'Change in deemed export benefits likely to curb misuse'

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SME Times News Bureau | 20 Jun, 2012
The Directorate General of Foreign Trade (DGFT) is likely to change the deemed export benefit scheme under the Foreign Trade Policy (2009-2014) soon, according to a media report released Tuesday.

The report says that DGFT would soon change benefit scheme in a bid to curb misuse of the benefits over several years, especially by power companies.

It adds that a draft policy by DGFT would be put up for feedback by all stakeholders, after which the scheme would undergo significant changes.

In May 2011, an inter-Departmental Committee was constituted under the chairmanship of Director General of Foreign Trade Anup K Pujari. This had representatives from the Department of Industrial Policy and Promotion, the Department of Economic Affairs, the Reserve Bank of India and the Department of Revenue.

The committee sought suggestions from all trade bodies and export promotion councils. Further, an interactive session held by the Committee on August 2011.

Quoting Pujari the report reports that the government has recently decided to relook the policy following misuse of the benefits for several years.

The new policy would seek to reduce benefits and provide these only to deserving suppliers. It might also do away with the benefits altogether, adds the reports.