Focused market scheme, focused product scheme

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 October 2014 Hello,

Kindly explain

1. Please explain what are the various Export Benefits available to exporters under Customs Act ?

2. what is Focused Market Scheme (FPS), Focused Product Scheme(FMS) ?
3. What is the difference between FPS & FMS ?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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01 January 2015 To give a push to India's services exports, the government provides various export promotion schemes.

advance licence
epcg licence
chapter -3 schemes

Duty Drawback rates in India is the special rebate given under the Section 75 of Indian Customs Act on exported products or materials. Duty drawback rates or concession are only applicable on products which are used in the processing of goods manufactured in India and then exported to foreign countries. Duty Drawback is not given on inputs obtained without payment of customs or excise duty. In case of re-export of goods, it should be done within 2 years from the date of payment of duty when they were imported. 98% of the duty is allowable as drawback, only after inspection. If the goods imported are used before its re-export, the drawback will be allowed as at reduced per cent.

Deemed Export is a special type of transaction in which the payment is received before the goods are delivered. The payment can be done in Indian Rupees or in Foreign Exchange. As the deemed export is also a source of foreign exchange, so the Government of India has given the benefit duty free import of inputs.

must read:
http://www.eximguide.in/Ch-12-Import-Incentives-Under-Special-Schemes.aspx

focus Market Scheme is introduced on 11th September, 2009 with supplement later on 13th October,2011 in annual supplement to Foreign Trade Policy with a vision to support exporters in competing with foreign export market against high freight cost and other externalities.

" FOCUS PRODUCT SCHEME " (FPS)

The main Objective of this scheme is to incentivize export of such products, which have high employment intensity in rural and semi urban areas, so as to offset territorial inefficiencies, infrastructure and other associated costs involved in marketing of these products in the international Market.
Exports of notified products to all countries shall be entitled for duty credit scrip equivalent to 2% of the FOB value of exports for each licensing year.
Exports of notified products (as in Appendix 37D of HBP v1) to all countries (including SEZ units) shall be entitled for Duty Credit Scrip equivalent to __-_ of FOB value of exports for Exports made by EOUs / EHTPs / BTPs who do not avail direct tax benefits / exemption shall be eligible, provided the same is not covered under the following Paragraphs

Following exports shall not be taken into account for computation of entitlement.

(a) (i) Export of imported goods covered under Para 2.35 of FTP;

(ii)Exports through transshipment, meaning thereby that exports originating in third country but
transshipped through India;

(b) Export turnover of SEZ units or SEZ products exported through DTA units; and Market Linked Focus Product For exports w.e.f 1.4.2008, Products of high export intensity (which are not covered under present FPS List) but which have a low penetration in countries (which are also not covered under present FMS list) would be incentivized and entitled to a duty credit scrip provided that the product / sector are destined to specified linked markets for that particular product / sector.

" MARKET LINKED FOCUS PRODUCT SCHEME " (MLFPS)

The Market Linked Focus Product Scheme (MLFPS) has also been expanded by including over 150 products including pharmaceuticals, synthetic textile fabrics, glass products etc. The benefit of duty scrip of 2.5% of the f.o.b. value of exports is available only if the exports are made to 13 identified markets including Australia, New Zealand, South Africa, Mexico, Brazil etc. What is significant is that even the developed economies like Australia and New Zealand have been included which should significantly boost export of the identified products.