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Answer with explanations.
Answers with explanations.
Annual Supplement 2013-14 to Trade Policy
The Annual Supplement 2013-14 to Foreign Trade Policy 2009-1014 was announced by the Minister for Commerce, Industry and Textiles Anad Sharma on April 18, 2013.
Special Economic Zone (SEZ)
(i)Minimum Land Area Requirement is reduced by half. For Multi-product SEZ it is reduced from 1000 hectares to 500 hectares and for sector specific SEZ from 100 hectares to 50 hectares.
(ii)For IT/ITES SEZ, there would be no minimum land requirement. Only the minimum built up area criteria would be required to be met by the SEZ developers, which is as follows:
(a)For 7 major cities viz: Mumbai, Delhi (NCR), Chennai, Hyderabad, Bangalore, Pune and Kolkata – One Lakh sqm
(b)For Category B Cities – 50,000 sqm
(c)For remaining cities – 25,000 sqm
(iii)Exit Policy for SEZ units is introduced. Transfer of ownership of SEZ units including sale would be permitted.
Zero Duty Export Promotion Capital Goods (EPCG) Scheme
(i)Zero duty EPCG scheme and 3% EPCG scheme has been harmonized into one scheme which will be Zero duty EPCG scheme covering all sectors. It means that zero duty EPCG scheme which was in operation till 31.3.2013 is now continued and shall be available for all the sectors. Export Obligation of 6 times the duty saved amount needs to be completed in a period of 6 years and the period for import would be 18 month, which was earlier 9 months for zero duty EPCG scheme and 36 months for 3% EPCG scheme.
(ii)Export obligation discharge by export of alternate products as well as accounting of exports of group companies will not be allowed.
(iii)Now exporters who are availing benefits under Technology Up-gradation Fund Scheme (TUFS) will also be eligible for Zero Duty EPCG Scheme.
(iv)The import of motor cars, SUVs, all purpose vehicles for hotels, travel agents, or tour transport operators and companies owning/ operating golf resorts will not be allowed under the new Zero Duty EPCG Scheme, which was earlier allowed with some conditions.
(v)Domestic procurement against EPCG authorization has been promoted by reducing 10% Export Obligation for sourcing of capital goods domestically.
(vi)Jammu and Kashmir has been included in the lists of states for reduced Export Obligation. Units located in Jammu & Kashmir will qualify for 25% of normal specific Export Obligation in addition to states in North East Region and Sikkim. This will encourage manufacturing activity in the state of Jammu and Kashmir.
2% Interest Subvention Scheme
(i)The 2% Interest Subvention Scheme has been extended upto 31.3.2014.
(ii)Scope of 2% interest subvention Scheme is widened to include 134 sub-sectors of engineering sector.
(iii)The Scheme is further widen to include items covered under Chapter 63 of ITC and additional specified tariff lines of engineering sector items under the scheme.
Utilization of Duty Credit Scrip
(i)Duty Credit Scrips issued under Focus Market Schemes, Focus Product Scheme and Vishesh Krishi Gramin Udyog Yojana (VKGUY) can be used for payment of service tax on procurement of services within the legal framework of service tax exemption notifications under the Finance Act, 1994. Holder of the scrip shall be entitled to avail drawback or CENVAT credit of the service tax debited in the scrips as per Department of Revenue rules.
(ii)All duty credit scrips issued under Chapter 3 can be utilized for payment of application fee to DGFT for obtaining any authorization under Foreign Trade Policy. This benefit shall be available only to the original duty credit scrip holders.
Market and Product Diversification
(i)Norway has been added under Focus Market Scheme and Venezuela has been added under Special Focus Market Scheme.
(ii)126 new products have been added under Focus Product Scheme.
(iii)About 47 new products have been added under Market Linked Focus Product Scheme (MLFPS).
(iii)2 new countries i.e., Brunei and Yemen have been added as new markets under MLFPS.
(iv)MLFPS is being extended to 31.03.2014 for exports to USA and EU in respect of items falling in Chapter 61 and Chapter 62 of ITC (HS).
(v)Exports of High Tech products would be incentivized and it would be separately notified by 30th June, 2013.
(vi)Two new Towns of Export Excellence has been added. These are Morbi in Gujarat(Ceramic Tiles) and Gurgaon in Haryana (Apparel)
Incremental Exports Incentivisation Scheme
(i)Incremental Exports Incentivisation Scheme has been extended for the year 2013-14. The calculation of the benefit shall be on annual basis under the extended period.
(ii)In addition to USA, Europe and Asian Countries, 53 countries of Latin America and Africa have been added.
