Export of restricted/prohibited items – eligibility under export promotion schemes
Though the Foreign Trade Policy is supposed to be for a five year period, it is changed every year officially with a lot of pomp and show and almost weekly by delegated legislation. This creates several problems as today's exports/imports are governed by the policy as its exists today, but it may have links to past imports or exports when the policy was different. When export is prohibited but allowed by DGFT on some grounds like transitional arrangements, will the scheme benefits be allowed.
DGFT clarifies,
++ even when the exports may have been permitted on account of EO of Advance Authorisation, or on account of transitional arrangements or may have been otherwise permitted by DGFT; grant of benefits under VKGUY scheme (erstwhile VKUY scheme) for exports of items which are currently restricted or prohibited in terms of ITC HS itemized Policy shall not be allowed, as the same is clearly ineligible.
++Similarly, under Focus Market Scheme, vide Para 3.9.2.2 (k) of FTP RE2007 (that applies to exports during 2007-08) and Para 3.9.2.1 of FTP RE2006 (that applies to exports during 2006-07), exports of restricted / prohibited items is ineligible.
++ With respect to Focus Product Scheme/High-Tech Products Export Promotion Scheme, the above position shall again apply, as the item which has been restricted / prohibited for exports is obviously ineligible, as the same would no longer remain a Focus Product/High-Tech Product for the purpose of boosting export through grant of benefits
DGFT POLICY CIRCULAR NO. 26 (RE-2007) / 2004-2009 Dated: January 9 2008