The privileges extended to the status holders include :

• (i) Authorization and Customs Clearances for both imports and exports on self-declaration basis;
• (ii) Fixation of Input-Output norms on priority within 60 days;
• (iii) Exemption from compulsory negotiation of documents through banks. Remittance / Receipts, however, would be received through banking channels;
• (iv) 100% retention of foreign exchange in EEFC account;
• (v) Exemption from furnishing of BG in Schemes under FTP;
• (vi) SEHs and above shall be permitted to establish Export Warehouses, as per DoR guidelines.
• (vii) For status holders, a decision on conferring of ACP Status shall be communicated by Customs within 30 days from receipt of application with Customs.
• (viii) As an option, for Premier Trading House (PTH), the average level of exports under EPCG Scheme shall be the arithmetic mean of export performance in last 5 years, instead of 3 years.
• (ix) Status Holders of specified sectors shall be eligible for Status Holder Incentive Scrip under Para 3.16 of FTP.
• (x) Status Holders of Agri. Sector (Chapter 1 to 24) shall be eligible for Agri. Infrastructure Incentive Scrip under Vishesh Krishi and Gram Udyog Yojana (VKGUY) – Para 3.13.4 of FTP.

e. Focus Market Scheme (FMS)
The Focus Market Scheme is in effect from April 2006, with a view to offsetting the high freight cost and other disabilities faced in accessing select international markets. Exports of all products to the 110 notified countries (Appendix 37C of the HBPv1) shall be entitled for duty credit scrip equivalent to 3% of the FOB value of exports (in free foreign exchange). The following categories of export products / sectors shall be ineligible for Duty Credit Scrip, under this scheme:

• Supplies made to SEZ units;
• Service Exports;
• Diamonds and other precious, semi precious stones;
• Gold, silver, platinum and other precious metals in any form, including plain and studded Jewellery;
• Ores and Concentrates, of all types and in all forms;
• Cereals, of all types;
• Sugar, of all types and in all forms;
• Crude / Petroleum Oil & Crude / Petroleum based Products covered under ITC HS codes 2709 to 2715, of all types and in all forms; and
• Export of Milk and Milk Products covered under ITC HS Codes 0401 to 0406, 19011001, 19011010, 2105 & 3501.

f. Focus Product Scheme (FPS)
To incentivize export of products which have high export intensity / employment potential, so as to offset infrastructure inefficiencies and other associated costs involved in marketing of these products, Focus Products Scheme was introduced in April 2006.Exports of notified products (Appendix 37D of the Handbook of Procedures volume 1) to all countries (including SEZ units) shall be entitled for Duty Credit Scrip equivalent to 2% of FOB value of exports (in free foreign exchange) for exports made from 27.8.2009 onwards. However, Special Focus Products, covered under Table 2 and Table 5 of Appendix 37D, shall be granted Duty Credit Scrip equivalent to 5% of FOB value of exports. Further, Bonus Benefits @2% of FOB value of exports is given over and above the existing benefit for products covered under Table 7 of Appendix 37D for exports made from 1.4.2010 onwards. So far, over 1000 products have been covered at 8 digit level under the Scheme, which include leather products and footwear, handloom products, handmade carpets and other textile floor covering, handicrafts, coir and jute products, technical textiles, engineering products, green technology products, electronic products, etc.

Market Linked Focus Products Scrip (MLFPS)
To give significant boost to market penetration of specific product in specified markets, a variant under Focus Product Scheme called Market Linked Focus Products Scrip was introduced on1.4.2008. Export of products / sectors of high export intensity / employment potential (which are not covered under present FPS List) would be incentivized at 2% of FOB value of exports (in free foreign exchange) under FPS when exported to the Linked Markets (countries), which are not covered in the FMS List, as notified in Appendix 37D of the HBP v1.

Presently the scheme covers over 3500 products at 8 digit level that include motor vehicles, auto-components, bicycles and parts, apparels, knitted and crocheted fabrics, pharma products, value added plastic and rubber goods, glass products, dyes and chemicals, household articles, machine tools, earth moving equipments, transmission towers, electrical and power equipments, steel tubes, pipes and galvanized sheets, compressors, iron and steel structures, auto components, Three wheelers and cotton woven fabrics etc. The countries covered under the Scheme include Algeria, Egypt, Kenya, Nigeria, South Africa, Tanzania, Brazil, Mexico, Ukraine, Australia, New Zealand, Cambodia, Vietnam, Japan and China.

g. Status Holders Incentive Scrip (SHIS)
With an objective to promote investment in upgradation of technology of the sectors mentioned below, the Status Holders shall be entitled to incentive scrip @1% of FOB value of exports made during 2011-12 in the form of duty credit.

• Leather (excluding finished leather);
• Textiles and jute;
• Handicrafts;
• Engineering Sector (excluding Nonferrous Metals in primary or intermediate forms, Automobiles & two wheelers, nuclear reactors &parts and Ships, Boats and Floating Structures);
• Plastics; and
• Basic Chemicals (excluding Pharma Products)
• Chemical & Allied Products (other than Bulk minerals, Granite/Stones, Processed minerals, Cement, Clinkers and asbestos)
• Electronics Products
• Sports Goods and Toys

h. Export Promotion Capital Goods (EPCG) Scheme
At present, there are two EPCG Schemes, that is, 3% concessional duty EPCG scheme and Zero duty concessional EPCG Scheme.
The salient features of 3% concessional duty scheme are as under:

