Export incentives & Exemptions

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    11-Aug-2014

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We are pleased to attach here with valuable information shared about Export Incentives & Exemptions offered by Government of India, a detailed power point presentation presented by Shalishkumar-CEO, Export Import Bureau of India as speaker at WESCON - 2014 seminar held at Vadodara on 27h June 2014.

Transcript

  • ExportExport--Import Bureau Of IndiaImport Bureau Of IndiaExportExport--Import Bureau Of IndiaImport Bureau Of India WelcomesWelcomes Participants ofParticipants of WESCONWESCON--20142014
  • ExportExport--Import Bureau Of IndiaImport Bureau Of India The government of India offersThe government of India offers various Schemes to Exporters tovarious Schemes to Exporters to improve their ability to competeimprove their ability to competeimprove their ability to competeimprove their ability to compete in the International Market &in the International Market & Offer quality products at aOffer quality products at a reasonable price.reasonable price. 22
  • Government Schemes toGovernment Schemes to support exportssupport exports Exemptions from Sales Tax/ Excise DutiesExemptions from Sales Tax/ Excise Duties Duty DrawbackDuty Drawback Advance AuthorizationAdvance Authorization Duty Free Import AuthorizationDuty Free Import AuthorizationDuty Free Import AuthorizationDuty Free Import Authorization Export Promotion Capital Goods SchemeExport Promotion Capital Goods Scheme Focus Market SchemeFocus Market Scheme Focus Product SchemeFocus Product Scheme Market Linked Focus Product SchemeMarket Linked Focus Product Scheme 33
  • SALES TAX EXEMPTIONSSALES TAX EXEMPTIONS MANUFACTURERMANUFACTURER-- EXPORTEREXPORTER Exports by Manufacturers are exempted from VAT/Sales Tax.Exports by Manufacturers are exempted from VAT/Sales Tax. Once Export Order isOnce Export Order is executed,theexecuted,the manufacturer furnishes proof ofmanufacturer furnishes proof of Exports. [ Copy of S/B, B/L / AWB , BRC, Export Invoice duly certified byExports. [ Copy of S/B, B/L / AWB , BRC, Export Invoice duly certified byExports. [ Copy of S/B, B/L / AWB , BRC, Export Invoice duly certified byExports. [ Copy of S/B, B/L / AWB , BRC, Export Invoice duly certified by Customs, etc., ]Customs, etc., ] MERCHANT EXPORTERMERCHANT EXPORTER Submits formSubmits form H to supporting manufacturer/supplier.H to supporting manufacturer/supplier. Copy of B/L / AWB and Mate Receipt.Copy of B/L / AWB and Mate Receipt. 44
  • EXCISE DUTY EXEMPTIONSEXCISE DUTY EXEMPTIONS MANUFACTURERMANUFACTURER-- EXPORTEREXPORTER Executes Surety/Security Bond and Exports under UTExecutes Surety/Security Bond and Exports under UT--11 Proof of ExportsProof of Exports 55 SubmitsSubmits AREARE--I/AREI/ARE--IIII Export Invoice duly certified by customsExport Invoice duly certified by customs Copy of Shipping BillCopy of Shipping Bill Copy of Bills of LadingCopy of Bills of Lading Mate ReceiptMate Receipt
  • EXCISE DUTY EXEMPTIONSEXCISE DUTY EXEMPTIONS MERCHANT EXPORTERMERCHANT EXPORTER Supported bySupported by ExciseeExcisee Manufacturer/SupplierManufacturer/Supplier Executes CTExecutes CT--1 with concerned range1 with concerned range After exports submitsAfter exports submits AREARE--I /AREI /ARE--IIII Invoice, Packing List, duly certified by Customs.Invoice, Packing List, duly certified by Customs. Bills of LadingBills of Lading Copy of Shipping billCopy of Shipping bill 66
  • DUTY DRAWBACK SCHEMEDUTY DRAWBACK SCHEME DutyDuty drawbackdrawback isis defineddefined asas thethe rebaterebate ofof dutyduty chargeablechargeable onon anyany importedimported oror excisableexcisable materialmaterial usedused inin thethe manufacturemanufacture ofof goodsgoods exportedexported fromfrom IndiaIndia.. TheseThese areare calculatedcalculated OnOn thethe basisbasis ofof averageaverage consumptionconsumption ofof inputs,inputs, dutiesduties && taxestaxes paid,paid, quantityquantity ofof wastagewastage && exportexport priceprice ofof exportedexported productsproducts.. TheseThese areare givengiven eithereither onon quantityquantity basisbasis (per(per kg)kg) oror onon adad valoremvalorem basisbasis (as(as %% ofof FOBFOB value)value) && areare reviewedreviewed andand revisedrevised periodicallyperiodically.. ToTo AvailAvail DutyDuty DrawbackDrawback ExporterExporter needsneeds toto mentionmention DrawDraw BackBack SrSr.. NoNo.. inin ShippingShipping BillBill withwith theirtheir BankBank AccountAccount NumberNumber.. TheThe samesame isis directlydirectly creditedcredited intointo youryour BankBank AccountAccount oror offeredoffered byby DemandDemand DraftDraft .. 77
