ANNOUNCEMENT 27 Aug 2009In August 2009, the government of India announced a change in the tax legislation for exporters.
NUMBER OF INTERVENTIONS
On 8 September 2009, the Government of India vide Public Notice No. 08 / 2009-2014, widened the application of export benefits under the Market Linked Focus Product Scheme (MLFPS) and the Focus Product Scheme (FPS).
Motor cars and liquid elevators (pumps) were added to the MLFPS, and linkled with exports to Algeria, Egypt, Kenya, Nigeria, South Africa, Tanzania, Brazil, Mexico, Ukraine, Australia, New Zealand, Cambodia and Vietnam.
The MLFPS incentivises exports to specified markets in the listed products/sectors. Exporters are granted 2% FOB value of exports in the form of duty credit scrips, which scrips may then be used to pay various dues to the government and, under some conditions, be transferred in the open market.
Machines and apparatus for soldering, brazing or welding and safety matches were introduced as new focus products. The Focus Product Scheme grants eligible exporters of the listed products (including exports to any market) with duty credit scrips worth upto the value of 2% FOB value of exports.