POLICY CIR NO. 51/2005-09, DT. 28/02/2006

Clarification regarding eligibility of items under VISHESH KRISHI UPAJ YOJANA (VKUY)

Attention is invited to Para 3.8.1 and Para 3.8.2.1 of FTP pertaining to VISHESH KRISHI UPAJ YOJANA. Para 3.8.1 of FTP defines the objective of the VKUY as, “to promote export of fruits, vegetables, flowers, minor forest produce, dairy, poultry and their value added products, by incentivising exporters of such products” . Such products and their value added variants( wherever allowed) have been notified in Appendix-37A in terms of Para 3.8.2.1 of FTP.

2. Reports have been received that some of the Port offices are allowing VKUY benefits against value added variants which do not find specific mention in list of items notified in Appendix-37A. One such item is value added variants of various types of Mentha. Appendix-37A refers only to various raw forms of Mentha and not its value added variants such as extracts. It is clarified that wherever value added products are entitled for such benefits, these have specifically been notified and included in the list. An illustration can be found at Sl.No.33 of the list where extracts of several items have been notified.

3. RLAs are advised to initiate recovery proceedings in such cases under intimation to DGFT.

4. This issues with the approval of DGFT.

Sd/-
(M.K. Parimoo)
Dy. Director General of Foreign Trade

(F.No : 01/94/180/Policy Circular/AM06/ PC-I)

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