THE SCHEME POST EXPORT EPCG DUTY CREDIT SCRIP(S)
- The Scheme Post export EPCG Duty Credit Scrip(s) was introduced in 2012. This Scheme is available to exporters who intend to import / procure capital goods on full payment of applicable duties.
- Duty paid on capital goods is remitted in the form of freely transferable duty credit scrips. Specific EO under this scheme is 85% of the prescribed specific EO proportionate to EO fulfillment.
- These duty credit scrip(s) can be used for payment of applicable custom duties for imports and applicable excise duties for domestic procurement.
- The scheme also provides for reduced specific export obligation in the case of exports from units located in North East, Sikkim and J&K (25% of prescribed EO) and for exporters of green technology products (75% of prescribed EO).
WIDENING OF INTEREST SUBVENTION SCHEME
- At present, 2% interest subvention scheme is available to certain specific sectors like Handicrafts, Handlooms, Carpets, Readymade Garments, Processed Agricultural Products, Sports Goods and Toys.
- The scheme had been further widened to include 134 sub-sectors of engineering sector.
- Government had also announced that the benefit of this scheme of 2% interest subvention could be available up to 31st March, 2014.
WIDENING THE SCOPE OF UTILIZATION OF DUTY CREDIT SCRIP
- Duty Credit Scrips issued under Focus Market Scheme, Focus Product Scheme and Vishesh Krishi Gramin Udyog Yojana (VKGUY) can be used for payment of service tax on procurement of services within the legal framework of service tax exemption notifications under the Finance Act, 1994.
- Holder of the scrip shall be entitled to avail drawback or CENVAT credit of the service tax debited in the scrips as per Department of Revenue rules.
- All duty credit scrips issued under Chapter 3 can be utilised for payment of application fee to DGFT for obtaining any authorisation under Foreign Trade Policy. This benefit shall be available only to the original duty credit scrip holders.
