following link-( http:// mha. nic. in / pdfs / ForeigD-FAQs-on- |
Q. 42 Can companies in India enter into foreign technology |
ConferenceVisa. pdf). |
agreements? |
Q. 41 Is there any act to regulate competition in India? |
Technology Agreements: Foreign investment in technology |
Competition Act: The government of India enacted a modern |
agreements effecting payments for royalty, lumpsum fee for |
competition law in the form of Competition Act, 2002 and |
transfer of technology and payments for use of |
established the Competition Commission of India to carry out |
trademark / brand name are allowed under the automatic route, |
the objectives of the Act. The details can be seen from the |
i. e., without any approval of the Government of India. Foreign |
following link- |
technology includes technical know-how, design, drawing, |
( http:// www. cci. gov. in / images / media / competition _ act / act200 |
engineering service and royalty. Use of foreign brand |
2. pdf? phpMyAdmin = QuqXb-8V2yTtoq617iR6-k2VA8d) |
names / trademarks is permitted for sale of goods in India. |
Q. 43 What are the various types of incentives available? |
intensity / employment. Benefit of 2 or 5 % transferable duty |
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There are various types of incentives available from Central and |
free credit entitlement for specified products. Certain |
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state government departments for establishing a |
products to get 2 % bonus benefits. |
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manufacturing unit. The incentives differ among the states and |
n |
Market Linked Focus Product Scheme: The basic objective |
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registration will be required to obtain various kinds of |
is to incentivize exports with high employment intensity in |
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incentives. |
rural and semi-urban areas. The benefit of 2 % transferable |
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Central Government Incentives: |
duty free credit entitlement for specified products. |
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Incentives on exports: The foreign trade policy provides various |
n |
The list of electronic items covered under FPS & MLFPS |
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kinds of incentives for export of goods and services. The |
can be seen from the following linkvarious |
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types of incentives are as follows: |
( http:// deity. gov. in / sites / upload _ files / dit / files / Electronic % |
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Ÿ |
Duty exemption / remission scheme: Advance Authorization:
Duty free imports of inputs allowed for exports provided
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20items % 20notified % 20by % 20DGFT-
July % 202013 % 20. pdf)
|
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minimum 15 % value addition is achieved. The scheme also |
n |
Market Access Initiatives: Under MAI scheme, financial |
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requires import to be completed in 12 months and exports |
assistance is provided for export promotion activities on |
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within 18 months. |
focus country, focus product basis. Financial assistance is |
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Annual Advance Authorization: It is available only to exporters with at least 2 years of exports. The entitlement will be equivalent to 300 % of the FOB value or INR 10 million whichever is more.
The authorization will be valid for 12 months.
Duty Free Import Authorization: Under this exporters are allowed to import inputs free of basic customs and or additional / SAD duty. Scheme covers only products under standard inputs output norms. It also required minimum value addition of 20 %.
Duty Drawback: Duty Drawback is the rebate of duty chargeable on imported material or excisable material used in the manufacturing of goods in and is exported. The exporter may claim drawback or refund of excise and customs duties being paid by his suppliers. Drawback Schedule covers now about
4600 products. n
Export promotion capital goods scheme-Under the scheme import of capital goods at a zero basic custom duty is allowed for export purposes. The capital goods for pre / post production stage also permitted. The exports to
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n n n |
available for Export Promotion Councils( EPCs), Industry and Trade Associations( ITAs), Agencies of State
Government, Indian Commercial Missions( ICMs) abroad and other national level institutions / eligible entities as may be notified.
Incremental exports incentivisation scheme: A duty credit scrip @ 2 % on the incremental growth( achieved by the
IEC holder) during the current year is given.( Incremental growth shall be in respect of each exporter( IEC holder) without any scope for combining the exports for Group
Company). The scheme is region specific and covers exports to USA, Europe and Asia. In addition, 53 countries in Latin America and Africa.
The details of various exports incentives schemes and procedures can be seen from the Foreign trade policy and procedures available on the following link-( http:// dgft. gov. in / exim / 2000 / download-ftp1213. htm)
For the incentives and facilities offered to units in SEZs please refer Q. 26.
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be effected equivalent to 6 times the duty saved on capital |
n |
North Eastern States: There is an incentive scheme of |
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goods. Exports to be completed in 6 years. |
central government for undertaking established in north |
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n |
Focus Market Scheme: The basic objective is to offset high freight cost and other externalities to select international |
eastern states. The details can be seen from the following link-( http:// dipp. nic. in / English / Schemes / ner. aspx). |
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market. The benefit of 3 % transferable duty free credit |
n |
R & D concessions: There are some deduction incentives for |
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entitlement for specified countries. The special focus |
research and development expenditure. |
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markets to get 4 % benefits. |
n |
Investment allowance( additional depreciation) at the rate |
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n |
Focus Product Scheme: The basic objective is to |
of 15 percent to manufacturing companies that invest |
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encourage products with high export |
more than INR 1 billion in plant and machinery during the |
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