EXPORT PROMOTION COUNCIL FOR EOUs & SEZs
(Ministry of Commerce & Industry, Govt. of India)
705, Bhikaji Cama Bhawan, Bhikaji Cama Place, New Delhi 110066
Tel : 26167042, 26165805 Fax : 26165538, Email : epces@vsnl.net
Dr. L.B. Singhal
Director General
EPCES CIRCULAR NO. 56 DATED 27-2-2009
Sub : Supplement to Foreign Trade Policy 2004-09, announced on
26-2-2009, caries out following changes in respect of EOUs
i)
ii)
iii)
i)
Gems & Jewellery EOUs allowed to import gold through
personal carriage
Reimbursement of additional duty of excise levied on fuel
under the Finance Act.
Department of Revenue agrees to issue clarification
regarding implementation of provisions of Paragraph 6.9(e)
of Foreign Trade Policy
Gems & Jewellery EOUs allowed to import gold through
personal carriage
We had received representation from EOUs, specifically from M/s
Abhilasha Jewellers, an EOU in Channai, informing that import of gold
through personal carriage to the EOUs is not being allowed. This was
taken up with Department of Commerce and Department of Revenue and
Department of Revenue had agreed for permitting import of gold through
personal carriage. Accordingly DGFT has issued Notification No. 88 dated
26/2/2009, a copy enclosed, wherein at the end of Paragraph 6.22, the
following has been added:“An authorized person of Gems & Jewellery EOU may also
import Gold in primary form, upto 10Kgs. in a financial year
through Personal carriage, as per guidelines prescribed by RBI
and Department of Revenue.”
ii)
Reimbursement of additional duty of excise levied on fuel
under the Finance Act.
In the various open houses, organized by EPCES, under the
Chairmanship of Shri G.K. Pillai, Secretary, Ministry of Commerce &
Industry, in the last 2 years, EOUs had repeatedly taken up the issue
that they are not being permitted reimbursement of additional duty of
excise levied on fuel under the Finance Act. This was taken up with
Department of Revenue earlier and Department of Revenue had rejected
this request. This was again taken up with Department of Revenue after
the Kolkata Open House meeting and now Department of Revenue has
agreed for reimbursement of this duty. Accordingly DGFT has issued
Notification No. 88 dated 26/2/2009 wherein, at the end of Sub-Para
6.11(c)(iv), the following shall be added:-
“Re-imbursement of additional duty of excise levied on fuel under the
Finance Acts would also be admissible.”
iii)
Department of Revenue agrees to issue clarification
regarding implementation of provisions of Paragraph 6.9(e)
of Foreign Trade Policy
Paragraph 6.9(e) of the Foreign Trade Policy permits EOUs “supplies of
goods and services to such organizations which are entitled for duty free
import of such items in terms of general exemption notification issued by
MoF”. Such supplies are counted towards NFE of the EOU.
However, we had received representation from number of EOUs pointing
out that these supplies are not being permitted by the customs
authorities as there is no corresponding provision in the Customs
notification. M/s General Optics Asia Ltd., an EOU in Chennai had
pointed out that they want to supply goods to ISRO that has not been
permitted. Similarly M/s Saint Gobain Crystals & Detectors India Ltd,
Bangalore had also pointed out that they wanted to supply goods to
Educational Institutions but such goods were not being permitted. A
representation to this effect had also been received from an EOU in Goa.
This issue was taken up with Department of Revenue and now
Department of Revenue has agreed that it shall issue necessary
clarification implementing provisions of Paragraph 6.9(e) of FTP
related to EOUs, thereby allowing them to supply goods and services
at zero duty to authorized organizations notified for zero duty
import. This has been clearly stated in the brief “Trade Facilitation
Measures” released by DGFT along with this Notification. A copy of
Paragraph 26(vi) of this brief is enclosed along with.
In addition to the above stated measures, as informed yesterday, vide my
EPCES circular No. 55, Department of Revenue has already issued
Notification No. 18/2009-Cus and 3/2009-Central Excise, both dated 23-2-2009,
permitting EOUs to import spares upto a value of 5% in each financial year.
Similarly Department of Revenue has also issued Notification No. 18/2008-Cus
dated 23/2/09, permitting re-import of exported pharmaceutical sample by EOUs
without payment of duty for statutory requirement of stability or retention.
This is for your information please.
________________________
PN : All EPCES Circulars, issued during the last 5 years, have been placed on
the website www.eouindia.gov.in & www.sezindia.nic.in. Hence for making a
reference to any earlier EPCES Circular you can access the above stated
website. To access EPCES Circulars, click on to EPCES logo on the homepage
and then click on EPCES Circulars.
TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY
PART –II SECTION –3, SUB SECTION (ii)
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
NOTIFICATION No. 88 (RE-2008)/2004-2009
New Delhi, Dated the 26th February, 2009
S.O (E) – In exercise of powers conferred by Section 5 of the Foreign Trade
(Development and Regulation) Act, 1992 (No. 22 of 1992) read with Para 1.3 of
the Foreign Trade Policy, 2004-2009 (as amended from time to time), the
Central Government hereby makes the following amendment in Foreign Trade
Policy:
1. In Paragraph 3.8.2, the word “realized” wherever appearing, stands deleted.
This change shall be effective for application filed from 1.4.2009 onwards.
