In this section :
Market Development Assistance | Duty Draw Back (DBK)
Duty Entitlement Pass Book (DEPB) | Other support

2/1/2004-E&MDA(Part)
Government of India
Ministry of Commerce & Industry
Dept. of Commerce

MARKETING DEVELOPMENT ASSISTANCE SCHEME

( REVISED GUIDELINES W.E.F. 1-04-2006)

Assistance to individual exporters for export promotion activities abroad – Participation in EPC etc. led Trade Delegations/BSMs/Trade Fairs/ Exhibitions:

(i)Exporting companies with an f.o.b. value of exports of upto Rs. 15 crore in the preceding year will be eligible for MDA assistance for participation in trade delegations/BSMs/fairs/exhibitions abroad to explore new markets for export of their specific product(s) and commodities from India in the initial phase. This will be subject to the condition that the exporter is having complete 12 months membership with concerned EPC etc. and filing of returns with concerned EPC/organisation regularly. However, this condition would not apply in case of a new EPC for a period of 5 years from the date of its creation.

(ii)Assistance would be permissible on travel expenses by air, in economy excursion class fair and/or charges of the built up furnished stall. This would, however, be subject to an upper ceiling mentioned in the table per tour.

S.No (1)	Area/Sector (2)	No. of visits (3)	Maximum Financial ceiling per event (4)
1.	Focus LAC	1	Rs. 1,80,000
2.	Focus AFRICA (including WANA countries)	1	Rs. 1,50,000
3.	Focus CIS	1	Rs. 1,50,000
4.	Focus ASEAN+2	1	Rs.  1,50,000
5.	General Areas	1	Rs. 80,000*
	TOTAL	5	General Areas

Top

The participation of individual companies in the above activities shall be subject to the following conditions:

(1) For EPC etc. led Trade Delegations/BSMs only air-fare by Economy Excursion class upto a maximum of Rs. 70,000 (Rs. 1,00,000 in case of Focus LAC) shall be permissible. For participation in Trade Fairs/Exhibitions reimbursement shall be permissible subject to ceilings mentioned in the column 4 in the above table.

(2) Maximum number of permissible participations shall be five in a financial year as indicated in above table (No travel grant is permissible for  visit to General Areas).

      However, for priority sectors, having large employment generation potential, viz. Agriculture including food items, Handicrafts, Handlooms, Carpets, Leather & Minor Forest Produce including LAC, 2 (two) participations  in General Areas would be admissible with the assistance of Rs. 1,50,000 for each participation. The exporters availing of assistance under this provision would, however, be in addition to these participations, eligible for only any 2 Focus Area participations.

(3) Assistance shall be permissible to one regular employee/director/ partner/proprietor of the company. Assistance would not be available to exporter of foreign nationality or holding foreign passport.

(4)   Intimation application must be received in the concerned EPC etc. with a minimum of 14 days clear advance notice excluding the date of receipt of application in the office of the concerned organization and the date of departure from the country.

(5) The company shall not be under investigation/charged/prosecuted/ debarred/black listed under the Foreign Trade Policy of India or any other law relating to export and import business.

(6)  Member exporters of EPCs etc. would also be eligible for MDA assistance for participation in events organized by ITPO abroad. Their applications / claims would by routed/reimbursed through concerned EPC etc.
 
(7)   Maximum MDA assistance shall be inclusive of MDA assistance received from all Govt. bodies/FIEO/EPCs/Commodity Boards/Export Development Authorities/ITPO etc.,

(8)   A Maximum of three participations in a particular trade fair/exhibition would be eligible for MDA assistance and exporting companies after availing assistance three times including past cases for a particular fair/exhibition, have to participate in that fair, if any, on self-financing basis.

Top

DOCUMENTATION FOR REIMBURSEMENT OF ASSISTANCE TOEXPORTERS:

(i) Intimation application in Annexure V duly completed and signed shall be submitted by the exporter to the concerned EPC etc. giving clear 14 days advance notice. Intimation and the application must be sent electronically by email also.

(ii) Concerned Organization (FIEO, EPC etc.) on receipt of intimation shall immediately issue acknowledge receipt. Thereafter they will examine and issue approval letter to the exporter preferable within 5 working days of the receipt of the intimation, in the prescribed format (Annexure-VI).

