Highlights of the Trade Facilitation measures

(Supplement to Foreign Trade Policy 2008-09)

Hon’ble Minister for Commerce and Industry Kamal Nath announced certain Trade facilitation measures on 26th Feb’09 as a supplement to the foreign trade policy 2004-09. The following were the key points of interest for the Textile and Apparel industry –

  1. Rs. 325 crores would be provided under promotional schemes for textile for exports made with effect from 1st April 2009.
  2. Technical textiles have now been added under Focus Product Scheme.
  3. Under DEPB Scheme,
    1. Duty credit scrips under Chapter 3 i.e. Promotional measures and under DEPB scheme will now be issued without waiting for realization of export proceeds. The exporters will be required to submit proof of export proceeds realization with the time limits prescribed by RBI. This provision shall be applicable on or after 1st April 2009.
    2. DEPB scrips were earlier used for payment of duty only on imported items that were under free category but now this utilization is now extended for payment of duty for import of restricted items as well.
    3. It has also been extended till 31st December 2009.
  4. Under EPCG Scheme,
    1. In case of decline in exports of a product(s) by more than 5%, the export obligation for all exporters of that product(s) is to be reduced proportionately and this provision is extended for 2009-10, for exports during 2008-09.
    2. Reduction in customs duty under EPCG scheme from 5% to 3%.
  5. Interest subvention of 2% has also been extended till 30th September 2009.
  6. Additional funds of Rs. 1200 crores have been allotted for CST/TED/Drawback refunds.
  7. Allowing payment of interest on delayed payments of Terminal excise duty and central sales tax.
  8. Additional funds of Rs. 1400 crore is provided to clear the backlog claims of TUF.
  9. Under Advance authorization,
    1. Export obligation period against advance authorizations has been extended upto 36 months.
    2. Supply of an intermediate product by the domestic supplier directly from their factory to the port against advance intermediate authorization has been allowed.
    3. For advance licenses issued prior to 1st April 2009, the requirement of MODVAT/CENVAT certificate dispensed with in cases where the customs notification itself prescribed for payment of CVD, which will help in closure of a number of pending advance licenses.
  10. Re-imbursement of additional duty of excise levied on fuel under the finance acts would also be admissible.
  11. Bhilwara in Rajasthan has been recognized as Town of excellence for Textiles.
 


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