CHENNAI: The Commerce Ministry has announced five groups of rural and semi-urban employment-intensive products which will be covered by the Focus Product Scheme announced in the Foreign Trade Policy.

The five groups, as per a notification issued by the Directorate-General of Foreign Trade (DGFT), are: value added leather products and leather footwear (15 items listed under the ITC-HS), sports goods, fire works and stationery (18 items), handicraft (11 items), handloom products (all handloom products bearing Handloom Mark) and value added fish products (29 items).

Exports of notified Focus Products to all countries will be entitled for duty credit scrip equivalent to 2.5 per cent of their f.o.b value for each licensing year commencing from April 1. However, only 50 per cent of the export turnover of such products will be counted for benefits under the scheme.

The scrip and the items imported against it would be freely transferable. The duty credit may be used for import of inputs or goods including capital goods, provided the same is freely importable. Additional customs duty/excise duty paid in cash or through debit under this scrip shall be adjusted as Cenvat credit or duty drawback as per rules framed by the Department of Revenue.

The Focus Product scheme, along with the Focus Market scheme, announced in the foreign trade policy last month, replace the earlier Target Plus scheme. The countries/regions to be covered by the Focus Market scheme are, however, yet to be notified. Exporters can opt for benefits either under the Focus Market scheme or under the Focus Product scheme or the Vishesh Krishi and Gram Udyog Uyjana schemes

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