Misuse of Target Plus Scheme (TPS) - Scope and Coverage of Goods to be imported under TPS- Reg.

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....- Reg. I am directed to invite your attention to the above-mentioned subject and to say that in recent months several cases of alleged misuse of the benefits under TPS have been noticed by the DRI. It has been found that the items imported under the TPS have had no 'broad nexus' with the products exported and neither these can be considered as 'inputs' for the manufacture of export products. Furt....

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....f issuance of the duty credit entitlement certificate endorse the name of the associate manufacturer/supporting manufacturer/job-worker on the certificate as declared by the applicant. Further, in terms of the said paragraph, the goods imported under TPS shall have a 'broad nexus' with the products exported. In terms of condition no.3 of Notification Nos. 32/2009-Cus dated 8.4.2005 and 73/2006-Cus....

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....port item as an 'input' with the export product, both falling within the same product group. It was also clarified that the holder of TPS certificate is permitted to import an item under the TPS and get the same processed into possible resultant products only if 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 p....