We are Liaisonist/ Consultant for Export-Import Licensing for more than 20 years & the concern proactively strives to adapt to the constantly changing global economic scenario, in light of the emergence of the new Foreign Trade Policy, and continues a long standing tradition of professional attitude towards its work.
59,K.C.GHOSH ROAD, C-206, KOLKATA – 700 050
PHONE: 033- 25467968 ,MOBILE: +91 9230581014 ,FAX : 033 -25283625
EMAIL: srsinter@gmail.com
Tuesday, April 14, 2009
Domain of Consultancy
1. Duty Exemption Schemes
a. Advance / Advance intermediate Authorisation;
b. DEPB Scheme;
2. Duty Free Import Authorisation;
3. Export Promotion of Capital Goods (EPCG Scheme);
4. Deemed Exports;
5. Star Export House;
6. Focus Market Scheme;
7. Focus Product Scheme;
8. Vishesh Krishi Gram Upaj Yojana (VKGUY);
9. Service Exports;
10. 100% EOU / SEZ, etc.;
1. DUTY EXEMPTION SCHEMES
Duty Exemption Schemes enable duty free import of inputs required for export production. A Duty Remission Scheme enables post export replenishment / remission of duty on inputs used in the export product. Goods exported under Advance Authorisation / DFRC / DEPB may be re-imported in the same or substantially the same form subject to such conditions as may be specified by the Department of Revenue from time to time.
a. Advance / Advance Intermediate Authorisation
An Advance Authorisation / Advance Intermediate Authorisation is issued to allow duty free import of inputs, which are physically incorporated in the export product. In addition, fuel, oil, energy, catalysts etc. which are consumed in the course of their use to obtain the export product, may also be allowed under the scheme.
Advance Authorisation can be issued for:-
o Physical Exports;
o Intermediate Supplies;
o Deemed Exports;
b. DEPB
The objective of Duty Entitlement Pass Book (DEPB) is to neutralise the incidence of Customs duty on the import content of the export product. The neutralisation shall be provided by way of grant of duty credit against the export product. Under the DEPB, an exporter may apply for credit, as a specified percentage of FOB value of exports, made in freely convertible currency.
DEPB Scheme has been extended till December 31, 2009.
Duty Free Replenishment Certificate (DFRC) shall be available for exports only up to 30.04.2006. This scheme is being replaced by the Duty Free Import Authorisation (DFIA) w.e.f. 01.05.2006.
2. Duty Free Import Authorisation (DFIA)
This scheme will come into force from 1st May, 2006.
A Duty Free Import Authorisation is issued to allow duty free import of inputs which are used in the manufacture of the export product (making normal allowance for wastage), and fuel, energy, catalyst etc. which are consumed or utilised in the course of their use to obtain the export product.
The Authorisation shall be issued on the basis of inputs and export items given under Standard Input and Output Norms (SION). The import entitlement shall be limited to the quantity mentioned in SION.
Such Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s)
A minimum 20% value addition shall be required for issuance of such Authorisation
Once export obligation has been fulfilled, request for transferability of the Authorisation or the inputs imported against it may be made before the Regional Authority. Once, transferability is endorsed, the Authorisation holder will be at liberty to transfer the duty free inputs, other than fuel and any other item (s) notified by DGFT for this purpose.
DFIA
Advance Authorisation Scheme
Transferability
Conditional
Actual User Clause
Value Addition
Minimum 20%
Positive Value Addition
Basis of Application
Only SION Based
SION or Self Declared Basis
3. EPCG SCHEME
The EPCG scheme allows import of capital goods for pre production, production and post production at 3% Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported to be fulfilled over a period of 8 years reckoned from the date of issuance of the authorisation.
The capital goods shall include spares (including refurbished/ reconditioned spares), tools, jigs, fixtures, dies and moulds. EPCG Authorisation may also be issued for import of components of such capital goods required for assembly or manufacturer of capital goods by the authorisation holder.
An EPCG authorisation can also be issued for import of capital goods for supply to projects notified by the Central Board of Excise and Customs under wherein the basic customs duty on imports is 10% with a CVD of 14%.
