Status Category

Applicant shall be categorized depending on his total FOB (FOR - for deemed exports) export
performance during current plus previous three years (taken together) upon exceeding limit
below. For Export House (EH) Status, export performance is necessary in at least two out of four
years (i.e., current plus previous three years).
Status Category

Export Performance FOB / FOR Value

(Rupees in Crores)

Export House (EH)

20

Star Export House (SEH)

100

Trading House (TH)

500

Star Trading House (STH)

2500

Premier Trading House (PTH)

7500

SERVED FROM INDIA SCHEME

(SFIS)

Objective is to accelerate growth in export of services so as to create a powerful and unique

Served From India brand, instantly recognized and

Objective is to accelerate growth in export of services so as to create a powerful and unique

Served From India brand, instantly recognized and respected world over.
All Indian Service Providers, of services listed in Appendix 10 of HBPv1, who have free foreign
exchange earning of at least Rs.10 Lakhs in preceding financial year / current financial year shall
qualify for Duty Credit Scrip.For Individual Indian Service Providers, minimum free foreign
exchange earnings would be Rs Lakhs.
Entitlement

All Service Providers shall be entitled to Duty Credit Scrip equivalent to10% of free
foreign exchange earned during current financial year.

VKGUY

Objective of VKGUY is to promote exports of :

(i) Agricultural Produce and their value added products;
(ii) Minor Forest Produce and their value added variants;
(iii) Gram Udyog Products;
(iv) Forest Based Products; and
(v) Other Products, as notified from time to time. Such products shall be listed in
Appendix 37A of HBPv1.
Entitlement: Transferable / sellable duty credit @ 5% of FOB value of exports in foreign
exchange from 27.08.2009 (3.5% for earlier periods). However for exports made on / after
27.8.2009, some Flowers, Fruits, Vegetables and other products, are also entitled to an
additional duty credit @ 2 % of FOB value of exports.
Focus Product Scheme (FPS)
To incentivize export of such products which have high export intensity / employment
potential, so as to offset infrastructure inefficiencies and other associated costs involved
in marketing of these products, a Scheme called Focus Product Scheme, has been
introduced w.e.f. 1.4.2006.
Under the Scheme, exports of notified products (as in Appendix 37D of HBP vol.1) to all

countries (including SEZ units) would be entitled for Duty Credit scrip equivalent to 2%
of FOB value of exports (in free foreign exchange) for exports made from 27.8.2009
onwards. However, Special Focus Product (s) / sector (s), covered under Table 2 and
Table 5 of Appendix 37D [toys and sports goods, carpets and handicrafts, at present],
shall be granted Duty Credit Scrip equivalent to 5% of FOB value of exports. Over 1150
products have so far been covered at 8 digit level under the Scheme, which include
leather products and footwear, handloom products, handmade carpets and other textile
floor coverings, handicrafts, coir and jute products, technical textiles, engineering
products, Green technology products, electronic products, value added plastic and Glass
products etc.
During the period April November 2009-10, a total of 5770 authorizations having CIF
value of Rs.252 crore and FOB value of Rs.15093 crore have been issued under the
scheme.

F. Market Linked Focus Products Scheme (MLFPS)

To give significant boost to market penetration of specific product in specified markets,
a variant under Focus Product Scheme called Market Linked Focus Products was
introduced from 1.4.2008. Under the Scheme, export of products /sectors of high
export intensity /employment potential (which are not covered under the FPS List)
would be incentivized at 2% of FOB value of exports (in free foreign exchange) under
FPS when exported to the Linked Markets (countries), which are not covered in the
present FMS List, as notified in Appendix 37D of HBPv1, for exports made from
27.8.2009 onwards.
Presently, the products covered under the scheme include Motor vehicles, autocomponents, apparels, knitted and crocheted fabrics, pharma products, value added
plastic and rubber goods, Glass products, dyes and chemicals, household articles of
Aluminium, Machine Tools, Earth moving equipments, Transmission Towers, Electrical &
Power equipments, steel tubes/pipes/galvanized sheets, compressors, Iron & Steel
structures, three wheelers etc. The countries covered under the Scheme include
Algeria, Egypt, Kenya, Nigeria, South Africa, Tanzania, Brazil, Mexico, Ukraine,
Australia, New Zealand, Cambodia, Vietnam, Japan and China. There are over 3600
products so far covered at 8 digit levels.

The Duty Exemption Scheme enables import of inputs required for

export production. The Duty Remission Scheme enables post export
replenishment/ remission of duty on inputs used in the export
product.
An Advance Licence is issued under Duty Exemption Scheme to allow import of
inputs which are physically incorporated in the export product (making normal
allowance for wastage). In addition, fuel, oil, energy, catalysts etc. which are
consumed in the course of their use to obtain the export product, may also be allowed
under the scheme. Advance Licence can be issued for:a. Physical exports
b. Intermediate supplies
c. Deemed exports.
Duty Remission Scheme consists of (a) Duty Free Replenishment
Certificate and (b)Duty Entitlement Passbook Scheme. The scheme
allows drawback of import charges on inputs used in the export
product (making normal allowancefor the wastage).
Duty free import authorisation (DFIA) scheme
This is in place of the previous scheme, duty free replenishment certificate valid till 31st March 06.
Under the scheme, the inputs required for export production are exempt from basic customs duty,
additional customs duty, education cess, anti-dumping duty and safeguard duty. The scheme is similar to
advance license scheme with certain differences. One significant difference is that unlike the Advance
License scheme where the value addition requirement is only positive value addition, under the new
scheme minimum value addition requirement is 20% (except for items in gems & jewellery sector).
Another vital difference is that under the new scheme once the export obligation is fulfilled, the license or
the inputs imported (other than fuel) against it can be transferred /sold. The exporter shall be required to
give declaration with regard to technical characteristics, quality and specifications in the shipping bill.
Notification No. 40/2006- customs dated 1.5.2006 has been issued to operationlise the DFIA scheme.
The current foreign trade policy 04-09, offers export incentives, many of which are summarised briefly
below:

