Exporters to be rewarded for good performance

THE NEW RULE BOOK

The government announced duty-free credit to star export houses that exceed the annual export target. The rewards under the Target Plus scheme will be given on a tiered basis, with those clocking over 20 per cent exports eligible to import 5 per cent of the incremental export free of duty.

With the target for 2004-05 being fixed at 16 per cent, the lower limit for qualifying for these rewards is pegged at 20 per cent for the current year.

Companies that are Star Export Houses as well as part of a group company will have an option to either apply as an individual company or as a group, based on the growth in the group's turnover as a whole.

All star export houses that have achieved a minimum export turnover in free foreign exchange of Rs 10 crore in the previous year will be eligible for consideration under the scheme.

Under the Target Plus scheme, duty credits can be used for import of any inputs, capital goods and spares, office equipment, professional equipment and office furniture. Certain agriculture produce are, however, on the negative list as far as the scheme is concerned.

Target Plus is similar to the Duty Free Entitlement Certificate scheme which was announced last year.

Export turnover of units operating under the special economic zones (SEZs), export-oriented units (EOUs), electronic hardware technology park (EHTP), Software Technology Park of India (STPI) and biotechnology parks (BTP) schemes or products manufactured by them and exported through domestic tariff area (DTA) units will not be entitled for benefits under this scheme.

Export of imported goods, deemed exports, service exports, export of gold, silver, platinum and other precious metals, rough, uncut, semi-polished diamonds and other precious stones will not be granted these benefits. Exports of studded jewelry will be counted for entitlements under the scheme.