AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYYes
Tax-based export incentive
On 2 March 2009, the Government of India vide Notification No. 92 (RE-2008) / 2004-2009 read with Public Notice No. 156 / 2008, has permitted the issue of duty credit scrip under the Market Linked Focus Product Scheme (MLFPS) at the rate of 2% FOB value of exports to exporters of leather products and specified garments to the EU and USA.
The MLFPS typically grants exporters duty credit scrips at the rate of 1.25% FOB value of exports. Duty credit scrips are utilisable for the payment of dues to the government, and under some conditions, transferable in the open market as well.
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