| The scheme, introduced for the first time in 2006-07, allows duty credit facility at 2.5 per cent of the FOB value of exports to the notified countries. Additionally, the scrip and the items imported against such exports under the scheme are freely transferable. |
| The scheme was utilised by drug exporters to boost their sales in Latin American Countries (LAC) during the last one year. |
| The Pharmaceutical Export Promotion Council (Pharmexcil) has been seeking the inclusion of CIS region within the purview of "Focus Market Scheme" for several months now. They had felt that by including CIS countries in the scheme, exporters will be partly compensated for the huge freight cost they incur. |
| "It will encourage exporters to export their goods to CIS countries. The duty credit facility will enable the exports to offset the high freight cost and inherent infrastructure efficiences and other associated costs evolved in marketing medicines in these countries," DB Mody, chairman Pharmexcil, said. |
| The pharmaceutical industry could also expect the extension of the highly popular Duty Entitlement Passbook (DEPB) scheme till an alternative scheme is finalised. |
| The pharmaceutical industry is expecting the government to clarify its position over the tax benefits to the export oriented units (EOUs) of the country. |
| "Levy of service tax is not compatible with the basic concept of EOU scheme. Like all other class of exporters, EOUs too should be exempt from the incidence of service tax. This suggestion has been pending since 2004-05," industry sources said. |
| "The government will have to announce policy measures that facilitate trade if the country has to achieve its export targets. The rising transaction costs contributed by the weakening of rupee against dollar is effecting the competitiveness of the industry," Mody said. |
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