(iii) Claim along with the declaration duly completed and the Certificate (as per Annexure VIII) duly signed by a Chartered Accountant shall be submitted by the exporter to the concerned Organization (FIEO), EPC etc.) in the prescribed format (Annexure-VII) along with under mentioned papers immediately on return to India after completion of the activity but positively within 45 days of their return to India:

• Details of activity undertaken earlier with MDA assistance to the same country/countries.
• Legible photocopy of passport highlighting the entries about departure from and arrival into India and also the countries visited. In case, passport does not have arrival/departure dates regarding visits to various countries, some documentary evidence such as Hotel Bills, Boarding pass, lodging pass etc. be submitted.
• Original air ticket/jacket used during the journey. If Original air ticket/jacket is lost, a legible photocopy of the same along with a certificate from the concerned airline indicating following may be sent:

a)   Name of the traveler
b)   Ticket number
c)   Flight No.
d)   Date of departure from India
e)   Sectors/countries visited
f)    Class in which traveled
g)   Economy excursion class fare for sectors/countries visited.
      Self certified f.o.b. value export figures during the last three financial years, year wise.

• Brief report about the activity participated and achievements made.

(iv) Claim forms duly filled in and complete in all respects must be submitted to the concerned EPC, FIEO etc., within 90 days of return to India would. However, claims submitted within 30 days from the expiry of the 90 days period may be entertained  by or wherein the deficiencies in the claim as intimated by the concerned EPC, FIEO etc., with 10% deduction. The claims which are submitted after 120 days of return to India shall not be entertained under any circumstances. Any  deficiencies in the claim as intimated by the concerned EPC, FIEO etc., must be completed within 30 days of the date of directions given in this regard failing which the claim shall stand rejected without any further intimation or reminder in this regard by the concerned EPC, FIEO etc. .

 

MDA Application (Annexure V) & Claim (Annexure VII) form

                                                                                                                                                          Top

2. Duty Draw Back (DBK)

DBK assistance is provided to the exporters as a reimbursement of the incidence of excise & customs duty levied on the raw materials used for the production of the products that are exported. The Ministry of Finance, Department of Revenue announces the rates of drawback every year for each item. The Council periodically in its newsletter titled “Handloom Export” publishes the rate in force. The draw back is sanctioned by the Customs Department through which shipments are effected on submission of relevant documents as indicated in the drawback schedule notified by the Ministry of Finance, Department of Revenue, Government of India.

The Ministry of Finance has announced the revised All Industry Rates of Duty Drawback vide notification No.68/2007-Cus (NT) dated 16.7.2007 which may be downloaded from CBEC website www.cbec.gov.in. Taking into account the duty incidence on inputs the drawback rates have been increased in most cases. The increased rates of drawback have been made effective retrospectively from 1.4.2007.

Like in previous years, the drawback rates have been determined on the basis of certain broad parameters including, inter alia, the prevailing prices of inputs, standard input/output norms (SION), share of imports in the total consumption of inputs and the applied rates of duty. The incidence of duty on HSD/Furnace Oil has been factored in the drawback calculation. The incidence of service tax paid on taxable services, which are used as input services in the manufacturing, or processing of export goods has also been factored.

The Drawback Schedule includes several new items. These include mats/rugs made of LDPE/LLDPE, leather-cum-synthetic/textile footwear upper, coir mats, parts of electrical apparatus made of copper/brass, handicraft/artware of stainless steel and certain dye & dye intermediates. The relevant extracts of the Schedule are attached.

REVISED RATES OF ALL INDUSTRY RATES OF DUTY DRAWBACK 2007-08

			A		B
Tariff Item	Description of goods	Unit	Drawback when Cenvat facility has not been availed		Drawback when Cenvat facility has been availed
			Drawback Rate	Drawback cap per unit in Rs.	Drawback Rate	Drawback cap per unit in Rs.
1	2	3	4	5	6	7

