ANNOUNCED AS TEMPORARYNo
On 18 April 2013, the Indian Ministry of Commerce & Industry released the Annual Supplement for 2013-2014 for its foreign trade policy 2009-2014. Overall, the policy announced measures to boost exports in line with the goals of the 5 year trade policy. The Supplement contained many measures, some that favoured foreign commercial interests and others that discriminated against them.
1) Capital requirements, majorly with respect to land, have been eased for SEZ's and IT SEZ's. This is done in order to boost investment in SEZs and boost exports.
2) The Zero Duty Export Promotion Capital Goods (EPCG) scheme and the 3% EPCG scheme have been harmonized into one Zero Duty EPCG covering all export sectors, thus facilitating an efficient system.
3) The Interest Subvention Scheme to support export specific sectors has been extended to include 134 sub-sectors of the engineering sector and the benefit of the scheme has been extended up to 31.3.2014. Further, Chapter 63 of ITC (HS) under this scheme has been added for a limited period.
4) The Scope of Utilization of specific Duty Credit Scrips issued to the exporters has been widened. Such scrips are issued to incentivise exporters and can used to pay off other liabilites dur to the tax authorities.
5) Market and Product Diversification - The specific schemes here relate to offseting export costs and externalities when exporting to select international markets.
a. Norway has been added to the list of countries under Focus Market Scheme and Venezuela under Special Focus Market Scheme
b.126 new products have been added under the Focus Market Scheme
c. Brunei and Yemen have been added under Market Linked Focus Product Scheme (MLFPS). Additionally, 47 new products are added to the scheme.
d. For goods under Chapter 61 and 62 ITC (HS), the MLFPS is extended until 31.03.2014 for exports to EU and the USA.
6) Incremental Exports Incentivisation Scheme
a. The scheme has been extended for the year 2013-14
b. 53 countries of Latin America and Africa have been included in this scheme
7) A facility has been created to close cases of default in certain export obligations
8) Transferability, use and the calculation of the duty scrips under the Served from India Scheme have been eased, facilitating export of services under this scheme
10) The Status Holder Incentive Scheme (SHIS), that exempts import duties on certain capital goods, is no longer available for the year 2013-14.
11) The deadline for utilization of re-credited 4% Special Additional Duty scrips has been extended up to 30.09.2013.
12) Exemption from payment of Anti-Dumping Duty and Safeguard Duty under Duty Free Import Authorization Scheme, which allows duty free improts of inputs for export products, is no longer available.
13) Import of cars/vehicles are now allowed from 2 additional ports.
14) The quality and timeliness of release of Foreign Trade Data have been improved.
15) A Second Task Force to reduce Transaction Costs has been constituted.
16) Several Electronic Data Interchange initiatives have been initiated to improve information sharing
17) Several measures have been taken to ease document and procedural requirements.
18) The list of items eligible for duty free imports within certain limits has been widened to include 5 Handloom/Made ups items and 5 items pertaining to Sports goods
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