Description
Export incentives given by GOI,,,,
Export incentives.
Ranpal Singh Sheoran. Pranav Trived.
R P Sheoran
Export Data. GROUP-WISE EXPORT Capital goods. 2012-2013 102016.90
.
% growth. 34.03
Consumer Durables. NONFERROUS METALS & PRODUCTS Thereof PRIMARY IRON & STEEL & ITEMS THEREOF Total
R P Sheoran
34467.81 29341.56
29.48 79.67
61433.61
50.31
227259.88
42.09
VARIOUS EXPORT INCENTIVES
.
R P Sheoran
.
Special economic zone.
• Several SEZs have been established at various places in India. • Kandla, Noida, Cochin, etc. • No excise duties are payable • No customs duties are payable on imported raw material. • These units have the provision of selling 25% of their production in India.( half of excise duty).
R P Sheoran
Advance Licence / Duty Exemption Entitlement Scheme (DEEC)
.
• In this scheme advance licence, either quantity based (Qbal) or value based (Vabal), is given to an exporter against which the raw materials and other components may be imported without payment of customs duty provided the manufactured goods are exported. These licences are transferable in the open market at a price.
R P Sheoran
Export Promotion Capital Goods Scheme (EPCG)
.
A domestic manufacturer can import machinery and plant without paying custom duty or settling at a concessional rate of customs duty. But his undertakings shoul be as mentioned below:
Custom duty rates. 10%
Export Obligation 4 times exports (on FOB basis) of CIF value of machinery.
Nil in case CIF value is Rs200mn or 6 times exports (on FOB basis) of more. CIF value of machinery or 5 times exports on (NFE) basis of CIF value of machinery.
Nil in case CIF value is Rs50mn or more for agriculture, aquaculture, animal husbandry, floriculture, horticulture, poultry and sericulture.
R P Sheoran
6 times exports (on FOB basis) of CIF value of machinery or 5 times exports on (NFE) basis of CIF value of machinery.
Cost insurance freight. net foreign earning.
Deemed Exports
.
• • • •
Refund of excise duty paid on final products Duty drawback Imports under DEEC scheme Special import licenses based on value of deemed exports
R P Sheoran
Manufacture Under Bond
.
• This scheme furnishes a bond with the manufacturer of adequate amount to undertake the export of his production. Against this the manufacturer is allowed to import goods without paying any customs duty, even if he obtain it from the domestic market without excise duty. The production is made under the supervision of customs or excise authority.
R P Sheoran
Duty Drawback
• It means the rebate of duty chargeable on imported material or excisable material used in the manufacturing of goods in and is exported. The exporter may claim drawback or refund of excise and customs duties being paid by his suppliers. The final exporter can claim the drawback on material used for the manufacture of export products. In case of reimport of goods the drawback can be claimed. • The following are Drawbacks: • Customs paid on imported inputs plus excise duty paid on indigenous imports. • Duty paid on packing material.
R P Sheoran
.
Electronic Hardware Technology Park / Software Technology Parks.
.
This scheme is just like FTZ scheme, but it is restricted to units in the electronics and computer hardware and software sector.
R P Sheoran
Vishesh krishi And Gram Udyog Yojna
.
• The objective of this scheme is to prompt the export of fruits, vegetables, flower, minor forest product and their value added product. Export of agricultural product shall be entitled for duty credit scrip equivalent to 5 % of FOB value of exports for each licensing year.
R P Sheoran
Focus Market Scheme
• Government of India gives the duty credit scrip equivalent to 2.5 % of FOB value of exports to some countries to increase the export in these countries.
.
Focus Product Scheme.
• Government of India gives the duty credit scrip equivalent to 1.25 % of FOB value of exports to some products to increase the export of these products.