5208	Woven fabricss of cotton, containing 85% or more by weight of cotton, weighing not more than 200 g/m2
520801	Grey	KG	6.4%	19	2.8%	8.3
520802	Dyed	KG	7.7%	28	3.3%	12
520803	Lungis	KG	7.7%	28	3.3%	12
520804	Real Madras Handerkerchiefs	KG	7.7%	28	3.3%	12
5209	Woven fabrics of cotton, containing 85% or more by weight of cotton, weighing more than 200 g/m2
520901	Grey	KG	6.4%	19	2.8%	8.3
520902	Dyed	KG	7.7%	28	3.3%	12
520903	Lungis	KG	7.7%	28	3.3%	12
520904	Real Madras Handerkerchiefs	KG	7.7%	28	3.3%	12
5210	Woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing not more than 200 g/m2
521001	Grey	KG	7.8%	28	2.3%	8.3
521002	Dyed	KG	9.1%	36	2.8%	11
5211	Woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing more than 200 g/m2
521101	Grey	KG	7.8%	28	2.3%	8.3
521102	Dyed	KG	9.1%	36	2.8%	11
5212	Other woven fabrics of cotton
521201	Grey	KG	6.4%	19	2.8%	12
521202	Dyed	KG	7.7%	28	3.3%	12
5701	Carpets and other textile floor coverings, knotted, whether or not made up
570101	Of Wool or fine animal hair	Sqm	12.5%	700	4.1%	229.6
570102	Of Silk	Sqm	15.5%	2750	9.4%	1667.7
570103	Others	Sqm	12%	490	3.2%	130.7
5702	Carpets and other textile floor coverings, woven, not tufted or flocked, whether or not made up, including "Kelem", "Schumacks", "Karamanie" and similar hand-woven rugs
570201	Carpets of wool or fine animal hair	Sqm	12.5%	375	4.1%	123
570202	Carpets of silk	Sqm	15.5%	1050	9.4%	636.8
570203	Others including of man made fibres	Sqm	12%	225	3.2%	60
5703	Carpets and other textile floor coverings, tufted, whether or not made up
570301	Hand tufted woollen floor coverings, all sorts	Sqm	14%	400	4.1%	117.1
570302	Others including of man made fibres	Sqm	13.5%	270	3.2%	64
5704	Carpets and other textile floor coverings, of felt, not tufted or flocked, whether or not made up	Sqm	11.5%	240	3.2%	66.8
5705	Other carpets and other textile floor coverings, whether or not made up
570501	Cotton Durries/Cotton Rugs (including Chindi Durries/Cotton Chennille Durries/Rag Rug Durries/Printed Durries/Druggets/Mats and Mattings including Bath Mats, where cotton predominates by weight	KG	11.5%	26	4.1%	9.3
570502	Other	Sqm	9.8%	185	3.2%	60.4
5801	Woven pile fabrics and chenille fabrics, other than fabrics of heading 5802 or 5806
580101	Of Wool	KG	7%	24	3.3%	11.3
580103	Of Cotton and others	KG	4.5%	11	1.5%	3.7
5802	Terry towelling and similar woven terry fabrics, other than narrow fabrics of heading 5806; tufted textile fabrics, other than products of heading 5703	KG	7%	31	2.3%	10.2
5803	Gauze, other than narrow fabrics of heading 5806	KG	7%	14	2.3%	4.6
5805	Hand-woven tapestries of the type gobelins, flanders, aubusson, beauvais and the like, and needle-worked tapestries (for example, petit point , cross-stitch ), whether or not made up .	KG	7%	14	2.3%	4.6
5807	Labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered	KG	7%	14	2.3%	4.6
5808	Braids in the piece; ornamental trimmings in the piece, without embroidery, other than knitted or crocheted; tassels, pompons and similar articles	KG	7%	14	2.3%	4.6
5809	Woven fabrics of metal thread and woven fabrics of metallised yarn of heading 56 05, of a kind used in apparel, as furnishing fabrics or for similar purposes, not elsewhere specified or included
