for as part of scrutiny undertaken under the scheme, wherever applicable.
i) Calling for evidence of manufacture/purchase of export goods i.e. excise return/sales tax returns or any other evidence.
ii) Checking export of company from whom goods have been purchased i.e. whether such company had done export in previous 2 years and quantum of exports in previous 2 years and quantum of exports in current year.
iii) Calling for any other evidence to justify export growth and consequent entitlement of Incremental Exports Incentivisation Scheme.
The aforesaid Public Notice also states that the claims for the year 2013-14 can be made after by April 2014.
4 CLARIFICATION REGARDING EXPORTS TO UAE, SINGAPORE AND HONG KONG
During our recent interaction with the DGFT officials, the following clarifications have also been provided orally.
If goods are consigned to ports other than UAE, Singapore and Hong Kong, benefit under scheme benefit is admissible.
If goods are invoiced to UAE, Singapore or Hong Kong and if in the invoice, consignee is mentioned as some eligible port other than UAE, Singapore or Hong Kong, such exports do not qualify for export incentive under the scheme.
Cases where exporters are invoicing to UAE, Singapore or Hong Kong ports and consignee address is also mentioned as one of these ports, but material dispatched to some other eligible port other than UAE, Singapore or Hong Kong and Landing certificate is also for eligible port, such ports also not quality for export incentive under the scheme.
Members may kindly note the above.
Thanks and regards
R. Ramesh Kumar
Executive Director
COUNCIL FOR LEATHER EXPORTS
DGFT Public Notice No. 3 (RE 2013/2009-14 dated 18th April 2013 | DGFT Notification No.43/(RE-2013)/2009-14 dated 25.9.2013 | DGFT Notification No.44/(RE-2013)/2009-14 dated 25.09.2013 |