The government has raised the entitlement of duty credit scrip to 3% of freight on board (FOB) value for exports to 16 new markets in Latin America and 10 in Asia-Oceania starting from Thursday. At present, the country provides this benefit at 2.5% of FOB value for exports to 83 countries, including Argentina, Zimbabwe and Turkmenistan, in addition to the US and the European Union.
Exporters of agricultural machinery, sewing machines, wind mills, watches, musical instruments etc will be entitled to credit scrip equal to 2% of FOB value, while those exporting Rajasthani paintings on textiles, smoking pipes, brooms and brushes etc can claim the benefit at 5% of FOB value. Auto parts and cars are eligible for the benefits only if they are sold to select countries, as per the Foreign Trade Policy 2009-2014 released on Thursday.
The developed countries have shown a negative growth trend and therefore we have taken a conscious view to expand and diversify our export markets especially in the emerging markets of Africa, Latin America, Oceania and Commonwealth of Independent States countries, commerce and industry minister Anand Sharma said.