Exim Policy 2007-2008, Chapter-3, Promotional Measures, Assistance to States for Infrastructure Development of Exports (ASIDE).

Scheme for Assistance to States for Infrastructure Development of Exports (ASIDE) is formulated to encourage State Governments to participate in promoting exports, and is administered by Department of Commerce (DoC).
Objectives of ASIDE include:

1. Developing infrastructure such as roads connecting production centers with ports,
2. Setting up of Inland Container Depots (ICD) and Container Freight Stations (CFS),
3. Creation of new State level export promotion industrial parks / zones,
4. Augmenting common facilities in existing zones,
5. Equity participation in infrastructure projects,
6. Development of minor ports and jetties,
7. Assistance in setting up of common effluent treatment facilities,
8. Stabilizing power supply, and
9. Any other activity as may be notified by DoC.

Details of ASIDE are available at http://commerce.nic.in.

MAI scheme, intended to provide financial assistance for medium term export promotion efforts with sharp focus on a country / product, and is administered by DoC.

Financial assistance is available for Export Promotion Councils (EPCs), Industry and Trade Associations (ITAs), Agencies of State Governments, Indian Commercial Missions
(ICMs) abroad and other eligible entities as may be notified.

A whole range of activities can be funded under MAI scheme. These include, amongst others,

1. Market studies,
2. Setting up of showroom / warehouse,
3. Sales promotion campaigns,
4. International departmental stores,
5. Publicity campaigns,
6. Participation in international trade fairs,
7. Brand promotion,
8. Registration charges for pharmaceuticals, and
9. Testing charges for engineering products.

Each of these export promotion activities can receive financial assistance from Government ranging from 25% to 100% of total cost depending upon activity and implementing agency. Full text of guidelines is available at http://commerce.nic.in.

Note

1. Exporters in Small Scale Industry (SSI) / Tiny Sector / Cottage Sector, Units registered with KVICs / KVIBs, Units located in North Eastern States, Sikkim and Jammu & Kashmir, Units exporting handloom / handicrafts / hand knotted or silk carpets, exporters exporting to countries in Latin America / CIS / sub- Saharan Africa as listed in Appendix-9, Units having ISO 9000 (series) / ISO 14000 (series) / WHOGMP / HACCP / SEI CMM level-II and above status granted by agencies listed in Appendix-6 of HBP v1, exports of services and exports of agro products shall be entitled for double weightage on exports made for grant of status. Double Weightage shall be admissible to Merchant as well as Manufacturer Exporters. However,
   a shipment can get double weightage only once in any one of above categories.
   1. Transfer of export performance from one to another is not permitted. Therefore disclaimer system shall not be allowed for counting of export turnover.
2. Exports made on re-export basis shall not be counted for recognition.
3. Exports made by subsidiary of a limited company shall be counted towards export performance of limited company for recognition only if limited company has a majority share holding in subsidiary company.
4. Deleted

A Status Holder shall be eligible for following facilities:

1. Authorisation and Customs clearances for both imports and exports on self-declaration basis;
2. Fixation of Input-Output norms on priority within 60 days;
3. Exemption from compulsory negotiation of documents through banks. Remittance / Receipts, however, would be received through banking channels;
4. 100% retention of foreign exchange in EEFC account;
5. Enhancement in normal repatriation period from 180 days to 360 days;
6. Deleted
7. Exemption from furnishing of BG in Schemes under FTP; and
8. SEHs and above shall be permitted to establish Export Warehouses, as per DoR guidelines.

Objective of VKGUY is to promote exports of

1. Agricultural Produce and their value added products;
2. Minor Forest Produce and their value added variants; for exports w.e.f 1.4.2004
3. Gram Udyog Products, for exports w.e.f 01.04.2006; and
4. Forest Based Products, for exports w.e.f 01.04.2007.

Such products shall be listed in Appendix 37A of HBP v1.

Following exports shall not be taken into account for Duty Credit scrip entitlement.

1. 1. Export of imported goods covered under Para 2.35 of FTP;
   2. Exports through transshipment, meaning thereby that exports originating in third country but transshipped through India;
2. Deemed Exports;
3. Exports made by SEZ units; and
4. Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS).

