Target Plus Scheme Consultant in India

Target Plus Scheme was introduced by the Govt. in 2005-06 under Foreign Trade Policy 2004-09 and the objective was to accelerate growth in exports by rewarding Export Houses, who have achieved a quantum growth in exports. High performing Star Export Houses shall be entitled for a duty credit based on incremental exports substantially higher than the general annual export target fixed (Since the target fixed for 2004-05 is 17 %, the lower limit of performance for qualifying for rewards was pegged at 20% for the current year.)

Eligibility Criteria

All Export Houses which have achieved a minimum export turnover in free foreign exchange of Rs 10 crores in the previous licencing year (2003-04) are eligible for consideration under the Target Plus Scheme.

Entitlement

The entitlement under this scheme would be contingent on the percentage incremental growth in FOB value of exports in the current licencing year over the previous licencing year, as under:

Ineligible category

The following exports shall not be taken into account for calculation of export performance or for computation of entitlement under the scheme

• Export of imported goods (Para 2.35 of the Foreign Trade Policy) or exports made through transshipment
• Export turnover of units operating under SEZ/EOU/EHTP/STPI/ BTP Schemes or products manufactured by them and exported through DTA units
• Deemed exports (even when payments are received in Free Foreign Exchange and payment is made from EEFC account)
EOU
• Service Exports.
• Rough, uncut and semi polished diamonds and other precious stones.
• Gold, silver, platinum and other precious metals in any form, including plain and studded Jewellery.
• Export performance made by one exporter on behalf of another Exporter.

Notification no.48 (RE2005)/2004-09 dated 20 February ,2006 (retrospectively)

Further, vide Notification no.48 (RE2005)/2004-09 dated 20 February,2006 Central Govt.inserted some items under ineligible category are as under:-

• Ores and Concentrates, of all types and in all forms.
• Cereals, of all types.
• Sugar, of all types and in all forms.
• Crude / Petroleum Oil & Crude / Petroleum based Products covered under ITC HS codes 2709 to 2715, of all types and in all forms.

Notification no.08 (RE2006)/2004-09 dated 12th June 2006 (retrospectively)

Further , vide Notification no.08 (RE2006)/2004-09 dated 12th June 2006 central Govt. makes the following amendments in Target plus Scheme for the exports effected during 01.04.2005 to 31.03.2006

"The entitlement under this scheme would be contingent on the minimum percentage incremental growth of 20% in FOB value of exports in the current licensing year over the previous licensing year, and the rate of entitlement shall be 5% of the incremental growth"

As results of retrospective said notifications the claims were denied by the department and matter reached to the Supreme Court.

The Supreme Court in a judgment in 2015 said that the Centre's notifications making certain products ineligible and reducing the rates should not be applied retrospectively and they would be effective only from the date of their issue.

Now, Union Cabinet has also approved the implementation of above Supreme Court's judgment on eligibility under the Target Plus scheme for exporters as per original provisions of the foreign trade policy.

Therefore, the claims will be considered as per original notifications till the date of the Notification No. 48 dated 20.02.2006 and Notification No. 8 dated 12.8.2006.

Please note the scheme has been discontinued w.e.f. 01.04.2006.

How we assist

We may assist you in documentation, on line filing of application and Coordination with Concerned Authority for issuance of Target Plus Scheme.