Payment of Duty under EPCG Scheme, through debit of DEPB or other duty credit scrips would be allowed w.e.f. 01.01.2009
4. DEEMED EXPORTS
“Deemed Exports" refers to those transactions in which the goods supplied do not leave the country and the payment for such supplies is received either in Indian rupees or in free foreign exchange
Deemed exports shall be eligible for any / all of the following benefits in respect of manufacture and supply of goods qualifying as deemed exports subject to the terms and conditions as given in Handbook (Vol. I) viz.:--
i. Benefit of duty free imports of inputs;
ii. Refund of Terminal Excise Duty;
Supply of goods will be eligible for refund of Terminal Excise Duty provided the recipient of the goods does not avail CENVAT credit / rebate on such goods. Similarly, supplies will be eligible for deemed export drawback on the Central Excise paid on inputs /components, provided CENVAT credit facility/rebate has not been availed by the applicant. Such supplies will however be eligible for deemed export drawback on the customs duty paid on the inputs /components.
5. STATUS HOLDERS
Merchant as well as Manufacturer Exporters, Service Providers, Export Oriented Units (EOUs) and Units located in Special Economic Zones (SEZs), Agri Export Zone (AEZs), Electronic Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio Technology Parks (BTPs) shall be eligible for status.
Applicant shall be categorized depending on his total FOB (FOR - for deemed exports) export performance during current plus previous three years (taken together) upon exceeding limit below. For Export House (EH) Status, export performance is necessary in at least two out of four years (i.e., current plus previous three years).
Category Performance
(Rupees in Crores)
Export House (EH)20
Star Export House (SEH)100
Trading House (TH)500
Star Trading House (STH)2500
Premier Trading House (PTH)10000
A Status Holder shall be eligible for the following facilities:
-Authorisations and Customs clearances for both imports and exports on self-declaration basis;
-Fixation of Input-Output norms on priority within 60 days;
-Exemption from compulsory negotiation of documents through banks. Remittance / Receipts, however, would be received through banking channels;
-100% retention of foreign exchange in EEFC account;
-Enhancement in normal repatriation period from 180 days to 360 days;
-Exemption from furnishing of Bank Guarantee in Schemes under FTP;
-SEH and above shall be permitted to establish Export Warehouses as per DoR guidelines.
Target Plus Incentive previously available to Status Holders stands abolished for exports from 01.04.2006 vide Notification No: 57 (RE-2005)/2004-2009 dt: 31.03.2006. Relevant paragraph in the policy stands deleted.
6. Focus Market Scheme
The objective of the Focus Market Scheme is to offset the high freight cost and other disabilities to select international markets with a view to enhance our export competitiveness to these countries.
Exports of all products to the notified countries shall be entitled for duty credit scrip equivalent to 2.5% of the FOB value of exports for each licensing year commencing from 1st April, 2006. The scrip and the items imported against it would be freely transferable.
Under the Scheme, export to all countries as specified in the Handbook of Procedures (Vol. I) shall qualify for export benefits with certain exceptions as outlined.
The Duty Credit may be used for import of inputs or goods including capital goods, provided the same is freely importable under ITC (HS).
Exporters shall have the option to apply for benefit either under the Focus Market Scheme or under the Focus Product Scheme or under Vishesh Krishi and Gram Udyog Yojana in respect of the same exported product/s.
7. Focus Product Scheme
The objective of the Focus Product Scheme is to incentivise export of such products which have high employment intensity in rural and semi urban areas so as to offset the inherent infrastructure inefficiencies and other associated costs involved in marketing of these products.
Exports of notified products to all countries shall be entitled for duty credit scrip equivalent to 1.25% of the FOB value of exports for each licensing year commencing from 1st April, 2006. The scrip and the items imported against it would be freely transferable.
Under the Scheme, export of such products as specified in the Handbook of Procedures (Vol. I) shall qualify for export benefits with certain exceptions as outlined.
The Duty Credit may be used for import of inputs or goods including capital goods, provided the same is freely importable under ITC (HS).
