Target Plus gets green light

The government has operationalised the ‘Target Plus’ scheme of graded incentives to exporters. As reported by ET (April 7), implementation of the scheme has been cleared by the ministry of finance. The Duty-Free Credit Entitlement Certificate (DFCEC) Scheme has also been operationalised, according to official sources. Notifications to implement both schemes were issued last night.

The Target Plus Scheme, part of the Foreign Trade Policy 2004-09 announced last September, was not implemented due to various reasons including revenue considerations. Offering graded incentives to exporters on the basis of export performance, the scheme is aimed at encouraging large exporters to achieve quantum growth in exports. The scheme would now be off the blocks as the application form (Appendix 17D) has been notified.

The Exim Policy 2002-07, as amended up to 31/3/2003, provided for the DFCEC scheme to accelerate growth in exports by rewarding status holders through duty-free credit entitlement. Due to various reasons, the scheme could not be operationalised. The respective notification and the application form (Appendix 17D) have now been announced on the 7th of April, 2005 whereby exporters entitled to the benefits can start availing the same.