DIRECTORATE OF MARKETING
Khadi and Village Industries Commission
' Gramodaya ', 3, Irla Road, Vile Parle(West), Mumbai - 400 056.

 

No.MKT/EXP/Incentive/policy/590-Part II/2003-04
4th October 2005
C I R C U L A R

Subject: 'Export Incentive Scheme' to assist exporters of KVI products – Reg.

The Commission in its Meeting No.526th dated 24.02.2004 considered the proposal of Ministry of Commerce for extending "Marketing Development Assistance (MDA) to Exporters" and decided to launch an Export Incentive Scheme for exporters of KVI products which was circulated vide Circular No. No.MKT/ EXP /Incentive/ Policy/590-Part II/ 2003-04 Dated 17th March 2004.

A doubt has recently arisen whether there REGP units (both KVIC/KVIB's affiliated) are also entitled for these benefits. As a part of persistent effort to boost exports in the KVI Sector it has now been decided to extend the benefit of 'Export Incentive Schemes' to REGP Units also both KVIC & KVIB's affiliated in addition to the KVI Institutions under the KVI Sector.

The details of the scheme are as follows:-

VISITS ABROAD FOR PARTICIPATING IN INTERNATIONAL TRADE FAIRS/EXHIBITIONS AND SALES –CUM-STUDY TOUR ETC.
  • The KVI institutions/REGP units registered with KVIC/KVIB nominated by KVIC for participating in "International Exhibitions" will be provided 90% to and fro airfare by economy class.
  • The KVI institutions/REGP units registered with KVIC/KVIB nominated by KVIC for participation in "Sale cum Study Tour" abroad will be provided 90% to and fro airfare by economy class.
  • The KVI institutions/REGP units registered with KVIC/KVIB nominated by KVIC for participating in "Sales cum Study Tour " / Exhibitions/ Buyer Seller Meet etc. abroad, will be reimbursed 25% of the total approved cost with an upper ceiling of Rs.15,000/- per event, towards actual expenditure incurred on publicity in terms of bringing out product catalogue, brochure, hand outs etc.
  • Assistance for visits abroad shall be applicable only in case of visits organized and sponsored by KVIC. Participation by individual units of their own shall not be considered for assistance.
  • EXPORT INCENTIVE FOR EXPORTS EFFECTED:

    The Export incentive @ 5% of actual export realization on FOB value of exports will be extended to exporting KVI institutions/REGP units under KVI Sector as per terms and conditions blow:-

    • All export-oriented units/institutions under KVIC including the direct listed units of KVIC, KVIB and their aided agencies, REGP Units enlisted with the Directorate of Marketing shall submit the export claims every year in the prescribed format (Annexure-A) and forward the same with supporting documents like G.R. forms/Shipping bills, Original bank certificate, Audited balance sheet etc. duly countersigned by the concerned State/Divisional Directors of the Commission. Guidelines for claiming export incentive are enclosed at Annexure – B.
    • Directorate of Marketing shall examine the claims reckoning those with dues to be recovered from the Institution/REGP Unit against loans availed or any other recovery(ies).
    • The claim (excluding recoveries effected ) shall be vetted by Director (Finance) and sanctioned with the approval of the competent authority in terms S.O.No.1606 dated 10.04.2002.
    • Sanction Orders would be sent to the Director of Accounts who will disburse the incentive to the said institution/ REGP unit from out of G &M funds earmarked for the purpose after deduction of Commission's dues, if any.
    • The assistance/support shall be extended only to KVI Institutions/REGP Units, KVIC/KVIB and their aided units which are "Enlisted with KVIC" for the purpose as per Annexure-III.

    This supercedes all earlier circular on the subject and comes into effect from 1st. October 2005.

    This issues with the approval of Chief Executive Officer.

    Sd-      

    Dy.Chief Executive Officer (Marketing)

         
    ANNEXURE - I

    FORMAT FOR SUBMITTING QUARTERLY EXPORT INCENTIVE CLAIM
    I. INSTITUTION PROFILE:
    1 Name of the Institution/REGP Unit  with detailed postal address along with phone/fax numbers and e.mail ID.  
    2 Name of Secretary/Proprietor or contact person along with Phone/Fax./Mobile No.  
    3 Whether directly aided by KVIC/KVIB  
    4 For REGP Units please provide details of registration.  
    5 IEC /RBI Code  

    II. PRODUCTION AND EXPORT FIGURES OF LAST THREE YEARS

    ITEMS
    YEAR
    PRODUCTION
    EXPORTS
        ITEM QTY VALUE ITEM. QTY VALUE COUNTRY
                 

    III. DETAILS OF EXPORT INCENTIVE CLAIM:

    SL.
    INVOICE NO.
    INVOICE DATE
    FOB VALUE
    EXPORT REALISATION
    GR NO.
    5% OF FOB REALISATION
           
    FOREIGN CURRENCY
    EQUIVALENT INR
       
       

