Exportable items on free of cost basis by status holders, revised by DGFT

Gems and jewellery and articles of gold and precious metals have been excluded from the freely exportable items list

The Dollar Business Bureau 

The Central government has amended Chapter 3 of FTP 2015-2020. In notification no: 23/2015-2020, dated August 23, the Directorate General of Foreign Trade has said that prior to the notification, status holders were entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of Rs. 10 lakh or 2% of average annual export realisation during preceding three licensing years, whichever is lower. 

With the amendment in para 3.24 (j) of Chapter 3 of FTP 2015-2020, status holders shall be entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of Rupees one Crore or 2% of average annual export realization during preceding three licensing years, whichever is lower. However gems and jewellery and articles of gold and precious metals have been excluded from the freely exportable items list. 

The annual limit for exports of pharma products would be 2% of the average annual export realisation during preceding three licensing years. Supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN, WHO-PAHO and Government health programmes, the annual limit is upto 8% of the average annual export realisation, preceding three licensing years. 

However, such free of cost supplies is not entitled to duty drawback or any other export incentive under any export promotion scheme.

The Dollar Business Bureau - Aug 24, 2017 12:00 IST
 

Comments

There are no comments yet, why not be the first Login to comment
TDB Top
Quiz Import and Export