Pre-Authenticated Procurment Certificate / CT-3 - STPI Units

[Kapil Bihani]

Hi Seek Expertise advice on the below.

As per FTP 2015-20 under D. Other new Initiatives 12. New initiatives for EOUs, EHTPs and STPs (i) EOUs having physical export turnover of ₹ 10 crore and above, have been allowed the facility of fast track clearances of import and domestic procurement. They will be allowed fast tract clearances of goods, for export production, on the basis of pre-authenticated procurement certificate, issued by customs / central excise authorities. They will not have to seek procurement permission for every import consignment.

Clarification sought - In case of STPI Units there will be no physical exports hence are they not liable for pre-authenticate procurement certificate / CT3 even their SOFTEX is more than 10 Crores?

AI Summary

Pre-authenticated procurement certificate: applicability limited to units with physical export turnover, excluding non physical export STPI units. FTP 2015-20 permits pre authenticated procurement certificates for fast track import and domestic procurement clearances for units meeting a specified physical export turnover; the provision requires issuance by customs/central excise and is conditional on physical export turnover, raising the question whether STPI units with high SOFTEX but no physical exports qualify for this facility.