Restrictions put on using certificates to pay custom duty.

New Delhi: Exporters have been restricted from using certain types of duty-benefit certificates under three schemes for paying custom duty in case of export obligation shortfall.

"Status Holder Incentive Scheme (SHIS), Served From India Scheme (SFIS) and Agri Infrastructure Incentive Scheme (AIIS) scrips cannot be used for payment of custom duty for shortfall in export obligation in Advance Authorisation or Duty Free Import Authorization," Director General of Foreign Trade said in a notification.

These duty-benefit certificates, or scrips, under the three schemes are used to import capital goods.

The Federation of Indian Export Organisations (FIEO) President Rafeeq Ahmed said that although it is a kind of restriction, the government has done this to rationalise the benefit given to exporters.

The SFIS was aimed at accelerating growth in export of services so as to create a powerful and unique 'Served From India' brand, instantly recognised and respected world over.

Under the AIIS, exporters get duty credit scrip equal to 10 percent of free-on-board value of agricultural exports.

Similarly, SHIS aimed at promoting investments in upgradation of technology. Under this, exporters are entitled to a duty credit scrip equal to 1 percent of free-on-board value of exports.

An Advance Authorisation is issued to allow duty free import of inputs, which are physically incorporated in export product.

In April-November 2013, the country's exports grew by 6.27 percent to USD 204 billion while imports aggregated at USD 304 billion. Trade deficit for the period stands at USD 100 billion during the period.

Source : zeenews.india.com