New Export Incentives for VKGUY/FPS etc

[DGFT Public Notice No. 33 dated 15^th February 2011]

Subject: Amendments in the Reward/Incentive Schemes of Chapter 3 of FTP 2009-14:- Appendix 37A and Appendix 37D of Handbook of Procedure Vol. 1

In exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy, 2009-2014, the Director General of Foreign Trade hereby makes the following amendments in the Handbook of Procedures Vol.1 (Appendices and Aayat Niryat Forms) 2009-2014:-

1. In Appendix 37A of Vishesh Krishi and Gram Udyog Yojana (VKGUY), the following products are added in Table 3:

SNo.	VKGUY Product Code	ITC HS	Items
4	4	23069027	Oil-cake and oil-cake meal, solvent extracted (defatted) variety: Of castor seeds
5	5	210111	Extracts, essences and concentrates: of Coffee
6	6	21011200	Preparations with basis of extracts, essences, concentrates or with a basis of coffee
Effect of inclusion: The above two entries shall be entitled to VKGUY benefits @ 5% (or reduced rate of 3%, if applicable) for exports made from 1.1.2011 onwards.

2. In Appendix 37D of Focus Product Scheme (FPS), the following products are added in Table 5:

SNo.	FPS Product Code	ITC HS	Items
61	61	04081100	Egg yolks: Dried
62	62	04089100	Other: Dried of Bird Eggs
Effect of inclusion: The above entry shall be entitled to Special FPS benefits @ 5% for exports made from 1.1.2011 onwards.

3. In Appendix 37D of FPS, the following products are added in Table 4:

Table 4: New Focus Products
SNo.	FPS Product Code	ITC (HS) Code	Description
162	162	4114	Chamois (including combination Chamois) Leather; Patent Leather and Patent Laminated Leather ; Metallised Leather
163	163	29420015	Danes salt of D(-) Phenyl Glycine
164	164	85366990	Plugs and sockets: Other: Of other materials
165	165	59112000	Textile products and articles, for technical uses, specified in Note 7 to this Chapter 59: Bolting Cloth, W/N Made Up Out of the above entry, only ‘Industrial Synthetic Foaming Fabric’ with ITC HS Code indicated in column 3 is eligible for the benefit.
166	166	59113290	Textile products and articles, for technical uses, specified in Note 7 to this Chapter 59: Others: Weighing 650 g/m2 or more Out of the above entry, only ‘Industrial Synthetic Foaming Fabric’ with ITC HS Code indicated in column 3 is eligible for the benefit.
167	167	74082190	Copper wire: Of copper alloys: Of copper-zinc base alloys (brass): Other
168	168	74081910	Copper wire: Of refined copper: Other: Copper weld wire
169	169	39206290	Other plates, sheets, film, foil and strip, of plastics, non-cellular and not-reinforced, laminated, supported or similarly combined with other materials: Of polyethylene terephthalate: Other
170	170	32041790	Pigments and preparations based thereon: Other
171	171	48239090	Other articles of paperboard
172	172	73201011	Leaf spring: For motor vehicles
173	173	73201012	Leaf spring: For railways and tramways
174	174	73201020	Leaf spring: Leaves for springs
175	175	850511	Permanent magnets and articles intended to become permanent magnets after magnetisation: Of metal
176	176	85059000	Permanent magnets and articles intended to become permanent magnets after magnetisation: Other, including parts
177	177	81052020	Cobalt unwrought
178	178	28332990	Sulphates: Other Out of the above entry, only ‘Cobalt Sulphate’ with ITC HS Code indicated in column 3 is eligible for the benefit.
179	179	28220010	Cobalt oxides
180	180	28259020	Cadmium oxide
181	181	28352690	Other Phosphates of Calcium: Other Out of the above entry, only ‘Other Calcium Phosphate’ with ITC HS Code indicated in column 3 is eligible for the benefit.
182	182	75011000	Nickel mattes
183	183	84779000	Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter 84: Parts thereof
184	184	39232100	Sacks and bags (including cones): Of polymers of ethylene
185	185	73069019	ERW precision tubes: Other
186	186	401150	New pneumatic tyres, of rubber: Of a kind used on bicycles
187	187	40132000	Inner tubes, of rubber: Of a kind used on bicycles
188	188	72024100	Ferro-chromium: Containing by weight more than 4% of carbon
189	189	72024900	Ferro-chromium: Other
190	190	54024600	Other yarn, single, untwisted or with a twist not exceeding 50 turns per metre: Other, of polyesters, partially oriented
191	191	55032000	Synthetic staple fibres, not carded, combed or otherwise processed for spinning: Of polyesters
192	192	84772000	Extruders
193 to 209	193 to 209	63014000, 63022200, 63023200, 63024040, 63025300, 63029300, 63031200, 63039200, 63041930, 63049300, 63053200, 63053300, 63061200, 63062200, 63064000, 63071020, 63079013.	Chapter 63 - Other Made Up Textile Articles; Sets; Worn Clothing And Worn Textile Articles; Rags. In respect of these entries, only Man made / Synthetic items as covered by the 17 ITC HS Codes indicated in column 3 would be eligible for the benefits.
210	210	0501	Human hair, unworked, whether or not washed or scoured; waste of human hair.
211	211	6703	Human hair, dressed, thinned, bleached or otherwise worked; wool or other animal hair or other textile materials, prepared for use in making wigs or the like.
Effect of inclusion: The above entries shall be entitled to FPS benefits @ 2% for exports made from 1.1.2011 onwards.

