Thrust to handloom & handicrafts sector in foreign trade policy

28 Aug '09

4 min read

This duty credit scrip can be used for import of capital goods by these status holders. The imported capital goods shall be subject to actual user condition.

Incentives for Handloom Sector:
For the handloom sector in particular, specific funds have been earmarked under MAI / MDA, duty free import entitlement of specified trimmings and embellishments is 5% of FOB value of exports during previous financial year and duty free import entitlement of hand knotted carpet samples is 1% of FOB value of exports during previous financial year.

Duty free import of old pieces of hand knotted carpets on consignment basis for re-export after repair is permitted, new towns of export excellence with a threshold limit of Rs 150 crore shall be notified and machinery and equipment for effluent treatment plants is exempt from customs duty.

Incentives for Handicrafts sector:
Duty free import entitlement of tools, trimmings and embellishments is 5 %of FOB value of exports during previous financial year. Entitlement is broad banded, and shall extend also to merchant exporters tied up with supporting manufacturers.

Handicraft EPC is authorized to import trimmings, embellishments and consumables on behalf of those exporters for whom directly importing may not be viable. Specific funds are earmarked under MAI & MDA Schemes for promoting Handicraft exports.

CVD is exempted on duty free import of trimmings, embellishments and consumables, new towns of export excellence with a reduced threshold limit of Rs 150 crore shall be notified and all handicraft exports would be treated as special focus products and entitled to higher incentives.

Fibre2fashion News Desk - India

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