Brazil 17:
In paragraph 165 (page 88), the Report by the Secretariat states that " In addition to the SEZs and EOUs regimes and the duty drawback system, India has a number of export incentive schemes, some of which are contingent on value addition and export obligations." In the same page, paragraph 166 mentions that "The product coverage and the level of concession under these schemes changed during the period under review and new schemes were implemented. Amendments included: (…)(iv) the introduction of a 15% minimum value added requirement under the Advance Authorization Scheme."
Could the Indian Government provide further information regarding the " Advance Authorization Scheme"?
Could the Indian Government provide further information regarding the export incentive schemes that are contingent on value addition?
Do the firms located in the EOU or in the EPZ also benefit from those schemes?
Reply: Advance authorization scheme allows duty free import of inputs required to manufacture the export product. Details of the scheme are available in chapter 4 of the Foreign Trade Policy (2009 2014) which has been notified to WTO and is available at http://dgft.gov.in. None of the existing export incentive schemes is contingent on value addition. Since the inputs required by the units located in the SEZ or operating as 100% EOU, are exempted from duty, these units can not avail duty neutralization schemes like advance authorization etc.
(4) MEASURES AFFECTING PRODUCTION AND TRADE
Government procurement
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