FOREIGN TRADE POLICY, 1 ST September 2004 - 31 st March 2009
- Special Focus Initiatives for Agriculture
- SPECIAL AGRICULTURE PRODUCE SCHEME – for export of :
– Fruits
– Vegetables
– Minor Forest Produce
– Their value-added products
- Under Special Agricultural Produce Scheme (SAPS) – Duty Credit Scrip equivalent to 5% of FOB value of exports,
– For import of inputs including capital goods
MAI SCHEME
- Financial Assistance ranging from 25% to 100% of total cost depending upon:
– Activity
– Implementing Agency
MDA SCHEME
Available for exporters with annual export turnover upto Rs. 5 crores
Assistance under MDA is available for Trade Fairs, with Travel grant, to following focus areas:
• Latin America
• Africa
• CIS Region
• ASEAN Countries
• Australia & New Zealand
Assistance under MDA is available for Trade Fairs, without Travel grant, for other areas
Test House – Assistance for motivation and upgradation of test house and laboratories on par with International standards.
Entitlement of double – weightage of exports for the following for status-holder recognition :
• SSI/Tin/Cottage sectors
• Unit located in NE states/Sikkim/J&K
• Exports to Latin America/CIS/Sub-Saharan Africa
• Units having ISO-9000/HACCP etc.
• Exports of agro products.
TARGET PLUS SCHEME :
- Available to all Star Export House with a minimum export turnover of Rs. 10 crores in previous licensing year.
- Status-holders under Exim Policy 2002-2007.
- Entitlement for duty credit based on incremental exports as follows :
Percentage Incremental Duty Credit Entitlement (as a
Growth % of the incremental growth)
20-25% 5%
25% - 100% 10%
100% and above 15% (of 100%)
Rider :
• For any product, option to apply for benefit either under Target Plus Scheme or under Vishesh Krishi Upaj Yojana, but not both.
• Incremental growth beyond 100% will not qualify.
Duty credit available for import of inputs, capital goods including spares, office equipments, professional equipment and office furniture.
SPECIAL AGRICULTURAL PRODUCE SCHEME (Vishesh Krishi Upaj Yojana)
- For export of fruits/vegetables/minor forest produce/their value added products.
- Entitlement for duty-credit scrip equivalent to 5% of FOB value of exports annually.
- Scrip and items freely transferable.
- Advance License issue for duty-free import of inputs; in addition fuel, oil, energy, catalysts also allowed.
- DEPB Scheme for import of capital goods, raw materials etc., will continue to be operative.
EPCG Scheme :
- Allows import of capital goods at 5% custom duty subject to export obligation.
- Allows import of capital goods at 0% duty for export of agricultural produce and their value-added products.
FOREIGN TRADE POLICY, 1 ST September 2004 - 31 st March 2009
Special Provisions for AEZ Units
Funds under ASIDE for AEZs on twin criteria:
- Gross Exports of the State
- Rate of Growth of Exports
Under EPCG Scheme :
- Duty-free import of Capital Goods
- Exemption from BG for AEZ units
- Permitted to install Capital Goods anywhere in AEZ
- Categories of Status Holders :
Category Performance (in rupees)
One star Export House 15 crore
Two Star Export House 100 crore
Three Star Export House 500 crore
Four Star Export House 1500 crore
Five Star Export House 5000 crore
- AEZs eligible for applying for status as “Star Export Houses”.
- For agro units in AEZs, export obligation to be fulfilled over a period of 12 years.
- For agro units in AEZs, facility of moving imported capital goods within the AEZ (available also to Service Provider)
- For units in AEZs, LUT/Bond in lieu of BG allowed for primary agricultural products and their value-added products.
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