Status Holders Incentive Scrip (SHIS)

  • With an objective to promote investment in up gradation of technology of some specified sectors as listed below, Status Holders shall be entitled to incentive scrip @1% of FOB value of exports.
  • This shall be over & above any duty credit scrip claimed/availed under chapter 3.
  • The Status Holders availing TUFS benefits under Ministry of Textiles and / or 0% EPCG Scheme during a particular year, shall not be eligible for SHIS for exports of that year.
  • (NOTE: SHIS scrips which are not issued in a particular year for the reason that zero duty EPCG authorization has been issued in that year shall not be issued in future years also.)
  • The Last date of Filing the application shall be 31.03.2011 for exports made during 2009-10.
  • Transferability
  • Duty Credit Scrip and items imported against it would NOT be freely transferable i.e. with Actual user Condition.
  • Imports Allowed:
  • Duty Credit Scrip may be used for import of capital goods relating to sectors specified, provided same is freely importable and / or restricted under ITC (HS). There would be no sector wise value limitation.
  • However, import of items listed in Appendix 37B of HBPv shall not be permitted to be debited.
  • Duty Credit Scrip can also be utilized for payment of duty against imports under EPCG scheme provided the item is importable against the scrip.
  • Facility of Payment of Customs Duties in case of EO defaults: Duty Credit Scrips can also be used / debited towards payment of Customs Duties in case of EO defaults under Authorizations issued under Chapters 4 & 5 of the FTP. However, penalty / interest shall be required to be paid in cash
  • CENVAT / Drawback: Additional customs duty/excise duty paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules, except under SFIS.
  • The Status Holders of the following Sectors shall be eligible for SHIS for exports made during 2009-10, 2010-11 and during 2011-12, of these specified sectors:
    1. Textiles and Jute Sector;
    2. Engineering Sector (excluding Iron & Steel, Nonferrous Metals in primary or intermediate forms, Automobiles & two wheelers, nuclear reactors & parts and Ships, Boats and Floating Structures);
    3. Plastics; and
    4. Basic Chemicals (excluding Pharma Products).
    5. Leather Sector (excluding finished leather);
    6. Handicrafts;
  • The Status Holders of the ADDITIONAL Sectors listed below shall be eligible for SHIS on exports made during 2009-11 and 2011-12

Sr. Products / Product Groups ITC HS
1 Chemical & Allied Products (other than Bulk minerals, Granite/Stones, Processed minerals, Cement, Clinkers and asbestos)
  (i) Rubber products, 4001 to 4010, 4014 to 4017
  (ii) Paints, Varnishes & Allied Products 3208, 3209, 3210
  (iii) Glass and glassware Chapter 70
  (iv) Plywood and allied products Chapter 44
  (v) Ceramics / refractories Chapter 69
  (vi) Paper, Paper Boards & Paper Products Chapter 48
  (vii) Books, Publications & Printings Chapter 49
  (viii) Animal By-products (Codes 35030030, , 05069099, 05079010, 05079020, 05079050, 23011010, 23011090, 96062910, and 96063010) Various codes
  (ix) Ossein & Gelatine Codes 05061039 and 35030020.
  (x) Graphite Products (Codes 3801, 85451100 and 85451900) & Explosives (Codes 3601, 3602 and 3603) Various codes
  (xi) Misc. Products (Codes 3201, 32029010, 32030010, 3604, 3605, & 38021000) Various codes
2 Electronics Products
3 Sports Goods and Toys Chapter 95 and Codes 420321, 650610.
4 Engineering products for the three groups indicated below: (i) Iron and Steel (ii) Pipes and tubes (iii) Ferro Alloys Chapter 72
Ineligible Exports Categories / Sectors :
SI.No. Description
1 EOUs / EHTPs / BTPs who are availing direct tax benefits or exemption.
2 Export of imported goods covered under para 2.35 of the FTP.
3 Exports through transhipment, meaning thereby that exports originating in third country but transhipped through India.
4 Deemed exports.
5 Exports made by Special Economic Zone units or Special Economic Zone products exported through Domestic Tariff Area units.
6 Export of items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS).
7 The exports made by the Status Holders during a particular year, if benefits are availed under Technology Upgradation Fund scheme (TUFS) of Ministry of Textiles in that year.
8 The exports made under the Zero duty EPCG scheme w.e.f 1st April, 2010.

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