Facility to close cases of default in Export Obligation
A onetime facility is provided to close cases where there is a default in Export Obligation pertaining to Advance Authorizations and EPCG authorizations. Exporter will have to pay duty + interest within a limited period of 6 months from the date of notification of the scheme subject to the condition that the total payment shall not exceed two times the duty saved amount on default in Export Obligation.
Served from India Scheme (SFIS)
(i)The Entitlement of 10% for the scrip shall be calculated on the basis of Net Foreign Exchange (NFE) earned, in place of free foreign exchange earned during a financial year.
(ii)Service exporters who are also engaged in manufacturing activity are permitted to use SFIS duty credit scrip for importing/domestically procuring capital goods as defined in Para 9.12 of FTP including spares related to manufacturing sector business of the service provider.
(iii)Hotels, travel agents, tour operators or tour transport operators and companies owning/operating golf resorts having SFIS scrip can import or domestically procure motor cars, SUVs and all purpose vehicles using SFIS Scrips for payment of duties. Such vehicles need to be registered for “tourist purpose” only.
VKGUY Scheme
(i)The entitlement of VKGUY scrip will be as per the rates prescribed in various appendices irrespective of rates of Drawback, DEPB or availment of Advance Authorization/ DFIA for import of inputs.
(ii)Agri. Infrastructure Incentive Scheme Scrip can now be transferred from status holder to the supporting manufacturer (of the status holder exporter), who is neither a status holder nor having a unit in a food park.
Status Holder Incentive Scheme (SHIS)
(i)SHIS will not be available for 2013-14.
( ii)Limited transferability of SHIS scrip within group-company of the status holder is allowed provided the group company is a manufacturer.
Re-credit of 4% SAD
(i)Utilization of recredited 4% SAD scrips shall be allowed upto 30.9.2013.
(ii)The importers are advised to make the initial payment of 4% SAD in cash in future if they want a refund.
Duty Free Import Authorization Scheme (DFIA)
Exemption from payment of Anti Dumping Duty and Safeguard Duty shall not be available after endorsement of transferability of such authorizations. Exemption is available on original authorization.
Import of Cars
ICD Faridabad and Ennore Port (TN) are added in the list of designated ports for import of cars/ vehicles.
Electronic Data Interchange Initiatives
(i)Exporters can file Export Obligation Discharge Certificate (EODC) applications online, as transmission of two key documents (shipping bill from Customs and e-BRC from Banks) relating to Advance Authorization and EPCG Authorizations in secured electronic format to DGFT has been established. With online EODC, exporter can complete the formalities at DGFT online and may get quick clearances at the Customs on account of e-transmission of EODC from DGFT to Customs.
(ii)System for Online issuance of Registration Certificate for export of Cotton, Cotton Yarn, Non Basmati Rice, Wheat and Sugar has been introduced.
Ease of Documentation and procedural simplification
(i)Submission of physical copies of IEC and Registration-cum-Membership Certificate (RCMC) with individual application has been dispensed with.
(ii)It has been decided to dispense with submission of hard copy of EP copy of shipping bills in case of (a) advance authorization, (b) duty free import authorization for grant of Export Obligation Discharge Certificate (EODC) if exports are made through EDI ports.
(iii)Application fee can be paid either in cash or through demand draft or through EFT. Now exporters/importers would be allowed shortly to utilize their credit card for payment of such application fee.
(iv)Existing procedures contained in Para 2.20A of Handbook of Procedures related to execution of bank guarantee / legal undertaking stands deleted.
Widening of items eligible for import for Handloom/ Made ups and Sports Goods
(i) 5 additional items (embroidery/sewing threads/poly/quilted bedding materials and printed bags) are included in the list of items which are allowed duty free within the existing limits upto 5% FOB value of exports of handloom made ups in preceding year or within the existing limit of upto 1% of FOB value of exports of cotton/man-made ups in preceding year.
(ii)Similarly, 5 additional items have been added pertaining to sports goods exports. These 5 items are (i) PVC Leather Clot (to be used in the manufacture of Inflatable Balls & Sports Gloves), (ii) Latex Foam (to be used in the manufacture of Shin Guard & Goal Keeper Gloves & other Sports Gloves), (iii) Peva / Eva Foil (to be used in the manufacture of Shin Guard & Sports Gloves), (iv) Stitching Thread (to be used in the manufacture of Inflatable balls & Sports Gloves), (v)Printing Ink (to be used in the manufacture of Inflatable balls & Sports Gloves).
ONIKA JAISWAL
PGDM 2ND SEM
2013-15
SOURCE- MAKER.COM
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