The Centre on Thursday granted 5% duty incentive on tea export by including it in the Vishesh Krishi and Gram Udyog Yojana (VKGUY) scheme, a move aimed at boosting outbound shipments when the global economy is facing downturn. "Export of tea has been covered under VKGUY scheme benefits," according to the Foreign Trade Policy 2009-14 unveiled by commerce minister Anand Sharma on Thursday. Under the scheme, exporters are entitled to 5% duty credit scrip on the export value of the consignment. Sharma also announced the setting up of a single window system to facilitate exports of perishable agricultural produce.
India's tea exports between April and June fell to 36.08 million kg against 39.82 million kg in the year ago period, mainly due to a contraction in demand following the economic crisis.
According to a senior tea board official, the relaxation under this norm is likely to boost exports of tea after value addition (re-exports).
For the marine sector, which has also been impacted by the global downturn, the new Foreign Trade Policy gave some duty concessions and sops to boost trade. The minister said the duty refund scheme (Duty Entitlement Passbook Scheme) will stay till December 2010, while income-tax holiday for export-oriented units will continue till March 2011.
The government has also decided to constitute a committee consisting of the finance secretary, the commerce secretary and the chairman of the Indian Banks Association that would meet periodically to ensure that dollar credit needs of the exporters are met in a timely manner. Besides an inter-ministerial committee has been established to serve as a single window mechanism for resolution of trade-related grievances.
Source : www.fnbnews.com