TaxTMI 
TaxTMI 
DUTY EXEMPTION & REMISSION SCHEMES
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..../ FOR value of supply received. B CIF value of inputs covered by authorisation, plus any other imported materials used on which benefit of DBK is claimed. ADVANCE AUTHORISATION SCHEME Advance Authorisation 4.1.3 An Advance Authorisation is issued to allow duty free import of inputs, which are physically incorporated in export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts which are consumed / utilised to obtain export product, may also be allowed. DGFT, by means of Public Notice, may exclude any product(s) from purview of Advance Authorisation. Duty free import of mandatory spares upto 10% of CIF value of Authorisation which are required to be exported / supplied with resultant product are allowed under Advance Authorisation. Advance Authorisations are issued for inputs and export items given under SION. These can also be issued on the basis of Adhoc norms or self declared norms as per para 4.7 of HBP v1. Advance Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s) for: i) Physical exports (including exports to SEZ); and/ or ....
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....n issue date. Validity period of Advance Authorisation for import shall be as prescribed in HBP v1. Free of Cost Supply by Foreign Buyer 4.1.8 Facility of Advance Authorisation shall also be available where some or all inputs are supplied free of cost to exporter by foreign buyer. In such cases, for calculation of VA, notional value of free of cost inputs along with value of other duty-free inputs shall be taken into consideration. However, if all inputs are supplied free of cost, exporter shall also have option to follow provision prescribed by DoR. Export Obligation 4.1.9 Period for fulfillment of export obligation under Advance Authorisation shall be as prescribed in HBP v1. Provision for BIFR units 4.1.9A Any firm / company registered with BIFR or any firm / company acquiring a unit, which is under BIFR shall be allowed Export Obligation Period (EOP) extension as per rehabilitation package prepared subject to approval of BIFR or 5 years if not specified, without payment of composition fee. Above provisions apply also to SSI units as per rehabilitation scheme of concerned State government. Advance Authorisation for Annual Requirement ....
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....copy endorsed to DGFT. Similarly prohibited items of exports mentioned in ITC (HS) shall not be exported under Advance Authorisation / DFIA scheme. Export of restricted items shall be subject to all conditionalities or requirements of export Authorisation or permission, as may be required, under Schedule II of ITC (HS). Admissibility Drawback 4.1.14 In case of an Advance Authorisation, drawback shall be available for any duty paid material, whether imported or indigenous, used in goods exported, as per drawback rate fixed by DoR, Ministry of Finance (Directorate of Drawback). Drawback allowed shall be mentioned in Authorisation. DUTY FREE REPLENISHMENT CERTIFICATE 4.2 Deleted. 4.2.1 to 4.2.8 Deleted. 4.2.9 Scheme has been withdrawn for exports with effect from 1.5.2006. Exports made till 30.4.2006 shall be governed by chapter 4 of FTP (as amended upto 31.3.2007). DUTY ENTITLEMENT PASSBOOK (DEPB) SCHEME Duty Entitlement Passbook Scheme (DEPB) 4.3 Objective of DEPB is to neutralise incidence of customs duty on import content of export product. Component of Special Additional Duty and customs duty on fuel shall also be all....
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....ng duty and safeguard duty, if any. Import items 4.4.3 Provisions of paragraphs 4.1.11, 4.1.12, 4.1.13 and 4.1.14 of FTP shall be applicable for DFIA holder. Value Addition 4.4.4 A minimum 20% value addition shall be required for issuance of such authorisation except for items in gems and jewellery sector for which value addition would be as per paragraph 4A.2.1 of HBP v1. Items for which higher value addition is prescribed under Advance Authorisation Scheme shall be applicable. Export Obligation 4.4.5 Procedure and time period related to fulfillment of Export Obligation have been laid down in Chapter 4 of HBP v1. Transferability 4.4.6 Once export obligation has been fulfilled, request for transferability of Authorisation or inputs imported against it may be made before concerned RA. Once, transferability is endorsed, Authorisation holder may transfer DFIA or duty free inputs, except fuel and any other item(s) notified by DGFT. However, for fuel, import entitlement may be transferred only to companies which have been granted authorisation to market fuel by Ministry of Petroleum and Natural Gas. ^2Once transferability is endorsed, imports / dom....
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....laboratories with re-import facility at zero duty within 3 months as per DoR guidelines. Schemes for Gold Silver/ Platinum Jewellery / 4A.3 Exporters of gold / silver / platinum jewellery and articles thereof may import their essential inputs such as gold, silver, platinum, mountings, findings, rough gems, precious and semi-precious stones, synthetic stones and unprocessed pearls etc. in accordance with the procedure specified in this behalf Nominated Agencies 4A.4 Nominated agencies are MMTC Ltd, Handicraft and Handloom Export Corporation (HHEC), State Trading Corporation (STC), the Project and Equipment Corporation of India Ltd (PEC), Premier Trading House under Paragraph 3.5.2 of FTP and any other agency authorised by RBI. Exporters (except EOU / units in SEZ) may obtain gold / silver / platinum from nominated agency(s). A bank authorised by RBI is allowed export of gold scrap for refining and import standard gold bars as per RBI guidelines. Items of Export 4A.5 Following items, if exported, would be eligible for facilities: (a) Gold jewellery, including partly processed jewellery and articles including medallions and coins (excluding....
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....put for export products from nominated agencies in advance or as replenishment after exports in accordance with specified procedure. Export Against Advance Authorisation 4A.10 An Advance Authorisation may be granted for duty free import of: (a) Gold of fineness not less than 0.995 and mountings, sockets, frames and findings of 8 carats and above; (b) Silver of fineness not less than 0.995 and mountings, sockets, frames and findings containing more than 50% silver by weight; (c) Platinum of fineness not less than 0.900 and mountings, sockets, frames and findings containing more than 50% platinum by weight. 4A.11 Such authorisations shall carry an export obligation to be fulfilled as per procedure specified in paragraph 4A of HBP v1. Advance Authorisation holder may obtain gold / silver / platinum from nominated agencies in lieu of direct import. Gem Replenishment Authorisation 4A.12 Gem Replenishment (Gem & Jewellery REP) Authorisation may be issued as given in paragraphs 4A.8, 4A.9 and 4A.10 above. In case of plain or studded gold / silver / platinum jewellery and articles, value of such Authorisations shall be determin....
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....t or export of diamonds / coloured gemstones / diamond and coloured gemstones studded jewellery / plain gold jewellery and having an average annual turnover of Rs. 5 crore or above during preceding three licensing years may also carry out their business through designated Diamond Dollar Accounts (DDA). Dollars in such accounts available from bank finance and / or export proceeds shall be used only for (i) Import / purchase of rough diamonds from overseas / local sources; (ii) Purchase of cut and polished diamonds, coloured gemstones and plain gold jewellery from local sources; (iii)Import / purchase of gold from overseas / nominated agencies and repayment of dollar loans from the bank; and (iv)Transfer to Rupee Account of exporter. Details of this DDA Scheme are given in HBP v1. A non DDA holder is also permitted to supply cut and polished diamonds to DDA holder, receive payment in dollars and convert same into Rupees within 7 days. Cut and polished diamonds and coloured gemstones so supplied by non-DDA holder will also be counted towards discharge of his export obligation and / or entitle him to replenishment Authorisation. Export of cut & Po....