Under the modified freight subsidy scheme, the government has announced that export of all items, except those which will be notified separately, to Africa, Pacific Islands, Eastern European countries, which are not in the jurisdiction of EU and Central Asian Republics will avail of a 25 percent freight subsidy.
According to incentives announced on Monday under the new trade policy, export of products falling in the developmental category will be entitled to 25 percent freight subsidy even if they are going to one of the top 20 export destinations. Any individual exporter, firm or company will not be entitled to a freight subsidy in excess of Rs 5 million in a single year.
Exports of all items except those which will be notified separately will now be able to avail of a 25 percent freight subsidy, provided goods are being exported to Africa, Pacific Islands, Eastern European countries.
The government had announced 25 percent freight subsidy on exports of new products and to new markets with the objective of achieving geographic and product diversification in exports during 2002-03.
THIS SUBSIDY WAS IN VOGUE DURING 2003-04 AND 2004-05 In 2005, a separate freight subsidy scheme was announced for leather garments up to December 31, 2005. The scheme has been overwhelmingly successful in attaining objectives of diversification in exports.
The scheme has now been continued in a modified form to cover products and countries for which the need for subsidy is pressing. Accordingly, certain changes are being made in this scheme to boost exports.
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