The commerce ministry has announced a new scheme to provide special assistance to specified sectors like engineering, pharmaceutical and chemical sectors, covering 50 products, for six months.
This scheme will be available on exports made on or after 1 October 2011 and up to 31 March 2012. The rate of duty credit is 1 per cent of FOB value of exports, commerce minister Anand Sharma said today.
Exporters of all products to notified countries are currently entitled to duty credit scrip equivalent to 3 per cent of FOB value of exports. The scheme covers a total of 112 markets. However, exports to SFMS markets in CIS, Latin American and African countries are entitled to 1 per cent additional benefit of FOB value of exports with effect from 1 April 2011.
The list of items under the 'focus product scheme' (FPS) has been expanded to include 130 additional items covering chemicals, pharmaceuticals, (only specified APIs) textiles, handicrafts, engineering and electronics sector. The items covered under FPS are entitled to duty credit scrip equivalent to 2 per cent of FOB value of exports.
The list of items under the 'market linked focus products scheme' (MLFPS) will now also cover new items to specified countries. The scheme has now been extended to exports of agricultural tractors of over 1800cc capacity, which would now be eligible for duty credit for exports made to Turkey.
The MLFPS incentive scheme for export of sugar machinery and high-pressure boilers has been extended to printing inks, writing ink as well.