1,865 persons denied benefits under export promotion schemes from 2016 to 2019: Goyal

As many as 1,865 persons have been denied benefits under certain export promotion schemes and penalties have been imposed in 1,374 cases from 2016 to 2019, Parliament was informed Wednesday.

Besides, action was being taken by the Department of Revenue on defaulters, Commerce and Industry Minister Piyush Goyal said in a written reply to the Lok Sabha.

"During the last three years from April 1, 2016, to March 31, 2019, 1,865 persons have been put under 'Denied Entity List' denying further benefits under the export promotion schemes and penalties have been imposed in 1,374 cases," he said.

The Foreign Trade Policy contains certain export promotion schemes which are primarily aimed at providing customs duty exemption on import of capital goods for promoting exports, providing customs duty exemption on raw materials, components and consumables for manufacturing goods for exports and providing compensation for neutralising the disadvantages suffered on the goods and services exported.

"All these schemes have inbuilt obligations/terms and conditions which are required to be complied by the persons availing such schemes. The government regularly monitors such obligations. In case of non compliance, action is taken against the defaulters," he added.

Goyal said that such actions may include suspension/cancellation of the authorization, black listing the defaulter from availing any export promotion scheme, imposition of fiscal penalty, cancellation/suspension of importer and exporter code number and initiating criminal proceedings.

Replying to a separate question, he said the government has proposed to set up National Traders' Welfare Board and formulate a national policy for retail trade,