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Supplement to Foreign Trade Policy - Key Initiatives
The Ministry of Commerce and Industry has announced the Annual Supplement 2012-2013 to the Foreign Trade Policy 2009-14 'FTP'. The key policy measures include thrust to employment intensive industry, encouragement to domestic manufacturing for exports, promote technological upgrade, strong market diversification, encouragement of exports from North-Eastern Region, incentivise manufacturing of green technology products and reduction in transaction cost. Taxand India takes a look at the salient aspects of the Annual Supplement to the FTP.
The salient aspects of the Annual Supplement to the FTP include
Duty Exemption Remission Schemes
- Post-Export EPCG Scheme
- Advance Authorisation Scheme
- Promotional Measures
- Focus Product Scheme
- Market Linked Focus Product Scheme
- Focus Market Scheme and Special Focus Market Scheme
- Status Holder Incentive Scheme
- Towns of Export Excellence
- Chapter 3 scrips for excise duty payments
The Annual Supplement announced by the Commerce Ministry has emphasised the need to aid exporters and make them competitive in the global market. Steps have been taken to achieve the export target of USD 500 billion by 2013-14 and expand India's footprint in the global trade by supporting deeper penetration of Indian exports in new markets and new products.
The Annual Supplement has clearly laid emphasis on granting/ extending benefits and reducing transaction cost associated with exports; extension of Zero Duty EPCG scheme, introduction of Post-Export EPCG scheme, addition of new markets and products to the Export Promotion Schemes, commitment to revamp of the SEZ, EOU and Deemed Export Schemes are some of the key examples of the Government's endeavor to help the Indian exporters.
All in all, the Annual Supplement of the FTP aims to bolster the sentiment of value added exports from India and has worked towards creating an enabling environment to enhance exports. Industry would be eagerly awaiting the details of revamped SEZ, EOU and Deemed Export schemes and the enabling notification from the Finance Ministry.
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