The Scheme: Project Imports are covered under chapter 98 of ITC HS Classification and cover all goods, which are being imported for initial setting up of a unit or substantial expansion of an existing unit.
All goods can be assessed under one customs tariff heading thus obviating any disputes with customs with regard to their classification.
Industrial Plants, Irrigation Projects, Power Projects, Mining Projects, Oil Exploration Projects and certain other projects as notified by the government are covered under the scheme.
Benefits: Assessment under one heading: thus obviating all disputed with the customs regarding tariff classification.
Some of the more popular schemes
SFIS (Served from India Scheme)
Gives a value of 10% of the FE earned from export of services in the previous year in the form of duty credit script.
The Script can be used for duty free procurement of any Capital Goods or consumables related to any service sector business of the script holder, from International as well as domestic sources. In case of Hotels and Restaurants it can be used even for import of foods items and liquor.
Is Actual User and non transferable (except within the group)
VKGUY (Vishesh Krishi and Gram Udyog Yojna)
The scheme offers a duty credit script equivalent to 5%/3% of previous year’s exports of certain agricultural & forest products. For flowers fruits and vegentable exporters it will be 7%/5% depending upon the benefits they are availing.
The script is transferable to other importers
FMS (Focus Market Scheme)
The scheme incentivizes exports to Certain Latin American, African ,CIS Countries. It offers 3% of the previous years exports in the form of duty credit script, which is transferable.
FPS (Focus Products Scheme)
The scheme incentivises exports of certain items of rural and semi urban origin. It offers 2% of the previous years exports in the form of duty credit script, which is transferable. For the export of certain Toys and Sports Goods from 1.4.08, a script of up-to 6.25% value is available. For High value added products script of upto 2.5% is available.
(HTPEPS) High-Tech Products Export Promotion Scheme
Provides upto 1.25% of previous year’s exports in the form of a duty credit script. Alternatively a duty credit script of 5% of the incremental growth may be taken at the option of the exporter. All the above except SFIS can also be availed by EOU/EHTP/BTP who are not availing of direct tax benefits/exemptions.
What we do:
We assist in identification of the benefits available under the relevant scheme. Further we will do documentation required, application preparations, representation and coordination with DGFT and other concerned Government Departments till the receipt of final script. Later we will assist you in actually realizing the value of the script in cash.
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