Chapter 1B - SPECIAL FOCUS INITIATIVES - Foreign Trade Policy (RE - 2008) / 2004-09

CHAPTER-1B SPECIAL FOCUS INITIATIVES Special Focus Initiatives 1B.1 With a view to continuously increasing our percentage share of global trade and expanding employment opportunities, especially in semi urban and rural areas, certain special focus initiatives have been identified for Agriculture, Handlooms, Handicraft, Gems Jewellery, Leather, Marine, Electronics and IT Hardware manufacturing Industries and Sports Goods and Toys sectors. Government of India shall make concerted efforts to promote exports in these sectors by specific sectoral strategies that shall be notified from time to time. New Sectoral Initiatives to be announced Further Sectoral Initiatives in other sectors will also be announced from time to time. Thrust sectors shall be extended following facilities: (i) Agriculture and Village Industry (a) Vishesh Krishi and Gram Udyog Yojana (b) Funds shall be earmarked under ASIDE for development of Agri Export Zones (AEZ) (c) Deleted. (d) Deleted. (e) Capital goods imported under EPCG shall be permitted to be installed anywhere in AEZ. (f) Import of restricted items, such as panels, shall be allowed under various export promotion schemes. (g) Import of inputs such as pesticides shall be permitted under Advance Authorisation for agro exports. (h) New towns of export excellence with a threshold limit of Rs 250 crore shall be notified. (i) Certain specified flowers, fruits and vegetables will be entitled to a special duty credit scrip, in addition to the normal benefit under VKGUY. (ii) Handlooms (a) Specific funds would be earmarked under MAI / MDA Scheme for promoting handloom exports. (b) Duty free import entitlement of specified trimmings and embellishments shall be 5% of FOB value of exports during previous financial year. (c) Duty free import entitlement of hand knotted carpet samples shall be 1% of FOB value of exports during previous financial year. (d) Duty free import of old pieces of hand knotted carpets on consignment basis for re-export after repair shall be permitted. (e) New towns of export excellence with a threshold limit of Rs 250 crore shall be notified. (f) Handloom mark enables handloom products to develop a niche market with a distinct identity. (g) Machinery and equipment for effluent treatment plants shall be exempt from customs duty. (iii) Handicrafts (a) New Handicraft SEZs shall be established which would procure products from cottage sector and do finishing for exports. (b) Duty free import entitlement of tools, machinery and equipment, trimmings and embellishments shall be 5% of FOB value of exports during previous financial year. Entitlement is broad banded, and shall extend also to merchant exporters tied up with supporting manufacturers. (c) Handicraft EPC is authorized to import trimmings, embellishments and consumables on behalf of those exporters for whom directly importing may not be viable. (d) Specific funds would be earmarked under MAI MDA Schemes for promoting Handicraft exports. (e) CVD is exempted on duty free import of trimmings, embellishments and consumables. (f) New towns of export excellence with a reduced threshold limit of Rs 250 crore shall be notified. (g) Machinery and equipment for effluent treatment plants shall be exempt from customs duty. (iv) Gems Jewellery (a) Import of gold of 8k and above shall be allowed under replenishment scheme subject to import being accompanied by an Assay Certificate specifying purity, weight and alloy content. (b) Duty Free Import Entitlement (based on FOB value of exports during previous financial year) of Consumables, Tools, Machinery and Equipments for: 1. Jewellery made out of (a) Precious metals (other than Gold Platinum) - 2% (b) Gold and Platinum - 1% (c) Rhodium finished Silver - 3% 2. Cut and Polished Diamonds - 1% (c) Duty free import entitlement of commercial samples shall be Rs. 300,000. (d) Duty free re-import entitlement for rejected jewellery shall be 2% of FOB value of exports. (e) Deleted. (v) Leather and Footwear (a) Duty free import entitlement of specified items shall be 5% of FOB value of exports during preceding financial year. (b) Duty free entitlement for import of trimmings, embellishments and footwear components for footwear (leather as well as synthetic), gloves, travel bags and handbags shall be 3% of FOB value of exports of previous financial year. Such entitlement shall also cover packing material, such as printed and non-printed shoeboxes, small cartons made of wood, tin or plastic materials for packing footwear. (c) Machinery and equipment for Effluent Treatment Plants shall be exempt from basic customs duty. (d) Re-export of unsuitable imported materials such as raw hides skins and wet blue leathers is permitted. (e) CVD is exempted on lining and interlining material notified at S.No 168 of Customs Notification No 21/ 2002 dated 01.03.2002. (f) CVD is exempted on raw, tanned and dressed fur skins falling under Chapter 43 of ITC (HS). (vi) Marine Sector (a) Duty free import of specified specialised inputs /chemicals and flavouring oils is allowed to the extent of 1% of FOB value of preceding financial year's export. (b) To allow import of monofilament longline system for tuna fishing at a concessional rate of duty and Bait Fish for tuna fishing at Nil duty. (c) A self removal procedure for clearance of seafood waste is applicable subject to prescribed wastage norms. (d) Specific marine products are considered for VKGUY scheme. (vii) Hi-tech products Export Promotion Scheme The scheme has been introduced to promote export of notified hi-tech products. (viii) Electronics and IT Hardware Manufacturing Industries (a) Expeditious clearance of approvals required from DGFT shall be ensured. (b) Exporters /Associations would be entitled to utilize MAI MDA Schemes for promoting Electronics and IT Hardware Manufacturing Industries exports. (c) Hi-tech products of the Electronics and IT Hardware Manufacturing Industries Sector would be considered for inclusion in High Tech Products Export Promotion Scheme. (ix) Sports Goods and Toys (a) Sports goods and toys shall be treated as a priority sector under MDA / MAI Scheme. Specific funds would be earmarked under MAI /MDA Scheme for promoting exports from this sector. (b) Applications relating to Sports Goods and Toys shall be considered for fast track clearance by DGFT. (c) Sports Goods and Toys will be entitled for special duty credit scrip, in addition to the normal benefit under FPS. 1B.2 Deleted.