07 March 2014
How to get a focus product scheme license? after we obtain focus product license and we import duty free how to close the license when all balance is over?
25 July 2024
The Focus Product Scheme (FPS) was a scheme under India's Foreign Trade Policy that provided incentives to exporters of certain products to specified markets. However, please note that the FPS has been discontinued and is no longer operational. It has been replaced by other schemes such as the Merchandise Exports from India Scheme (MEIS) and the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
If you are looking to obtain incentives or benefits under the current schemes (MEIS or RoDTEP), the process and requirements are different. Here's a general outline of how to obtain benefits under such export incentive schemes and how to close the license once it is no longer required:
### Obtaining Benefits under Export Incentive Schemes:
1. **Registering for the Scheme**: - Check the current Foreign Trade Policy and Handbook of Procedures issued by the Directorate General of Foreign Trade (DGFT) to identify the schemes available (e.g., MEIS, RoDTEP). - Register your firm on the DGFT website (dgft.gov.in) and obtain an Importer Exporter Code (IEC) if you don't already have one.
2. **Application for Export Incentives**: - Identify the eligible products and markets under the applicable scheme (MEIS or RoDTEP). - File applications with DGFT for obtaining benefits under the scheme, providing necessary details and documents such as shipping bills, export declarations, invoices, etc.
3. **Verification and Approval**: - DGFT verifies the details provided and approves the application if all criteria are met. - Once approved, exporters receive Duty Credit Scrips or other forms of incentives.
### Closing the License or Scheme:
1. **Utilization of Duty Credit Scrips**: - Duty Credit Scrips issued under MEIS or RoDTEP can be utilized for payment of various duties, taxes, and fees related to customs duty, excise duty, and service tax.
2. **Expiry and Surrender**: - Duty Credit Scrips have a validity period during which they must be utilized. - If all balances are not utilized by the expiry date, exporters can surrender the scrips to DGFT for revalidation or closure.
3. **Closure Process**: - To close or surrender the license or scheme (in this case, the Duty Credit Scrips), exporters need to follow the specific guidelines provided by DGFT. - Typically, exporters submit an application for surrendering the unutilized scrips along with necessary documents to DGFT's regional office.
4. **Accounting for Closure**: - In your books of accounts, ensure that all duty credit scrips used or surrendered are properly accounted for. Record any adjustments or reversals related to unused or expired scrips.
### Conclusion:
For precise guidance on obtaining benefits under the current export incentive schemes and the process for closure or surrender of duty credit scrips, it's advisable to refer to the latest Foreign Trade Policy and Handbook of Procedures issued by DGFT. Additionally, consulting with a chartered accountant or export consultant who specializes in DGFT procedures can provide tailored advice based on your specific circumstances and requirements.
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