11 Dec 2017
INDIA: 4% Duty Exemption on Imported Inputs Extended on Multi-Industry Basis
The 4% duty exemption on imported inputs, previously solely on offer to exporters of readymade garments (RMG) and made-ups, has now been extended to micro-businesses and SMEs, as well to all labour-intensive industry sectors. Among the export-oriented sectors set to benefit from this are producers of footwear, sports goods, seafood, medical devices and electronic / telecommunication components.
In an additional move, the validity of Duty Exemption Certificates – granted to companies on a pro rata basis in line with their export levels and then redeemable against tax liabilities – has been extended from 18 months to 24. These incentives were announced as part of the government’s mid-term Foreign Trade Policy review.