Focus Market Schemes
Duty Entitlement Passbook Scheme (DEPB)
We are engaged in offering Duty Entitilement Passbook Scheme (DEPB) which is an Export Promotion Scheme. The main objective of DEPB is to neutralise incidence of customs duty on import content of export product. The components of Special Additional Duty are allowed under DEPB (as brand rate) in case of non-availment of CENVAT credit. Neutralisation of customs duty is provided by way of grant of duty credit against export product.
An exporter can apply for credit, at specified percentage of FOB value of exports, made in freely convertible currency. In case of supply by a DTA unit to a SEZ unit/ SEZ Developer/Co-Developer, an exporter can apply for credit for exports made in freely convertible currency or payment made from foreign currency account of SEZ Unit/SEZ Developer/Co-Developer. Other than this, the exporter can be entitled for DEPB benefit if the payment is made in Indian currency by SEZ Developer/Co-Developer for supplies received. Credit can be utilized for payment of Customs Duty on freely importable items and/or restricted items. DEPB Scrips can also be utilized for payment of duty against imports under EPCG Scheme.
Besides, DEPB Scrips can be debited towards payment of Customs Duty in case of EO defaults for Authorizations issued under Chapters and of this Policy. However, penalty or interest shall be required to be paid in cash.
Exports of prohibited items that are mentioned in ITC(HS) book (as amended from time to time) shall not be entitled for DEPB credit except for the exports effected under transitional facility. Further, DEPB holder should have other options to pay additional customs duty in cash as well. DEPB and other items imported against it are freely transferable. Transfer of DEPB can be imported at specified port, which shall be the port from where exports have been made. Imports from other ports shall be allowed under TRA facility as per terms and conditions of DoR notifications.
Focus Market Scheme (FMS)
Through our Focus Market Scheme (FMS) we help our clients to offset high freight cost and other externalities to select international markets with a view to enhance India’s export competitiveness in these countries. This scheme can be availed by exporters of all products to notified countries (as in Appendix 7C of HBPv ) shall be entitled for Duty Credit Scrip equivalent to % of FOB value of exports (in free foreign exchange) for exports made from 27.08.2009 onwards.
Ineligible Exports Categories / Sectors for FMS
Under FMS scheme, the following categories of export products / sectors shall be ineligible for Duty Credit Scrip:
- Supplies made to SEZ units
- Service exports
- Diamonds and other precious, semi precious stones
- Gold, silver, platinum and other precious metals in any form, including plain and studded jewelery
- Ores and Concentrates, of all types and in all forms
- Cereals, of all types
- Sugar, of all types and in all forms
- Crude / Petroleum Oil & Crude / Petroleum based
Focus Product Scheme
We are offering Focus Product Scheme to our clients at competitive prices. The prime objective of these schemes is to incentivise export of such products which have high employment intensity in the rural and semi urban areas. These schemes are most suitable to offset infrastructure inefficiencies and to minimize the costs involved in marketing of these products.
Exports of notified products (as in Appendix 37D of HBPv ) to all countries (including SEZ units) shall be entitled for Duty Credit scrip equivalent to 2% of FOB value of exports (in free foreign exchange) for exports made from 27.08.2009 onwards. Benefit as per foreign trade policy.
However, Special Focus Product(s) /sector(s) which are covered under Table and Table of Appendix 7D, shall be granted Duty Credit Scrip equivalent to 6.5 % of FOB value of exports (in free foreign exchange) for exports made from 27.08.2009 onwards.
Market Linked Focus Products Scrip (MLFPS)
We are a reputed company offering our clients quality Market Linked Focus Products Scrip (MLFPS). This is an Export Promotion Scheme which deals with export of products or sectors of high export intensity or employment potential (which are not covered under present FPS List). These would be incentivized at 2% of FOB value of exports (in free foreign exchange) under FPS when exported to the Linked Markets (countries), which are not covered in the present FMS list, as notified in Appendix 7D of HBPv , for exports made from 27.08.2009 onwards. Benefit as per foreign trade policy.
Vishesh Krishi And Gram Udyog Yojana (VKGUY) (Special Agriculture And Village Industry Scheme)
We have the expertise in offering Vishesh Krishi and Gram Udyog Yojana (VKGUY) (Special Agriculture and Village Industry Scheme). Rendered by our experienced professionals, the main objective behind providing such export promotion scheme is to promote exports of the following:
- Agricultural Produce and their value added products
- Minor Forest Produce and their value added variants
- Gram Udyog Products
- Forest Based Products
- Other Products, as notified from time to time
This scheme is entitled on the following issues:
- Duty Credit Scrip benefits are granted with an aim to compensate high transport costs, and to offset other disadvantages
- Exporters, of products notified in Appendix 37A of HBPv , shall be entitled for Duty Credit Scrip equivalent to 5 % of FOB value of exports (in free foreign exchange) for exports made from 27.08.2009 onwards
- However, for exports made w.e.f 27.08.2009, some flowers, fruits, vegetables and other products, as listed in Table of Appendix 37A shall be entitled to an additional duty credit scrip equivalent to 2% of FOB value of exports
- Over and above the 5% or 3% VKGUY reduced rate entitlement available and further benefit is entitled as per foreign trade policy
Applicability of Reduced Rate
Duty Credit Scrip benefits under VKGUY scheme shall be granted only at a reduced rate of 3% of FOB value of exports in such cases where exporter has also availed benefits of:
- Drawback at rates higher than 1%; and/or
- Specific DEPB rate (i.e. other than Miscellaneous Category – Sr. Nos. C & D of Product Group 90)
- Advance Authorization or Duty Free Import Authorization Import of inputs (other than catalysts, consumables and packing materials) for the exported product for which Duty Credit Scrip under VKGUY is being claimed