Foreign Trade Policy (FTP), 2009-14 – regarding
29 Sept. 2010
Sub: Foreign Trade Policy (FTP), 2009-14 – regarding
Members vide our circular dt.Aug 23, 2010 were informed of the release of Annual Supplement 2010-11 to the Foreign Trade Policy 2009-14 and the incentives offered to Leather Sector.
The Department of Revenue, Ministry of Finance vide its Circular No.38/2010 dt.27 Sept. 2010 has brought out the salient features of the incentives offered/changes made in the export promotion schemes in the Annual Supplement announced on 23 August 2010. The Leather Sector specific incentives/changes are given below for members easy reference.
I. New schemes.
Annual Export Promotion Capital Goods scheme
The annual supplement has made a provision that EPCG Authorization can also be issued for annual requirement to Status Certificate Holders and all other categories of exporters having past export performance (in preceding two years), both under zero duty and 3% duty Schemes. The authorization for annual requirement may not indicate the capital goods which can be imported under the authorization. However, the authorization shall indicate export product(s) to be exported under the authorization .The authorization holder shall submit a Nexus Certificate from an independent Chartered Engineer (CEC), certifying nexus of imported capital goods with the export product, to the Customs authorities at the time of clearance of imported capital goods.
II. Changes in the existing Export Promotion schemes
(1) Zero duty Export Promotion Capital Goods (EPCG) Scheme This scheme has been extended upto 31.3.2012.
(2) Status Holder Incentive Scheme (SHIS) This scheme has been extended upto 31.3.2012
(3) Applicability of benefits under Zero Duty EPCG & SHIS schemes
It was made clear that benefit of Zero Duty EPCG Scheme & SHIS shall not be simultaneously available.
The SHIS scrips will not be issued in the year in which Zero Duty DPCG authorization has been issued and that the SHIS scrips which are not issued in a particular year for the reason that Zero Duty EPCG authorization has been issued in that year shall not be issued in subsequent years also.
(4) Advance Authorization Scheme
The goods imported under Advance Authorization for Annual Requirement have been exempted from anti-dumping duty & Safeguard duty on the same lines as the goods imported under normal advance authorization scheme.
(5) DEPB Scheme
There is no change in the scheme except that the scheme shall now be valid upto 30.06.2011.
III. Miscellaneous changes
(i) The export duty on export of imported raw hides & skins and semi- processed leathers from bonded warehouse, has been reduced from the present level of 60% to Nil.
(ii) Five new ports including Ennore (Tamil Nadu) have been notified for the purpose of imports and exports under Export promotion Schemes.
This is for your kind information.
Ali Ahmed Khan