  • ADVANCE AUTHORISATIONSADVANCE AUTHORISATIONS AdvanceAdvance licenselicense (authorization(authorization )) isis issuedissued toto allowallow dutyduty freefree importimport ofof inputs,inputs, whichwhich areare physicallyphysically incorporatedincorporated inin exportexport productproduct..[[ WhereWhere SIONSION isis fixed]fixed] TheseThese schemesschemes areare :: AdvanceAdvance AuthorizationAuthorization ,Duty,Duty FreeFree ImportImport AuthorizationAuthorization (DFIA)(DFIA) ,Advance,Advance licenselicense..ImportImport AuthorizationAuthorization (DFIA)(DFIA) ,Advance,Advance licenselicense.. HoldersHolders areare exemptedexempted fromfrom paymentpayment ofof::-- CustomsCustoms duty,duty, AdditionalAdditional customscustoms dutyduty AntiAnti dumpingdumping dutyduty EducationEducation cesscess SafeguardSafeguard dutyduty.. 88
  • ADVANCE AUTHORISATIONSADVANCE AUTHORISATIONS The scheme allows to club the Advance Authorisation issuedThe scheme allows to club the Advance Authorisation issued -- Advance Authorisation can be issued for the following:Advance Authorisation can be issued for the following: Physical exportsPhysical exports Intermediate suppliesIntermediate supplies Deemed exportsDeemed exportsDeemed exportsDeemed exports --An Advance License contains:An Advance License contains: The names and description of items to be imported andThe names and description of items to be imported and exported/supplied.exported/supplied. The quantity of each item to be imported or wherever the quantityThe quantity of each item to be imported or wherever the quantity cannot be indicated, the value oft he item shall be indicatedcannot be indicated, the value oft he item shall be indicated The aggregate CIF value of imports.The aggregate CIF value of imports. The FOB/FOR value and quantity of exports/suppliesThe FOB/FOR value and quantity of exports/supplies.. 99
  • Duty Free Import AuthorisationDuty Free Import Authorisation No normsNo norms Scheme offer for :Scheme offer for :-- Physical exportsPhysical exports Intermediate suppliesIntermediate supplies Deemed exportsDeemed exports Exporter Justifies input material with wastage norms.Exporter Justifies input material with wastage norms. Non Transferable DFIA issuedNon Transferable DFIA issued 1010
  • EXPORT PROMOTION CAPITALEXPORT PROMOTION CAPITAL GOODS SCHEMEGOODS SCHEME What are capital goods?What are capital goods? Capital goods are the things you need ,in order to manufacture your productsCapital goods are the things you need ,in order to manufacture your products or give your services.(including spares for pre production, production and postor give your services.(including spares for pre production, production and post production)production) Examples: Foundry Equipments, Advanced turning and Lathe Machines,Examples: Foundry Equipments, Advanced turning and Lathe Machines, Presses, expensive lab instruments Sophisticated computerPresses, expensive lab instruments Sophisticated computer--server for yourserver for your Call center etc.Call center etc. What is Export Promotion Capital Goods Scheme? (EPCG)What is Export Promotion Capital Goods Scheme? (EPCG) Under EPCG scheme, you can import these instruments (capital goods)Under EPCG scheme, you can import these instruments (capital goods) at ZERO% customs duty). But it is subject to an export obligation rangingat ZERO% customs duty). But it is subject to an export obligation ranging From 6 times of duty saved on capital goods imported under EPCG scheme, toFrom 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issuebe fulfilled in 6 years reckoned from Authorization issue--date.date. SeondhandSeondhand/Refurbished Capital Equipments are not allowed under EPCG/Refurbished Capital Equipments are not allowed under EPCG SchemeScheme 1111
