Nexus with Exported Products under Target Plus Scheme – DGFT Clarifies

By Vijay Kumar

Doubts have arisen in the Trade and Industry as well as in the Customs as to whether the condition of ‘nexus with exported products' would apply to permitted imports of Agricultural Products, including import of edible oil through STC/MMTC.

DGTFT has clarified that “Agricultural Products covered under Chapter 1 to 24 except 6(a) to 6(f) listed in Policy Circular 10 (RE2008) dated 5.6.2008.”as listed at Sr. No. 6 of Policy Circular 10(RE2008) dated 5.6.2008 and endorsed on the Duty Credit Scrips issued under Target Plus Scheme, are permitted only when nexus with exported products is clearly established. Accordingly, all Duty Credit Scrips issued under Target Plus Scheme shall be automatically endorsed with the following condition:

“Sr. No. 6 (as endorsed on the duty credit scrips issued under Target Plus Scheme in terms of Policy Circular 6(RE2008) dated 5.6.2008) is permitted to be imported only when ‘nexus with exported products' is clearly established. The condition of ‘nexus with exported products' is mandatory in terms of Para 3.7.6 of the Policy FTP RE2004 and FTPRE2005.”

Policy Circular No. 90 (RE-2008)/2004-09, Dated: May 15, 2009