3.14.5

Incremental Exports Incentivisation Scheme (IEIS) on annual basis

Entitlement

(a) Objective of the Scheme is to incentivize incremental exports.

(b) An IEC holder would be entitled for a duty credit scrip @ 2% on the incremental growth (achieved by the IEC holder) during the current year (for example, say for the period 01.04.2013 to 31.3.2014) compared to the previous year (for example, say for the period from 01.04.2012 to 31.3.2013) on the FOB value of exports. Incremental growth shall be in respect of each exporter (IEC holder) without any scope for combining the exports for Group Company.

(c) Incentive will be admissible only if the IEC holder has achieved growth in the financial year 2013-2014 vis a vis financial year 2012-2013. Quantum of benefit will be calculated on the incremental growth achieved subject to eligibility criteria given in para 3.14.4(d) of FTP 2009-14.

(i) Benefit of Incremental Export Incentivisation Scheme for the year 2013-14 will be limited to a scrip of a value not exceeding Rs. 1 Crore per IEC.

(ii) Claims in excess of this value will be subjected to greater scrutiny by Regional Authority.

(Above sub-paragraphs (c)(i) & (c)(ii) has been added vide NOTIFICATION NO. 43/2013, DT. 25/09/2013)

Eligibility Criteria

(d) For the purpose of the scheme, export performance shall not be allowed to be transferred from any other IEC holder. Benefit under the scheme will not be allowed to an exporter who had made no export during fiscal year 2011-12 and fiscal year 2012-13. The following exports shall not be taken into account for calculation of export performance or for computation of entitlement under the Scheme:

(i) Export of imported goods or exports made through trans-shipment.

(ii) Export from SEZ/ EOU /EHTP /STPI /BTP/FTWZ

(iii) Deemed Exports

(iv) Service Exports

(v) Third Party exports

(vi) Diamond, Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery and other precious and semi-precious stones.

(vii) Ores and concentrates of all types and in all formations.

(viii) Cereals of all types.

(ix) Sugar of all types and all forms.

(x) Crude / petroleum oil and crude / primary and base products of all types and all formulations.

(xi) Export of milk and milk products.

(xii) Export performance made by one exporter on behalf of other exporter.

(xiii) Supplies made to SEZ units.

(xiv) Items, export of which requires an export authorisation (except SCOMET), will not be considered.

(xv) Export of Meat and Meat Products.

(xvi) Exports to Singapore, UAE and Hong Kong.

(xvii) Cotton.

DELETED - (xviii) Cotton Yarn.

(Above Sl. NO . (xviii) has been deleted vide NOTIFICATION NO. 66/2013, DT. 23/01/2014)

(xix) Exports which are subject to Minimum Export Price or Export Duty.

(Above categories (xvii) to (xix) has been added vide NOTIFICATION NO. 43/2013, DT. 25/09/2013)

Special Provision

(e) The scheme is region specific and will cover exports to USA, Europe and Asian countries only. In addition export to 53 countries in Latin America and Africa ( as mentioned in Public Notice 3 dated 18th April 2013 ) will be entitled to this benefit. Disclaimer provisions of para 3.17.10 (b) of FTP shall not be admissible. This benefit will be over and above any benefit being claimed by the exporter under any of the Chapter 3 Schemes.

Utilisation of Scrip

(f) The duty credit scrip will be freely transferable. Such scrips shall also be eligible for domestic sourcing and for payment of Service Tax as per para 3.17.5 of FTP 2009-14.

(Above new para 3.14.5 has been added vide NOTIFICATION NO. 03/2013, DT. 18/04/2013)