What are the current export promotion schemes?
The government had devised a number of schemes to provide incentives to exporters and encourage them to compete in the global market. Allowing them to import raw materials free of any duty ensured this. Advance licence, Export Promotion Capital Goods (EPCG) scheme, SIL and the duty exemption pass book (DEPB) are among the incentive schemes. These schemes were attractive when the customs duty levels were high, but these are losing their importance in view of the continuous reduction in import duty. What is the SIL product? There are products which could be imported against an instrument called SIL (Special Import Licence). This was awarded to exporters on the basis of their annual turnover. Exporters sell SIL in the market for a premium to improve their profits. This category has been reduced substantially in the past few years as more items have moved to the OGL category. Over the past year, the SIL list has virtually ceased to exist, leaving only the prohibited list in the negative li