R P Sheoran
•
Oct. 19 – The government of India announced a Rs. 900-crore package for exporters to assist them to fight with the slowdown . in developed markets and rising input costs. The Reserve Bank of India has already declared an interest subsidy of 2 percent on rupee export credit for handicrafts, handlooms, carpets and small and medium exporters. Along with the interest financial support, the total relief package for exporters stands at nearly Rs. 1,700 crore. The commerce minister was certain of meeting the US$300 billion target for exports set for 2011-12. Exports are likely to have risen 52 percent to US$160 billion in the first half of the current financial year
•
•
•
R P Sheoran
Duty Entitlement Passbook Scheme DEPB.
• Duty Entitlement Pass Book Scheme in short DEPB is an export incentive scheme. • consisted of (a) Post-export DEPB and (b) Preexport DEPB. • The DEPB rates is allows import of any items except the items which are otherwise restricted for imports. • The DEPB Rates are applied on the basis of FOB value or value cap whichever is lower. • DEPB Scheme is issued only on post-export basis and pre/export DEPB Scheme has been discontinued.
.
R P Sheoran
Benefits of DEPB Rates
• The benefit of DEPB schemes is available on the export products having extraneous material up to 5% by weight. In such cases, extraneous material up to 5% shall be ignored and the DEPB rate as notified for that export product is be allowed.
R P Sheoran
Duty Exemption Scheme
• Duty exemption schemes enable duty free import of inputs required for export production. An Advance License is issued as a duty exemption scheme. A Duty Remission Scheme enables post export replenishment/ remission of duty on inputs used in the export product. Duty remission schemes consist of (a) DFRC (Duty Free Replenishment Certificate) and (b) DEPB ( Duty Entitlement Passbook Scheme).
• DFRC permits duty free replenishment of inputs used in the export product. DEPB allows drawback of import charges on inputs used in the export product.
R P Sheoran
Marketing Development Assistance (MDA)
• Assist exporters for export promotion activities abroad. • Assist Export Promotion Councils(EPCs) to undertake export promotion activities for their product(s) and commodities. • Assist approved organization/trade bodies in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts for their members. • Assist Focus export promotion programs in specific regions abroad like FOCUS (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN +2) programs. • Residual essential activities connected with marketing promotion efforts abroad.
R P Sheoran
Export Promotion Capital Goods Scheme
• The scheme allows import of capital goods for pre production, production and post production at 5% Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme to be fulfilled over a period of 8 years reckoned from the date of issuance of licence. Capital goods would be allowed at 0% duty for exports of agricultural products and their value added variants.
R P Sheoran
Served from India Scheme
• Accelerate growth in export of services so as to create a powerful and unique 'Served From India' brand, instantly recognized and respected world over. • who have a total foreign exchange earning of at least Rs.10 Lakhs in preceding or current financial year shall qualify for Duty Credit Scrip. • For Individual Service Providers, the criterion is reduced to Rs.5 Lakhs of foreign exchange earnings. • Under this scheme, Service Providers of more than 100 services like Professional Services, Computer Related services, Hotels, Restaurants etc, are entitled for Duty Credit Scrip.
R P Sheoran
Exchange earner Foreign Currency
Account (EEFC A/C)
• The EEFC account is a special type of current account aimed at exporters / individual professionals who receive eligible remittances in foreign currency as per FEMA regulations. The account is maintained in foreign currency, shielding accountholders from exchange rate fluctuations. • EEFC accountholders are required to open a current account in INR for crediting the INR leg of the transaction / converting the balance held in the EEFC account into INR as well as for paying the applicable charges. Features & benefits: • Zero balance account, so no need to maintain any average or minimum balance in the EEFC account • Available in four currencies: US Dollars, Japanese Yen, Pound Sterling (GBP) and EURO • Comprehensive range of Doorstep banking services • Wide range of trade services available at attractive rates
R P Sheoran
Advance license for duty free export.
• Duty free scrips are paper authorizations that allow the holder to import inputs that go into manufacture of products that are exported or machinery used for producing such goods without paying duties equivalent to the printed value. • • For instance, if duty free scrip is valued at Rs 25 lakh, the holder can use it to import such goods without paying duties up to Rs 25 lakh. • Duty free scrips are given to exporters under various export promotion schemes of the government such as • Status holding incentive scheme , focus product, focus market, market-linked focus product schemes and the vishesh krishi gram upaj yojana
R P Sheoran
Extension of realization period.
