Commerce Minister Suresh Prabhu removes value limit for exports through post

By: | Published: September 27, 2018 11:44 PM

The Commerce Ministry Thursday removed the value limit for exports through post but has fixed Rs 5 lakh cap in case of overseas shipments through courier services.

commerce minister, suresh prabhu, suresh prabhu news, important news, latest news, trending news, news today,Advance authorisation, a duty exemption scheme, is issued to manufacturing exporters for duty-free import of input, which is physically incorporated in export product. (Reuters)

The Commerce Ministry Thursday removed the value limit for exports through post but has fixed Rs 5 lakh cap in case of overseas shipments through courier services. “The value limit stipulated on exports through post…has been done away with. The value limit of Rs 5 lakh will be applicable only in case of courier exports,” the Directorate General of Foreign Trade (DGFT) said in a notification.

Exporters’ body FIEO said the move gives an edge to shipments through foreign post offices over couriers. In a separate notification, the directorate said imports under three duty exemption schemes — advance authorisation, EPCG (export promotion capital goods), and EOU (export oriented units) — would be exempted from integrated goods and services tax (IGST) and compensation cess till March 31, 2019.

Advance authorisation, a duty exemption scheme, is issued to manufacturing exporters for duty-free import of input, which is physically incorporated in export product. Similarly, EPCG scheme allows import of capital goods for pre-production, production and post-production at zero customs duty for export purposes. Units undertaking to export their entire production of goods and services may be set up under the EOU scheme.

Objectives of these schemes are to promote exports, enhance foreign exchange earnings, attract investment for export production and employment generation. Since 2011-12, India’s exports have been hovering at around USD 300 billion. During 2017-18, the shipments grew by about 10 per cent to USD 303 billion. Promoting exports helps a country to create jobs, boost manufacturing and earn more foreign exchange.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition