All Star Export Houses (including Status Holders as defined in Para 3.7.2.1 of Exim Policy 2002-07) which have achieved a minimum export turnover in free foreign exchange of Rs.10 crores in the previous licensing year are eligible for consideration under the Target Plus Scheme.

Entitlement

3.7.3

The entitlement under this scheme would be contingent on the percentage incremental growth in FOB value of exports in the current licensing year over the previous licensing year, as under:

Percentage incremental growth

Duty Credit Entitlement (as a % of the incremental growth)

20% and above but below 25%

5%

25% or above but below 100%

10%

100% and above

15% (of 100%)

Note:

(1)

Incremental growth beyond 100% will not qualify for computation of duty credit entitlement.

(2)

For the purpose of this scheme, the export performance shall not be transferred to or transferred from any other exporter. In the case of third party exports, the name of the supporting manufacturer/ manufacturer exporter shall be declared.

(3)

Exporters shall have the option to apply for benefit either under the Target Plus Scheme or under the Vishesh Krishi Upaj Yojana, but not both in respect of the same exported product/s. Provided that in calculating the entitlement under Para 3.7.3 the total eligible exports shall be taken into account for computing the percentage incremental growth but the duty credit entitlement shall be arrived at on the eligible exports reduced by the amount on which the benefit is claimed under para 3.8.2.

(4)

All exports including exports under free shipping bill verified and authenticated by Customs and Gems& Jewellery shipping bills but excluding exports specified under para 3.7.5, shall be eligible for benefits under the Target Plus Scheme.

(5)

In respect of export of Cut & Polished diamonds only those shipments would be taken into account for computation of eligible exports under the scheme where a minimum of 10% value addition has been achieved.

Applicant Companies

3.7.4

Companies which are Star Export Houses as well as part of a Group company shall have an option to either apply as an individual company or as a Group based on the growth in the Groups turnover as a whole. (For the purpose of this scheme the definition of Group Company as given in Chapter 9 will be applicable. Furthermore, only such companies of the Group as are Star Export Houses will be considered).

If a Group company chooses to apply based on the export of one or more of its individual Star Export House companies, the entitlement would be calculated considering the export performance of the applicant company during the previous licencing year and current licencing year. It shall be necessary that the adjusted export performance of all the Star Export House companies of the Group during the current licencing year does not fall below the combined performance of all Star Export House companies of the Group in the previous licencing year.

In case the Group chooses to apply based on the overall growth in Groups turnover (i.e. the turnover of all the Star Export House companies), any one of the Star Export House companies of the Group may file an application on behalf of all the Star Export House companies of the Group.

3.7.5

The following exports shall not be taken into account for calculation of export performance or for computation of entitlement under the scheme:

(a)

Export of imported goods covered under Para 2.35 of the Foreign Trade Policy or exports made through transshipment.

(b)

Export turnover of units operating under SEZ/EOU/EHTP/STPI/ BTP Schemes or products manufactured by them and exported through DTA units.

(c)

Deemed exports (even when payments are received in Free Foreign Exchange and payment is made from EEFC account).

(d)

Service exports.

(e)

Rough, uncut and semi polished diamonds and other precious stones.

(f)

Gold, silver, platinum and other precious metals in any form, including plain and studded Jewellery.

(g)

Export performance made by one exporter on behalf of another exporter.

Imports allowed

3.7.6

The Duty Credit may be used for import of any inputs, capital goods including spares, office equipment, professional equipment and office furniture provided the same is freely importable under ITC (HS) Classification of Export and Import items, for their own use or that of supporting manufacturers as declared in Aayaat Niryaat Form.

Import of agricultural Products listed in Chapter 1 to 24 of ITC (HS) Classification of Export and Import items except the following shall be allowed:

(i) Garlic, Peas and all other Vegetables with a Duty of more than 30% under Chapter 7 of ITC (HS) Classification of Export and Import items.

(ii) Coconut, Areca Nut, Oranges, Lemon, Fresh Grapes, Apple and Pears and all other fruits with a Duty of more than 30% under Chapter 8 of ITC (HS) Classification of Export and Import items.

(iii) All spices with a Duty of more than 30% under Chapter 9 of ITC (HS) Classification of Export and Import items (except Cloves).

(iv) Tea, Coffee and Pepper as per Chapter 9 of ITC (HS) Classification of Export and Import items.

(v) All Oil Seeds under Chapter 12 of ITC (HS) Classification of Export and Import items.

Further, Natural Rubber as per Chapter 40 of ITC (HS) Classification of Export and Import items shall also not be allowed for import under the Scheme.

Import of all edible oils classified under Chapter 15, shall be allowed under the scheme only through STC and MMTC.

Cenvat/ Drawback

3.7.7

Additional customs duty/excise duty paid in cash or through debit under Target Plus shall be adjusted as CENVAT Credit or Duty Drawback as per rules framed by the Department of Revenue.

Special Provision

3.7.8

Government reserves the right in public interest, to specify from time to time the category of exports and export products, which shall not be eligible for calculation of incremental growth/ entitlement.

Further the Government shall have the right to change the eligibility criteria and rate of entitlement under the scheme effective from the date of notification of this policy.

Similarly, Government may from time to time also notify the list of goods, which shall not be allowed for import under the duty credit entitlement certificate issued under the scheme.

3.8

VISHESH KRISHI UPAJ YOJANA

(SPECIAL AGRICULTURAL PRODUCE SCHEME)

Objective

3.8.1

The objective of the scheme is to promote export of fruits, vegetables, flowers, minor forest produce, dairy, poultry and their value added products, by incentivising exporters of such products.

Entitlement

3.8.2

Exporters of such products shall be entitled for duty credit scrip equivalent to 5% of the FOB value of exports for each licencing year commencing from 1^st April, 2004. However, dairy, poultry and their value added products shall qualify for benefits in respect of the exports made on or after 1^st April 2005. The scrip and the items imported against it would be freely transferable.

3.8.2.1

Under the Scheme, export of all items as given in Appendix-37A of Handbook (Vol.1) shall qualify for export benefits as per Para 3.8.2 above. Items which are restricted or prohibited for export under Schedule-2 of the Export Policy in the ITC (HS) Classification of Export and Import items shall not be eligible for any benefits under Para 3.8.2.

3.8.2.2

Following exports shall not be taken into account for duty credit entitlement under the scheme :

(a)

Export of imported goods covered under Para 2.35 of the Foreign Trade Policy or exports made through transshipment.

(b)

Deemed exports (even when payments are received in Free Foreign Exchange and payment is made from EEFC account).

Imports allowed

3.8.3

The Duty Credit may be used for import of inputs or goods including capital goods, as may be notified, provided the same is freely importable under ITC(HS).

Imports from a port other than the port of export shall be allowed under TRA facility as per the terms and conditions of the notification issued by Department of Revenue.

3.8.3.1

Items listed in Appendix-37B of Handbook of Procedures Vol.I shall not be allowed to be imported under the scheme.

Cenvat/ Drawback

3.8.4

Additional customs duty/excise duty paid in cash or through debit under Vishesh Krishi Upaj Yojana shall be adjusted as CENVAT Credit or Duty Drawback as per rules framed by the Department of Revenue.

Special Provision

3.8.5

Government reserves the right in public interest, to specify from time to time the export products which shall not be eligible for calculation of entitlement.