TaxTMI 
TaxTMI 
EXPORT ORIENTED UNITS (EOUs), ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs), SOFTWARE TECHNOLOGY PARKS (STPs) SCHEME AND BIO-TECHNOLOGY PARKS (BTPS).
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....nce by Board of Approval (BoA). 6.3.3 Proposals for setting up EOU requiring industrial licence may be granted approval by DC after clearance of proposal by BoA (as per Appendix 14-I-D) and Department of Industrial Policy and Promotion (DIPP) within 45 days on merits. 6.3.4.1 STP / EHTP complexes can be set up by Central Government, State Government, Public or Private Sector Undertakings or any combination thereof, duly approved by Inter-Ministerial Standing Committee (IMSC) in Ministry of Communication and Information Technology (Department of Information Technology). Application for setting up EHTP / STP unit shall be in format prescribed by Ministry of Communication and Information Technology (Department of Information Technology - DoIT) and shall be submitted to officer designated by DoIT . 6.3.4.2 BTP can be set up by Central Government, State Government, Public or Private Sector Undertakings or any combination thereof. Application for setting up of BTP shall be submitted to Department of Bio-Technology (DoBT) and such applications which meet guidelines prescribed by DoBT will be approved and recommended to DGFT for notification. Application for setting up of BTP unit....
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....tificate issued by nominated agency should not be older than 3 working days of date of shipment. 6.5.3 Exporter shall have flexibility to fix price and repay gold loan within 180 days from date of export. Price shall be communicated to nominated agencies who will issue a certificate showing final confirmation of rate to bank negotiating document, to ensure export proceeds are realized at this rate. 6.5.4 Gem & Jewellery and Jewellery EOUs may re-export imported goods and export domestically procured goods, including goods generated out of partial processing / manufacture. Besides, supply of unsuitable / broken cut and polished diamonds, precious and semi-precious stones upto 5% of value of imported or indigenously procured goods to DTA against valid Gem & Jewellery REP as applicable on payment of appropriate duty is also permitted. Import / Domestic Procurement of Goods 6.6.1 Goods permitted to be imported / procured from DTA shall include: (a) Raw materials, components, consumables, intermediates, spares and packing materials; (b) Capital goods, whether new or second-hand, including inter-alia following and their spares: (i) DG sets, captive power plants, transformers....
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....hich first import consignment is cleared by Customs Authorities. However in case of import of spices for VA purpose like crushing / grounding / sterlisation or for manufacture of oils and oleoresins and not for simple cleaning, grading, re-packing etc., EO shall be fulfilled within 120 days. (d) Goods already imported / shipped / arrived before issue of LoP / LoI are also eligible for duty free clearance under EOU / EHTP / STP / BTP scheme provided customs duty has not been paid and goods have not been cleared from Customs. Fax machines / laptop computers outside approved premises 6.8.1 EOU / EHTP / STP / BTP units may install one fax machine at a place of its choice, outside premises of unit, subject to intimation of its location to concerned Customs / Central Excise authorities. 6.8.2 EOU / EHTP / STP / BTP units may, temporarily take out of premises of unit duty free laptop computers and video projection systems for working upon by authorized employees. 6.8.3 EOU / EHTP / STP / BTP units may install personal computers not exceeding two in number, imported / procured duty free in their registered / administrative office subject to DoR guidelines. 6.8.4 For IT and I....
