SERVED FROM INDIA SCHEME (SFIS)
- Service providers are entitled to duty credit scrips under Served from India Scheme at the rate of 10% of free foreign exchange earned during a financial year.
- The entitlement shall now be calculated on the basis of net free foreign exchange earned (i.e., after deducting foreign exchange spent from the total foreign exchange earned during the financial year).
- Service exporters who are also engaged in manufacturing activity are permitted to use SFIS duty credit scrip for importing/ domestically procuring capital goods.
- Hotels, travel, tour operators or tour transport operators and companies owning / operating golf resorts having SFIS scrip can import or domestically procure motor cars, SUVs and all purpose vehicles using SFIS scrips for payment of duties.
- Such vehicles need to be registered for “tourist purpose” only Goods imported / produced against SFIS can be alienated on completion of 3 years from date of import / procurement.
SECOND TASK FORCE ON TRANSACTION COST IN INTERNATIONAL TRADE
- The report of First Transaction Cost was released in February, 2011.
- Implementation of its recommendation resulted into estimated reduction of transaction cost of approximately Rs.2495 crores.
- Second Task Force on Transaction Costs has been constituted in April, 2013.
ELECTRONIC DATA INTERCHANGE INITIATIVES
- E-BRC system (electronic Bank Realization Certificate) allows transmission of realization of export proceeds details from banks to DGFT in electronically secured format.
- The system has been made mandatory with effect from 17th August, 2012.
- Up to 16th April, 2013, 31.2 lakh e-BRC have been uploaded on the website of DGFT by 81 banks.
- E-BRC data is also of use to different ministries / departments of Central Government and State Governments who have expressed interest in obtaining this data from DGFT.
- Government of Maharashtra and Delhi has started the process, as first movers, to use e-BRC data for processing VAT refund claims of exporters.
- e-BRC will improve the productivity of DGFT, Banks, Central and State Government departments dealing with exporter/importers and will lead to substantial reduction of transaction cost and time.
- The Directorate General of Foreign Trade’s electronic Bank Realization Certificate (e-BRC) project has won the first prize in the 2013 CASIA Award under Trade Facilitation category as announced by Asia Pacific Council for Trade Facilitation and Electronic Business (AFACT) in Ho Chi Minh City, Vietnam on November, 29, 2013.
- The eASIA Award, held every two years, aims at promoting the achievement of AFACT member countries/ economies in the development of trade facilitation, electronic business policies and activities, and initiatives for bridging digital divide in the Asia Pacific Region.
- E-BRC has also won the award in 48th Annual Convention of Computer Society of India held on 14th December, 2013.
