Sudden Rise of 25% in Exports Triggers Alarm on Possible Misuse of Incremental Export Incentive Scheme

[DGFT Trade Notice No. 06 dated 31^st July 2013]

Subject: Inviting Suggestions to prevent unintended benefit under Incremental Export Incentivisation Scheme

Government had announced ‘Incremental Export Incentivisation Scheme’ vide Notification No. 27 dated 28.12.2012 and Notification No. 3 dated 18.04.2013.

2. In order to prevent unintended benefit under the scheme in cases where growth in exports is more than 25 % or the total incremental growth is Rs. 10 crore or more, RAs would have to be more careful. Their scrutiny of the claim may require, inter alia,

i. Calling for evidence of manufacture / purchase of export goods i.e. excise return/sales tax returns or any other evidence.

ii. Checking exports of company from whom goods have been purchased i.e. whether such company had done export in previous 2 years and quantum of exports in current year.

i. Calling for any other evidence to justify export growth and consequent entitlement of IEIS.

4. All stakeholders are requested / encouraged to give feedback /suggestion on the above matter preferably through e-mail to hardeep.singh@nic.in up to 18.00 hrs on 20.08.2013.