DFCE and TARGET PLUS - clarifications
DGFT has clarified that
1. a shipment shall be taken into account of applicants' export performance only if export proceeds are received in free foreign exchange by applicant directly from overseas.
2. Under DFCE, supplies from one status holder to another is not eligible for entitlement. Representation have been received from FIEO that supporting manufacturers who happen to be status holders and are manufacturing goods on behalf of applicant exporter, are being treated as ‘suppliers' leading to making such exports ineligible. The issue has been examined and it has been decided that ‘suppliers' and ‘supporting manufacturers' are distinct categories and cannot be clubbed together. Hence goods manufactured by supporting manufacturer cannot be made ineligible, although supporting manufacturer may happen to have a status certificate.
3. Once the above conditions are satisfied, applicant can count a shipment in his export performance and the same would be entitled for benefits under the reward schemes.