Exporters shall have the option to apply for benefit either under the Focus Market Scheme or under the Focus Product Scheme or under Vishesh Krishi and Gram Udyog Yojana in respect of the same exported product/s.
8. Vishesh Krishi Gram and Upaj Yojana (VKGUY)
The objective of the Vishesh Krishi Gram Upaj Yojana (VKGUY) is to promote exports of:
a) Agricultural produce and their Value added products;
b) Minor Forest Produce and their value added variants;
c) Gram Udyog Products;
d) Forest Based Products
Duty scrip benefits are granted with aim to compensate high transport costs. Exporters of notified products shall be entitled for duty credit scrip equivalent to 5.00% of the FOB value of exports. The scrip and the items imported against it would be freely transferable.
All Status Holders shall be incentivised with duty credit script equal to 10% of FOB value of agricultural exports which can be used for duty free import / procurement of capital goods related to infrastructure meant for agro-processing to promote agricultural exports.
Under the Scheme, export of such products as specified in the Handbook of Procedures (Vol. I) shall qualify for export benefits with certain exceptions as outlined.
The Duty Credit may be used for import of inputs or goods including capital goods, provided the same is freely importable under ITC (HS).
Exporters shall have the option to apply for benefit either under the Focus Market Scheme or under the Focus Product Scheme or under Vishesh Krishi and Gram Udyog Yojana in respect of the same exported product/s.
10. 100% EOU, SEZ, etc.
Units undertaking to export their entire production of goods and services (except permissible sales in the DTA), may be set up under the Export Oriented Unit (EOU) Scheme, Electronic Hardware Technology Park (EHTP) Scheme, Software Technology Park (STP) Scheme or Bio-Technology Park (BTP) scheme for manufacture of goods, including repair, re-making, reconditioning, re-engineering and rendering of services. Trading units, however, are not covered under these schemes.
Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.SEZ units may be set up for manufacture of goods and rendering of services.
Goods and services going into the SEZ area from DTA shall be treated as exports and goods coming from the SEZ area into DTA shall be treated as if these are being imported. The Income Tax exemption previously available to 100% EOUs u/s 10B of the IT Act, till 31.03.2009 has been extended for one more year.
a. Advance / Advance intermediate Authorisation;
b. DEPB Scheme;
2. Duty Free Import Authorisation;
3. Export Promotion of Capital Goods (EPCG Scheme);
4. Deemed Exports;
5. Star Export House;
6. Focus Market Scheme;
7. Focus Product Scheme;
8. Vishesh Krishi Gram Upaj Yojana (VKGUY);
9. Service Exports;
10. 100% EOU / SEZ, etc.;
1. DUTY EXEMPTION SCHEMES
Duty Exemption Schemes enable duty free import of inputs required for export production. A Duty Remission Scheme enables post export replenishment / remission of duty on inputs used in the export product. Goods exported under Advance Authorisation / DFRC / DEPB may be re-imported in the same or substantially the same form subject to such conditions as may be specified by the Department of Revenue from time to time.
a. Advance / Advance Intermediate Authorisation
An Advance Authorisation / Advance Intermediate Authorisation is issued to allow duty free import of inputs, which are physically incorporated in the export product. In addition, fuel, oil, energy, catalysts etc. which are consumed in the course of their use to obtain the export product, may also be allowed under the scheme.
Advance Authorisation can be issued for:-
o Physical Exports;
o Intermediate Supplies;
o Deemed Exports;
b. DEPB
The objective of Duty Entitlement Pass Book (DEPB) is to neutralise the incidence of Customs duty on the import content of the export product. The neutralisation shall be provided by way of grant of duty credit against the export product. Under the DEPB, an exporter may apply for credit, as a specified percentage of FOB value of exports, made in freely convertible currency.
DEPB Scheme has been extended till December 31, 2009.
Duty Free Replenishment Certificate (DFRC) shall be available for exports only up to 30.04.2006. This scheme is being replaced by the Duty Free Import Authorisation (DFIA) w.e.f. 01.05.2006.
2. Duty Free Import Authorisation (DFIA)
This scheme will come into force from 1st May, 2006.
