Foreign Trade Policy 2015-20 and Focus Market Scheme (FMS).
Click here to read – Foreign Trade Policy 2009-14
The new Foreign Trade Policy 2015-20 is being declared on 1st April, 2015.
Would you think any changes in shape on Focus Market Scheme FMS under new FOREIGN TRADE POLICY 2015-20?
What is FMS scheme and how does Focus Market Scheme work?
Focus Market Scheme is introduced on 11th September, 2009 with supplement later on 13th October,2011 in annual supplement to Foreign Trade Policy with a vision to support exporters in competing with foreign export market against high freight cost and other externalities.
What are the benefits under Focus Market Scheme FMS?
The exporters of all products to countries, as notified in Appendix 37C of HBP Vol.1 are entitled for Duty Credit Scrip equivalent to 3% of FOB value of exports in free foreign exchange.
As per annual supplement to the Foreign Trade Policy announced by DGFT on 13th October, 2011, SFMS, Special Focus Market Scheme has been introduced by extending 1% duty credit for all exports to 41 countries with effect from 01st April, 2011. This duty credit of 1% is apart from 3% under FMS. In other words, if an exporter effects shipments to the above referred 41 countries listed, duty credit would be 4%.
Who are not eligible for duty credit scrip, under FMS?
Under Foreign Trade Policy 2014-19 notification 93/2009 Cus, 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 jewelers, 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 and crude/petroleum based products covered under ITC HS codes 2709 to 2715, of all types and in all forms; and Milk and milk products covered under ITC HS codes 0401 to 0406, 19011001, 19011010, 2105 and 3501 are not legible for duty credit scrip under FMS under Foreign Trade Policy.
Let us wait for announcement of new FOREIGN TRADE POLICY 2015-20 to know whether any amendments/changes in FMS/SFMS reward schemes.
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