DGFT has announced a series of measures to fine tune the EXIM Policy 2002-07 so as to provide an impetus to international trade, accelerate incremental growth rate of Indian exports and enable India to emerge as a manufacturing hub for producing internationally competitive goods & services. Increased focus has been made on procedural simplification by introducing E-Commerce initiatives like Digital Signature, Electronic Fund Transfer & Message exchange with community partners like Customs, Banks etc., allowing clubbing of EPCG licences and issuing split up licences for the duty free imports scheme for the Service Providers. All these will not only reduce transaction costs for the exporting community but also impart greater transparency and reduce discretion while availing various benefits under the EXIM Policy. 1. Promotional Measures a. To promote export related infrastructure, rupee payments received for Port handling services shall also be counted for discharge of export obligation under EPCG scheme. b. To boost R &D activity, import of Prototypes shall be allowed to Actual Users without any limit (presently restricted to 10 nos per annum) c. Ceiling on export of Gifts abroad raised from Rs One Lakh to Rs Five Lakh per annum. 2. Services sector a. Heritage Hotels, 1 and 2 star hotels and Stand Alone Restaurants have also been extended the benefits of duty free imports admissible to Tourism Sector. This will be subject to an undertaking that the entire benefit will be passed on to the customers. b. On a consistent demand from the service industry, import of all kinds of Capital Goods including office and professional equipment has been allowed under the Duty Free Entitlement scheme. However, import of agriculture/dairy products and cars shall not be permitted. c. Duty Free Entitlement Certificate scheme made available on achieving the minimum threshold limit in any one of the three preceding years. 3. Duty Exemption Scheme a. To offset the high power costs faced by the manufacturing industry, duty free Fuel shall be allowed to be imported with actual user condition under Duty Free Replenishment Certificate (DFRC) scheme. b. Advance Licence for intermediate supplies allowed against Duty Free Replenishment Certificate (DFRC) scheme. c. Sensitive list under DFRC pruned down with downward revision of Custom duties. d. For Status Holder exporters involved in multi location multi product exports, benefits of Export Obligation period extension and Revalidation facility extended to those availing the scheme of Advance Licence for annual requirements also. The scheme of Advance Licence for annual requirements extended for deemed exports and intermediate supplies also. e. Advance Licence for free of cost material re-introduced. f. Payment of Composition fee for extension of Export Obligation reduced and linked to duty saved amount. 4. EPCG a. Procedural simplifications for fixation of NEXUS made and CG imports allowed based on a Chartered Engineer’s certificate regarding Nexus with the export product. At present admissibility of import of Capital Goods under the Scheme is examined by a Committee. b. Flexibility to discharge the export obligation imposed on concessional CG imports under the Scheme not only from export of alternative products manufactured or services rendered by the firm but the scope extended to include exports of products/services by Group Companies also. c. Refixation of export obligation of past EPCG licences in line with present Policy i.e. EO to be 8 times the duty saved (instead of 5 times the CIF value). d. Facility of clubbing of EPCG licences introduced for discharge of export obligation. e. Import of spare refractories, catalyst and consumables allowed under EPCG. 5. Deemed Exports a. Deemed export facility extended for items having Zero% basic Customs duty. b. Deemed export facility extended to Fertiliser & Refinery projects spilled over from 8th and 9th Plan periods. c. Fixation of Drawback brand rates for deemed exports decentralised and delegated to DGFT Regional offices. 6. Removal of Quantitative Restrictions a. Imports allowed freely for -Gold and Silver -Global Positioning System Receiver -Electrical Energy - Air Guns etc. subject to conditions imposed by Ministry of Home Affairs b. Export of certain categories of Fertilizers further liberalized 7. Non Tariff Barriers a. NTBs applicable on imports for export production rationalised for food & textile items. b. BIS Mandatory Quality Certification scheme on imports amended for importers having captive consumption and in-house testing facilities. 8. Project Exports a. Equity base of ECGC being raised from Rs 500 crores to Rs 800 crores for a better risk management of Indian exporters. b. National Export Insurance Account being created for ECGC to underwrite high value projects implemented by Indian Companies abroad. Details will be worked out in consultation with Ministry of Finance. c. Gold Card Scheme for credit worthy exporters with good track record for easy availability of export credit on best terms being worked out by RBI