To : All Members of the Council.

From : Shiv Kumar Gupta, Executive Director, CEPC

Sub.: HIGH LIGHTS OF FOREIGN TRADE POLICY 2009-14

Today Shri Anand Sharma, Hon’ble Minister of Commerce & Industry announced Foreign Trade Policy 2009-2014. Some of the highlights of the new policy announced on 27th August,2009 are given below for information of the Members :

1. The incentive available under Focus Market Scheme (FMS) has been raised from 2.5% to 3%.

2. The incentive available under Focus Product Scheme (FPS) has been raised from 1.25% to 2%.

3. A common simplified application form has been introduced for taking benefits under FPS, FMS, MLFPS and VKGUY.

4. To simplify claims under FPS, requirement of ‘Handloom Mark’ for availing benefits under FPS has been removed.

5. Higher allocation for Market Development Assistance (MDA) and Market Access Initiative (MAI) schemes is being provided.

6. Jaipur, Srinagar and Anantnag have been recognised as ‘Towns of Export Excellence’ for handicrafts;.

7. To accelerate exports and encourage technological upgradation, additional Duty Credit Scrips shall be given to Status Holders @ 1% of the FOB value of past exports. The duty credit scrips can be used for procurement of capital goods with Actual User condition. This facility shall be available upto 31.3.2011.

8. Transferability for the Duty Credit scrips being issued to Status Holders under paragraph 3.8.6 of FTP under VKGUY Scheme has been permitted. This is subject to the condition that transfer would be only to Status Holders and Scrips would be utilized for the procurement of Cold Chain equipment(s) only.

9. To impart stability to the Policy regime, Duty Entitlement Passbook (DEPB) Scheme is extended beyond 31-122009 till 31.12.2010.

10. Interest subvention of 2% for pre-shipment credit for 7 specified sectors has been extended till 31.3.2010 in the Budget 2009-10.

11. The adjustment assistance scheme initiated in December, 2008 to provide enhanced ECGC cover at 95%, to the adversely affected sectors, is continued till March, 2010.

12. In cases, where RBI specifically writes off the export proceeds realization, the incentives under the FTP shall now not be recovered from the exporters subject to certain conditions.

Regards.

Shiv Kumar Gupta
Executive Director cum Secretary