Imports under Focus Product Scheme exempted
As per para 3.10 of the FTP, Exports of notified products to all countries shall be entitled for duty credit scrip equivalent to 2.5% of the FOB value of exports for each licensing year commencing from 1st April, 2006. However only 50% of the export turnover of such products shall be counted for benefits under the Scheme. The scrip and the items imported against it would be freely transferable.
That’s the policy, but the policy is meaningless until Revenue chooses to issue the exemption notification which has now come after five months of the policy announcement. The government has now issued a notification exempting the goods imported and cleared through the duty credit scrip on the same conditions as announced in the policy.
But why all this duplication and delay? Can’t we empower the Commerce ministry to issue these notifications along with the policy? The exemption notifications are to be issued by the government and commerce ministry is as much government as the Revenue ministry. Or can’t the DGFT liaison with the CBEC before the policy is announced and get the Revenue ministry to issue the customs notifications along with the policy?
But then things have got top be complicated and that’s what government is all about!
There is a similar notification for the Focus Market Scheme.
NOTIFICATION NO. 90 and , Dated: September 1, 2006