I (Meaning and importance of Exports) Unit Structure

9.7 PRIVILEGES/BENEFITS/FACILITIES 
FOR 
STATUS HOLDERS 
The government has provided the following benefits for 
EH/TH/STH/SSTH. 
1. Special Licences 
 
As per the EXIM policy 2002-07, the status holders are 
eligible for license/certificate/permission and customs clearance for 
both imports and exports on self declaration basis. 
2. Relaxation of Foreign Exchange Norms 
 
These status holders are allowed to retain 100% of foreign 
exchange in exchange earner‟s foreign currency account. They can 
open foreign offices or oppoint foreign representatives without 
obtaining prior permission of the reserve Bank Of India, provided 
that the expense on such offices or representatives is met from the 
from the foreign currency account maintained by them. 
3. Duty Free Entitlement 
 
Duty free entitlement is available to status holders under the 
following criteria. 
(a) It shall be 10% of the incremental growth in exports provided 
the incremental growth is more than 25% in FOB value of 
exports. 
(b) However, there should be a minimum export turnover of 25 
crores Rs. This duty free entitlement can be used for import of 
capital goods, office equipments etc. 

---

133 
4. Market Development Assistance (MDA) 
 
The status holders can claim financial assistance under 
MDA scheme for developing export markets. This assistance can 
be any where between 25% to 60% of the actual expenses incurred 
depending up on the individual case concerned. 
5. Relaxation in Collection Period 
 
 
Normal period given by RBI for realizing export proceeds 
from buyers is 180 days. But in case of status holders, it is 
enhanced from 180 days to 360 days.