AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Tax-based export incentive
On 4 June 2015, the Indian Ministry of Commerce & Industry reduced the duty free allowance for Status Holders to export promotional products. Earlier the limit for such duty free export was INR 1 million or 2% of average annual export realization in the previous three years, "whichever is higher". The limit has now been changed to INR 1 million or 2% of average annual export realization of the firm in the previous three years, "whichever is lower". Effectively, a cap of INR 1 million (ca. USD 15'800)has been placed on such duty free exports.
Within the Indian Foreign Trade Policy 2015-2020, Status Holders include business leaders, firms with high contribution to international trade and firms with high export contributions (at least USD 3 million per year). The list of such firms currently (update link provided below) lists more than 5700 status holder firms.
The allowance was later increased on 23 August 2017 (see related State Act).
The goods included in this intervention are the ones that are subject to an export duty under the Second Schedule of the Indian Customs Act.
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