The specific export incentives for the following products are being reproduced in the respective syllabus:
Agriculture, Gems & Jewelry, Handicrafts, Handloom, Marine.
For full details, please refer to current foreign trade policy concerned Export Promotion
Council/Commodity Board.

All export contracts and invoices can be denominated in either freely convertile currency or Indian
rupees.

Free movement of export goods will be allowed.

No disruption in export manufacture due to seizure of stocks.

Fiscal incentives are provided to promote EDI initiative adn adoption.

For all goods and services exported from units in DTA, and in units in EOU/EHTP/STP/BTP,
remission of service tax will be allowed; units in SEZ can be exempted from Service Tax.

Standard Input Output Norms OR SION in short is standard norms which define the amount
of input/inputs required to manufacture unit of output for export purpose. Input
output norms are applicable for theproducts such
as electronics, engineering, chemical, food products including fish and
marine products,handicraft, plastic and leather products etc. SION is notified by DGFT in
the Handbook (Vol.2), 2002-07 and is approved by its Boards of Directors. An application for
modification of existing Standard Input-Output norms may be filed by manufacturer exporter
and merchant-exporter. The Directorate General of Foreign Trade (DGFT) from time to time
issue notifications for fixation or addition of SION for different export products. Fixation of
Standard Input Output Norms facilitates issues of Advance License to the exporters of the
items without any need for referring the same to the Headquarter office of DGFT on repeat
basis
Basics Requirements of Standard Input Output Norms
For fixation / modification of Standard Input Output Norms (SION) following details are
required:

Technical Details of the export product as per the details given in Appendix 33.

Chartered Engineer certificate certifying the import requirements of raw materials in

the format given inAppendix 32B.

Production and Consumption data of the manufacturer/supporting manufacturer of

the preceding three licensing years as given in serial no 3 of sub section XII, duly certified by
the Chartered accountant/ Cost & Works Accountant/ Jurisdictional
Excise Authority.

What does EPCG mean? How to obtain an EPCG License? What are the
procedures and formalities under EPCG Export Promotion Capital Goods?
Can manufactured goods under EPCG scheme be sold to Domestic Tariff
Area?

EPCG is a term used in India under exports and imports. EPCG means, Export
Promotion Capital Goods. EPCG is one of the schemes provided by
government of India to importers and exporters to promote exports.
How to obtain an EPCG License? What are the procedures and
formalities under EPCG Export Promotion Capital Goods?
The importer has to approach for EPCG license from licensing authority
Director General of Foreign Trade (DGFT). Application for EPCG with
necessary supporting documents is filed with DGFT. Based on the amount of
import duty exemption, the value addition is fixed up and export obligation
has to be fulfilled accordingly. If you could not complete the export obligation
in time specified by licensing authority, you may be permitted to get
extended the export obligation period for further period of time. However, if
you have already finished export obligation, you can sell the manufactured
goods locally also in domestic tariff area (DTA).

Focus Market Scheme(FMS)

Objective
Objective of FMS is to offset high freight cost and other externalities to select international markets with a
view to enhance Indias export competitiveness in these markets.
Entitlement
(a) Exporters of all products to countries notified in Table 1 and 2 of Appendix 37C of HBPv1 shall be
entitled for Duty Credit Scrip equivalent to 3 % of FOB value of exports (in free foreign exchange ) for
exports made from 27.8.2009 onwards, unless a specific date of export/period is specified by a public
notice/notification.
(b) Export of products to countries notified in Table 3 of Appendix 37 C of HBP v1 will be entitled for
additional Duty Credit Scrip @ 1% of FOB value of exports (in free foreign exchange) for export made with
effect from 01.04.2011.
Ineligible Exports Categories / Sectors for FMS
The following categories of export products / sectors shall be ineligible for Duty Credit Scrip, under FMS:
(i) Supplies made to SEZ units;
(ii) Service Exports;
(iii) Diamonds and other precious, semi precious stones ;
(iv) Gold, silver, platinum and other precious metals in any form, including plain and studded Jewellery;
(v) Ores and Concentrates, of all types and in all forms;
(vi) Cereals, of all types;
(vii) Sugar, of all types and in all forms;
(viii) Crude / Petroleum Oil & Crude / Petroleum based Products covered under ITC HS codes 2709 to 2715,
of all types and in all forms; and
(ix) Export of Milk and Milk Products covered under ITC HS Codes 0401 to 0406, 1 9011 001, 1 9011 010,
2105 & 3501.