New Foreign Trade Policy Raises Duty Credit for Exporters
Sept. 1 – India’s Ministry of Commerce and Industry recently released its new Foreign Trade Policy for 2009-14, effective immediately. New measures were introduced to counterbalance the effects of the global financial crisis on exporters. Among these are changes under India’s export promotion schemes that would allow exporters to claim higher duty credits. The highlights are as follows:
Focus Market Scheme
There were 26 new markets added, mainly from emerging Asia, Africa and Latin America. Entitlement for duty credit certificates were increased to 3 percent from 2.5 percent of the FOB value of the export.
Focus Product Scheme
Products now include auto and engineering components, and duty credit has been raised to 2 percent from 1.25 percent of FOB value of the exported goods, and to 5 percent for special focus products.
Market Linked Focus Product Scheme
These have been enlarged to include pharmaceuticals, synthetic textiles, certain iron and steel products, aluminum, and markets extended to Africa, Latin America, Vietnam, Cambodia, Australia and New Zealand. Duty credit has been raised to 2 percent from 1.2 percent on FOB value of exported goods.
Served From India Scheme
Hotels, restaurants and other service providers in the tourism sector are entitled to duty credit of 10 percent of the free foreign exchange earned in each fiscal year.
Now available for engineering, textiles and plastics made between 2009-2011. An additional 1 percent entitlement of duty credit is now permitted.
For assistance with export promotion credits, email the Dezan Shira & Associates Mumbai office at email@example.com.