• In India any export undertaken is required to be realized within prescribed time or there is requirement of applying for extending the time prescribed for export.. • As per current RBI guidelines Exports are required to be realized within 12 months of date of export. • RBI has allowed Banks to increase prescribed time for upto a period of 6 months after 12 months have elapsed subject to the some conditions.
o o o Export Transactions as not subject to investigation by any investigative agencies The bank is satisfied that exporter has not been able to realize export proceeds due to reasons beyond its control The exporter submits a declaration that export proceeds would be realized within the extended period. The total outstanding of the exporter does not exceed USD 1,000,000 or 10% of Average Export Realizations within the last 3 years, whichever is higher In case exporter has filed suits abroad against the buyer, the extension may be granted irrespective of the limit.
o
o
R P Sheoran
Goods sent abroad of testing/sampling.
• According to commerce ministry of India. • Goods or items send abroad only for the purpose of sampling or testing. • The exporter is not liable to pay any custom duty on the sample item. • Reasons.
o The exporter is not earing on the export item. o Item could be damage in testing process. o May exporter do not get his item back as well.
R P Sheoran
Gold card.
• Gold Card Scheme has been drawn up by RBI in consultation with select banks and exporters. • All credit worthy exporters, including those in small and medium sectors with good track record will be eligible for issue of Gold Card as per the criteria to be laid down by the individual banks. • Banks should clearly specify the benefits they would be offering to the Gold Card holders.
o Gold Card holder exporters, depending on their track record and credit worthiness. o Gold Card holders will be given preference for grant of packing credit in foreign currency (PCFC). o Gold card holders, on the basis of their track record of timely realization of export bills, will be considered for issuance of foreign currency credit cards for meeting urgent payment obligations, etc.
R P Sheoran
Ranpal S Sheoran. Pranav Trivedi.
R P Sheoran
doc_944612018.pptx
Export incentives given by GOI,,,,
Export incentives.
Ranpal Singh Sheoran. Pranav Trived.
R P Sheoran
Export Data. GROUP-WISE EXPORT Capital goods. 2012-2013 102016.90
.
% growth. 34.03
Consumer Durables. NONFERROUS METALS & PRODUCTS Thereof PRIMARY IRON & STEEL & ITEMS THEREOF Total
R P Sheoran
34467.81 29341.56
29.48 79.67
61433.61
50.31
227259.88
42.09
VARIOUS EXPORT INCENTIVES
.
R P Sheoran
.
Special economic zone.
• Several SEZs have been established at various places in India. • Kandla, Noida, Cochin, etc. • No excise duties are payable • No customs duties are payable on imported raw material. • These units have the provision of selling 25% of their production in India.( half of excise duty).
R P Sheoran
Advance Licence / Duty Exemption Entitlement Scheme (DEEC)
.
• In this scheme advance licence, either quantity based (Qbal) or value based (Vabal), is given to an exporter against which the raw materials and other components may be imported without payment of customs duty provided the manufactured goods are exported. These licences are transferable in the open market at a price.
R P Sheoran
Export Promotion Capital Goods Scheme (EPCG)
.
A domestic manufacturer can import machinery and plant without paying custom duty or settling at a concessional rate of customs duty. But his undertakings shoul be as mentioned below:
Custom duty rates. 10%
Export Obligation 4 times exports (on FOB basis) of CIF value of machinery.
Nil in case CIF value is Rs200mn or 6 times exports (on FOB basis) of more. CIF value of machinery or 5 times exports on (NFE) basis of CIF value of machinery.
Nil in case CIF value is Rs50mn or more for agriculture, aquaculture, animal husbandry, floriculture, horticulture, poultry and sericulture.
R P Sheoran
6 times exports (on FOB basis) of CIF value of machinery or 5 times exports on (NFE) basis of CIF value of machinery.
Cost insurance freight. net foreign earning.
