Export promotion scheme for ESDM industry being formulated

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These schemes aim to increase electronics exports from US$ 5.5 billion to US$ 80 billion by 2020

By EB Bureau

Tuesday, October 15, 2013: One of the strategies of the National Policy on Electronics 2012 is to increase exports from the electronic systems design and manufacturing (ESDM) sector—from US$ 5.5 billion to US$ 80 billion by 2020. To achieve this, a draft scheme is being formulated by the Department of Electronics and Information Technology (DeitY).

Key features of draft scheme
The scheme will place special emphasis on an expanded list of items from the ESDM sector—and will be called the Focus Products Scheme. This will also cover the electronics manufacturing services industry. Domestic tariff area (DTA) sales of ITA-1/zero duty electronics products will be treated as physical exports and will be provided all the benefits of export schemes.

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To globally market and showcase chip design, product design and embedded software capabilities of the Indian industry, the scheme proposes to build and promote ‘Brand India’ in the global ESDM industry by providing support for companies participating in major export events and trade fairs in the same way that the Department of Commerce supports marketing campaigns to build the ‘Made in India’ brand.

The scheme will also ensure bilateral aid (credit/grants) from India to other countries that buy ‘Made in India’ electronic products. Companies can follow the self-certification route for import/export clearances, which will speed up the process of exports.

For more details on the draft, please contact PS Narotra, senior director, DeitY ([email protected]).

Export Promotion Capital Goods Scheme
The Export Promotion Capital Goods (EPCG) Scheme, formulated for exporters of electronic products, allows import of capital goods for pre-production, production and post-production at zero per cent customs duty. This is subject to an export obligation equivalent to six times of duty saved on capital goods imported under EPCG scheme. This needs to be fulfilled within six years, reckoned from the date the authorisation was issued.

Concessional 3 per cent customs duty

EPCG scheme also allows import of capital goods for pre-production, production and post-production at 3 per cent customs duty, subject to an export obligation equivalent to eight times the duty saved on capital goods imported under EPCG scheme, to be fulfilled in eight years, starting from the date the authorisation was issued.

The capital goods include spares (including refurbished/reconditioned spares), tools, jigs, fixtures, dies and moulds. Second -hand capital goods, without any restriction on date of manufacture, may also be imported under EPCG scheme. The export obligation can also be fulfilled by the supply of ITA-1 items to DTA, provided the realisation is in free foreign exchange.

For more details on EPCG scheme, log on to www. commerce.nic.in

Electronics Bazaar, South Asia’s No.1 Electronics B2B magazine

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