For exports during 2007-08, all Status Holders (having status recognition w.e.f 1.4.2007) exporting products covered under ITC HS Chapters 1 to 24, shall be incentivized with duty credit scrip equal to 10% of FOB value of agricultural exports (including benefits entitled under paragraph 3.8.2) provided that the total benefits for all status holders put together does not exceed Rs 100 Cr (i.e. Rs 50 Cr for each half year) and the conditions specified in Para 3.19.10 of HBP v1 (RE2007) are satisfied. Zonal Office CLA, New Delhi shall be the licensing office for grant of the benefit to all status holders.

The following capital goods / equipments shall be permitted for import:

(i) Cold storage units (including Controlled Atmosphere (CA) and Modified Atmosphere (MA) Stores); and Pre-cooling Units and Mother Storage Units for Onions, etc.;

(ii) Pack Houses (including facilities for handling, grading, sorting and packaging etc.); and (iii) Reefer Van / Containers.

Imported capital goods/equipment shall be utilized for storage, packing etc. (as in (ii) above) and transportation of agricultural products (including agro-processed perishable products). (This para is amended by DGFT Notification No. 66(RE-2007)/2004-2009, Dated : 27-12-2007.)

 This would be in addition to prevailing benefits in other schemes administered by Ministry of Agriculture and others for infrastructure development for agriculture, agricultural items and agro-processing activities like :-

1. Cold storage units including Controlled Atmosphere (CA) and Modified Atmosphere (MA) Stores, pre-cooling Units and mother storage for onions etc.
2. Pack Houses (including facilities for handling, grading, sorting and packaging etc.), and
3. Reefer Van / Containers.

Assessment of applicant’s proposal would be done with respect to past export performance and on a first come first served basis.

This additional benefit shall be subject to Actual User condition and hence non-transferable.
(First sentence of paragraph 3.8.6 shall be substituted .

1. Following exports shall not be taken into account for computation of entitlement:
   1. 1. Export of imported goods covered under Para 2.35 of FTP;
      2. Exports through transshipment, meaning thereby that exports originating in third country but transshipped through India;
   2. Export turnover of SEZ units or supplies made to such units or SEZ products exported through DTA units;
   3. Deemed Exports;
   4. Service Exports;
   5. Diamonds and other precious, semi precious stones;
   6. Gold, silver, platinum and other precious metals in any form, including plain and studded Jewellery;
   7. Ores and Concentrates, of all types and in all forms;
   8. Cereals, of all types;
   9. Sugar, of all types and in all forms;
   10. Crude / Petroleum Oil & Crude / Petroleum based Products covered under ITC HS codes 2709 to 2715, of all types and in all forms; and
   11. Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS).

Following exports shall not be taken into account for computation of entitlement.

1. 1. Export of imported goods covered under Para 2.35 of FTP;
   2. Exports through transshipment, meaning thereby that exports originating in third country but transshipped through India;
2. Export turnover of SEZ units  or SEZ products exported through DTA units; and
   (The words ‘or supplies made to such units’ in the Para 3.10.2.2 (b) of FTP, 2004-2009 (Updated as on 19.4.2007) is deleted.
3. Deemed Exports.

Exports of High Technology products (as notified in Appendix 37E of HBP v1) in free foreign exchange to all countries, shall be entitled for Duty Credit Scrip equivalent to:

1. 1.25 % of FOB value of exports; or
2.  5% of incremental growth in FOB value (realized as per BRC / FIRC) of exports of notified products for current year (i.e., 2007-08) over previous year (i.e., 2006-07) and similarly (all taken together) for each subsequent licensing year.
   
   Exporter may opt for either (a) or (b) above. However, applicants with ‘nil’ exports in base year shall not be eligible.

1. Incremental growth in exports (realized in free foreign exchange) shall be calculated based on comparison of export performance of second year (i.e. say e.g. 2007-08) over base year (i.e. say e.g. 2006-07)

Following shall not be counted for entitlement

1. Export of imported goods covered under Para 2.35 of FTP;
2. Exports originating in third country but transshipped through India;
3. Exports of SEZ units or SEZ products exported through DTA units; and
4. Deemed Exports.