A Duty Free Import Authorisation is issued to allow duty free import of inputs which are used in the manufacture of the export product (making normal allowance for wastage), and fuel, energy, catalyst etc. which are consumed or utilised in the course of their use to obtain the export product.
The Authorisation shall be issued on the basis of inputs and export items given under Standard Input and Output Norms (SION). The import entitlement shall be limited to the quantity mentioned in SION.
Such Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s)
A minimum 20% value addition shall be required for issuance of such Authorisation
Once export obligation has been fulfilled, request for transferability of the Authorisation or the inputs imported against it may be made before the Regional Authority. Once, transferability is endorsed, the Authorisation holder will be at liberty to transfer the duty free inputs, other than fuel and any other item (s) notified by DGFT for this purpose.
DFIA
Advance Authorisation Scheme
Transferability
Conditional
Actual User Clause
Value Addition
Minimum 20%
Positive Value Addition
Basis of Application
Only SION Based
SION or Self Declared Basis
3. EPCG SCHEME
The EPCG scheme allows import of capital goods for pre production, production and post production at 3% Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported to be fulfilled over a period of 8 years reckoned from the date of issuance of the authorisation.
The capital goods shall include spares (including refurbished/ reconditioned spares), tools, jigs, fixtures, dies and moulds. EPCG Authorisation may also be issued for import of components of such capital goods required for assembly or manufacturer of capital goods by the authorisation holder.
An EPCG authorisation can also be issued for import of capital goods for supply to projects notified by the Central Board of Excise and Customs under wherein the basic customs duty on imports is 10% with a CVD of 14%.
Payment of Duty under EPCG Scheme, through debit of DEPB or other duty credit scrips would be allowed w.e.f. 01.01.2009
4. DEEMED EXPORTS
“Deemed Exports" refers to those transactions in which the goods supplied do not leave the country and the payment for such supplies is received either in Indian rupees or in free foreign exchange
Deemed exports shall be eligible for any / all of the following benefits in respect of manufacture and supply of goods qualifying as deemed exports subject to the terms and conditions as given in Handbook (Vol. I) viz.:--
i. Benefit of duty free imports of inputs;
ii. Refund of Terminal Excise Duty;
Supply of goods will be eligible for refund of Terminal Excise Duty provided the recipient of the goods does not avail CENVAT credit / rebate on such goods. Similarly, supplies will be eligible for deemed export drawback on the Central Excise paid on inputs /components, provided CENVAT credit facility/rebate has not been availed by the applicant. Such supplies will however be eligible for deemed export drawback on the customs duty paid on the inputs /components.
5. STATUS HOLDERS
Merchant as well as Manufacturer Exporters, Service Providers, Export Oriented Units (EOUs) and Units located in Special Economic Zones (SEZs), Agri Export Zone (AEZs), Electronic Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio Technology Parks (BTPs) shall be eligible for status.
Applicant shall be categorized depending on his total FOB (FOR - for deemed exports) export performance during current plus previous three years (taken together) upon exceeding limit below. For Export House (EH) Status, export performance is necessary in at least two out of four years (i.e., current plus previous three years).
Category Performance
(Rupees in Crores)
Export House (EH)20
Star Export House (SEH)100
Trading House (TH)500
Star Trading House (STH)2500
Premier Trading House (PTH)10000
A Status Holder shall be eligible for the following facilities:
-Authorisations and Customs clearances for both imports and exports on self-declaration basis;
-Fixation of Input-Output norms on priority within 60 days;
-Exemption from compulsory negotiation of documents through banks. Remittance / Receipts, however, would be received through banking channels;
-100% retention of foreign exchange in EEFC account;
-Enhancement in normal repatriation period from 180 days to 360 days;
-Exemption from furnishing of Bank Guarantee in Schemes under FTP;
-SEH and above shall be permitted to establish Export Warehouses as per DoR guidelines.
Target Plus Incentive previously available to Status Holders stands abolished for exports from 01.04.2006 vide Notification No: 57 (RE-2005)/2004-2009 dt: 31.03.2006. Relevant paragraph in the policy stands deleted.
