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Amendments in Handbook of Procedures (Vol. I) - Chapter 3
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Co-licensee endorsement enables supporting manufacturers to import directly and amends existing duty credit scrips accordingly.
Licensing Authority may endorse supporting manufacturers named in shipping bills as co-licensees, enabling them to import directly; listed supporting manufacturers are deemed co-licensees under the Target Plus Scheme and existing Duty Credit scrips issued under that scheme are deemed amended accordingly.
Amendment in the provisions for fixation of Brand Rate for the purpose of claiming Duty Drawback
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Brand rate fixation for duty drawback permits ANF filing when All Industry Rate unavailable or lower, with supplier disclaimer.
The Handbook amendment allows fixation of a brand rate for duty drawback where the All Industry Rate is unavailable or lower than duties actually paid; applicants must submit an ANF application with prescribed documents and produce a supplier disclaimer plus a self-declaration in Appendix 22C confirming non availment of CENVAT credit.
Amendments in the Hand Book of Procedures(Vol.I),2004-2009
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VKGUY scheme benefits extended to specified handmade carpets with mandatory Carpet EPC RCMC and eligibility limits.
VKGUY Product Code 09.25 is added to Appendix 37A Table 9 to cover specified ITC HS codes for handmade carpets of wool, silk and other textiles, with benefits admissible from 1.4.2007. The entry excludes cotton, jute and coir carpets; KVIC/KVIB sourcing/registration requirement is waived for exports w.e.f. 1.4.2007. 'Handmade' is defined to include various hand processes. Submission of an RCMC from the Carpet EPC is mandatory before grant of VKGUY benefits, and exporters already granted Focus Product/Focus Market benefits for shipments w.e.f. 1.4.2007 are ineligible for these VKGUY benefits.
EDI Shipping Bills
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EDI shipping bills exemption from physical EP copy submission-server access will suffice for DEPB processing, originals callable.
EP copy of EDI shipping bills need not be submitted with DEPB E.Com applications because the office will access EDI shipping bills directly on the server. The office reserves the right to call for the original shipping bill where electronic records are incomplete or differ from submitted applications, and DEPB applications based on non EDI/manual shipping bills must continue to include the original EP copy.
Explanatory note with respect to EPCG licence - Public Notice No.99 ( RE-2007) 2004-09 dated 08.01.2008
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EPCG licence export obligation rules require average export maintenance and allow additional export fulfilment to subsume prior licence obligations.
EPCG licence issuance sets an average export requirement based on the preceding three years and imposes an additional export obligation tied to the duty saved on each licence; successive licences record prior additional export obligations. Fulfilment of an earlier licence's additional export obligation, while maintaining the average export level, subsumes corresponding prior additional obligations on later licences. Exports after licence redemption are included when calculating the three-year average. Other Handbook of Procedures conditions remain unchanged.
Validity of Registration-cum-Membership Certificate(RCMC) and Councils authorized to issue RCMC
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RCMC validity required on date of application for trade benefits; prior RCMCs remain acceptable until expiry after business change.
RCMCs must be valid on the date of application for any authorization, benefit or concession under the Foreign Trade Policy; exporters must obtain RCMCs from the Council concerned with their declared main line of business, and where the main line changes after issuance the existing RCMC remains acceptable until expiry.
Amendments in the Hand Book of Procedures(Vol.I),2004-2009 - Prescribing last date for filing of applications under FMS, FPS (including High-Tech Products Export Promotion Scheme benefits).
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Last date for filing applications under FMS and FPS: six months from realisation; transitional cutoff for prior realisations.
Applications for FMS and FPS benefits (including High Tech products) must be filed within six months from date of realisation; eligibility for Focus Product and Focus Market is determined from date of export per Para 9.12. For exports realised before this notice, a transitional final filing cutoff is provided. The amendments apply to exports of 2006 07 and 2007 08 realised up to the notice date, permit multiple FPS applications without supplementary cuts for those years, and require existing applications to be finalised under the amended procedure without calling revised forms.
