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Sops announced for exporters
24 August 2010: The Union Government on 24 August 2010 extended export sops worth Rs 1,050 crore.
The export policy support measures covered labour-intensive segments such as leather, handloom, and handicrafts, and some engineering sectors for both market diversification and technological upgradation. The popular Duty Entitlement Passbook (DEPB) scheme for imported inputs was extended by another six months.
The measures unveiled in the Annual Supplement to the Foreign Trade Policy, include additional benefit of two per cent bonus over and above the existing benefits of five per cent (three per cent for focus market scheme and two per cent for focus product scheme of f.o.b., or free-on-board, value), for 135 existing products.
The zero duty Export Promotion Capital Goods scheme introduced in August 2009 and valid for two years has been further extended by one more year till 31 March 2012 and will cover new units of paper and paperboard, ceramic products, refractories, glass, plywood, marine products, sports goods and toys and additional engineering products. As status holders contribute substantially to exports, the one per cent Status-Holder Incentive Scheme is extended by one more year to 2011-12. This scheme, to support status holders upgrade technology, was introduced in August 2009 and was valid for two years. It will now cover additional segments such as chemicals and allied products, paper and paperboard, glass and glassware, rubber, plywood, electronic products, sports goods and toys. It also provided for additional flexibility for transferability of duty credit scrips under Vishesh Krishi and Gram Udyog Yojana scheme by allowing transfer of scrip for import of cold chain equipment to units in the Food Park.
For the readymade garment industry, the benefits under the Market-Linked Focus Product Scheme provided earlier for six months has been extended up to 31 March 2011 for exports to 27 countries of the European Union.
The exporter-friendly DEPB, designed to neutralise import duty on inputs, has been extended by another six months up to June 2011. The interest subvention of 2 per cent for pre-shipment credit for export sectors — handlooms, handicraft, carpet and small and medium enterprises — which has been allowed till 31 March 2011, has now been extended to a number of additional products pertaining to sectors like engineering, leather, textiles and jute.
Exporters availing themselves of advance authorisation for annual requirement of imports will also be exempt from payment of anti-dumping and safeguard duty.
Source: Hindu Business Line