6. Focus Market Scheme
The objective of the Focus Market Scheme is to offset the high freight cost and other disabilities to select international markets with a view to enhance our export competitiveness to these countries.
Exports of all products to the notified countries shall be entitled for duty credit scrip equivalent to 2.5% of the FOB value of exports for each licensing year commencing from 1st April, 2006. The scrip and the items imported against it would be freely transferable.
Under the Scheme, export to all countries as specified in the Handbook of Procedures (Vol. I) shall qualify for export benefits with certain exceptions as outlined.
The Duty Credit may be used for import of inputs or goods including capital goods, provided the same is freely importable under ITC (HS).
Exporters shall have the option to apply for benefit either under the Focus Market Scheme or under the Focus Product Scheme or under Vishesh Krishi and Gram Udyog Yojana in respect of the same exported product/s.
7. Focus Product Scheme
The objective of the Focus Product Scheme is to incentivise export of such products which have high employment intensity in rural and semi urban areas so as to offset the inherent infrastructure inefficiencies and other associated costs involved in marketing of these products.
Exports of notified products to all countries shall be entitled for duty credit scrip equivalent to 1.25% of the FOB value of exports for each licensing year commencing from 1st April, 2006. The scrip and the items imported against it would be freely transferable.
Under the Scheme, export of such products as specified in the Handbook of Procedures (Vol. I) shall qualify for export benefits with certain exceptions as outlined.
The Duty Credit may be used for import of inputs or goods including capital goods, provided the same is freely importable under ITC (HS).
Exporters shall have the option to apply for benefit either under the Focus Market Scheme or under the Focus Product Scheme or under Vishesh Krishi and Gram Udyog Yojana in respect of the same exported product/s.
8. Vishesh Krishi Gram and Upaj Yojana (VKGUY)
The objective of the Vishesh Krishi Gram Upaj Yojana (VKGUY) is to promote exports of:
a) Agricultural produce and their Value added products;
b) Minor Forest Produce and their value added variants;
c) Gram Udyog Products;
d) Forest Based Products
Duty scrip benefits are granted with aim to compensate high transport costs. Exporters of notified products shall be entitled for duty credit scrip equivalent to 5.00% of the FOB value of exports. The scrip and the items imported against it would be freely transferable.
All Status Holders shall be incentivised with duty credit script equal to 10% of FOB value of agricultural exports which can be used for duty free import / procurement of capital goods related to infrastructure meant for agro-processing to promote agricultural exports.
Under the Scheme, export of such products as specified in the Handbook of Procedures (Vol. I) shall qualify for export benefits with certain exceptions as outlined.
The Duty Credit may be used for import of inputs or goods including capital goods, provided the same is freely importable under ITC (HS).
Exporters shall have the option to apply for benefit either under the Focus Market Scheme or under the Focus Product Scheme or under Vishesh Krishi and Gram Udyog Yojana in respect of the same exported product/s.
10. 100% EOU, SEZ, etc.
Units undertaking to export their entire production of goods and services (except permissible sales in the DTA), may be set up under the Export Oriented Unit (EOU) Scheme, Electronic Hardware Technology Park (EHTP) Scheme, Software Technology Park (STP) Scheme or Bio-Technology Park (BTP) scheme for manufacture of goods, including repair, re-making, reconditioning, re-engineering and rendering of services. Trading units, however, are not covered under these schemes.
Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.SEZ units may be set up for manufacture of goods and rendering of services.
Goods and services going into the SEZ area from DTA shall be treated as exports and goods coming from the SEZ area into DTA shall be treated as if these are being imported. The Income Tax exemption previously available to 100% EOUs u/s 10B of the IT Act, till 31.03.2009 has been extended for one more year.
