Big exporters now allowed to ship items worth Rs1 crore per year free of cost1 min read . Updated: 24 Aug 2017, 10:52 PM IST
Big exporters are now allowed to ship items worth up to Rs1 crore annually free of cost for export promotion purposes, according to a commerce ministry notification
New Delhi: Status holders, who are big exporters, are now allowed to ship items worth up to Rs1 crore annually free of cost for export promotion purposes, according to a notification of the commerce ministry.
Earlier, this limit was Rs10 lakh per annum. This facility for export promotion, according to the notification, will not apply for shipment of gems and jewellery, articles of gold and precious metals.
“Status holders shall be entitled to export freely exportable items (excluding gems and jewellery, articles of gold and precious metals) on free of cost basis for export promotion subject to an annual limit of Rs1 crore or 2% of average annual export realisation during preceding three licensing years, whichever is lower," it said.
It said that for export of pharma products also, the annual limit would be 2% of the average annual export realisation during preceding three licensing years. In case of supplies of pharma products, vaccines and lifesaving drugs to health programmes of international agencies such as UN and government health programmes, it added that the annual limit shall be up to 8% of the average annual export realisation during preceding three licensing years.
“Such free of cost supplies shall not be entitled to duty drawback or any other export incentive under any export promotion scheme," it added.
Welcoming the move, Federation of Indian Export Organisations (FIEO) said that they have requested the government to increase these limits as big exporters were facing problem.
In a trade notice, the Directorate General of Foreign Trade (DGFT) said that gold refineries holding authorisation from them for importing gold dore (unrefined gold) may obtain Bureau of Indian Standards (BIS) registration/license latest by 31 May 2018.
“With effect from 1 June 2018 only those applications will be considered for grant of authorisation for import of gold dore (wire) where applicant refinery holds a valid license from BIS," it added.
It also said that applicant refineries seeking authorisation for the first time, may submit valid document of their accreditation with National Accreditation Board for Testing and Calibration Laboratories (NABL) to DGFT for consideration of grant of authorisation for importing gold dore. “Such applicants may obtain BIS license within a period of one year, from the date of authorisation granted by DGFT," it said.