Deemed Exports
.
• • • •
Refund of excise duty paid on final products Duty drawback Imports under DEEC scheme Special import licenses based on value of deemed exports
R P Sheoran
Manufacture Under Bond
.
• This scheme furnishes a bond with the manufacturer of adequate amount to undertake the export of his production. Against this the manufacturer is allowed to import goods without paying any customs duty, even if he obtain it from the domestic market without excise duty. The production is made under the supervision of customs or excise authority.
R P Sheoran
Duty Drawback
• It means the rebate of duty chargeable on imported material or excisable material used in the manufacturing of goods in and is exported. The exporter may claim drawback or refund of excise and customs duties being paid by his suppliers. The final exporter can claim the drawback on material used for the manufacture of export products. In case of reimport of goods the drawback can be claimed. • The following are Drawbacks: • Customs paid on imported inputs plus excise duty paid on indigenous imports. • Duty paid on packing material.
R P Sheoran
.
Electronic Hardware Technology Park / Software Technology Parks.
.
This scheme is just like FTZ scheme, but it is restricted to units in the electronics and computer hardware and software sector.
R P Sheoran
Vishesh krishi And Gram Udyog Yojna
.
• The objective of this scheme is to prompt the export of fruits, vegetables, flower, minor forest product and their value added product. Export of agricultural product shall be entitled for duty credit scrip equivalent to 5 % of FOB value of exports for each licensing year.
R P Sheoran
Focus Market Scheme
• Government of India gives the duty credit scrip equivalent to 2.5 % of FOB value of exports to some countries to increase the export in these countries.
.
Focus Product Scheme.
• Government of India gives the duty credit scrip equivalent to 1.25 % of FOB value of exports to some products to increase the export of these products.
R P Sheoran
•
Oct. 19 – The government of India announced a Rs. 900-crore package for exporters to assist them to fight with the slowdown . in developed markets and rising input costs. The Reserve Bank of India has already declared an interest subsidy of 2 percent on rupee export credit for handicrafts, handlooms, carpets and small and medium exporters. Along with the interest financial support, the total relief package for exporters stands at nearly Rs. 1,700 crore. The commerce minister was certain of meeting the US$300 billion target for exports set for 2011-12. Exports are likely to have risen 52 percent to US$160 billion in the first half of the current financial year
•
•
•
R P Sheoran
Duty Entitlement Passbook Scheme DEPB.
• Duty Entitlement Pass Book Scheme in short DEPB is an export incentive scheme. • consisted of (a) Post-export DEPB and (b) Preexport DEPB. • The DEPB rates is allows import of any items except the items which are otherwise restricted for imports. • The DEPB Rates are applied on the basis of FOB value or value cap whichever is lower. • DEPB Scheme is issued only on post-export basis and pre/export DEPB Scheme has been discontinued.
.
R P Sheoran
Benefits of DEPB Rates
• The benefit of DEPB schemes is available on the export products having extraneous material up to 5% by weight. In such cases, extraneous material up to 5% shall be ignored and the DEPB rate as notified for that export product is be allowed.
R P Sheoran
Duty Exemption Scheme
• Duty exemption schemes enable duty free import of inputs required for export production. An Advance License is issued as a duty exemption scheme. A Duty Remission Scheme enables post export replenishment/ remission of duty on inputs used in the export product. Duty remission schemes consist of (a) DFRC (Duty Free Replenishment Certificate) and (b) DEPB ( Duty Entitlement Passbook Scheme).
• DFRC permits duty free replenishment of inputs used in the export product. DEPB allows drawback of import charges on inputs used in the export product.
R P Sheoran
Marketing Development Assistance (MDA)
• Assist exporters for export promotion activities abroad. • Assist Export Promotion Councils(EPCs) to undertake export promotion activities for their product(s) and commodities. • Assist approved organization/trade bodies in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts for their members. • Assist Focus export promotion programs in specific regions abroad like FOCUS (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN +2) programs. • Residual essential activities connected with marketing promotion efforts abroad.