Clientele
Balmer lawrie & Co.Ltd
G.S.Oils Ltd
GIS Cotton Mill Ltd
SSK Exports Ltd
Pushp Krishi Udyog
Vikrma Impex Pvt Ltd
The North-Western Cachar Tea Co. Ltd
Phoenix Overseas Pvt Ltd
Lumens India
Luminious International
F.Ahmed & Company
G.S.Oils Ltd
GIS Cotton Mill Ltd
SSK Exports Ltd
Pushp Krishi Udyog
Vikrma Impex Pvt Ltd
The North-Western Cachar Tea Co. Ltd
Phoenix Overseas Pvt Ltd
Lumens India
Luminious International
F.Ahmed & Company
Frequently Asked Questions
1. IEC (Importer Exporter Code)
1) What is an IEC Certificate and who can procure it?
a. IEC stand for Import Export Code Certificate issued by the Director General of Foreign trade registering an individual, firm, organization, entity, etc as an Exporter or Importer.
b. An IEC can be obtained by any PAN Holder desirous of conducting Exports or Imports.
2) What is the tenure of an IEC?
a. An IEC once issued is permanent in nature till the same is surrendered by the IEC holder or cancelled by the Licencing Authority upon any default made be the IEC holder.
3) How often is the IEC required to be updated?
a. An IEC once issued needs to be updated within 90 days in the case of the following:
1. If there is any change in the
1. Name of the IEC holder;
2. Address of Registered / Branch office / Factory address;
3. Constitution viz. Change in Directors, conversion from Proprietorship concern to Firm, Firm to Company, Pvt Ltd to Public Ltd, change in Bank details, etc.
4. PAN Details of the IEC holder.
2. Any change is required by the Government for moving towards an Integrated One Number Regime;
b. Upon the change being intimated beyond a period of 90 days, the changes shall be registered by the RLA upon payment of a penalty;
2. DEPB
1) What is DEPB?
a. Duty Entitlement Pass Book (DEPB) is a Duty Credit Entitlement issued on Post Export Basis to neutralise the incidence of Customs duty on the import content of the export product.
2) Who can claim a DEPB Entitlement?
a. Under the DEPB scheme, an exporter may apply for credit, as a specified percentage of FOB value of exports, made in freely convertible currency.
3) How does an exporter ascertain the eligibility of his product to claim DEPB?
a. Eligibility for claim of DEPB can be ascertained with reference to the DEPB Schedule wherein the description of the export product is either
1. On basis of manufacturing process i.e. forging, casting, extrusion, etc. or
2. On basis of content i.e. ferrous / non ferrous, alloy / non alloy, etc.
4) What if the export product is not mentioned in the DEPB Schedule?
a. In such case, exporter should undertake the exercise of getting SION (Standard Input Output Norms) fixed for his product and subsequently move for fixation of DEPB Rates.
b. For this, the exporter should be very clear of implication of custom duty and excise on input stage level for his product and effect of the tax component on his pricing.
5) How can this Duty Credit Entitlement be used?
a. Such DEPB claimed can be used in either of 2 ways:
1. To meet incidence of Customs duty of imports conducted be himself; or
2. Transfer such DEPB to an Importer against consideration;
3. ADVANCE AUTHORISATION
1) What is an Advance Authorisation?
a. An Advance Authorisation is issued to allow duty free import of inputs, which are physically incorporated in the export product. The underlying principal is to make available all kinds of inputs to an exporter free from duties and taxes.
b. Such authorisations are exempted from payment of basic customs duty, additional customs duty, education cess, anti dumping duty and safeguard duty, if any
c. Advance Authorisation can be issued for:
1. Physical Exports;
2. Intermediate Supplies;
3. Deemed Exports;
2) Who can apply for an Advance Authorisation?
a. A manufacturer – exporter can apply.
b. A merchant exporter can also apply on the basis of a tie up arrangement with a supporting manufacturer.
3) What forms the basis of applying for an Advance Authorisation?
a. Govt. of India has announced SION for around 7200+ items against which an Advance Authorisation can be procured.
b. However there exists a provision for getting an Advance Authorisation on self declared norms which subsequently goes for ratification with the office of DGFT, New Delhi.
4) What are the conditions governing an Advance Authorisation?
a. Advance Authorisation and / or materials imported there under shall not be transferable even after completion of export obligation, i.e. Actual User condition applies.
b. Advance Authorisation shall be issued with a positive value addition while undertaking an Export Obligation against the duty free imports.
