ANNOUNCEMENT 19 Sep 2014In September 2014, the government of India announced a change in the tax legislation for exporters.
NUMBER OF INTERVENTIONS
Official Notification No. 70 (RE 2013)/2009-14
On 19 September 2014, the Indian Ministry of Commerce & Industry through Notification No. 70 (RE 2013)/2009-14 increased the duty credit benefit under the Focus Product Scheme (FPS) from 2% to 5% on the export of the following products -
The Focus Product Scheme was launched in 2006 to offset high infrastructure and other market development costs for products that have high export/employment potential. Exporters of these notified goods are entitled to a Duty Credit Scrip of 2% of the F.O.B value of exports that can be used to pay off various dues to the government. Currently the scheme covers over 1000 products.
The FPS has been replaced by the Merchandise Exports Incentive Scheme (MEIS) under the new Foreign Trade Policy 2015-20 (please see related State Act).