Amendments in the Hand Book of Procedures(Vol.I),2004-2009 - Procedure for claiming Deemed Exports Drawback & Terminal Excise Duty Refund/ Exemption from payment of Terminal Excise Duty.
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Claiming deemed export relief: deadline and payment-linked refund conditions clarified for TED refund and duty drawback.
Amendments require claims for deemed export drawback and TED refund to be filed within twelve months measured from payment or supply, with payment through normal banking channels; full TED refund is conditional on 100% physical supply and receipt of at least ninety percent payment, while deemed export drawback is limited to the extent of payment received. For certain project-related supplies, claims may be filed on proof of supply or payment, including part payments, against individual projects or all projects.
Amendments in the Hand Book of Procedures(Vol.I),2004-2009
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Proportionate allocation of duty credit scrips ensures status holders share capped half year benefits under DGFT procedure.
Allocation of duty credit scrips by RA/CLA, New Delhi, shall be proportionate to each status holder's eligible claim vis a vis the total eligible claims received for the half year, and adjusted so the aggregate benefits for all status holders do not exceed the half year ceiling prescribed in the Foreign Trade Policy.
Foreign Trade Procedure – Amendment in Focus Product Scheme, High-Tech Products Export Promotion Scheme and Revised ANF 3E for Focus Product Scheme
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Focus Product Scheme filing rules: separate year-wise applications, EDI and non-EDI shipments segregated and specific port registration required.
Applications for exports in 2006 07 and 2007 08 must be filed separately in ANF 3E (FPS) or ANF 3D (FMS); each application may contain up to fifty shipping bills, with multiple applications allowed without supplementary cut. EDI and non EDI port shipments cannot be clubbed; port of registration for EDI exports may be any chosen EDI port, while non EDI exports require separate applications tied to the relevant non EDI port. Filing deadlines are six months from realisation or export (advance payment), with a special interim final date for specified 2007 08 exports. Revised ANF forms, declarations and acceptable proofs of landing are annexed.
Export of restricted/ Prohibited items, clarification regarding eligibility under Schemes under Chapter 3 of FTP 2004
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Export eligibility: Restricted or prohibited items are ineligible for VKGUY and focus-scheme incentives under FTP.
Exports of items classified as restricted or prohibited under the ITC HS itemized policy are ineligible for VKGUY and other Chapter 3 scheme benefits even if exports were permitted earlier; the date of export is to be determined per the Handbook of Procedures, and the same ineligibility applies mutatis mutandis to Focus Market, Focus Product and High-Tech Products Export Promotion Schemes.
Amendments in the Hand Book of Procedures(Vol.I),2004-2009 - EPCG Scheme - Unredeemed additional Export Obligation to be shown separately
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Additional Export Obligation must be shown separately for unredeemed EPCG licences under amended Handbook of Procedures.
Amendment requires that Additional Export Obligation for all previous EPCG licences that have not been redeemed be indicated separately, inserted at the end of paragraph 5.7.4 of the Handbook of Procedures (Vol. I) pursuant to powers under Paragraph 2.4 of the Foreign Trade Policy.
Appendix 37A, VKGUY product codes No 9.19 and 9.20 stands deleted, w.e.f 01/04/2006
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Deletion of VKGUY product codes removes inadvertent entries and modifies KVIC/KVIB sourcing note for certain exports.
Appendix 37A is amended: VKGUY product codes 9.19 and 9.20 are deleted as inadvertent inclusions effective 1 April 2006, and the Table 9 note on sourcing/registration by KVIC/KVIB is modified so it shall not apply to VKGUY codes 9.1, 9.4 and 9.12 for exports from that effective date, under powers of Paragraph 2.4 of the Foreign Trade Policy 2004-2009.
Submission of Applications in terms of para 3.8.6 of FTP.
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Duty credit scrip applications under para 3.8.6 require one submission per half-year and strict filing windows.
