FTP Customs Update [Customs Circular No.12 dated 24th July 2008]

Thanks Mr. Anantha Krishna from CS Mysore

FTP Amendment Summary

• Changes/amendments in the EOU/EHTP/STP and Gems and Jewellery Export Promotion Schemes-
• Net Foreign Exchange Earnings (NFE)
• Rationalization of calculation of NFE with rate of depreciation allowed on the capital goods
• Clearance or debonding of capital goods in the event of non achievement of positive NFE
• Exit from EOU scheme to EPCG scheme
• Exit from EOU scheme to Advance Authorization Scheme
• Recovery of duty in event of non fulfillment of export obligation in the block period of 5 years
• Accountal of inputs in accordance with Standard Inputs-Output Norms (SION)
• Flexibility for DTA sale for the units manufacturing and exporting multiple products
• Payment of duty on DTA clearances on monthly basis.
• Anti dumping duty foregone to be paid by the units on DTA clearances
• New optional scheme of payment of excise duty only on DTA clearances for EOUs in  textile/granite sector
• Supply of goods from DTA under benefit of deemed export are to be treated as imported goods
• Supplies of accessories like tags, labels, printed bags, stickers, belts, buttons or hangers to DTA unit for export by EOUs
• Goods procured on High Sea Sale basis in Indian rupee to be counted towards NFE obligation
• Setting up service unit under EOU/STP/EHTP/BTP scheme
• Exemption for the goods required for production of services within the unit
• Duty free re-import of goods by EOU/STP/EHTP/BTP unit from exhibition
• Limit increased for duty free procurement and export of spares/components
• Direct supply of goods to buyer from sub-contractor abroad
• Sale and lease back of capital goods by EOU/EHTP/BTP/STP unit scheme
• Replacement of imported or indigenously procured goods
• Time bound disposal of application for re-export of goods
• Change of location of an EOU/STP/EHTP/BTP unit
• Parameter for 'unblemished track record' to be observed for EOU/STP/EHTP/BTP unit
• GEMS & JEWELLERY EXPORT PROMOTION SCHEME
• Replenishment Authorization for import of Consumables.
• Re-import of plain/studded precious metal jewellery
• Monitoring the foreign exchange realization/remittance in respect of export made out of the duty free gold/silver/platinum
• Time Period for re-import of unsold stock of branded jewellery
• Export on consignment basis
• Export and re-import of cut and polished diamonds for certification and grading
• Export by Post

Find details in Customs Circular No.12 dated 24th July 2008 

 

PUBLIC NOTICE No.53 /(RE-2008) 2004-09

Dated: 23rd July 2008

In exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy 2004-09, Director General of Foreign Trade hereby makes the following amendments in the Handbook of Procedures (Vol. I):

1. Second sentence of paragraph 6.10.1 shall be substituted as under:-

"NFE earnings shall be calculated cumulatively in the block period as per para 6.5 of FTP, according to the formula given below."

2. In Appendix 14-I-A,  entry against column XVI may be substituted as under: .

"Net Foreign Exchange Earning

Average NFE on FOB value of exports in block period, as per  para 6.5 of FTP"

3 In Appendix 14-I-E para (ii) shall be amended to read as under:

"The unit would be required to achieve positive NFE as prescribed in the EOU scheme for the block period as per para 6.5 of FTP, failing which it would be liable for penal action."

4. In Appendix 14-I-F, clause 1 of the agreement shall be amended to  read as:-

"The unit shall achieve positive NFE as per para 6.5 of FTP."

5. In Appendix 14-I-G-

(a) Para 3(ii) and (iii) shall be substituted as under :

"(ii) For failure to achieve positive NFE, after completion of one year from the date of commencement of production, a cautionary letter may be issued; at the end of 3rd or subsequent year,  Show cause notice will be issued if positive NFE is not achieved; after completion of block period as per para 6.5 of FTP, Development Commissioner would initiate penal action under the FT(D&R)Act, 1992. Final decision may be taken as far as possible within six months and positively within one year."

(b) para 3(iv) shall be renumbered as 3(iii).

6. In Appendix 14-I-H,-

a) in para I (h), in the second sentence, the words "within a block of 5 years"shall be substituted by the words  "within the block period as per para 6.5 of FTP"

b) In Annexure A,  and the Calculation Chart to be certified by Chartered Accountant, the words "last five years " wherever they appear,  shall be substituted by the words " block period as per para 6.5 of FTP"

This issues in Public interest.

Sd/-
(R.S. GUJRAL)
DIRECTOR GENERAL OF FOREIGN TRADE
EX-OFFICIO ADDITIONAL SECRETARY TO THE GOVT OF INDIA

(Issued from file No F. No. 01/92/180/ 45 /AM09/PC-VI )

 

With Regards,
Anantha Krishna T.

Wipro Technologies
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Ph: 91-80-39877000 ; Dir 25056758; Ext. 6758,
Email: anantha.krishna@wipro.com Website: www.wipro.com

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