R P Sheoran
Export Promotion Capital Goods Scheme
• The scheme allows import of capital goods for pre production, production and post production at 5% Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme to be fulfilled over a period of 8 years reckoned from the date of issuance of licence. Capital goods would be allowed at 0% duty for exports of agricultural products and their value added variants.
R P Sheoran
Served from India Scheme
• Accelerate growth in export of services so as to create a powerful and unique 'Served From India' brand, instantly recognized and respected world over. • who have a total foreign exchange earning of at least Rs.10 Lakhs in preceding or current financial year shall qualify for Duty Credit Scrip. • For Individual Service Providers, the criterion is reduced to Rs.5 Lakhs of foreign exchange earnings. • Under this scheme, Service Providers of more than 100 services like Professional Services, Computer Related services, Hotels, Restaurants etc, are entitled for Duty Credit Scrip.
R P Sheoran
Exchange earner Foreign Currency
Account (EEFC A/C)
• The EEFC account is a special type of current account aimed at exporters / individual professionals who receive eligible remittances in foreign currency as per FEMA regulations. The account is maintained in foreign currency, shielding accountholders from exchange rate fluctuations. • EEFC accountholders are required to open a current account in INR for crediting the INR leg of the transaction / converting the balance held in the EEFC account into INR as well as for paying the applicable charges. Features & benefits: • Zero balance account, so no need to maintain any average or minimum balance in the EEFC account • Available in four currencies: US Dollars, Japanese Yen, Pound Sterling (GBP) and EURO • Comprehensive range of Doorstep banking services • Wide range of trade services available at attractive rates
R P Sheoran
Advance license for duty free export.
• Duty free scrips are paper authorizations that allow the holder to import inputs that go into manufacture of products that are exported or machinery used for producing such goods without paying duties equivalent to the printed value. • • For instance, if duty free scrip is valued at Rs 25 lakh, the holder can use it to import such goods without paying duties up to Rs 25 lakh. • Duty free scrips are given to exporters under various export promotion schemes of the government such as • Status holding incentive scheme , focus product, focus market, market-linked focus product schemes and the vishesh krishi gram upaj yojana
R P Sheoran
Extension of realization period.
• In India any export undertaken is required to be realized within prescribed time or there is requirement of applying for extending the time prescribed for export.. • As per current RBI guidelines Exports are required to be realized within 12 months of date of export. • RBI has allowed Banks to increase prescribed time for upto a period of 6 months after 12 months have elapsed subject to the some conditions.
o o o Export Transactions as not subject to investigation by any investigative agencies The bank is satisfied that exporter has not been able to realize export proceeds due to reasons beyond its control The exporter submits a declaration that export proceeds would be realized within the extended period. The total outstanding of the exporter does not exceed USD 1,000,000 or 10% of Average Export Realizations within the last 3 years, whichever is higher In case exporter has filed suits abroad against the buyer, the extension may be granted irrespective of the limit.
o
o
R P Sheoran
Goods sent abroad of testing/sampling.
• According to commerce ministry of India. • Goods or items send abroad only for the purpose of sampling or testing. • The exporter is not liable to pay any custom duty on the sample item. • Reasons.
o The exporter is not earing on the export item. o Item could be damage in testing process. o May exporter do not get his item back as well.
R P Sheoran
Gold card.
• Gold Card Scheme has been drawn up by RBI in consultation with select banks and exporters. • All credit worthy exporters, including those in small and medium sectors with good track record will be eligible for issue of Gold Card as per the criteria to be laid down by the individual banks. • Banks should clearly specify the benefits they would be offering to the Gold Card holders.
o Gold Card holder exporters, depending on their track record and credit worthiness. o Gold Card holders will be given preference for grant of packing credit in foreign currency (PCFC). o Gold card holders, on the basis of their track record of timely realization of export bills, will be considered for issuance of foreign currency credit cards for meeting urgent payment obligations, etc.
R P Sheoran
Ranpal S Sheoran. Pranav Trivedi.
R P Sheoran
doc_944612018.pptx