• i. The Scheme was initially introduced in the Import and Export Policy 1990-93 for import of Capital Goods at a concessional rate of Customs Duty @ 25%. The concessional rate of duty has been reduced gradually to 3% since 1st April, 2008.
• ii. The scheme allows import of capital goods for pre-production, production and post production as well as for computer software systems subject to an export obligation equivalent to 8 times of duty saved amount ( 50% of Export Obligation in case of import of spares), to be fulfilled in 8 years reckoned from Authorization issue-date.
• iii. The scheme also requires maintenance of average level of exports achieved by the exporter in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, except for categories mentioned in para 5.7.6 of Hand Book of Procedure.
• iv. To encourage exports from the tiny and cottage sector, an export obligation period of 12 years is granted for fulfillment of export obligation.
• v. Issue of EPCG authorization for import of spares, tools, refractory for initial lining & Catalyst for initial charge is also allowed for existing imported plant and machinery (imported earlier under EPCG Scheme or otherwise).
• vi. In case of agro units, the export obligation is equivalent to 6 times duty saved on imported capital goods to be completed within a period of 12 years.
• vii. In case of SSI Units, the EO is equivalent to 6 times duty saved to be fulfilled over a period of 8 years provided the cif value of such imported capital goods does not exceed Rs.50 lakh and total investment in plant and machinery after such imports does not exceed the SSI limits.
• viii. For EPCG authorizations with a duty saved amount of Rs.100 crore or more, the export obligation period is 12 years.
• ix. Import of second hand capital goods is allowed without any age restriction.
• x. Import of motor car, sports utility vehicles/all purpose vehicles is allowed only to hotels, travel agents, tour operators or tour transport operators and companies owning / operating golf resorts whose total foreign exchange earning from their respective sectors in the current and preceding three licensing years is Rs.1.5 crore or more.
• xi. Vehicles imported under EPCG Scheme are to be so registered that the vehicles are used for tourist purpose only. Parts of cars, such as chassis, cannot be imported under EPCG Scheme.
• xii. EPCG Authorization can also be issued for import of capital goods under Scheme for Project Imports notified by the Central Board of Excise and Customs under S. No.441 of Customs Exemption Notification No.21/2002 dated 01.03.2002. Export obligation for such EPCG authorizations would be eight times of duty saved. Duty saved would be the difference between the effective duty under aforesaid Customs Notification and concessional duty under the EPCG Scheme.
• xiii. The scope of the EPCG scheme has been extended to Common Service Providers (CSP) who are designated / certified as a Common service Providers by the DGFT, Department of Commerce or State Infrastructural Corporation in a Town of Export Excellence.
• xiv. A person holding an EPCG licence may source the capital goods from a domestic manufacturer instead of importing them. The domestic manufacturer supplying CG to EPCG authorization holder shall be eligible for deemed export benefits under Para 8.3 of the Policy.
• xv. EPCG licence may be issued for retail sector for import of capital goods required by the retailer to create modern infrastructure in the retail sector.
• xvi. EPCG Authorizations holders can opt for Technological up-gradation of existing Capital goods imported under EPCG authorizations’ subject to conditions stipulated in para 5.8 (i) to (v) of FTP

Zero Duty EPCG Scheme
The scheme has been introduced in the new FTP 2009-14 for specified sectors, viz. for exporters of engineering & electronic products, basic chemicals & pharmaceuticals, apparels & textiles, plastics, handicrafts, chemicals & allied products and leather & leather products; subject to exclusions as provided in HBP vol. I. New sectors included under zero duty EPCG Scheme w.e.f. 23.08.2010 are paper & paperboard and articles thereof, ceramic products, refractories, glass & glassware, rubber & articles thereof, plywood and allied products, marine products, sports goods and toys added.

• i. Under zero duty EPCG Scheme, export obligation equivalent to 6 times of duty saved amount on capital goods is required to be fulfilled in 6 years from authorization issue date.
• ii. The validity period for import of capital goods under zero duty EPCG Scheme is nine months;
• iii. Export obligation period of 6 years can be extended for a maximum period of 2 years only.

All other provisions pertaining to 3% duty EPCG scheme, to the extent they are not inconsistent with the above provisions of zero duty EPCG Scheme, are applicable to the zero duty EPCG Scheme also. The zero duty EPCG Scheme will be in operation till 31.3.2012.
EPCG authorization for annual requirement
EPCG Authorization can also be issued for annual requirement to Status Certificate Holders and all other categories of exporters having past export performance (in preceding two years), both under zero duty and 3% duty Schemes. The annual entitlement in terms of duty saved amount shall be upto 50% of FOB value of Physical Export and / or FOR value of Deemed Export, in preceding licensing year

Export Obligation (EO) conditions under EPCG Scheme

• EO to be fulfilled by export of goods manufactured/service rendered by applicant.
• Upto 50% of EO may be fulfilled by exports of other goods manufactured or services provided by the same firm/ company/ group companies.
• Exports shall be physical exports. Certain deemed exports will also be counted towards fulfillment of EO.
• The export obligation under the Scheme shall be over and above, the average level of exports achieved by the EPCG authorization holder in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, other than the categories exempted for this purpose.
• No average EO condition for certain sectors like handicraft, handlooms, cottage, tiny sector, agriculture, aqua-culture, animal husbandry, floriculture, horticulture, pisciculture, poultry and sericulture.
• Extension in EO period may be granted for a period of 2 years + 2 years subject to certain conditions specified in Para 5.11 of HBP.
• For BIFR units, EO period may be extended as per BIFR package or 12 years, if not specified by BIFR. Import of Capital Goods shall be subject to Actual User Condition till EO is completed.
• Capital Goods imported (excepting tools) for manufacturing of export products relating to handicraft, handlooms, cottage, tiny sector, agriculture, aqua-culture, animal husbandry, floriculture, horticulture, pisciculture, poultry and sericulture are not transferable for a period of five years from date of import even if EO is fulfilled. However, transfer of capital goods is allowed within group companies within five years from the date of import after fulfillment of EO under intimation to RA and jurisdictional Central Excise Authority.