TaxTMI 
TaxTMI 
TaxTMI 
Scope and coverage of goods imported under Target Plus Scheme
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.... Scheme - clarification reg. -------------- I am directed to invite your attention to the above mentioned subject. The Target Plus Scheme (TPS) for the Star Export Houses was introduced in the Foreign Trade Policy (FTP) which came into force on 01.9.2004. Under the scheme the exporter gets entitled to rewards in the form of duty free credit based on incremental exports. In terms of para 3.7.6 ....
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....ey have imported almonds which, after removal of the shells, have been sold in the market without payment of duty. As dry fruits / almonds cannot be used in the processing / manufacture of rice, it is alleged that the condition of 'broad nexus' stipulated in the Handbook is not fulfilled. The 'actual-user' condition specified in the Policy and the Customs notification is also violated because almo....
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....t goods would make it ultra vires the FTP. The MOL has further stated that the words "inputs" and "use" can not be brushed aside and have to be in focus for the intended import. Together these words indicate that the item sought to be imported should be an "input" in the manufacture of the exported items which is required for "use" by the exporter or the supporting manufacturer, as the case may be....
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.... the same has a 'broad nexus' with the product group as an input in the export product and is required to be used as an input in the product exported for which TPS benefit is sought. The Ministry of Law has also clarified that the term 'broad nexus' with the product group is in addition to and not in substitution of the words "inputs" and "own use" in Para 3.7.6 of the Scheme. 5.The Ministry has....