Target Plus Scheme – Customs notifies exemption
Government has notified the customs exemption for imports under the Target Plus Scheme for certificates issued on the basis of incremental growth in FOB value of exports made during the financial year 2005-06 over the exports made during the financial year 2004-05;
The objective of the scheme was to accelerate growth in exports by rewarding Star Export Houses who have achieved a quantum growth in exports. High performing Star Export Houses were entitled for a duty credit based on incremental exports substantially higher than the general annual export target fixed.
The ‘FOCUS PRODUCT’ & ‘FOCUS MARKET’ SCHEMES have replaced the Target Plus and now the exemption is announced for the certificates issued basing on last year’s export performance.
The highlights:
++ The certificate has to be produced before the customs officer for debiting duty and there should be enough balance
++ The certificate or the goods are not transferable except in the case of supporting manufacturers.
++ In the case of capital goods, office equipment and professional equipment, installation and use certificate has to be produced from the jurisdictional Central Excise AC/DC. Units not registered with Central Excise can produce this certificate from Chartered Engineers.
++ Imports only through specified ports
++ Cenvat credit is available on the duty debited through the certificate. ( But then should not this be mentioned in the Cenvat Credit Rules than the Customs exemption notification?)
Can the 4% Special CVD paid through debit in the certificate can be taken as cenvat credit? Here is what the Board clarified in Circular No. 18/2006 dated 5.6.2006
4. As regards the issue raised as to whether the duty debited through DEPB, DFCE, Tartget Plus etc. schemes would be eligible for cenvat benefit or drawback facility by the licence holder, it has been made clear in the Finance Minister's Budget Speech that full credit of the 4% special CVD will be allowed to manufacturers of excisable goods. Therefore, it is clarified that the 4% CVD duty debited in DEPB, DFCE, Target Plus etc. certificates may be allowed to be taken back as drawback (brand rate). It may be mentioned here that under the Foreign Trade Policy, additional customs duty (CVD) debited in DEPB scrips/certificates issued under reward schemes is allowed to be taken as cenvat / drawback.
NOTIFICATION NO. , Dated: July 10, 2006