IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Mar 2009 | Removal date: 30 Mar 2015
Still in force

Tax-based export incentive

 On 26 February 2009, the Government of India notified certain amendments to the Foreign Trade Policy 2004-09, vide Public Notice No. 151 (RE-2008) / 2004-2009. The notification enacts the following changes to the sectoral application of Indian export incentive schemes : 

  • Stapling machines (staplers) are introduced as a new Focus Product, benefitting from the Focus Product Scheme (FPS) (HS Code 8472, w.e.f 1 April 2008).
  • Non-wovens of man-made filaments were included in the list of New High Tech Products (HS Code 5603, w.e.f. 1 April 2008).
  • All handmade carpets and other textile coverings were removed from the Vishesh Krishi Gram Udyog Yojana (VKGUY) Scheme and brought within the ambit of the FPS. (HS Code 0057, w.e.f. 23 February 2009). This listing as a special product under the FPS and the past listing under VKGUY offer similar incentives, equivalent to 5% FOB value of past exports, with some differences in exceptions and application of the respective schemes. 
  • Dried vegetables were included in the list of products eligible for the VKGUY Scheme. (HS Code 0712, w.e.f. 1 April 2008).

The various export incentives grant duty credit scrips, valued at a percentage of the FOB value of exports made, to exporters. Duty credit scrips may be utilized for payment of duty on specified imports, for payment of excise duty or service tax in certain situations, etc. The scrips are also transferable. 
The implementation date has been set to 1 March 2009 as trade flows may only have been affected after the announcement.
The measure was replaced with the announcement of the new Foreign Trade Policy in May 2015.
 
 
 
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

213 Prepared & preserved vegetables, pulses & potatoes
0712 Dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared.
071220 Onions
071239 Other
071290 Other vegetables; mixtures of vegetables
272 Carpets & other textile floor coverings
5701 Carpets and other textile floor coverings, knotted, whether or not made up.
570110 Of wool or fine animal hair
570190 Of other textile materials
5702 Carpets and other textile floor coverings, woven, not tufted or flocked, whether or not made up, including “Kelem”, “Schumacks”, “Karamanie” and similar handwoven rugs.
570210 “Kelem”, “Schumacks”, “Karamanie” and similar handwoven rugs
570220 Floor coverings of coconut fibres (coir)
570231 Of wool or fine animal hair
570232 Of manmade textile materials
570239 Of other textile materials
570241 Of wool or fine animal hair
570242 Of manmade textile materials
570249 Of other textile materials
570250 Other, not of pile construction, not made up
570291 Of wool or fine animal hair
570292 Of manmade textile materials
570299 Of other textile materials
5703 Carpets and other textile floor coverings, tufted, whether or not made up.
570310 Of wool or fine animal hair
570320 Of nylon or other polyamides
570330 Of other manmade textile materials
570390 Of other textile materials
5705 Other carpets and other textile floor coverings, whether or not made up.
570500 Other carpets and other textile floor coverings, whether or not made up.
279 Textiles n.e.c.
5603 Nonwovens, whether or not impregnated, coated, covered or laminated.
560311 Weighing not more than 25 g/m²
560312 Weighing more than 25 g/m² but not more than 70 g/m²
560394 Weighing more than 150 g/m²
451 Office & accounting machinery and its accessories
8472 Other office machines (for example, hectograph or stencil duplicating machines, addressing machines, automatic banknote dispensers, coinsorting machines, coincounting or wrapping machines, pencilsharpening machines, perforating or stapling machines).
847290 Other

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