Last date for filing of applications and applicability of late cut, for Schemes under Chapter 3 of FTP, clarification thereof

As per http://164.100.9.245/exim/2000/cir/cir08/cir2708.htm
1. For exports made from 1-4-2006 till 31-3-2008 that have already been realized up to 31-3-2008, the last date for filing the application for obtaining benefits under Chapter 3 of the Foreign Trade Policy will be 30.11.2008, and if the realization is after 31.3.2008, then the last date for filing the application will be as per the provisions of Para 3.23.10 of HBP Vol. 1 (RE-2008) as amended vide Public Notice No. 64 (RE-2008) / 2004-2009 dated 14.8.2008.

2. Further, it is clarified that late cut, in terms of Para 3.23.2 HBP Vol. 1 (RE-2008) read with Para 9.3 of HBP Vol. 1 (RE-2008), shall be applicable for applications filed after the prescribed last date as above, even for exports made from 1.4.2006 till 31.3.2008.

This issues with the approval of the DGFT.

Eligibility of supplies to EOUs for deemed export benefits

Yes,

The supplies of goods from DTA to EOU / EHTP / STP / BTP are regarded as deemed exports and DTA supplier is eligible for deemed export benefits.

Based upon disclaimer from DTA supplier, EOU / EHTP / STP / BTP units can also claim these benefits.

This is as per DGFT Policy Circular No. 23 (RE-2008)/2004-2009 dated 28th July 2008

IEC modification, when 100% EoU becomes DTA

Yes,

You will get a Fresh Import Export Code (IEC) from RA, once your 100% Export Oriented Unit (EoU) gets converted into a Domestic Tariff Area (DTA) unit.

Same is NOT the case when an existing DTA gets converted into 100% EoU. Meaning, it will continue with the same IEC.

This is as per the Clarification issued by Commerce Ministry which can be accessed in http://164.100.9.245/exim/2000/cir/cir08/cir2608.htm

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
D Block, III Floor, 'A' Wing, Doddakannelli, Sarjapur Road, Bangalore 560 035
Ph: 91-80-39877000 ; Dir 25056758; Ext. 6758,
Email: anantha.krishna@wipro.com Website: www.wipro.com

Mobile : +919980557170

DGFT Toll Free

Yes, Government Departments are doing great, eager to see 2020 India now...

Director General of Foreign Trade (DGFT) & its Toll-Free facility.

While filing applications and making payments online, it has been observed that exporters/ importers face technical problems on account of non-availability of relevant documents, malfunctioning of system etc. For attending to these technical problems, DGFT has set up a Helpdesk. The trading community can access the Help Desk by dialing the toll free number 1800 111 550 or by e-mail at http://us.f505.mail.yahoo.com/ym/Compose?To=dgftedi@nic.in.
The help desk will be available between 10.00 AM to 7.00 PM on all working days. A complaint number may be provided by helpdesk if issues remain unresolved. The complaint number may be quoted for all future reference. For e-mails complaint Numbers may be conveyed on next working day if complaint is unresolved.

Check this !

Interesting & Important Notifications/Cases

CREDIT TO ICSI MYSORE NEWSLETTER http://www.esnips.com/web/icsimysore

Customs

Ø Determination of origin of goods

The Central Government has released the Rules of Determination of Origin of Goods under the Preferential Trading Agreement between India and Chile.

Customs Notification No. 84/2007-Cus. Dt 17/08/07 (NT)

Ø Exemption of additional duty of customs

The Central Government has exempted electronic integrated circuits falling under Customs Tariff Heading 8542 from payment of additional duty of customs in lieu of Sales Tax/VAT.

Customs Notification No. 93/2007-Cus. Dt 08/08/07

Ø HSN-Most suitable for classification

The Tribunal has held that the Explanatory Notes to the internationally recognized and accepted Harmonised System of Nomenclature (HSN) are most suitable for the determination of the customs classification of a product.

Hotel Leela Ventures Ltd. Vs. CC (2007 (145) ECR 222)

FTP

Ø Bank Certificate Not required

The Director General of Foreign Trade (DGFT) has deleted the requirement for filing of a bank certificate related to the financial soundness of the exporter filing an application for grant of Registration cum Membership Certificate (RCMC).

DGFT Public Notice No. 25 (RE-2007)/2004- 09, dt.23/07/07

Ø Procedural change in reimbursement of CST

The Central Government has made changes in the procedures relating to re-imbursement of Central Sales Tax for supplies made to 100% Export Oriented Units (EOU) and Units in Electronic Hardware Technology Park (EHTP) and Software Technology Park (STP).

Public Notice No. 39 (RE-2007)/2004 -2009,dt.24/07/2007

Ø Amendment of FTP

The High Court of Calcutta has held that the Foreign Trade Policy can only be amended by notifications published in the Official Gazette and not otherwise. Further, the High Court has held that the Foreign Trade (Development and Regulation) Act, 1992 does not authorize the Central Government to amend the export and import policy with retrospective effect.

