A new scheme to accelerate growth of exports called" Target Plus" was introduced last year with an objective of accelerating growth in exports by rewarding Star Export Houses who have achieved a quantum growth in exports. High performing Star Export Houses are entitled for a duty credit based on incremental exports, higher than the general annual export target fixed for 2005-06 at 17% against last year`s 16% , the lower limit of performance for qualifying for rewards is pegged at 20% for the current year.) Rewards will be granted based on a tiered approach. For incremental growth of over 20%, 25% and 100%, the duty free credits would be 5%, 10% and 15% of FOB value of incremental exports.

• Additional flexibility for fulfillment of export obligation under EPCG scheme in order to reduce difficulties of exporters of goods services.
• Technological upgradation under the scheme has been facilitated and incentivised.
• Transfer of capital goods to group companies now permitted.
• In case of movable capital goods in the service sector, the requirement of installation certificate has been done away with.
• Export obligation for specified projects shall be calculated based on concessional duty permitted to them in order to improve the viability of projects.

DFRC is issued to a merchant exporter or manufacturer exporter for the import of inputs used in the manufacture of goods without payment of basic customs duty.

However, such inputs shall be subject to the payment of additional customs duty equal to the excise duty at the time of import.

The objective of DEPB is to neutralise the incidence of Customs duty on the import content of the export product. The neutralisation shall be provided by way of grant of duty credit against the export product.

The DEPB scheme will continue to be operative until it is replaced by a new scheme which will be drawn up in consultation with exporters.

• EOUs shall be exempted from Service Tax in proportion to their exported goods and services.
• EOUs shall be permitted to retain 100% of export earnings in EEFC acconts.
• Income Tax benefits on plant& machinery shall be extended to DTA units which convert to EOUs.
• Import of capital goods shall be on self-certification basis for EOUs.
• Reimbursement of Central Sales Tax on goods manufactured in India.
• Exemption from payment of Income Tax as per the provisions of Section 10A and 10B of Income Tax Act.
• 100% FDI investment permitted through Automatic Route similar to SEZ units.

• Foreign Direct Investment would be permitted up to 100% in the development and establishment of the zones and their infrastructural facilities.
• The proposal must entail a minimum outlay of Rs.100 crores for the creation and development of the infrastructure facilities, with a minimum built up area of five lakh sq.mts.
• Income Tax exemption as per 80 IA of the Income Tax Act.
• Exemption from Service Tax.
• Free foreign exchange currency transactions would be permitted.
• Other benefits as applicable to units in SEZs.

• Import of second-hand capital goods shall be permitted without any age restrictions.
• minimum depreciated value for plant & machinery to be relocated into India has been reduced from Rs 50 crore to Rs 25 crore.

• Import of second-hand capital goods continues to be permitted without any age restrictions.
• Minimum depreciated value for plant and machinery to be re-located into India has been reduced from Rs.50 crores to Rs.25 crores.
• All exporters with minimum turnover of Rs.5 crores and good track record shall be exempt from furnishing Bank Guarantee in any of the schemes, so as to reduce their transactional costs.
• All goods and services exported, including those from DTA units, shall be exempt from Service Tax.
• Validity of all licenses/entitlements issued under various schemes has been increased to a uniform 24 months.
• Number of returns and forms to be filed has been reduced. This process shall be continued in consultation with Customs & Excise.
• Enhanced delegation of powers to Zonal and Regional offices of DGFT for speedy and less cumbersome disposal of matters.
• Time bound introduction of Electronic Data Interface (EDI) for export transactions. 75% of all export transactions to be on EDI within six months.