DGFT removes Rs 1 cr per yr limit for exports on free of cost exports basis promotion

New Delhi, Aug 30 (KNN) The Commerce Ministry has removed the limit of Rs One Crore per year for exports on free of cost exports basis for export promotion for Status Holders and has made 2% of average annual export realization during preceding three licensing years with immediate effect.

Making an amendment in a provision in Foreign Trade Policy, the Directorate General of Foreign Trade (DGFT) said 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 as follow:

  --  a. Annual limit of 2% of average annual export realization during preceding three licensing years for all exporters (excluding the exporters of following sectors-(1) Gems and Jewellery Sector, (2) Articles of Gold and precious metals sector).

  --  b. Annual limit of Rupees One Crore or 2% of average annual export realization during preceding three licensing years, whichever is lower. (for exporters of the following sectors-(1) Gems and Jewellery Sector, (2) Articles of Gold and precious metals sector).

  --  c. In case of 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 shall be upto 8% of the average annual export realization during preceding three licensing years.

The free of cost supplies made under provisions of Para 3.240) shall not be entitle to Duty Drawback or' any other export incentive under any export promotion scheme, DGFT notification added. (KNN Bureau)