ANNOUNCEMENT 23 Aug 2017
The Ministry of Commerce & Industry has increased the cap for export of export promotion goods on free of cost basis by companies that are major contributors to international trade.
NUMBER OF INTERVENTIONS
Notification no. 23/2015-2020
The limit for exports by Status Holders for export promotion on a free of cost basis was INR 1 million (USD 15,300*) or 2% of average annual export realization in the previous three years, "whichever is lower". The limit has now been increased to INR 10 million (USD 153,000*) or 2% of average annual export realization of the firm in the previous three years, whichever is lower. Further, export of gems, jewellery, articles of gold and other precious metals for export promotion purposes has been excluded from this allowance. For Pharmaceutical companies, the limit is 2% of the average annual export realization in the previous three years without any absolute cap. If such pharmaceutical products are supplied to organizations such as United Nations, World Health Organisation and other government health programmes, the limit is increased to 8%.
Within the Indian foreign trade policy, 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 lists more than 5700 status holder firms.
On 27 August 2018, the cap of INR 10 million for Status Holders has been removed.
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.
* INR to USD conversion as on 23 August 2017 - 1 USD = INR 65.37).