5) What is the necessity for a Bank Guarantee?
a. Whenever an exporter undertakes the imports before exports, he shall have to provide to the customs authority a bank guarantee to the tune of the duty that would be saved on such imports.
b. However the exporter is allowed to release the goods on LUT (Legal Undertaking) in lieu of a BG in specified cases.
6) Is it necessary to always import the goods first?
a. The exporter is allowed to procure the goods locally from an indigenous supplier against the advance authorisation.
b. In cases where exports are conducted prior to imports, no Bank guarantee shall be required.
7) What is the validity of the authorisation?
a. Validity of the authorisation is 24 months from date of issue for both and export and import with a provision of extension for both on paying appropriate fees.
8) Which exports are considered in fulfillment of E.O.?
a. The export made has to be a DEEC shipment in the Customs records to be qualified as an export against the advance authorisation.
b. The E.O. is treated to be fulfilled when proper accounting is being placed before the regional authority who when satisfied will issue a discharge letter.
4. Others
1. What qualifies as “Capital Goods” for the EPCG Scheme?
a. "Capital Goods" means any plant machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernisation, technological upgradation or expansion.
b. Capital goods also include packaging machinery and equipment, refractories for initial lining, refrigeration equipment, power generating sets, machine tools, catalysts for initial charge, equipment and instruments for testing, research and development, quality and pollution control.
c. Capital goods may be for use in manufacturing, mining, agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture and viticulture as well as for use in the services sector.
2. Who can get exemption from Bank Guarantee?
a. All the exporters who have an export turnover of at least Rupees 5 Crore in the current or preceding licencing year and have a good track record of three years of exports will be exempted from furnishing a BG for any of the schemes under this Policy and may furnish a LUT in lieu of BG.
3. Is Export of Spares allowed? a. Warranty spares, whether indigenous or imported, of plant, equipment, machinery, automobiles or any other goods, except those restricted under ITC (HS), may be exported along with the main equipment or subsequently but within the contracted warranty period of such goods subject to approval of RBI.
1) What is an IEC Certificate and who can procure it?
a. IEC stand for Import Export Code Certificate issued by the Director General of Foreign trade registering an individual, firm, organization, entity, etc as an Exporter or Importer.
b. An IEC can be obtained by any PAN Holder desirous of conducting Exports or Imports.
2) What is the tenure of an IEC?
a. An IEC once issued is permanent in nature till the same is surrendered by the IEC holder or cancelled by the Licencing Authority upon any default made be the IEC holder.
3) How often is the IEC required to be updated?
a. An IEC once issued needs to be updated within 90 days in the case of the following:
1. If there is any change in the
1. Name of the IEC holder;
2. Address of Registered / Branch office / Factory address;
3. Constitution viz. Change in Directors, conversion from Proprietorship concern to Firm, Firm to Company, Pvt Ltd to Public Ltd, change in Bank details, etc.
4. PAN Details of the IEC holder.
2. Any change is required by the Government for moving towards an Integrated One Number Regime;
b. Upon the change being intimated beyond a period of 90 days, the changes shall be registered by the RLA upon payment of a penalty;
2. DEPB
1) What is DEPB?
a. Duty Entitlement Pass Book (DEPB) is a Duty Credit Entitlement issued on Post Export Basis to neutralise the incidence of Customs duty on the import content of the export product.
2) Who can claim a DEPB Entitlement?
a. Under the DEPB scheme, an exporter may apply for credit, as a specified percentage of FOB value of exports, made in freely convertible currency.
3) How does an exporter ascertain the eligibility of his product to claim DEPB?
a. Eligibility for claim of DEPB can be ascertained with reference to the DEPB Schedule wherein the description of the export product is either
1. On basis of manufacturing process i.e. forging, casting, extrusion, etc. or
2. On basis of content i.e. ferrous / non ferrous, alloy / non alloy, etc.
4) What if the export product is not mentioned in the DEPB Schedule?
a. In such case, exporter should undertake the exercise of getting SION (Standard Input Output Norms) fixed for his product and subsequently move for fixation of DEPB Rates.
b. For this, the exporter should be very clear of implication of custom duty and excise on input stage level for his product and effect of the tax component on his pricing.