580901	Imitation Zari	KG	3%	15.1	3%	15.1
580902	Others	KG	2.2%	11.1	2.2%	11.1
5810	Embroidery in the piece, in strips or in motifs	KG	7%	31	2.3%	10.2
5811	Quilted textile products in the piece, composed of one or more layers of textile materials assembled with padding by stitching or otherwise, other than embroidery of heading 5810	KG	7%	14	2.3%	4.6
6301	Blankets and travelling rugs	KG	9%	27	2.2%	6.6
6302	Bed linen, table linen, toilet linen and kitchen linen
630201	Of Cotton	KG	6.4%	64	1.7%	17
630202	Of Blend containing Cotton and Man Made Fibre	KG	6.9%	69	1.9%	19
630203	Of Man Made Fibres	KG	7.5%	75	2.2%	22
630204	Of Silk (other than containing Noil silk)	KG	6.9%	276	3.5%	140
630205	Of Noil Silk	KG	6.9%	92	3.5%	46.7
630206	Of Wool	KG	6.9%	75	2.8%	30.4
630207	Of others	KG	6.4%	64	1.7%	17
6303	Curtains (including drapes) and interior blinds; curtain or bed valances
630301	Of Cotton	KG	9.1%	110	2%	24.2
630302	Of Blend containing Cotton and Man Made Fibre	KG	9.8%	110	2.3%	25.8
630303	Of Man Made Fibres	KG	10.4%	110	2.6%	27.5
630304	Of Silk (other than containing Noil silk)	KG	9.8%	365	4.2%	156.4
630305	Of Noil Silk	KG	9.8%	130	3.5%	46.4
630306	Of Wool	KG	9.8%	106	3.3%	35.7
630307	Of Others	KG	9.1%	90	1.7%	16.8
6304	Other furnishing articles, excluding those of heading 9404
630401	Of Cotton	KG	9.1%	110	2	24.2
630402	Of Blend containing Cotton and Man Made Fibre	KG	9.8%	110	2.3%	25.8
630403	Of Man Made Fibres	KG	10.4%	110	2.6%	27.5
630404	Of Silk (other than containing Noil silk)	KG	9.8%	200	4.2%	85.7
630405	Of Noil Silk	KG	9.8%	65	3.5%	23.2
630406	Of Wool	KG	9.8%	54	3.3%	18.2
630407	Of Others	KG	9.1%	46	1.7%	8.6
6305	Sacks and bags, of a kind used for the packing of goods
630501	Sacks and bags, of a kind used for the packing of goods other than those covered by tariff item 630502	KG	8%	16	1.7%	3.4
630502	Flexible Intermediate Bulk Containers (FIBC)	KG	15%	21	3.3%	4.6
6306	Tarpaulins, awnings and sunblinds; tents; sails for boats, sailboards or landcraft; camping goods	KG	8%	16	1.7%	3.4
6307	Other made up articles, including dress patterns
630701	Of Cotton	KG	9.1%	110	2%	24.2
630702	Of Blend containing Cotton and Man Made Fibre	KG	9.8%	110	2.3%	25.8
630703	Of Man Made Fibres	KG	10.4%	110	2.6%	27.5
630704	Of Silk (other than containing Noil silk)	KG	9.8%	200	4.2%	85.7
630705	Of Noil Silk	KG	9.8%	65	3.5%	23.2
630706	Of Wool	KG	9.8%	54	3.3%	18.2
630707	Of Others	KG	9.1%	46	1.7%	8.6
II Sets
6308	Sets consisting of woven fabric and yarn, whether or not with accessories, for making up into rugs, tapestries, embroidered table cloths or serviettes, or similar textile articles, put up in packings for retail sale
630801	Of Cotton	KG	9.1%	110	2%	24.2
630802	Of Blend containing Cotton and Man Made Fibre	KG	9.8%	110	2.3%	25.8
630803	Of Man Made Fibres	KG	10.4%	110	2.6%	27.5
630804	Of Silk (other than containing Noil silk)	KG	9.8%	200	4.2%	85.7
630805	Of Noil Silk	KG	9.8%	65	3.5%	23.2
630806	Of Wool	Kg	9.8%	54	3.3%	18.2
630807	Of Others	Kg	9.1%	46	1.7%	8.6
6309	Worn clothing and other worn articles		1.0%	-	1%	-
6310	Used or new rags, scrap twine, cordage, rope and cables and worn out articles of twine, cordage, rope or cables, of textile materials		1.0%	-	1%	-
3918909003	Mats/Rugs made of LDPE/LLDPE	Kg	13.1%	9	3%	2.1

