The Hindu Business Line : Govt places benefits under Target Plus scheme in abeyance

THE Target Plus scheme introduced in the Foreign Trade Policy 2004-09 has run into rough weather. The Directorate-General of Foreign Trade (DGFT) has placed in abeyance the grant of benefits available under this scheme.

The Target Plus scheme was operationalised on April 7, a day before the announcement of the Annual Supplement to the FTP. The Target Plus scheme was introduced with the objective of accelerating growth in exports by rewarding recognised export houses for achieving quantum growth in exports.

The scheme provided that exporters who have achieved a quantum growth would be entitled to duty-free credit based on incremental exports substantially higher than the fixed annual export target.

The Government had in August 2004 announced that rewards would be granted on the basis of a tiered approach.

For an incremental growth of over 20 per cent, 25 per cent and 100 per cent, the duty-free credit would be 5 per cent, 10 per cent, and 15 per cent of f.o.b. value of incremental exports.

The DGFT has now in a policy circular said that representations had been received from trade and industry for the simplification of the documentation requirements (prescribed under appendices 17D as notified in the public notices issued on April 7) under the scheme.

"The merits of these representations are under study and shortly the revised appendices would be notified", the DGFT said.

Meanwhile, all regional licensing authorities have been advised not to accept any applications for grant of duty free credit entitlement (DFCE) under the Exim Policy (2003-04) and the Target Plus Scheme under the FTP (2004-09) till fresh notifications are issued.

The DGFT also held that applications already received, if any should be kept in abeyance.

FIEO disappointed: The Northern Region chapter of the Federation of Indian Export Organisations (FIEO) has expressed disappointment over the decision of the Government to keep the benefits available under the Target Plus Scheme and the DFCE under the exim policy (2003-04) in abeyance.

In a statement, the Chairman of the FIEO (Northern Region), Dr R.K. Dhawan, said that these schemes were notified after considerable delay and, therefore, placing the schemes in abeyance would "put the eligible exporters in a state of utter confusion".

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