To promote sales of tractors overseas, the government has announced a 4% duty incentive on export of the vehicle. .

The incentive will come under the ‘Duty Entitlement Passbook Scheme’(DEPB), which refunds basic customs duty paid on imported inputs for manufacturing products meant for export. .

"The tractors exporters will get a 4% duty refund under the Duty Entitlement Passbook scheme'. While numerous engineering goods were given the refund on inputs of exports, this is the first time that tractor makers will be getting the advantage. .

The benefits will be available to exporters who sell tractors in knocked down, semi-knocked down form or as completely built unit in the worldwide markets. India mainly exports tractors to the US, Nepal, Sri Lanka, Bangladesh and Brazil. Mahindra & Mahindra is one of the leading exporters. .

In the new foreign trade policy announced in August, the government has extended the DEPB scheme till March 2010.

Indlaw