4. In Appendix 37D of FPS, the following products are added in Table 7:

Table 7: Focus Product(s)/Sector(s) - Bonus Benefits
SNo.	FPS Product Code	ITC (HS) Code	Description
157	157	57	All Handmade Carpets and Other Textile Floor Coverings covered under Chapter 57, Whether Or Not Made Ups. - Item Description covered in Sr. No. 11 of Table 2 of Appendix 37D.
158	158	9609	Pencils (excluding Pencils of Heading No.9608), Crayons, Pencil Leads Pastels, Drawing Charcoals, Writing / Drawing Chalks & Tailors' Chalks. - Item Description covered in Sr. No. 21 of Table 1 of Appendix 37D.
159	159	730791	Flanges - of Iron And Steel - Item Description covered in Sr. No. 74 of Table 4 of Appendix 37D.
160	160	59029010	Tyre cord fabric of high tenacity yarn - Others: Impregnated with rubber - Item Description covered in Sr. No. 49 of Table 4 of Appendix 37D.
161	161	59029090	Tyre cord fabric of high tenacity yarn - Other: other - Item Description covered in Sr. No. 49 of Table 4 of Appendix 37D.
162	162	854420	Co-axial cable and other co-axial electric conductors - Item Description covered in Sr. No. 71 of Table 4 of Appendix 37D. Sr. No 71 of Table 4 is also corrected to read as above.
163	163	73181600	Nuts, Threaded - Threaded Nuts - Item Description covered in Sr. No. 51 of Table 5 of Appendix 37D.
164	164	9102	Wrist Watches, Pocket Watches, Other Watches Including Stop Watches Other Than Those Of Heading 9101 - Item Description covered in Sr. No. 56 of Table 4 of Appendix 37D.
165 to 167	165 to 167	72021100, 72021900, 72023000	Ferro Manganese containing by weight more than 2% of carbon, Other Ferro-Manganese, Ferro-Silico-Manganese - Item Description covered in Sr. No. 102 of Table 4 of Appendix 37D. Sr. No 102 of Table 4 is also corrected to read as above.
168	168	50	Silk All items covered under Chapter 50. - Item Description covered in Sr. No. 39 to 44 of Table 1 of Appendix 37D.
169	169	9608	Ball Point Pens; Felt Tipped Pens; Fountain Pen; Stylograph Pens; Propelling / Sliding Pencils; Pen / Pencil Holders; parts (including caps and clips) of the foregoing articles, other than those of heading 9609 (Excluding ITS HS Heading No. 960839) - Item Description covered in Sr. No. 20 of Table 1 of Appendix 37D. Sr. No 20 of Table 1 is also corrected to read as above.
Effect of inclusion: The entries sr. no. 157 and 163 shall be entitled to Bonus Benefits of 2% under FPS benefits (i.e. total 5%+2% = 7%) for exports made from 1.1.2011 onwards. All other above entries shall be entitled to Bonus Benefits of 2% under FPS benefits (i.e. total 2%+ 2% = 4%) for exports made from 1.1.2011 onwards.

5. In Appendix 37D of FPS, the following products are added in Table 6:

Table 6: New Market Linked Focus Products
SNo.	Focus Product Code	Description of Product/Sector	ITC(HS) Code	Linked Market (s) For Focus Product (s) / Sector (s)
104	104	Other Made Up Textile Articles; Sets. Worn Clothing And Worn Textile Articles; Rags. All Items covered under Chapter 63 of ITC HS	63	EU (27 Countries) – The list of 27 countries is given in Sr. No. 101 of this Table.
105	105	Inorganic Chemicals; Organic / Inroganic Compounds Of Precious Metals, Of Rare Earth Metals, Of Radioactive Elements, Of Isotopes. All Items covered under Chapter 28 of ITC HS	28	Algeria, Egypt, Kenya, Nigeria, Tanzania, South Africa, Ukraine, Mexico, Brazil, Australia, New Zealand, Cambodia, Vietnam, China and Japan
106	106	Tractors (Other Than Tractors Of Heading 8709): Other: Other (i.e. Agricultural Tractors >1800 Cc engine capacity)	87019090
107	107	Other woven fabrics, containing by weight 5% or more of elastomeric yarn or rubber thread	58062000
Effect of inclusion: For exports made from 1.1.2011 onwards, the above entries shall be entitled to FPS benefits (i.e. 2%) on exports to Linked Markets as indicated against the respective entry.

6. All the above shall be applicable to exports made on or after 1^st January 2011.