    IV. MANDATORY DOCUMENTS:

    SL. Item Whether Enclosed or Not
    1 Copy of G.R. forms/Shipping Bills  
    2 Whether Bank Certificate attached  
    3 For REGP Units please provide details of registration.  
    5 Whether  last years audited balance sheet attached  

    V. DECLARATION:

    I solemnly declare that all particulars furnished above are true to the best of my knowledge and I shall be solely responsible for any wrong information provided by me.

    Signature of Secretary\Proprietor

    Recommended and countersigned
    State/Regional Director, CKVI.


         
    ANNEXURE - II
    GUIDELINES FOR CLAIMING EXPORT INCENTIVE

    Exporting Institutions/REGP Units will forward their claims in the prescribed format through respective State/Divisional Directors who will countersign the following documents enclosed with the proposal:-

    • Previous years balance sheet and current years provisional balance sheet duly certified by a Chartered Accountant. In case of claims submitted against provisional current balance sheet the audited balance sheet should be submitted latest by end of September of the succeeding financial year and the institution should tender an 'UNDERTAKING' in this regard. (Specimen copy at Annexure-IV)
    • Original bank statement as proof of exports along with supporting documents like G.R.Forms/Shipping bills etc.
    • Proposal thus received shall be examined by Dte. of Marketing and after vetting by Directorate of Finance the same shall be disbursed with the approval of competent authority.
    • Annual report about export incentive disbursed shall be placed with SFC for information.
    • State/Divisional Director and /or Director (Mkt.) shall reserve the right of inspection of such units and its records at any point of time along with audit team if required and also conduct special audit whenever felt necessary.
    • Declaration to be given by unit that figures and documents are genuine and in case there is any default, mis- representation of facts, fraud etc., the unit shall be solely responsible for any penal action thereof. (Specimen copy at Annexure-V)
    Sd/-

    Dy. Director I/C (Mkt.)

         
    ANNEXURE - III

    ENLISTMENT OF KVI INSTITUTIONS/REGP UNITS FOR CLAIMING EXPORT
    INCENTIVE/EXTENDING SUPPORT FOR EXPORT PROMOTION

    SL. Name and address of the KVI Institution/REGP Unit  
    1 Whether KVI Institution/REGP Unit  
    2 Whether assisted by KVIC/KVIB  
    3 Name of contact person with designation  
    5 Postal address  
      At  
      Post  
      Block  
      District  
      State  
      Pin Code  
    6 E-mail address  
    7 Web Site ( If any)  
    8 Year since when functioning  

    9. Products and quantity/value of production:-

    ITEM QUANTITY
    VALUE OF LAST THREE YEARS
             
             

    10.Past export performance:-

    YEAR
    ITEM
    QUANTITY
    VALUE
    COUNTRY OF EXPORT
             
             
             

    11 Whether exporting  directly or through merchant exporter
    12 If exporting directly  indicate IEC Code No.
    13 If exporting through merchant exporter/agent please provide  details of exporter/agent along with IEC code of exporter/agent.



         
    ANNEXURE - IV

    TO WHOM IT MAY CONCERN

    THIS IS TO UNDERTAKE THAT THERE HAS BEEN NO EXPORT REJECTION/REFUND/CANCELLATION OF ORDERS AGAINST THE EXPORTS EXECUTED TILL DATE AND FURTHER ANY EXCESS AMOUNT, IF ANY, RECEIVED FROM KHADI & V.I.COMMISSION, MUMBAI, ON ACCOUNT OF EXPORT INCENTIVE CLAIMS WILL BE REFUNDED TO KVIC AS SOON AS THEY ARE NOTICED OR ON DEMAND MADE BY THE COMMISSION.

    Sd/-            

    (PROPRIETOR)
    DATE:___________________
    PLACE:__________________


         
    ANNEXURE - V

    TO WHOM IT MAY CONCERN

    THIS IS TO UNDERTAKE THAT ALL EXPORT FIGURES AND DOCUMENTS SUBMITTED FOR THE YEAR ____________ BY THE UNDERSIGNED ARE GENUINE AND INCASE THERE IS ANY DEFAULT, MIS-REPRESENTATION, FRAUD ETC., THE UNDERSIGNED SHALL BE SOLELY RESPONSIBLE FOR PENAL ACTION ETC.

    Sd/-            

    (PROPRIETOR)
    DATE:___________________
    PLACE:__________________