Incremental Exports Incentivisation Scheme (IEIS) for 2013-14
Amendments in Duty Credit Scrips to
Chapter 3 of FTP
[DGFT Notification No. 03 dated 18th
April 2013]
Subject: Amendments in Chapter 3 of Foreign Trade Policy 2009-14
In exercise of the
powers conferred by Section 5 of the Foreign Trade (Development and Regulation)
Act, 1992 read with Para 2.1 of the Foreign Trade Policy, 2009-2014, the
Central Government hereby makes the following amendments in the Foreign Trade
Policy (FTP) 2009-14 with immediate effect:
2. A new paragraph 3.14.5
of FTP 2009-14 is added as below:
“3.14.5
Incremental Exports Incentivisation Scheme (IEIS) on annual basis”
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Entitlement |
(a) Objective of the Scheme is to
incentivize incremental exports. |
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(b) An IEC holder would be entitled for a
duty credit scrip @ 2% on the incremental growth (achieved by the IEC holder)
during the current year (for example, say for the period 01.04.2013 to
31.3.2014) compared to the previous year (for example, say for the period
from 01.04.2012 to 31.3.2013) on the FOB value of exports. Incremental growth
shall be in respect of each exporter (IEC holder) without any scope for
combining the exports for Group Company. |
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(c) Incentive will be admissible
only if the IEC holder has achieved growth in the financial year 2013-2014
vis a vis financial year 2012-2013. Quantum of benefit will be calculated on
the incremental growth achieved subject to eligibility criteria given in para
3.14.4(d) of FTP 2009-14. |
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Eligibility Criteria |
(d) For the purpose of the scheme, export
performance shall not be allowed to be transferred from any other IEC holder.
Benefit under the scheme will not be allowed to an exporter who had made no
export during fiscal year 2011-12 and fiscal year 2012-13. The following
exports shall not be taken into account for calculation of export performance
or for computation of entitlement under the Scheme: (i) Export of
imported goods or exports made through trans-shipment. (ii) Export from
SEZ/ EOU /EHTP /STPI /BTP/FTWZ (iii) Deemed
Exports (iv) Service
Exports (v) Third Party
exports (vi) Diamond,
Gold, Silver, Platinum, other precious metal in any form including plain and
studded jewellery and other precious and semi-precious stones. (vii) Ores and concentrates
of all types and in all formations. (viii) Cereals of
all types. (ix) Sugar of all
types and all forms. (x) Crude /
petroleum oil and crude / primary and base products of all types and all
formulations. (xi) Export of
milk and milk products. (xii) Export
performance made by one exporter on behalf of other exporter. (xiii) Supplies made
to SEZ units. (xiv) Items, export
of which requires an export authorisation (except SCOMET), will not be
considered. (xv) Export of
Meat and Meat Products. (xvi) Exports to
Singapore, UAE and Hong Kong. |
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Special
Provision |
(e) The scheme is region specific
and will cover exports to USA, Europe and Asian countries only. In addition
export to 53 countries in Latin America and Africa (as mentioned in Public
Notice 3 dated 18th April 2013) will be entitled to this benefit.
Disclaimer provisions of para 3.17.10 (b) of FTP shall not be admissible. This
benefit will be over and above any benefit being claimed by the exporter
under any of the Chapter 3 Schemes. |
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Utilisation
of Scrip |
(f) The duty credit scrip will be freely
transferable. Such scrips shall also be eligible for domestic sourcing and
for payment of Service Tax as per para 3.17.5 of FTP 2009-14. |
3. The following is added at the end
of Para 3.12.4 of FTP 2009-14:
“SFIS benefit
will be allowed on the Net Foreign Exchange earned.“
4. Following is added at the end
of Para 3.12.6(a) of FTP 2009-14:
“Service
providers who are also engaged in manufacturing activity can use their SFIS scrip
for importing / domestic sourcing of capital goods( as defined in para 9.12 of
FTP) including spares related to the manufacturing sector business of the
service provider. Such manufacturing sector business of the service provider
would have to be endorsed on the SFIS scrip from relevant RA.”
5. The following is added at the
end of existing Para 3.12.6 (b) of FTP 2009-14:
“Utilisation of Duty Credit Scrip shall also be permitted for payment of
duty in case of Import/ domestic sourcing of motor cars, SUV’s and all purpose
vehicles as Professional Equipment by Hotels, Travel agents, Tour operators or
tour transport operators and companies owning/operating golf resorts. Such
vehicles (operating on road and requiring registration) will have to be
registered for Tourist purpose only. Proof of registration will need to be
submitted to RA concerned within 6 months of import/domestic procurement.“
6. Para 3.13.3 of FTP stands
deleted with immediate effect.
7. Sub para (g) is added at the
end of para 3.13.4 of FTP:
“Transferability of the Agri Infrastructure Incentive Scrip shall be
allowed to supporting manufacturer of the status holder. Such transferability
would have to be endorsed on the Agri Infrastructure Incentive Scrip from
relevant RA.”
8. Following is added at the end
of Para 3.16.3 of FTP 2009-14:
“SHIS can be transferred to a manufacturer group company of the scrip
holder even though the group company is not a status holder. Group company is
defined in para 9.28 of FTP. Such transfer will have to be endorsed by relevant
RA.”
9. Para 3.17.2 (i) of FTP 2009-14
stands deleted with immediate effect.
10. Sub para (d) is added after
3.17.5(c):
“Duty credit scrips issued under FPS, FMS and VKGUY can be used for
payment of Service Tax. Scrip holder shall be entitled to avail drawback
benefits or CENVAT credit of the Service Tax debited in the said scrip in
accordance with DOR rules. ”
11. Following is added at the end
of Para 3.17.11 of FTP 2009-14:
“Duty credit
scrips can be used for payment of composition fee under FTP, for payment of
application fee under FTP, if any and for payment of value shortfall in EO
under para 4.28 (b) of HBP v1 2009-14.
Effect of this Notification
The Scheme to
incentivize incremental exports for the year 2013-14 and other amendments to Chapter
3 of FTP are being notified.