DGFT Policy Circular No-24/2007 dated
01.01.2008
Merger(s) and Acquisition(s) of companies and / or firms during 1.4.2002 to
31.3.2006 and consequential grant of benefits under DFCE for Status Holders
Scheme of the then EXIM policy and under Target Plus Scheme of Foreign Trade
Policy, clarification thereof.
Attention is invited to DFCE for Status Holders’ Scheme under
the then EXIM policy and Target Plus Scheme under Foreign Trade Policy.
2. It has been brought to the notice of DGFT that RAs are following different
yardsticks while treating merged turnover for grant of benefits under these
reward schemes, where incremental growth in exports is a criterion to be
followed.
3. The issue was deliberated in the Port Officers’ meeting held on 14.12.2007
and after due deliberations, with respect to merger(s) and acquisition(s) of
companies and / or firms during 1.4.2002 to 31.3.2006 and consequential grant of
benefits under DFCE for Status Holders’ Scheme of the then EXIM policy and under
Target Plus Scheme of Foreign Trade Policy, it has been decided that the
following principles be applied while finalizing the claims.
i. Eligibility Criteria of Rs 25 Cr for DFCE for Status Holders’ Scheme (Rs 10
Cr for Target Plus Scheme 2004-05 / Rs 5 Cr for Target Plus Scheme 2005-06 as
the case may be) should be met by eligible export turnover of any of the
companies / firms prior to such merger / acquisition.
ii. Incremental Growth Percentage (in free foreign exchange) and quantum of
incremental growth as well as Rate of entitlement is to be seen with respect to
the total of the pre-merged eligible export turnover and post merged eligible
export turnover.
iii. TPS scheme Cap of 100% is to be seen with respect to the pre-merger
eligible export turnover of the eligible pre-merged company / firm in the
relevant base year; and not from the total of all such merged eligible export
turnover.
This supersedes any other instruction issued in this behalf.
This issues with the approval of the DGFT.
Sd/-
(A. K. Singh)
Joint Director General of Foreign Trade
(Issued from File No: 01/94/180/810/AM08/PC-I)
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