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introduced. Exporters who have achieved a quantum growth in exports would be entitled to duty free credit based on incremental exports substantially higher than the general actual export target fixed.(Since the target fixed for 2004-05 is 16%, the lower limit of performance for qualifying for rewards is pegged at 20% for the current year). Rewards will be granted based on a tiered approach. For incremental growth of over 20%, 25% and 100%, the duty free credits would be 5%, 10% and 15% of FOB value of incremental exports New Status holder Categorization: The Scheme of status holders continues but the categorization of status holders from Export House, Trading House, Star Trading House and Super Star Trading House has been changed to one Star Export House, two Star Export House, three Star Export House, four Star Export House and five Star Export House. 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. The revised threshold limit for the recognition has also been lowered as can be seen from the table below: TotalNo. 1. 2. 3. 4. 5. One Star Export House Two Star Export House Three Star Export House Four Star Export House Five Star Export House Category Performance over three years 15 crores 100 crores 500 crores 1500 crores 5000 crores
Note: Units in Small Scale Industry/Tiny Sector/Cottage Sector, Units registered with KVICs/KVIBs, Units located in North Eastern States, Sikkim and J & K. , units exporting handloom/handicrafts/hand knotted or silk carpets, exporters exporting to Countries in Latin America/CIS/sub-Saharan Africa as listed in Appendix – 17C, units having ISO 9000 (series)/ISO 14000 (series)/WHOGMP/HACCP/SEICMM level-II and above status granted by agencies listed in Appendix – 28A, exports of services and exports of agro products shall be entitled for double weightage of export made for grant of Star Export House status
Free Trade and Warehousing Zone: 1. 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. 2. FDI would be permitted up to 100% in the development and establishment of the zones and their infrastructural facilities. 3. Each zone would have minimum outlay of Rs.100 crores and five lakh sq.mts. built up area. 4. Units in the FTWZs would qualify for all other benefits as applicable for SEZ units Import of Second hand Capital Goods: 1. Import of second-hand capital goods shall be permitted without any age restrictions. 2. Minimum depreciated value for plant and machinery to be re-located into India has been reduced from Rs.50 crores to Rs. 25 crores
6. This process shall be continued in consultation with Customs & Excise. All goods and services exported. Time bound introduction of Electronic Data Interface (EDI) for export transactions. 4. 2. Number of returns and forms to be filed have been reduced. 5 crores and good track record shall be exempt from furnishing Bank Guarantee in any of the schemes. . All exporters with minimum turnover ofRs. including those from DTA units shall be exempt from Service Tax. 5. 75% of all export transactions to be on EDI within six months.Procedural Simplifaction & Rationalisation Measures: 1. Validity of all licences/entitlements issued under various schemes has been increased to a uniform 24 months. Enhanced delegation of powers to Zonal and Regional Offices of DGFT for speedy and less cumbersome disposal of matters. 3. so as to reduce their transactional costs.
) Apparel products are free from Excise Duties & various Taxes.5%. Govt. Excise duty on Nylon Chips has been reduced from 16% to 12%. Most of the products fall under HS code 61 and 62 carry an import duty of 56. and HomeTextiles. Grey Fabrics and certain Cotton Yarns are exempt from basic Excise Duty. For Small Scale Industries there is Full Exemption Limit being increased from Rs. Duty on other Filament yarns will be remain at 10%.Tariff policy India & US have reached on an Agreement for reciprocal market access commitments for Textiles and Apparel with the negotiation of the WTO Agreement on Textile & Clothing. Customs duty on Polyester Staple fibers is reduced from 10% to 7. 16% additional duty and 4 per cent special additional duty. It provides elimination of Quota system of Textiles & Apparel from 1st January 2005. CST rate reduced from 4% to 3% with effect from April 1. From 1st April 2000.1 crore to Rs.5%.83% which includes 30% basic duty.5%. Customs duty on Polyester Filament Yarns is reduced from 10% to 7. • • • • • • • • • • • • • • Under Indo-US Agreement of 1st January 1995. and Woolen Yarn from 40% to 20 % India agreed to bind its tariffs on 265 textile & apparel products (Textured Yarns of Nylon & Polyester. India agreed to reduce tariffs on Textile & apparel and remove all the restrictions on these products. 2007.1. Filament Fabrics. . Customs duty on Raw Materials such as DMT. Manmade Fibers & Filament Yarns from 35% to 20% · Cotton Yarn from 25% to 20% · Spun. Sportswear. Duty on other Man Made Staple fibers will be remain at 10%. Of India reduced tariffs on: .50 crores. PTA and MEG reduced from 10% to 7. Optional excise duty on Nylon Fish Net Fabrics is increased from 8% to 12%. Blended. Excise Duty Exemption on specified Textile Machinery Items is withdrawn and 8% Excise Duty is imposed.
Units are exempt from routine checking of exports by customs. of India has established Export Processing Zones (EPZs) and Special Economic Zones (SEZs). Export Promotion Capital Goods Scheme: This scheme is available to export companies and traders who provide the GOI with information about which type of goods and what value of Capital Goods they will import.1 crore or less EXIM Policies: • Duty Entitlement Passbook Scheme: DEPS is available for Indian Export Companies and Traders on a Pre-Export and Post-Export basis. Pre and Post Shipment Financing: The Reserve Bank of India provides Indian Exporters Pre-Shipment Financing through commercial banks for purchasing raw materials and packaging materials by presenting Letter of Credit. Pre-Export credit requires the beneficiary firm has exported during the preceding 3-year period. The Post-Export credit is a transferable credit that exporters of finished goods can use to pay or offset custom duties on imports of any unrestricted goods. In EPZs units can import goods free of custom duty. Export and Special Economic Zones: Govt. The Govt. considers SEZs as foreign territory for trade and tariff purpose. Depending upon the export commitment GOI provides them a license to import capital goods duty-free or preferential rates of duty. There is 5-year tax holiday to any industrial unit in EPZs. Units under SEZs may engage in Manufacturing. Duty Drawback Scheme: The basic objective of this scheme is to reduce the indirecttaxes on exports. And they also inform what will be the outcome of export they expect to produce from those imports. has allowed 100% Fore3ign ownership of units under EPZs and SEZs. Through this scheme they can be more competitive and have more potential market • • • • . RBI also0 provides Post-Shipment Financing through commercial banks at preferential rates by presenting export documents. Trading and Services.• Removal of surcharge on income tax on all firms and companies with a taxable incomeof Rs. and they can sell in the domestic market on payment of duty as applicable to imported goods. Exporters can get refund of the excise and import duty. Govt.
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