Foreign Trade Policy 2009-2014 : Annual supplement 2010-11

09 Sep 2011

The Annual Supplement 2010-11 to the Foreign Trade Policy (FTP) was announced by the Hon’ble Commerce & Industry Minister Mr. Anand Sharma in New Delhi on 23rd August 2010. 

In the Annual Supplement, the Hon’ble Minister has considered various suggestions of Councils/Industry.  Major suggestions that relates to Books, Publications & Printing etc.,  considered are:
1. Continuation of DEPB Scheme
2. Extension of Technological Up gradation Scheme
3. Extension of SHIS Scheme
4. Extension of Zero Duty EPCG Scheme, etc.


(a) The Duty Entitlement Passbook (DEPB) extended beyond 31.12.2010 till 30.6.2011.
(b) DEPB rate shall also include factoring of Customs Duty component on fuel where fuel is allowed as a consumable in standard input-output norm.


To aid technological up gradation of export sector, EPCG Scheme at Zero Duty has been introduced.  This Scheme will be available for Chemicals & Allied Products including Paper & Paperboard and articles thereof, Ceramic products, Refractories, Glass & Glassware, Rubber and articles thereof, Plywood and Allied Products beside other items.  The Scheme shall be in operation till 31.3.2011.  Para 5.8. chapter 5 of FTP states as follows: EPCG authorization  holders can opt for technology  up gradation of existing capital  goods imported under EPCG authorization .

Conditions governing technological Up gradation  of existing capital  goods are as under :

I. Minimum time period for applying for Technological up gradation of existing  capital goods imported under EPCG is 5 Years from    Authorization issue date
II. Minimum  exports made under old capital goods must be 40% of total  export obligation  imposed on first EPCG authorization 
III. Export obligation  would be re-fixed such that total exports obligation mandated for both capital goods would be sum  total of 6  time  of duty saved on both capital      goods, to be fulfilled in 8 years from new  authorization  issued date 
IV. Facility for technological up gradation  shall be available only once and  the minimum  imports to be made shall be at least 10%  of the existing  investment in plant  and machinery by applicant 
V. Capital  Goods to be imported must be new and technologically  superior to earlier  CG


The Status Holder of the additional sectors like Books, Publications and Printing (Chapter 49) shall be eligible for incentive of 1% of fob value of Export made during 2010-11 and 2011-12 in the form of duty credit.


Introduced in August 2009 and valid for only two years upto 31.3.2011 has been extended by one more year till 31.3.2012.

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