PROMOTION COUNCIL FOR HANDICRAFTS
OF THE FOREIGN TRADE POLICY 2009- 2014 ANNOUNCED ON 27.08.2009
WITH REFERENCE TO HANDICRAFTS EXPORTS
Trade Policy 2009-2014 was announced by Hon’ble Minister of
Commerce and Industry on 27th August, 2009.
The major highlights of the FTP is placed at Annexure
I. A special
thrust has been given to labour intensive handicrafts sector which
is witnessing job losses in wake of the recession.
A brief analysis on the provisions made in the new FTP in
particular with the handicraft sector are placed below:
PROVISIONS SPECIFIC TO
1. Three handicrafts clusters provided status of
‘Towns of Export Excellence’(TEE) (New Provision)
Srinagar & Anantnag have been announced as Towns of Export
Excellence for the handicrafts sector.
This would enable upgradation of infrastructure and would
provide incentives and focus support.
handicrafts exports to be treated as ‘Special
and entitled to 5% duty credit scrips as per S. No. B (vi) (g)
of the new Foreign Trade Policy. (New Provision covering
all items of handicrafts – however, a limited number of items
were earlier covered under VKGUY)
handicrafts exports would now be treated as ‘Special Focus
Products’ and entitled to higher incentives as per Sl. No.
3.15.2 . Special Focus Products covered under Table 2 & Table
5 of Appendix 37D, shall be granted duty credit scrip equivalent
to 5% of FOB value of exports for exports made from 27.08.2009
3. 52 items added to the ‘New Special Focus
had requested the inclusion of 103 items in the ‘New Special
Focus Products’ list to DGFT and followed it vigorously through
Ministry of Textiles. The efforts have yielded quite good results
and 52 items have been notified as ‘New Special Focused
52 items appears in Table No. 4 & 5 of Appendix 37D of the new
Handbook Book of Procedures Vol-I. They shall be entitled to duty
credit scrips of 5%.
handicraft items not elsewhere specified elsewhere are now
also eligible under “New Special Focus Products’ scheme as per
entry No. 43 of Table 5 of Appendix 37D of Handbook of procedures.
Earlier only selected items were eligible for the same.
This entry will cover all new and innovative handicrafts
Promotion Council for Handicrafts shall now certify that the
exported product is a handicrafts product, if any doubt arises.
4. EPCG at zero custom duty for Technological
recommendation of EPCH to reduce the custom duty on EPCG (Export
Promotion Capital Goods) from 3% to 0% has been accepted.
EPCG shall be available at 0% custom duty for handicrafts sector
.The export obligation shall be six times of the custom duty saved
to be fulfilled in six years.
The scheme shall be in operation till 31.03.2011.
5. Status holder to get duty credit scrip.
accelerate exports and encourage technological upgradation,
additional Duty Credit Scrips shall be given to Status Holders @
1% of the FOB value of past exports. The duty credit scrips can be
used for procurement of capital goods with Actual User condition.
This facility shall also be available for handicrafts. This
facility shall be available upto31.3.2011.
status holders will get duty credit scrips at the rate of 1% of
the value of past exports. The duty credit scrips can be used for
procurements of capital goods but subject to actual user
for Green products and products from North East
Product Scheme benefit extended for export of ‘Green
Products’; and for exports of some products originating from
allocation for Market Development Assistance (MDA) and Market
Access Initiative (MAI) schemes is being provided. Special funds
have been earmarked for the handicrafts sector.
GENERAL PROVISIONS MADE IN FTP INCLUDING
- 26 new markets have been added under Focus Market Scheme. These
include 16 new markets in Latin America and 10 in Asia-Oceania.
incentive available under Focus Market Scheme (FMS) has been
raised from 2.5% to 3%.
Linked Focus Product Scheme (MLFPS)
- Market Linked Focus Product Scheme (MLFPS) has been greatly
expanded by inclusion of products classified under as many as 153
ITC(HS) Codes at 4 digit level. Some major products include;
Pharmaceuticals, Synthetic textile fabrics, value added rubber
products, value added plastic goods, textile madeups, knitted and
crocheted fabrics, glass products, certain iron and steel products
and certain articles of aluminium among others. Benefits to these
products will be provided, if exports are made to 13 identified
markets (Algeria, Egypt, Kenya, Nigeria, South Africa, Tanzania,
Brazil, Mexico, Ukraine, Vietnam, Cambodia, Australia and New
- To impart stability to the Policy regime, Duty Entitlement
Passbook (DEPB) Scheme is extended beyond 31-12-2009 till
rate shall also include factoring of custom duty component on fuel
where fuel is allowed as a consumable in Standard Input-Output
- To facilitate duty free import of samples by exporters, number
of samples/pieces has been increased from the existing 15 to 50.
Customs clearance of such samples shall be based on declarations
given by the importers with regard to the limit of value and
quantity of samples.
- To further EDI initiatives, Export Promotion Councils/Commodity
Boards have been advised to issue RCMC through a web based online
system. It is expected that issuance of RCMC would become EDI
enabled before the end of 2009.
Special Focus Products (Handicrafts)
products covered earlier
of the policy