  • FOCUS MARKET SCHEMEFOCUS MARKET SCHEME Introduced by Ministry of Commerce & Industry. GOI.Introduced by Ministry of Commerce & Industry. GOI. This Scheme allows duty credit facility @ 3% ofThis Scheme allows duty credit facility @ 3% of FOB value exported from 27.8.2009 onwards of allFOB value exported from 27.8.2009 onwards of all products to notified countries.products to notified countries. Countries form Latin America & Africa & manyCountries form Latin America & Africa & many other part of world.other part of world. List of countries covered under FMS as attached.List of countries covered under FMS as attached. 1212
  • FOCUS PRODUCT SCHEMEFOCUS PRODUCT SCHEME Products which have high employmentProducts which have high employment Potentional:Potentional: @ 2% of FOB value of Export to all countries.@ 2% of FOB value of Export to all countries. Exports made after 27.8.2009.Exports made after 27.8.2009. Scrip or items imported under schemeScrip or items imported under scheme transferable.transferable.transferable.transferable. Examples : Electrical Transformers, MotorsExamples : Electrical Transformers, Motors Generators, Printing & Processing MachinesGenerators, Printing & Processing Machines Construction Machines Aluminum Plates &Construction Machines Aluminum Plates & Sheets, Bicycle Parts etc.Sheets, Bicycle Parts etc. List of products covered under FMS asList of products covered under FMS as attached.attached. 1313
  • Market Linked Focus ProductMarket Linked Focus Product SchemeScheme The MLFPS promotes exports of products/sectors ofThe MLFPS promotes exports of products/sectors of high employment potential ( Not covered under FPS)high employment potential ( Not covered under FPS) 2% FOB Value2% FOB Value2% FOB Value2% FOB Value 1414
  • Status Holders Incentive Scrip SHISStatus Holders Incentive Scrip SHIS & Served From India Scheme SFIS& Served From India Scheme SFIS Status Holders shall be entitled @1% scrip of FOBStatus Holders shall be entitled @1% scrip of FOBStatus Holders shall be entitled @1% scrip of FOBStatus Holders shall be entitled @1% scrip of FOB value.value. SFIS scheme is applicable for service providers.SFIS scheme is applicable for service providers. 1515
  • Marketing Development AssistanceMarketing Development Assistance MDA SchemeMDA Scheme Applicable for Participation in International TradeApplicable for Participation in International Trade Fair, Exhibitions, Buyer & Seller meets & TradeFair, Exhibitions, Buyer & Seller meets & Trade Applicable for Participation in International TradeApplicable for Participation in International Trade Fair, Exhibitions, Buyer & Seller meets & TradeFair, Exhibitions, Buyer & Seller meets & Trade delegationsdelegations Air Fare + Space Rent for Focus Area.Air Fare + Space Rent for Focus Area. Space Rent for Non Focus Area.Space Rent for Non Focus Area. Eligibility : Member of EEPC, < 15 Cr ExportEligibility : Member of EEPC, < 15 Cr Export 5 Grants per year only.5 Grants per year only. 1616
  • Market Access Initiatives ( MAIMarket Access Initiatives ( MAI )) Market Surveys & Studies are funded by the Govt.Market Surveys & Studies are funded by the Govt. 1717
  • Check ListCheck List To all participants of WESCON 2014, We provideTo all participants of WESCON 2014, We provide you with a check list for availing various exemptionsyou with a check list for availing various exemptionsyou with a check list for availing various exemptionsyou with a check list for availing various exemptions and Incentives.and Incentives. 1818
  • CONCLUSIONCONCLUSION INDIA IS VIBRANTINDIA IS VIBRANT We have many successful exporters in our region &We have many successful exporters in our region &We have many successful exporters in our region &We have many successful exporters in our region & there is no reason why you should not be one ofthere is no reason why you should not be one of them.them. ExportExport-- Import Bureau is there for you.Import Bureau is there for you. [Promoting India worldwide][Promoting India worldwide] 1919
  • ThankingThanking youyou Export Import Bureau of IndiaExport Import Bureau of India [A Division of World[A Division of World Trade ConnectionsTrade Connections[A Division of World[A Division of World Trade ConnectionsTrade Connections 22ndnd Floor, BFloor, B--166,166, ShrenikShrenik park,park, Productivity Road,Productivity Road, Akota,Akota, VadodaraVadodara--390020 [GUJ] India390020 [GUJ] India Tel: +91 2342148/2325355Tel: +91 2342148/2325355 EE--mail:mail: wtcindia@gmail.comwtcindia@gmail.com,, shalishk@gmail.comshalishk@gmail.com Website:Website: www.worldtradeconnections.co.inwww.worldtradeconnections.co.in 2020

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