INTRODUCTION
Directorate General of Foreign Trade (DGFT) issues various types of scrips/authorizations
under different export promotion schemes through its Regional Authorities (RAs) across the
country.
II. Importer-Exporter Code (IEC)
An IEC is a 10-digit number allotted to a person that is mandatory for undertaking any
export/import activities. Now the facility for IEC in electronic form or e-IEC has been
operationalized.
III. Merchandise Exports from India Scheme (MEIS)
Merchandise Exports from India Scheme (MEIS) was introduced through the Foreign Trade
Policy (FTP) 2015-20 on April 1, 2015. At the time of introduction, MEIS covered 4,914
tariff lines at 8 digits and currently it covers 8,056 lines. MEIS incentives are available at 2, 3,
5 and 7, 10 and 20% of the FOB value of exports.
IV. Services Exports from India Scheme (SEIS)
Services Exports from India Scheme (SEIS), introduced in the Foreign Trade Policy (2015-
20) replacing the Served from India Scheme (SFIS), is an incentive scheme for eligible
service exports. SEIS offers reward at 3% or 5% of net foreign exchange earned. This scheme
covers ‘Service Providers located in India’ instead of ‘Indian Service Providers’. Under the
new scheme, the incentive scrips issued are transferable.
V. Other Export Promotion Schemes under earlier Foreign Trade Policies
Scrips are also issued under various schemes viz. (i) Focus Product Scheme (FPS), (ii) Focus
Market Scheme (FMS), (iii) Vishesh Krishi and Gram Udyog Yojna (VKGUY), (iv)
Incremental Export Incentive Scheme, (v) Served From India Scheme, (vi) Status Holder
Incentive Scrip (SHIS), (vii) DEPB-Post Exports, (viii) Duty Free Import Authorisation
(DFIA) and (ix) Replenishment License (Gem & Jewellery).
VI. Export Authorization
Export of items categorised as ‘Restricted’ in Schedule 2 of ITC (HS) Classification for
export is subjected to license. The applications for issuance of export authorization for
restricted items (other than SCOMET items) e.g. onion seeds, live animals, seaweeds, non-
basmati rice paddy (husk) other than seed quality, fodder material, fertilizers (NPK, SSP, urea
etc.), chemicals under Montreal Protocol etc., are processed and considered by an EXIM
Facilitation Committee (EFC) consisting of representatives of various Ministries and
Departments. “Special Chemicals, Organism, Materials, Equipment and Technologies
(SCOMET)” items are dual-use items having potential for both civilian and Weapons of Mass
Destruction (WMD) applications. Export of such items is either restricted, requiring an
authorisation for their export, or is prohibited. Total number of authorisations issued under
Export License is 160 with FOB value of Rs. 561.49 crore during the month of April-June
2019.
VII. Import Authorization
Import of items categorised as ‘Restricted’ in Schedule 1 of ITC (HS) Classification for
import, is subjected to license. Total number of authorisations issued under Import License is
838 with CIF value of Rs. 27,223.13 crore during the month of April-June 2019.
VIII. Export Promotion Scheme-wise share in issuance of scrips/authorizations
Figure 8 shows the share of various export promotion schemes in issuance of
scrips/authorisations by the Regional Authorities during April-June 2019. It shows that MEIS
has the highest share of 86.40% in issuance of scrips among all export promotion schemes,
followed by Advance Authorisation Scheme with 6.62%.
IX. Advance Authorisation Scheme
Advance Authorisation is issued to allow duty free import of input, which is physically
incorporated in export product (making normal allowance for wastage). In addition, fuel, oil,
catalyst which is consumed/ utilized in the process of production of export product, may also
be allowed.
X. Export Promotion of Capital Goods (EPCG) Scheme
The objective of the EPCG Scheme is to facilitate import of capital goods for producing
quality goods and services to enhance India’s export competitiveness. Post Export EPCG duty
credit scrips are also available to exporters who intend to import capital goods on full
payment of applicable duties in cash and choose to opt for this scheme.
Import under EPCG Scheme shall be subject to an export obligation equivalent to 6 times of
duties, taxes and cess saved on capital goods, to be fulfilled in 6 years reckoned from date of
issue of Authorisation. Authorisation shall be valid for import for 18 months from the date of
issue of Authorisation. EO shall be fulfilled by the authorisation holder through export of
goods which are manufactured by him or his supporting manufacturer / services rendered by
him, for which the EPCG authorisation has been granted. Revalidation of EPCG
Authorisation shall not be permitted.
RA-wise number of authorisations issued under EPCG scheme along with the value of Export
Obligation (EO) fixed and unredeemed authorisations as on June 2019 where EO period has
expired (till 2010-11) are given at Table 9. The details of number of authorisations issued
along with the value of Export Obligation (EO) fixed upto March, 2019 and unredeemed
authorisations as on June 2019 are given at Table 10. Further, the status of unredeemed
authorisations for April- June 2019 is given at Table 11. It shows that total number of 2677
authorisations along with Rs. 3557.45 Crore duty foregone amount was issued under EPCG
Scheme during April-June 2019.
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