Status Holder Incentive Scrip
One of the prominent features of the policy has been introduction of the Status Holder Incentive Scrip (SHIC) which entitles the status holders such as trading houses, star trading houses etc for additional duty scrip @ 1% of the FOB value of exports.This measure is to incentivise the exporting community to upgrade their technology and enhance exports. The SHIC can be used for procurement of capital goods subject to the actual user condition and is restricted to sectors such as leather, textiles, jute, plastics, chemicals etc.
SHIS scrip can also be used for payment of duties related to import of spares or component of capital goods which were imported earlier. In such cases, utilisation of duty scrip is restricted to the extent of 10% of value of SHIS scrip.
3.16- 3.16.1 to 3.16.4 from FT Policy:
3.16.1
(a) Objective of SHIS is to promote investment in upgradation of technology.
b) Status Holders of sectors specified in Para 3.16.4 below, shall be entitled to a Duty Credit Scrip @1% of FOB value of exports made during 2009-10 ,2010-11,2011-12 and 2012-13.
(c) Status Holders of additional sectors listed in Para 3.10.8 of HBPv1 2009-14 (RE-2010) shall also be eligible for this Status Holders Incentive Scrip on exports made during 2010-11, 2011-12 and 2012-13.
3.16.2
Status Holders availing Technology Upgradation Fund Scheme (TUFS) benefits (administered by Ministry of Textiles) during a particular year shall not be eligible for Status Holders Incentive Scrip for exports of that year
3.16.3
The Status Holders Incentive Scrip will be subject to actual user condition. However transferability will be permitted amongst status holders subject to the condition that the transferee status holder is a manufacturer. Status Holder Incentive Scrip shall be used for import of capital goods (as defined in FTP) relating to sectors specified in Para 3.16.4 below and para 3.10.8 of HBP. Only in respect of CG imported earlier, upto 10% value of the Duty Credit Scrip can be used for import of components, spares/parts of such CG
3.16.4
Status Holders of the following Sectors shall be eligible for the Status Holders Incentive Scrip:
a Leather Sector (excluding finished leather)
b Textiles and Jute Sector
c Handicrafts
d Engineering Sector (excluding Iron & Steel