ANNOUNCEMENT 28 Dec 2012On 28 December 2012, the Indian Ministry of Commerce & Industry introduced the following amendments to its foreign trade policy 2009-14: The described measure was eventually replaced by the new Foreign Trade Policy in May 2015.
NUMBER OF INTERVENTIONS
Official Notification 27 (RE-2012)/2009-2014
Notification 3 (RE-2013)/2009-2014
Marine products were removed from incentives under the Status Holders Incentivisation Scheme.
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). Under the Status Holder Incentive Scrip scheme, status holders in specified sectors will receive an additional incentive scrip at the rate of 1% of the FOB value of their exports during the period in which the scheme is valid. The incentive scrips can be used to get duty credit when importing capital goods for use in these sectors.
As a major change to pre-existing policy, the Incremental Export Incentivisation Scheme (IEIS) was introduced for the year 2012-13. The IEIS provides incentives based on the additional export growth from previous exports. The IEIS entitles each exporters "for a duty credit scrip at 2% on the incremental growth (achieved by the IEC holder) during the period 01.01.2013 to 31.3.2013 compared to the period from 01.01.2012 to 31.3.2012 on the FOB value of exports. Incremental growth shall be in respect of each exporter (IEC holder) without any scope for combining the exports for Group Company."
Also, the amendment includes a long list of eligibility criteria, which do not allow for the incentive in case of: "
Furthermore, this incentive scheme was intended for exports only to the USA, Europe and Asia. The IEIS was prolonged unaltered for a further year through Notification 3 (RE-2013)/2009-2014.