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....of homogenous goods imported / procured duty free, by way of exports, sales / supplies in DTA or transfer to other SEZ / EOU / EHTP / STP / BTP units and balance in stock. However, at no point of time units shall be required to correlate every import consignment with its exports, transfer to other SEZ / EOU/ EHTP / STP / BTP units, sales in DTA and balance in stock. Any matter for clarification as to whether goods are homogenous or not shall be decided by Units Approval Committee. Monitoring of NFE 6.12.1 Performance of EOUs shall be monitored by Units Approval Committee as per guidelines given in Appendix -14-I-G. Performance of EHTP / STP / BTP shall be monitored by DoIT / DoBT jointly with jurisdictional Central Excise / Customs authority. 6.12.2 Failure to ensure positive NFE or to abide by any of terms and conditions of LoP / LoI / IL / LUT shall render unit liable to penal action under provisions of FT (D&R) Act, 1992 and Rules and Orders made there under without prejudice to action under any other law / rules and cancellation or revocation of LoP / LoI / IL. Conversion of Scrap / dust /sweeping of Gold/ silver/platinum into standard Bars. 6.13 Scrap / dust / swee....
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....P / STP unit concerned. (c) Export orders so procured shall be executed within parameters of EOU / EHTP / STP / BTP schemes and goods shall be directly transferred from unit to port of shipment. (d) Fulfillment of NFE by EOU / EHTP / STP / BTP units in regard to such exports shall be reckoned on basis of price at which goods are supplied by EOUs to other Exporter or other EOU / EHTP / STP / BTP / SEZ unit. (e) All export entitlements, including recognition as Status Holder would accrue to exporter in whose name foreign exchange earnings are realized. However, such export shall be counted towards fulfillment of obligation under EOU / EHTP / STP / BTP scheme only. Other Entitlements 6.20.1 FOB value of export of an EOU / EHTP / STP / BTP unit can be clubbed with FOB value of exports of its parent company in DTA or vice versa for purpose of according Export House and Trading House status. 6.20.2 Sectoral norms as notified by Government shall apply to FDI in service activities. 6.20.3 Software units may also use computer system for training purpose (including commercial training) subject to condition that no computer terminal shall be installed outside bonded premises for....
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....ents, hangers and patterns and drawings to premises of sub-contractors subject to conditions that these shall be brought back to premises of units on completion of job work within a stipulated period. Raw materials may or may not be sent along with these goods. 6.21.5 In case of sub-contracting of production process abroad, goods may be exported from sub-contractor premises subject to conditions that job work charges shall be declared in export declaration forms, invoices etc. and full repatriation of foreign exchange. Contract farming 6.22 EOUs engaged in production / processing of agriculture / horticulture / aquaculture products, may, on basis of annual permission from Customs authorities, take out inputs and equipments (specified at Appendix 14-I-J) to DTA farm subject to following conditions:- (a) Supply of inputs by EOUs to contract farm(s) shall be subject to input-output norms approved by DGFT / BoA. (b) There shall be contract farming agreement between EOU and DTA farmer(s). (c) Unit has been in existence for at least two years and engaged in export of agriculture / horticulture / aquaculture products; otherwise it shall furnish bank guarantee equivalent to dut....
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....cels including through foreign bound passengers 6.27.1 Import / export through personal carriage of gem and jewellery items may be undertaken as per procedure prescribed by Customs. Export proceeds shall be realized through normal banking channel. Import / export through personal carriage, other than gem and jewellery units, shall be allowed provided goods are not in commercial quantity. 6.27.2 For Personal carriage of jewellery by foreign bound passenger, following documents shall be submitted by EOU units as proof of exports: (a) Copy of shipping bill filed by EOUs ; (b) A copy of Currency Declaration Form filed by Foreign buyer with Customs at time of his arrival; and (c) Foreign Exchange Realisation / Encashment Certificate from Bank. 6.27.3 In addition to this, Personal Carriage by foreign bound passenger on Document Against Acceptance (DA) / Cash On Delivery (COD) basis is also allowed. EOUs will have to furnish following documents as proof of exports:- (a) Copy of Shipping Bill; (b) Bank Certificate of Export and Realisation. 6.27.4 Procedure for personal carriage of import parcels will be same as for import of goods by airfreight except that parcels shall ....
