TaxTMI 
TaxTMI 
TaxTMI 
PROMOTIONAL MEASURES
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....commerce.nic.in. Market Access Initiative (MAI) 3.2 MAI schemem is intended to provide financial assistance for medium term export promotion efforts with sharp focus on a country /product, and is administered by DoC. Financial assistance is available for Export Promotion Councils (EPCs), Industry and Trade Associations (ITAs), Agencies of State Governments, Indian Commercial Missions (ICMs) abroad and other eligible entities as may be notified. A whole range of activities can be funded under MAI scheme. These include, amongst others, (i) Market studies, (ii) Setting up of showroom / warehouse, (iii) Sales promotion campaigns, (iv) International departmental stores, (v) Publicity campaigns, (vi) Participation in international trade fairs, (vii) Brand promotion, (viii) Registration charges for pharmaceuticals, and term export promotion efforts with sharp focus on a country / product, (ix) Testing charges for engineering products. Each of these export promotion activities can receive financial assistance from Government ranging from 25% to 100% of total cost depending upon activity and implementing agency. Full text of guidelines is available at http://commerce.nic....
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....o Trade and Industry to launch a nationwide programme on quality awareness and to promote total quality management. Test Houses 3.4.2 Central Government will assist in modernisation and upgradation of test houses and laboratories to bring them at par with international standards. Quality Complaints / Disputes 3.4.3 Regional Sub-Committee on Quality Complaints (RSCQC) set up at Regional Offices of this Directorate shall investigate quality complaints received from foreign buyers. Guidelines for settlement of quality complaints, in particular, and such other complaints, in general, are given in Appendix-16 of HBP v1. Trade Disputes affecting Trade Relations 3.4.4 If it comes to DGFT notice or he has reason to believe that anexport or import has been made in a manner that (i) is gravely prejudicial to trade relations of India with any other country; and / or (ii) is gravely prejudicial to interest of other persons engaged in exports or imports; and / or (iii) has brought disrepute to the country; DGFT may take action against such exporter or importer in accordance with FT (D&R) Act, Rules and Orders made there-under and FTP. 3.5 EXPORT AND TRADING HO....
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.... Input-Output norms on priority within 60 days; (iii) Exemption from compulsory negotiation of documents through banks. Remittance / Receipts, however, would be received through banking channels; (iv) 100% retention of foreign exchange in EEFC account; (v) Enhancement in normal repatriation period from 180 days to 360 days; (vi) Deleted (vii) Exemption from furnishing of Bank Guarantee in Schemes under FTP; and (viii) SEHs and above shall be permitted to establish Export Warehouses, as per DoR guidelines. (ix) For status holders, a decision on conferring of ACP Status shall be communicated by Customs within 30 days from receipt of application with Customs. (x) As an option, for Premier Trading House (PTH), the average level of exports under EPCG Scheme shall be the arithmetic mean of export performance in last 5 years, instead of 3 years. 3.5.3 Deleted 3.6 SERVICES EXPORTS Services Exports 3.6.1 Services include all 161 tradable services covered under General Agreement on Trade in Services (GATS) where payment for such services is received in free foreign exchange. A list of services is given in Appendix-10 of ....
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....o duty credit scrip equivalent to 5% of free foreign exchange earned during preceding financial year / current financial year, as the case may be." Stand-alone restaurants will be entitled to duty credit equivalent to 10% of foreign exchange earned by them in preceding financial year / current financial year, as the case may be.] Imports Allowed 3.6.4.5 Duty Credit scrip may be used for import of any capital goods including spares, office equipment and professional equipment, office furniture and consumables; that are otherwise freely importable 15[and/or restricted] under ITC (HS). Imports shall relate to any service sector business of applicant. Utilization of Duty Credit scrip earned shall not be permitted for payment of duty in case of import of vehicles, even if such vehicles are freely importable 15[and/or restricted] under ITC (HS). In case of hotels; clubs having residential facility of minimum 30 rooms; golf resorts and stand-alone restaurants having catering facilities, Duty Credit scrip may also be used for import of consumables including food items and alcoholic beverages. Non Transferability 3.6.4.6 Entitlement / goods (imported / procured) shall be non-transfer....
