Commerce Ministry Announces Exports Incentives for more than 600 Products

Union Minister of Commerce & Industry, announced further export incentives for more than 600 products w.e.f. 1/1/2011 in the sectors viz., agriculture, chemicals, carpets, engineering, electronics and plastics, to enhance the competitiveness for products which are labour-intensive and technology intensive.  
The salient features of these incentives are:

Export Incentives

1.1   Market Linked Focus Product Scheme (MLFPS):

335 New Products incentivised under MLFPS at 8 digit level, eligible for benefits @ 2% of FOB value of exports to 15 specified markets. These markets are Algeria, Egypt, Kenya, Nigeria, Tanzania, South Africa, Ukraine, Mexico, Brazil, Australia, New Zealand, Cambodia, Vietnam, China and Japan.These include Agricultural Tractors of more than 1800 cc; all inorganic chemicals and inorganic/organic compounds of metals of Chapter 28; Flexible Intermediate Bulk Containers; and Narrow Woven Fabrics.

1.2   Focus Product Scheme (FPS):

147 products incentivised for Bonus Benefits (additional 2%) under FPS at 8 digit level, henceforth eligible for benefits @ 4% or 7% of FOB value of exports to all markets. These include Engineering Items like Galvanized Flanges on Iron and Steel, Threaded Nuts (7%); Ferro & Silico Manganese; Electronic Items like co-axial cables and other co-axial electric conductors, Watches; Stationery items like Pencils, Pens; Textile Items like Silk (of Chapter 50), Grey Rayon Tyre Cord Fabric, and Handmade Carpets and other Floor Coverings under Chapter 57 (7%). 57 New products incentivised under FPS at 8 digit level, eligible for benefits @ 2% of FOB value of exports to all markets.
These include:
Engineering Items like Industrial Synthetic Foaming Fabric and Electric Discharge Machine Wire (Brass Wire); Laminated Leaf Spring; Plastic Extrusion Plant and Machinery; Parts for Plastic Extrusion machinery; ERW Pipes; Ferro Chrome; Electronic Items like Connectors- Plugs and Sockets; Permanent Magnets and Parts of Electro magnetic Couplings etc.; Chemical Items like Danes Salt of D_Phenyl Glycine; Pigments; Articles of Paper Board; Permanent Magnets and Parts of Electro magnetic Couplings etc.; Cobalt unwrought etc.;

Improving Quality and deepening market access 

3.         For Indian exports to sustain in long run, it is important that we proceed to build a reputation for the quality of our products and also provide our exporters the necessary flexibilities to be able to face challenges of emerging dimensions of international trade. Our pharmaceutical sector has shown an inherent strength during difficult times. In order that the quality of our pharma product gets recognized world over and to enable them to undertake exports while navigating the challenges posed by intellectual property rights,following steps were announced for pharma sector:

3.1       Exporters of pharmaceutical products will be required to affix barcodes on their export products, with effect from 1st July 2011, as per GS 1 global standards, to facilitate tracing and tracking of their products. This will provide assurance about the quality of Indian pharma products to prospective importers.

3.2       We are providing a new facility of Input combination for pharma products manufactured through Non-Infringing process, allowing actual quantum of duty free inputs required for manufacturing such export product. This will facilitate our pharma manufacturers to work towards getting a major share of exports of such products to potential regulated markets such as US or EU.