2. In the Paragraph 3.11.2(b), the words “realized as BRC/FIRC” are replaced
by the words ‘in free foreign exchange”. This change shall be effective for
application filed from 1.4.2009 onwards.
3. Paragraph 4A.4 related to “Nominated Agencies” stands replaced by the
following:
Nominated agencies are MMTC Ltd, Handicraft and Handloom Export
Corporation (HHEC), State Trading Corporation (STC), the Project and
Equipment Corporation of India Ltd (PEC), STCL Ltd, MSTC Ltd, Diamond
India Limited (DIL), Gems & Jewellery Export Promotion Council (G&J
EPC)), Star Trading House (only For Gems & Jewellery sector) and
Premier Trading House under Paragraph 3.5.2 of FTP and any other agency
authorised by RBI. Exporters (except EOUs and units in SEZ) may obtain
gold / silver / platinum from nominated agency(s). Procedure for import of
precious metal by these agencies (other than those authorized by RBI and
the Gems & Jewellery units operating under EOU and SEZ schemes) and
the monitoring mechanism thereof shall be as per the provisions laid down in
HBP v1 in this regard.
A bank authorised by RBI is allowed export of gold scrap for refining and
import standard gold bars as per RBI guidelines.
4. A new sub paragraph 3.12.9 shall be added after the sub-paragraph 3.12.8
as follows:
“3.12.9 Duty Credit Scrips under Chapter 3 of FTP can also be utilized
for payment of duty against imports under EPCG scheme
provided the item is importable against the scrip.”
5. Import Policy for the item ‘Worked Coral’ under ITC (HS) Code “9601 90 40)
shall be amended to read as “Free” (instead of “Restricted”).
6. The figure “10000” mentioned in paragraph 3.5.2 against ‘Premier Trading
House (PTH)’ stands replaced by “7500”.
7. In paragraphs 3.6.4.5 and 3.12.4, after the words “freely importable”, the
words “and / or restricted” shall be inserted.
8. The 2nd sub-paragraph of paragraph 4.3.1 stands amended as follows:-
“Credit shall be available against such export products and at such
rates as may be specified by DGFT by way of public notice. Credit may
be utilized for payment of customs duty on freely importable items and /
or restricted items. DEPB scrips can also be utilized for payment of duty
against imports under EPCG scheme.”
9.
The entry at Sl. No. 124, Chapter 30, regarding ‘Pharmaceutical products’
under Schedule 2 of ITC (HS) Classification of Export and Import Items
stands amended as follows:
S.
No.
124
Tariff Item
HS Code
3002 10 11
3002 10 12
3002 10 13
3002 10 14
3002 10 19
3002 10 20
3002 10 91
Unit
Item Description
Kg
Whole human blood
plasma
and
all
products
derived
from human blood
except
gamma
globulin and human
serum
albumin
Export
Policy
Free
Nature of
Restriction
Exports
permitted after
obtaining
No
Objection
Certificate
(NOC)
from
Directorate
3002 90 10
3002 90 20
manufactured from
human placenta and
human
placental
blood;
Raw
placenta; Placental
blood plasma
General
of
Health Services
under Ministry
of Health.
10. Following sub para is added at the end of Para 3.10.2:
“However, special product(s)/sector(s), having high labour intensity,
covered under Table 13 of Appendix 37D, shall be granted duty credit
scrip equivalent to 5% of FOB value of exports., Admissible date of
export for special product(s) / sector (s) shall also be notified in Table
13 of Appendix 37D of HBP v1.”
11. At the end of paragraph 6.22, following shall be added:
“An authorized person of Gems & Jewellery EOU may also import Gold
in primary form, upto 10Kgs. in a financial year through Personal
carriage, as per guidelines prescribed by RBI and Department of
Revenue.”
12. At the end of sub-para 6.11(c)(iv), the following shall be added:
Re-imbursement of additional duty of excise levied on fuel under the
Finance Acts would also be admissible.
This issues in Public Interest.
Sd/(R.S. GUJRAL)
DIRECTOR GENERAL OF FOREIGN TRADE
AND EX-OFFICIO ADDITIONAL SECRETARY TO THE GOVT. OF INDIA
(Issued from File No. 01/94/180/982/AM09/PC 4)
EXTRACTS OF TRADE FACILITATION MEASURES
26. In addition to the above, DGFT and Department of Revenue provisions
have been aligned in following matters:(i) Utilization of Duty Credit scrip allowed under Reward Schemes of Chapter 3 /
DEPB in Chapter 4 of FTP for payment of duty under EPCG Scheme .
(ii) Notification of DFIA scheme aligned with FTP provisions.
(iii) Granite Sector EOUs have been allowed procurement of spares upto 5% value
of quarrying equipment in each financial year.
(iv) High Tech Products duty credit scrip - Issuance of corresponding Customs
Notification for implementing High Tech Products duty credit scrip.
(v) Re-import of exported pharmaceutical samples by EOUs without payment of duty
for statutory requirement of Stability or Retention has been allowed and notified by
DOR.
(vi) Department of Revenue shall issue necessary clarification implementing
provisions of paragraph 6.9(e) of FTP related to EOUs, thereby allowing them to
supply goods and services at Zero Duty to authorized organisations notified for Zero
Duty import.
(vii) Customs Notification to allow import of Agricultural Capital Goods /Equipments
by Status Holders (under para 3.8.6 of FTP) aligned with provisions of FTP.