The Hindu : Business : Zero-duty EPCG scheme extended by one year

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Tuesday, Aug 24, 2010
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Zero-duty EPCG scheme extended by one year

Sujay Mehdudia

NEW DELHI: The Union government on Monday announced incentives worth Rs.1,052 crore to boost exports and help the recovery of labour-intensive sectors.

Union Commerce and Industry Minister Anand Sharma, unveiling the annual supplement to the Foreign Trade Policy, announced the extension of the zero-duty Export Promotion Capital Goods (EPCG) scheme by one year to March 31, 2012.

The scheme, announced in August last, was to have expired on March 31, 2011.

Steps to reduce transaction cost of exports too have been announced in the policy.

At present, transaction costs were estimated at 7-8 per cent of the exports value.

The policy review also provided a two per cent bonus incentive under the Focus Product Scheme (FPS) to 135 items from sectors that are still not doing well.

This would benefit labour-intensive sectors such as handicrafts, handlooms, silk, carpets, leather, sports, toys and bicycles.

To compensate for infrastructural bottlenecks, 256 more products from sectors such as rubber and oil meals have been added under the FPS. Besides, instant tea and CSNL cardinol (cashew nut liquid) will now get the five per cent duty benefit under the Vishesh Krishi and Gram Udyog Yojna.

The two per cent duty benefit to garment exporters under the Market-Linked Focused Product Scheme for shipments to the 27-nation bloc European Union has been extended from October 2010 to March 2011.

The policy also provided special flexibility for transferability of duty credit scrips issued to Status Holders (recognised exporters).

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