Status holders may apply for duty credit scrip under para 3.8.6 using the prescribed ANF and supporting documents; one application is permitted per half year export period, filed within the specified windows. Late applications will be summarily rejected and paras 9.2 and 9.3 do not apply; export date will be determined per para 9.12. The application fee equals that for VKGUY benefits under para 3.8.2. Submissions must be made manually at the Zonal Office, CLA, New Delhi, at the designated counter.
Amendments in the Hand Book of Procedures(Vol.I),2004-2009 - Authorized Quality Council of India
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Authorized quality certification: NABCB-accredited agencies deemed authorized under trade policy with appendix listing and enlistment procedure.
Amendment to the Handbook of Procedures deems agencies accredited by the National Accreditation Board for Certification Bodies under the Quality Council of India to be authorized to grant ISO 9000 and ISO 14000 certifications for the Foreign Trade Policy and directs users to Appendix 6 for the list of such agencies. Appendix 6 is updated to list accredited QMS and EMS certification bodies, identify authorities for WHO GMP, HACCP and SEI/CMM certification, and prescribes an application form, supporting documents, fees and a Declaration Cum Undertaking for enlistment or modification of agency particulars.
Corrigendum to Public Notice No.61, dated 8.10.2007..
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Special Certification requirement applies EC regulation for complementary sugar; mandates EUR and GSP entries under corrigendum.
The Director General of Foreign Trade issues a corrigendum replacing paragraph 3 of the earlier public notice to prescribe specific Special Certification entries to be made in EUR and GSP documents for raw sugar exports to the EU, directing application of the relevant EC regulation on complementary sugar and the corresponding regulatory serial reference.
Corrigendum to Public Notice No.62, dated 8.10.2007
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Special certification requirement updated: EUR and GSP entries to cite Regulation (EC) 950/2006 for ACP/India sugar exports.
The DGFT corrigendum amends Public Notice No. 62 by replacing the seasonal reference with the 2007-2008 season's production and substituting Para 3 to mandate that EUR and GSP entries state: "Application of Regulation (EC) No. 950/2006, ACP/India Sugar, Serial No. 09.4337," as the Special Certification requirement for the specified sugar export.
Amendments in the Hand Book of Procedure (Vol.1), 2004-2009 - Export to SEZ Units/ Supplies to Developers/Co-developers, irrespective of currency of realization, would also be counted for discharge of Export Obligation.
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Export Obligation discharge: supplies to SEZ units and developers count regardless of currency of realization for compliance.
Exports to Special Economic Zone units and supplies to developers or co developers shall be counted for discharge of export obligation irrespective of the currency of realization, by amendment to the Handbook of Procedures (Vol. I) under the Foreign Trade Policy.
Service not originating from India and Served From India Scheme (SFIS) for service providers, clarification thereof
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Services originating from India: only India origin services qualify for SFIS benefits, excluding foreign performed service components.
SFIS benefits are limited to export of services originating from India; services provided wholly or partly abroad are not eligible. The Service Provider definition requires supply "from India," and payments to foreign providers for services performed outside India cannot be treated as India origin services. Telecom and software receipts attributable to non India origin (e.g., global roaming, offshore development) are excluded; telecom FX is to be measured as receivables minus payables. Airlines and shipping must provide route wise bifurcation so only receipts for routes originating in or touching India are considered.
Merger(s) and Acquisition(s) of companies and /or firms during 1.4.2002 to 31.3.2006 and consequential grant of benefits under DFCE for status Holders' Scheme of the then EXIM policy and under Target Plus Scheme of Foreign Trade Policy, clarification thereof
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Eligibility criteria for export reward schemes clarified: pre merger turnover governs eligibility, incremental growth measured on combined pre and post merger turnover.
Principles for awarding DFCE for Status Holders and Target Plus benefits after mergers/acquisitions: eligibility requires any pre merger company/firm to have met the Eligibility Criteria prior to merger; incremental growth percentage, quantum and rate of entitlement are to be assessed on the total of pre merged and post merged eligible export turnover; and the TPS cap is applied only to the pre merger eligible export turnover of the eligible pre merged company/firm in the base year.

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