'No procedure for inclusion of your products in FPS'

As per Rule 30(8) of the Special Economic Zone (SEZ) Rules, 2006, “Drawback or Duty Entitlement Pass Book (DEPB) credit against supply of goods by Domestic Tariff Area (DTA) supplier shall be admissible provided payments for the supply are made from the Foreign Currency Account of the Unit. Provided that the reimbursement of duty in lieu of drawback or DEPB credit against supply of goods by DTA supplier to SEZ developers shall be admissible even if payment is made in Indian Rupees.” This means that DEPB benefits are available to DTA units for supplies to SEZ developers if payment is realised in Indian Rupees also. But the same benefits are not available to DTA for supplies to SEZ units. Can you explain why the department gives benefits for supplies to SEZ developers but not to SEZ units?
The only reason I can think of is that the sources of funds for most developers are Indian Rupees, as they do not export anything but only develop infrastructure, whereas the units have to export and are net foreign exchange earners. So, in most situations, the units may be able to pay in foreign exchange or in Indian Rupees from a foreign currency account, but the developers may not be able to do so.

We manufacture high forex value addition engineering products with proprietary technology. We want to know the process for including our product in the list of products eligible under Focus Product Scheme (FPS) of the Foreign Trade Policy (FTP).

As per Para 3.15.1 of FTP, the objective of the FPS is to incentivise export of such products which have high export intensity/employment potential, so as to offset infrastructural deficiencies and other costs involved in marketing these products. Most of the eligible products listed in Appendix-37A of the Handbook of Procedures, Vol. 1 are manufactured in the semi-urban or rural areas. However, some hi-tech products like Point of Sale Terminals, Hybrid Integrated Circuits, Public Call Office using Wireless Technology, etc, are also covered under the scheme.

There is no procedure laid down for the inclusion of your products in the FPS. The Director General of Foreign Trade (DGFT) has the mandate to advise the central government in the formulation of the FTP. So, you may make a representation to him giving your justification highlighting the hi-tech nature of the product, its employment potential and its export potential, and seek an appointment to make a presentation. You may also send details to your Export Promotion Council and convince them to support your representation.

Is membership of an Export Promotion Council (EPC) compulsory?
As per Para 2.44 of the FTP, if you want to apply for any authorisation (ie licence) to import/export [except items listed as restricted items in ITC (HS)], or you want to claim any other benefit/concession under the FTP, you must furnish the Registration Cum Membership Certificate (RCMC) issued by an EPC/Commodity Board/Competent Authority. Otherwise, it is not necessary.