5) How can this Duty Credit Entitlement be used?
a. Such DEPB claimed can be used in either of 2 ways:
1. To meet incidence of Customs duty of imports conducted be himself; or
2. Transfer such DEPB to an Importer against consideration;
3. ADVANCE AUTHORISATION
1) What is an Advance Authorisation?
a. An Advance Authorisation is issued to allow duty free import of inputs, which are physically incorporated in the export product. The underlying principal is to make available all kinds of inputs to an exporter free from duties and taxes.
b. Such authorisations are exempted from payment of basic customs duty, additional customs duty, education cess, anti dumping duty and safeguard duty, if any
c. Advance Authorisation can be issued for:
1. Physical Exports;
2. Intermediate Supplies;
3. Deemed Exports;
2) Who can apply for an Advance Authorisation?
a. A manufacturer – exporter can apply.
b. A merchant exporter can also apply on the basis of a tie up arrangement with a supporting manufacturer.
3) What forms the basis of applying for an Advance Authorisation?
a. Govt. of India has announced SION for around 7200+ items against which an Advance Authorisation can be procured.
b. However there exists a provision for getting an Advance Authorisation on self declared norms which subsequently goes for ratification with the office of DGFT, New Delhi.
4) What are the conditions governing an Advance Authorisation?
a. Advance Authorisation and / or materials imported there under shall not be transferable even after completion of export obligation, i.e. Actual User condition applies.
b. Advance Authorisation shall be issued with a positive value addition while undertaking an Export Obligation against the duty free imports.
5) What is the necessity for a Bank Guarantee?
a. Whenever an exporter undertakes the imports before exports, he shall have to provide to the customs authority a bank guarantee to the tune of the duty that would be saved on such imports.
b. However the exporter is allowed to release the goods on LUT (Legal Undertaking) in lieu of a BG in specified cases.
6) Is it necessary to always import the goods first?
a. The exporter is allowed to procure the goods locally from an indigenous supplier against the advance authorisation.
b. In cases where exports are conducted prior to imports, no Bank guarantee shall be required.
7) What is the validity of the authorisation?
a. Validity of the authorisation is 24 months from date of issue for both and export and import with a provision of extension for both on paying appropriate fees.
8) Which exports are considered in fulfillment of E.O.?
a. The export made has to be a DEEC shipment in the Customs records to be qualified as an export against the advance authorisation.
b. The E.O. is treated to be fulfilled when proper accounting is being placed before the regional authority who when satisfied will issue a discharge letter.
4. Others
1. What qualifies as “Capital Goods” for the EPCG Scheme?
a. "Capital Goods" means any plant machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernisation, technological upgradation or expansion.
b. Capital goods also include packaging machinery and equipment, refractories for initial lining, refrigeration equipment, power generating sets, machine tools, catalysts for initial charge, equipment and instruments for testing, research and development, quality and pollution control.
c. Capital goods may be for use in manufacturing, mining, agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture and viticulture as well as for use in the services sector.
2. Who can get exemption from Bank Guarantee?
a. All the exporters who have an export turnover of at least Rupees 5 Crore in the current or preceding licencing year and have a good track record of three years of exports will be exempted from furnishing a BG for any of the schemes under this Policy and may furnish a LUT in lieu of BG.
3. Is Export of Spares allowed? a. Warranty spares, whether indigenous or imported, of plant, equipment, machinery, automobiles or any other goods, except those restricted under ITC (HS), may be exported along with the main equipment or subsequently but within the contracted warranty period of such goods subject to approval of RBI.
Contact Us
SRS INTERNATIONAL
59,K.C.GHOSH ROAD, C-206
KOLKATA – 700 050
PHONE: 033- 25467968
MOBILE: +91 9230581014
FAX : 033 -25283625
EMAIL: srsinter@gmail.com
Subscribe to:
Posts (Atom)
