Director General Foreign Trade (DGFT) has issued Notification No. 28/2018 dated 27th August, 2018 to amend the privileges of Status Holders as provided in Para 3.24(j) of the Foreign Trade Policy (FTP) 2015-20.
Key highlights of the Notification are:
The Status holders shall now be entitled to export freely exportable items (excluding Gems and Jewellery, Articles of Gold and precious metals) on free of cost basis for export promotion subject to an annual limit as below:
- Annual limit of 2% of average annual export realization during preceding three licensing years for all exporters (excluding the exporters of following sectors-(1) Gems and Jewellery Sector, (2) Articles of Gold and precious metals sector).
- For exporters of Gems and Jewellery Sector and/or articles of Gold and precious metals sector, the annual limit shall be Rupees One Crore or 2% of average annual export realization during preceding three licensing years, whichever is lower
- In case of supplies of pharmaceutical products, vaccines and life-saving drugs to health programmes of international agencies such as UN, WHO-PAHO and Government health programmes, the annual limit shall be up to 8% of the average annual export realisation during preceding three licensing years.
The free of cost supplies made under provisions of Para 3.24(j) shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme.
Source: Directorate General of Foreign Trade