3. Duty Entitlement Pass Book (DEPB)

DEPB is provided to neutralise the incidence of Customs Duty on the import content of the export product. The credit shall be available against such export products and at such rates as may be specified by the Director General of Foreign Trade from time to time and these rates are published in the newsletter viz. “Handloom Export”. The DEPB shall be valid for a period of 12 months from the date of issue and can be used for duty-free imports. DEPB is transferable. The DEPB license is issued on each shipment after clearance by the Customs Department and the Joint Director General of Foreign Trade of the area concerned issues the license. The exporter has an option to claim either DBK or DEPB and not both.

REVISED RATES OF DEPB

In order to provide relief to exporters’ affected by the appreciation of rupee against the US dollar, the Ministry of Commerce & Industry has announced the Duty Entitlement Passbook (DEPB) rates by hiking 3% in 9 identified sectors which includes textiles (including handlooms). The relevant extracts of the Public  Notice  are furnished below  for the kind information of the members.

PUBLIC NOTICE NO.  17(RE-2007)/2004-2009 dated 12.7.2007
Amendments/additions /corrections in Schedule of DEPB Rates

In exercise of powers conferred under Paragraph 2.4 of the Foreign Trade Policy, 2004-2009 and Paragraph 1.1 of the Handbook of Procedures (Vol.I), the Director General of Foreign Trade hereby makes amendments / additions / corrections etc. in the Book Titled “Schedule of DEPB Rates” as annexed to this Public Notice. The new DEPB rates shall be valid for shipments made with Let export date upto till 31st March, 2008.

This issues in public interest.

(R. S. Gujral)
Director General of Foreign Trade and
Ex-Officio Additional Secretary to the Government of India

(Issued from F. No. 01/94/180/00106/PN/AM08/PC-I)

 

Product Group: Textiles
Product Code: 89
S.No.	Description	DEPB rate(%)	Value Cap(in Rs.)
28A	Blanketing Cloth made of cotton textile items	5.3
28B	Blanketing Cloth made of blended textile items	7
44A	Bleached/Dyed and/or Printed man made-cotton blended fabrics ‘with or without embroidery' and/or ‘with or without metallised yarn' (manmade content more than 50% by weight)	8.2
44B	Bleached/Dyed and/or printed manmade -Cotton blended fabric ‘with or without embroidery’ and/or ‘with or without metallised yarn’(manmade content between 25% and 50% by weight).	7.7
44C	Bleached/Dyed and/or printed Polyester -Cotton blended made-ups ‘with or without embroidery’ and/or ‘with or without metallised yarn’ (Polyester content more than 50% by weight)	6
52A	Polyester- Cotton blended grey fabric (polyester content more than 50% by weight)	6.7
52B	Polyester- Cotton blended grey fabric (polyester content between 25% to 50%	6.7
57	Cotton Fabric Dyed and /or printed and/or bleached with or without embroidery and/ or with or without metallic yarn	5.3
58	100% cotton yarn dyed fabric	5.3
68	Cotton Made-ups including quilted cotton made-ups with or without embroidery and/or with or without metallised yarn	6.7
72	Dyed finished flax blended fabrics (containing polyester/ viscose/ cotton /flax) (Note: The export product must contain flax and one or more of other inputs i.e. polyster/viscose/ cotton)	5.6
74	Silk made-ups with or without embroidery and/or with or without metallised yarn.	7.5	250.00/ sq.mtr.
75	Silk fabrics with or without embroidery and/or with or without metallised yarn.	6.9	250.00/ sq.mtr.
76	Cotton Fabric/Made-ups –Grey	5.3
79A	Furnishing fabric made out of dyed polyester filament yarn and dyed Cotton yarn with polyester content more than 50% by weight	7.7
79B	Furnishing fabric made out of dyed polyester filament yarn and dyed cotton yarn with polyester content between 25% and 50% by weight.	7.8
80A	Dyed upholstry/furnishing fabrics made out of cotton yarn	6
80B	Dyed upholstry/furnishing fabrics made out of polyester filament yarn, viscose spun yarn and cotton yarn	7.5

Notes :

1.The product covers one piece of garment for the
female covering the top of the body and extending from somewhere from the mid-thigh
to feet. It is appropriate to wear without other garments and its lower end encloses both
the legs in a single “tube” (rather than two, as trousers do).

2. In case a value cap has been imposed on a DEPB entry under the Textiles Product
Group, the description of the said entry would include those with embroidery and/or
with metallised yarn and/or with lining.

Top

4. Other support

The Council provides up to 50% assistance on the expenses incurred by exporters for their participation in International trade fairs and BSMs, in which the Council arranges for participation either with MDA grants or with assistance from Development Commissioner (Handlooms).
• Assistance to the exporters who participate in the trade delegation arranged by the Council.
• Access to the trade data, trade information, market study reports of importing countries, etc.
• Access to the trade enquiries received from International buyers, copies of the latest of colour forecasts, design development help through the Council’s CAD centre, etc.
• Support the exporters to seek financial assistance from the Development Commissioner (Handlooms) under DEPM scheme for the development of innovative exportable products and their marketing.

 

Top