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....an) computer and computer peripherals, including printer, plotter, scanner, monitor, keyboard and storage units without payment of duty, two years after their import / procurement and use by units, to a school run by Central Government, or Government of a State or, a Union Territory or, a local body, an Educational Institution run on non-commercial basis by any organization, a Registered Charitable Hospital, a Public Library, a Public Funded Research and Development Establishment , a Community Information Center run by Central Government or, Government of a State or, a Union Territory orlocal body, an Adult Education Center run by Central Government or, Government of a State or, a Union Territory or a local body, or an organization of Central Government or, a Government of a State or, a Union Territory as per Customs / Central Excise notification. Destruction of goods 6.31 No duty shall be payable in case capital goods, raw material, consumables, spares, goods manufactured, processed or packaged, and scrap / waste / remnants / rejects are destroyed within Unit after intimation to Custom authorities or destroyed outside Unit with permission of Customs authorities. Destruction a....
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....ng powers in respect to units. Jurisdiction of DC is given in Appendix 14-I-K. (1) Conversion of sick / closed DTA unit into EOU; (2) Conversion of EOU to STP / EHTP / BTP and vice-versa as per prescribed procedure; (3) To allow increase in value of capital goods in terms of Indian Rupees, on account of foreign exchange rate fluctuations; (4) To permit capacity enhancement without any limit in case of de-licensed industries only; (5) Permit broad-banding for similar goods and activities mentioned in LoP or to provide for backward or forward linkages to existing line of manufacture; (6) Authorize change in name of company or implementing agency and change from a company to another provided new implementing agency / company undertakes to take over assets and liabilities of existing unit; (7) Permit change of location from place mentioned in LoP to another and/or include additional location provided that no change in other terms and conditions of approval is envisaged and that new location is within territorial jurisdiction of DC / Designated Officer; (8) Extend validity period of LoP by three years beyond initial validity period of LoP (except in case where there isa restrict....
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....fth year. Depreciation norms for other Capital goods 6.36.3 For capital goods, other than above, depreciation rate would be as follows:- 4% for every quarter in first year; 3% for every quarter in second and third year; and 2.5% for every quarter in fourth and fifth year. 2% for every quarter thereafter. Conversion 6.37.1 Existing DTA units, may also apply for conversion into an EOU / EHTP / STP / BTP unit, but no concession in duties and taxes would be available under scheme for plant, machinery and equipment already installed. On conversion, they would get Income Tax concessions but limited to period of 10 year from original commencement of manufacture or that prescribed under Section 10 of Income Tax Act whichever is earlier. For this purpose, DTA unit may apply to DC / Designated Officer concerned in same manner as applicable to new units. In case there is an outstanding export commitment under EPCG scheme / Advance Authorization Scheme, it will follow the procedure laid down in Appendix 14-I-O of HBP v1. 6.37.2 Existing EHTP / STP / BTP units may also apply for conversion / merger to EOU unit and vice-versa. In such cases, units will continue to avail permissib....
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....ms & Jewellery by status holder EOUs are allowed subject to limit fixed in Para 6.24 without a need for prior permission from DC / Customs / Central Excise. Activities which do not require permission 6.39.9 In respect of following activities of a status holder, permission will not be required from DC or jurisdictional Central Excise authority: DTA sale of finished products in terms of para 6.8(a) of FTP, Participation in exhibition and Personal carriage of Gems & Jewellery for export promotion tours subject to fulfillment of conditions of para 6.24 of HBP v1. However, prior intimation thereof needs to be given. Time bound disposal of applications. 6.40 DC shall dispose off applications expeditiously. Following time schedule shall normally be followed to dispose of applications provided application is complete in all respects and is accompanied by prescribed documents. S.No Category of Application Time limit for disposal (days) 1 Issue of LoP / LoI 15 2 Conversion of LoP / LoI 15 3 Acceptance of LUT 3 4 Renewal of LUT 3 5 Permission for broad banding / diversification 3 6 Permission for change in locations 7 7 Permission for Advance DTA sale 2 8 Pe....