i. Realizing that great potential and opportunities exist in the manufacturing sector, Annual supplement introduces a number of measures to enhance the competitiveness of manufacturing sector.
ii. To promote accelerated export performance, balance export obligation will be waived for the exporters completing 75% of their export obligation in half the prescribed export obligation period.
iii.Reduced export obligation and enhanced time available for exports under the EPCG Scheme for the imports made by the agriculture sector.
iv.Reduced obligation at six times the duty saved amount as against the normal eight times for imports made by the SSI sectors under the EPCG Scheme.
v. Export of poultry and dairy products and their value added products facilitated by
vi.granting them duty credit @ 5% of the FOB value of the exports under the Vishesh Krishi Upaj Yojna.
vii. Supply of gold of 0.995 and above purity allowed for release for export purposes.
viii. For units de-bonding from EOU’s, a simplified procedure is being worked out. Similarly, capital goods can be transferred to other units by simply intimating Central Excise & Development Commissioner.
ix.Reducing congestion at the major ports. The facility for export obligation discharge in rupee payment under the EPCG has been extended to the minor ports, ICDs and CFS also.
x. Single common application form called Aayaat Niryaat Form introduced reducing the size of the form by more than 60%.
xi.Three categories of advance licenses merged into a single category , Annual advance license, which was available only to status holders, will now be available to all the exporters with some export performance.
xii. Export obligation extension for five years under advance license based on BIFR rehabilitation package.
xiii. Bank guarantee threshold reduced for units in Agri export zones and established service providers and a category of manufacturer exporters.
xiv. Simplified clubbing norms under the advance license and EPCG Scheme will help exporters in regularizing their cases.
xv. Chartered Engineer Certificate in lieu of Central Excise Certificate for non-excisable units and those importing spares will be accepted as installation certificate. This will reduce the transaction time.
xvi. Imports made under Served from India Scheme can be transferable within the group companies and managed hotels. The provision will allow bulk sourcing and better utilization of the entitlement.
xvii. Government has decided to develop a trademark for Handloom on lines similar to ‘Woolmark’ and
‘Silkmark’. This will enable handloom products to develop a niche market with the distinct identity.
xviii. All Export Promotion Council shall open a separate Cell to involve and encourage youth and women entrepreneurs in export effort.
xix. Minister of Commerce and Industry invited Suggestions on a proposal to change the names of Export Promotion Councils to ‘Trade Promotion Council.
xx. Technological up gradation under EPCG scheme has been facilitated and incentivized.
xxi. Transfer of capital goods to group companies and managed hotels now permitted under EPCG.
xxii. In case of movable capital goods in the service sector, the requirement of installation certificate from Central Excise has been done away with.
xxiii. When Capital Goods are imported for pre/post – production or license is taken for import of spares, the license holder shall fulfill the export obligation by export of products manufactured from the plant/project to which the pre/post-production capital goods/spares are related.
xxiv. The agro units in the agri export zones would also have the facility of moving the capital good(s) imported under the EPCG within the agri export zone. Service provider in Agri export zone shall have the facility to move or shift the capital goods within the zone provided he maintains accurate record of such movements. However, such equipments shall not be sold or leased by the license holder.
xxv. Star Export Houses shall be eligible for a number of privileges including fast-track clearance procedures, exemption from furnishing of Bank Guarantee, eligibility for consideration under Target Plus Scheme etc.
xxvi. Favours to EOUs
Import of capital goods shall be on self-certification basis for EOUs.
For EOUs engaged in Textiles & Garments manufacture leftover materials and
fabrics upto 2% of CIF value of quantity of import shall be allowed to be disposed
of on payment of duty on transaction value only.
Minimum investment criteria shall not apply to Brass Hardware and Hand-made
jewellery EOUs (this facility already exists for Handicrafts, Agriculture, Floriculture, Aquaculture, Animal Husbandry, IT and Services).
xxvii. Favours to Free Trade and Warehousing Zone
A new scheme to establish Free Trade and Warehousing Zone has been introduced to create trade – related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency. This is aimed at making India into a global trading-hub.
b. FDI would be permitted up to 100% in the development and establishment of the zones and their infrastructural facilities.
c. Each zone would have minimum outlay of Rs.100 crs and 5 lakh sq.mts. built up area.
Units in the FTWZs would qualify for all other benefits as applicable for SEZ units.
xxviii. Common Facilities Centre
Government shall promote the establishment of Common Facility Centres for use by home-based service providers, particularly in areas like Engineering & Architectural design, Multi-media operations, software developers etc., in State and District-level towns, to draw in a vast multitude of home-based professionals into the services export arena.
xxix. Procedural Simplification & Rationalization Measures
o All exporters with minimum turnover of Rs. 5 crores and good track record shall be exempt from furnishing Bank Guarantee in any of the schemes, so as to reduce their transactional costs.
o b. All goods and services exported, including those from DTA units shall be exempt from Service Tax.
o c. Validity of all licenses/entitlements issued under various schemes has been increased to a uniform 24 months.
o Number of returns and forms to be filed have been reduced. This process shall be continued in consultation with Customs & Excise.
o Enhanced delegation of powers to Zonal and Regional Offices of DGFT for speedy and less cumbersome disposal of matters.
o Time bound introduction of Electronic Data Interface (EDI) for export transactions.
75% of all export transactions to be on EDI within six months.
xxx. Facilities at Pragati Maidan
o In order to showcase our industrial and trade prowess to its best advantage and leverage existing facilities, Pragati Maidan will be transformed into a world-class complex.
o b. There shall be state-of-the-art, environmentally-controlled, visitor friendly exhibition areas and marts.
o c. A huge Convention Centre to accommodate 10,000 delegates with flexible hall spaces, auditoria and meeting rooms with high-tech equipment, as well as multilevel car parking for 9,000 vehicles will be developed within the envelope of Pragati Maidan.
xxxi. Legal Aid Financial assistance would be provided to deserving exporters
on the recommendation of Export Promotion Councils, for meeting the costs of legal expenses connected with trade – related matters.
xxxii. Grievance Redressal :A new mechanism for grievance redressal has been formulated and put into place by a Government Resolution to facilitate speedy redressal of grievances of trade and industry
xxxiii. Quality Policy
o DGFT shall be a business-driven, transparent, corporate oriented organization.
o b. Exporters can file digitally signed applications and use Electronic Fund Transfer Mechanism for paying application fees.
o c. All DGFT Offices shall be connected via a central server making application processing faster. DGFT Head Quarters has obtained ISO 9000 certification by standardizing and automating procedures.
xxxiv. Bio Technology Parks: Biotechnology Parks to be set up which would be granted all facilities of 100% EOUs.
xxxv. Co-Acceptance/Avalisation: Co-acceptance/Avalisation is introduced as equivalent to
irrevocable letter of credit to provide wider flexibility in financial instrument for export transaction.
xxxvi. Revamping Boards of Trade: The Boards of Trade shall be revamped and given a clear and dynamic role. An eminent person or expert on trade policy shall be nominated as President of the Board of Trade, which shall have a Secretariat and separate Budget Head, and will be serviced by the Department of Commerce.
xxxvii. Web chat: The Office of the Director General of Foreign Trade has opened a
chat window on its website: (http://dgft.delhi.nic.in) for interacting with the trade and industry to reply to queries on the Foreign trade Policy. This web based interface would(http://dgft.delhi.nic.in) for interacting with the trade and industry to reply to queries on the Foreign trade Policy. This web based interface would be held from 3.00 p.m. to 5.00 p.m on the second Wednesday of every month.
1.6.5 Facilitative Encouragements to Exporters