Soubhik Exports Ltd. Vs. Union of India (2007 (214) ELT 334)

Antidumping Duty

Ø Anti-dumping duty has been imposed on the following products:

§ bias tyres, tubes and flaps originating in or exported from the People.s Republic of China and Thailand.

§ hexamine originating in or exported from Russia and Saudi Arabia.

§ partially oriented yarn, originating in or exported from People.s Republic of China.

§ nonylphenol originating in or exported from Chinese Taipei.

Customs Notification Nos. 88/2007 dt. 24/07/2007, 89/2007 dt. 25/07/2007,92/2007 dt. 03/08/2007 & 94/2007 dt.22/08/2007

Ø The Antidumping Duty levied on partially oriented yarn, originating in or exported from the Republic of Korea and Turkey, has been withdrawn.

Customs Notification 95/2007 dt. 22/08/2007

ESI

Ø ESI medical services are covered under consumer protection Act

The medical service rendered in an ESI hospital/dispensary to an insured employee fails with in the ambit of section 2(1) (o) of the Consumer Protection Act, and, therefore, the Consumer Protection Act have jurisdiction to adjudicate upon a dispute arising between the insured and the Employees. State Insurance Corporation.

Chairman, Employees. State Insurance Corporation,2007

LLR 740

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Vj
Trezrrr every pulsss
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WTO - FTP - Understand this way ....

FOREIGN TRADE POLICY [FTP] 2004-09

By Director General of Foreign Trade (DGFT)

Under Ministry of Commerce

Using the powers given under

Foreign Trade (Development & Regulation) Act, 1992 [FTDR]

 

FTP OVERRIDES Handbook of Procedures (Hp) by DGFT[Narendra Udeshi V UOI]

 

CONTENTS:

 

VOLUME 1: Basics of Policy;

VOLUME 2: Procedural Aspects of Policy; [Hp Volume-1];

VOLUME 3: SION [Standard Input Output Norms] of Products; [Hp Volume-2];

VOLUME 4: ITC (HSN) à Items under Import & Export policy;

VOLUME 5: Handbook of DEPB rates.

 

ADMINISTRATION:

1. Issue of licenses by DGFT   à  Licensing Committee/Regional Authority;
2. Procedures as per Hp;
3. Interpretation & Classification of DGFT à FINAL & BINDING;
4. DGFT license/clarification OVERRIDES Customs Authorities;

 

IEC [IMPORT EXPORT CODE]: MANDATORY for Exporters/Importers.  The exceptions include,

1. Central Government & its agencies; State Governments;
2. For personal use, not being trade/agriculture/manufacturing;
3. EXIM to/from Nepal/Myanmar upto Rs. 25000 per Single Consignment;

 

SUSPENSION/CANCELLATION OF IEC: After DGFT notice & Heard on,

1. Contravention of CEA, CA, FEMA, FTDR, or Economic offences;
2. EXIM prejudicial to trade relations or injurious;

Just remember this ! SCHEMES ENCOURAGING EXPORTS ARE NOT IN VIOLATION OF WTO STIPULATIONS: All export promotion schemes are directed towards ensuring that Inputs as well as Final products are made 'tax free'.

 Now,                                 STAR EXPORT HOUSES [Status Holders] 

1.       Based on average [FOB/FOR export value during Current & 3 preceeding years] Export Performance but not to consider re-exports, deemed exports, jewellery, precious stones, and supplies from SEZ/EHTP/EOU.

 

DEEMED EXPORTS:- When projects are financed with free forex as goods & services do not leave the country and suppliers get payment in Rupees.   It includes evaluation of bids for global tenders without Customs, Supplies to EOU and Supplies against Annual Advance License (AAL).

 

2.       SSI, Handicrafts, Agro exports or exports to sub-saharan Africa units with ISO 9000 status are entitled to double weightage when considering export performance.

 

3.        

ONE STAR EXPORT HOUSE	RUPEES 15 CRORES;
TWO STAR EXPORT HOUSE	RUPEES 100 CRORES;
THREE STAR EXPORT HOUSE	RUPEES 500 CRORES;
FOUR STAR EXPORT HOUSE	RUPEES 1500 CRORES;
FIVE STAR EXPORT HOUSE	RUPEES 5000 CRORES;

 

4.       Procedural simplifications for all status holders:

Ø      License/Certificate/Permissions on self-declaration basis;

Ø      Fixation of SION within 60days;

Ø      Exemption from compulsory negotiation of documents from banks;

Ø      100% retention of FOREX in EEFC A/C.;

Ø      Enhancement of repatriation period from 180 to 360 days;

Ø      Entitlement to Annual Advance Licenses (AAL) for annual requirements;

Ø      Priority long term finance;

Ø      Letter of Undertaking instead of Bank Guarantee;

>   Additional facilities for fast clearances.

 

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Vj
Trezrrr every pulsss
http://yehseeyes.blogspot.com/