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....; 3.8.2.2 Following exports shall not be taken into account for Duty Credit scrip entitlement. (a) (i) Export of imported goods covered under Para 2.35 of FTP; (ii) Exports through transshipment, meaning thereby that exports originating in third country but transshipped through India; (b) Deemed Exports; (c) Exports made by SEZ units; and (d) Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS). 3.8.3 to 3.8.5 Deleted 3.8.6 For exports during 2008-09, all Status Holders (having status recognition w.e.f 1.4.2008) exporting products covered under ITC HS Chapters 1 to 24, shall be incentivized with duty credit scrip equal to 10% of FOB value of agricultural exports (including benefits entitled under paragraph 3.8.2) provided that the total benefits for all status holders put together does not exceed Rs 100 Cr (i.e. Rs 50 Cr for each half year) and the conditions specified in Para 3.19.10 of HBP v1 (RE2008) are satisfied. Zonal Office CLA, New Delhi shall be the licensing office for grant of the benefit to all status holders. The follow....
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....hibited for export under Schedule-2 of Export Policy in ITC (HS); 8[l. Deleted] 8[m. Deleted] 1[n. For exports w.e.f 17.4.2008, Export of Milk and Milk Products, covered under ITC HS Codes 0401 to 0406, 19011001, 19011010, 2105, & 3501.] 3.9.2.3 Deleted 3.9.3 to 3.9.6 Deleted 3.10 FOCUS PRODUCT SCHEME (FPS) Objective 3.10.1 Objective is to incentivise export of such products, which have high employment intensity in rural and semi urban areas, so as to offset infrastructure inefficiencies and other associated costs involved in marketing of these products. Entitlement 3.10.2 Exports of notified products (as in Appendix 37D of HBP v1) to all countries (including SEZ units) shall be entitled for Duty Credit scrip equivalent to 1.25% of FOB value of exports for each licensing year commencing from 1st April, 2006. However, for exports made w.e.f. 1.4.2008, Toys and Sports Goods as detailed in Table 2 of Appendix 37D shall be entitled to duty credit scrip equivalent to 6.25% of FOB value of exports. Further, for exports made w.e.f. 1.4.2008, High Value Added Manufactured goods, as notified in Table 9 of Appendix 37D, shall be entitled to duty credit scrip eqiv....
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....nked markets and admissible period / date of exports shall be notified in Table 14 of Appendix 37D of HBP Vol.1.] 3.11 HIGH-TECH PRODUCTS EXPORT PROMOTION SCHEME (HTPEPS) Objective 3.11.1 Objective is to incentivise export of High Technology products. Entitlement 3.11.2 Exports of High Technology products (as notified in Appendix 37E of HBP v1) in for Duty Credit Scrip equivalent to: a) b) free foreign exchange to all countries, shall be entitled (a) 1.25 % of FOB value of exports; or (b) 5% of incremental growth in FOB value (12[in free foreign exchange]) of exports of notified products for current year (i.e., 200809) over previous year (i.e., 2007-08) (all taken together) and similarly for each subsequent licensing year. Exporter may opt for either (a) or (b) above. However, applicants with 'nil' exports in base year shall not be eligible. 3.11.2.1 Exports made by EOUs / EHTPs / BTPs who do not avail direct tax benefits / exemption shall be eligible, provided the same is not covered under paragraph 3.11.4. Ceiling 3.11.3 Duty Credit Scrip shall not exceed Rs 15 Cr for an exporter for all shipments done in a licensing year put together, for which benef....
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....nted in export performance / turnover of applicant only if export proceeds from overseas are realized in applicant's bank account and this shall be evidenced from BRC / FIRC. 2[However, for VKGUY, FMS and FPS, benefits can be claimed either by the supporting manufacturer (along with disclaimer from the company / firm who has realized the foreign exchange directly from overseas) or by the company / firm who has realized the foreign exchange directly from overseas.] 13[3.12.9 Duty Credit Scrips under Chapter 3 of FTP can also be utilized for payment of duty against imports under EPCG scheme provided the item is importable against the scrip.] ********************** Notes: 1. After Sub Para 3.9.2.2 (m), sub para 3.9.2.2 (n) added vide notification no. 6/2008 dated 24-4-2008. "Consequently, for exports w.e.f 17.4.2008, export of Milk and their value added Products (covered under ITC HS codes 0401 to 0406, 19011001, 19011010, 2105, & 3501), shall not be entitled to Focus Market Scheme benefits." 2. Has been added vide Public Notice No. 31/(RE-2008)/2004-09 Dated 19/08/2008 3. Has been substituted vide NOTIFICATION NO 36 (RE-2008)/2004-2009 dated 2/9/2008 before i....