Page 270 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 12: Export Incentives Schemes

12. Advance ........................... scheme provides for issue of an import licence to allow duty free Notes
import of inputs, which are physically incorporated in the export product
13. Under ..................................... Scheme, exporters are allowed to claim customs duty credit as
a specified percentage of FOB value of exports made in freely convertible currency.
14. ............................ exports are those transactions in which the goods supplied do not leave
the country and the payment for such supplies is received either in Indian rupees or in free
foreign exchange.
15. The DEPB is valid for a period of .................... months from the date of issue.

12.11 Summary

 Export incentives are important to motivate exporters of the country to perform better.
 Indian exports have shown promising growth in the past few years. This has been possible
largely due to policy initiatives to create a positive and hassle-free export environment.

 The Annual Supplement 2006 to the Foreign Trade Policy (2004-09) has also announced
certain measures to further boost Indian exports.

 The Indian exporter is entitled to many incentives/concessions/exemptions and special
treatments. These have been discussed under various heads: Sales Tax/VAT Exemption,
Excise Exemption, Duty Drawback, Income Tax Concessions, Import Concessions, Special
Economic Zones, Free Trade & Warehousing Zones, Star Export Houses, EOUs, Electronic
Hardware Technology Parks, Software Technology Parks, Biotechnology Parks and Deemed
Exports.

12.12 Keywords

Duty drawback: It is an incentive given to the exporters of different categories of goods under
the “Customs and Central Excise Duty Drawback Rules, 1995”.
Duty Entitlement Passbook Scheme: The exporters are allowed to claim customs duty credit as
a specified percentage of FOB value of exports made in freely convertible currency.

Excise is a tax on production or manufacture of goods.
Export Promotion Capital Goods Scheme: It focuses on less costly imports of capital goods for
the exporters to increase their cost and manufacturing competitiveness in the international
markets.
Value Added Tex: VAT is a tax on such value addition at each stage. It provides for set off of tax
paid on purchases at each point of sale
12.13 Review Questions

1. What are the excise procedures available to exporters in India for exporting goods without
excise duty?

2. Discuss the various import concessions available to exports from India.
3. What is meant by a SEZ? Discuss the benefits available to units working from SEZs.
4. Write a detailed note on EOUs and units working from EHTPs, STPs and BTPs in India.
5. Attempt short notes on: (i) Star Export Houses, (ii) Deemed Exports, (iii) Form H, (iv) Duty
Drawback, (v) Free Trade & Warehousing Zones

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