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Indian Economy

Notes A Duty Remission Scheme facilitates post-export replenishment/remission of duty on
inputs utilised in export product. Duty Remission Schemes comprise
(i) Duty Entitlement Passbook (DEPB) Scheme, and

(ii) Duty Drawback (DBK) Scheme.

Advance Authorisation Scheme

You must understand that an Advance Authorisation is issued to permit duty-free import of
inputs, which are physically included in export product (making normal allowance for wastage).
Additionally, fuel, oil, energy, catalysts which are consumed/used to attain export product,
may also be permitted. DGFT, by means of Public Notice, may omit any product(s) from the
purview of Advance Authorisation. Advance Authorisations are exempted from payment of
additional customs duty, basic customs duty, education cess, anti-dumping duty and safeguard
duty, if any.

Duty Free Import Authorisation (DFIA) Scheme

DFIA is issued to permit duty free import of inputs, fuel, oil, energy sources, catalysts which are
needed for the production of export products. DGFT, by means of Public Notice, may omit any
product(s) from the purview of DFIA.

Duty Entitlement Passbook Scheme (DEPB)

The goal of DEPB is to counteract the incidence of customs duty on import content of export
product. Component of customs duty on fuel (seeming as consumable in the SION) shall also be
factored in the DEPB rate. Components of Special Additional Duty shall also be permitted under
DEPB (as brand rate) in instance of non-availment of CENVAT credit. Neutralisation shall be
offered by the way of issue of duty credit against export product.

14.2.3 Foreign Trade Policy 2009-2014

It is important to note the highlights of the foreign trade policy that are as below:

Higher Support for Market and Product Diversification

1. Incentive schemes have been extended by adding new products and markets.
2. Twenty Six new markets have been added under Focus Market Scheme. These involve 16
new markets in Latin America and 10 in Asia-Oceania.
3. The incentive accessible under Focus Market Scheme (FMS) has been increased from 2.5%
to 3%.

4. The incentive accessible under Focus Product Scheme (FPS) has been raised from 1.25% to
2%.
5. A great number of products from various sectors have been involved for benefits under
FPS. These involve—Engineering products (agricultural machinery, sewing machines,
hand tools, parts of trailers, garden tools, clocks and watches, musical instruments, railway
locomotives, etc.), Plastic (value-added products), Jute and Sisal products, Technical Textiles,
Green Technology products (wind turbines, wind mills, electric operated vehicles, etc.),
Project goods, Vegetable textiles and definite Electronic items.

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