TaxTMI 
TaxTMI 
DUTY EXEMPTION & REMISSION SCHEMES
X X X X Extracts X X X X
X X X X Extracts X X X X
....sed 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 (ii) Intermediate supplies; and /or (iii) supply of goods to the categories mentioned in paragraph 8.2 (b), (c), (d), (e), (f), (g), (i) and (j) of FTP ; (i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mport of Tea, minimum value addition under Advance Authorisation shall be 100%. Similarly, in case of spices {covered by Chapter 9 of ITC(HS), duty free import of spices shall be permitted only for value addition purposes, like crushing / grinding/sterlization, or for manufacture of oils and oleoresins, and not for simple cleaning, grading, repacking etc. and minimum value addition shall be 15%. 4.1.7 Advance Authorisation shall be issued in accordance with Policy and procedure in force on Authorisation issue date. Validity period of Advance Authorisation for import shall be asprescribed 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 value addition, 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s to holders of Advance Authorisation / DFIA holder. In addition, STEs are permitted to issue "No Objection Certificate (NOC)" for import by Advance Authorisation / DFIA holder. Authorisation Holder would be required to file Quarterly Returns of imports effected against such NOC to concerned STE and STE would submit half-yearly import figures of such imports to concerned administrative Department for monitoring with a 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 of 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 (DFRC) 4.2 to 4.2.8 Deleted. 4.2.9 Scheme has been withdrawn for exports with effect from 1.5.2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lude any product(s) from purview of DFIA. This scheme is in force from 1st May, 2006. Entitlement 4.4.2 Provisions of paragraph 4.1.3 shall be applicable in case of DFIA. However, these Authorisations shall be issued only for products for which Standard Input and Output Norms (SION) have been notified. In case of post export DFIA, a merchant exporter shall be required to mention only name (s) and address(s) of manufacturer(s) of the export product(s). Applicant is required to file application to concerned RA before effecting exports under DFIA. Pre-export Authorisation shall be issued with actual user condition and shall be exempted from payment of basic customs duty, additional customs duty / Excise duty, education cess, anti-dumping duty and safeguard duty, if any. In case of actual user DFIA and where CENVAT credit facility on inputs have been availed for the exported goods, even after completion of export obligation, the goods imported against such DFIA shall be utilized in the manufacture of dutiable goods whether within the same factory or outside (by a supporting manufacturer). Import items 4.4.3 Provisions of paragraphs 4.1.11, 4.1.12, 4.1.13 and 4.1.14 of FTP shall....
X X X X Extracts X X X X
X X X X Extracts X X X X
....m RA in accordance with procedure specified in HBP v1. 4A.1.1 Replenishment authorisation may also be for consumables as per paragraph 4A.28 of HBP v1. Export of Cut & Polished Diamonds for Certification / Grading 4A.2 Deleted 4A.2.1 Deleted 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 2[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), STCL Ltd, MSTC Ltd, Diamond India Limited (DIL), Gems & Jewellery Export Promotion Council (G&J EPC)), Star Trading House (only For Gems & Jewellery sector) and Premier Trading House under Paragraph 3.5.2 of FTP and any other agency authorised by RBI. Exporters (except EOUs and units in SEZ) may obtain gold / silver / platinum from nominated agency(s). Procedure for import of precious metal b....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 10%. However, if so imported semi-finished gold / silver /platinum jewellery is exported as studded jewellery, value addition of 15% shall be achieved. In such cases of export, wastage of 2% may be permitted. Exports may be made by nominated agencies directly or through their associates or by status holder / exporter. Import and Export of findings shall be on net to net basis. Export Against Supply by Nominated Agencies 4A.9 Exporter may obtain gold / silver / platinum as an input 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nover of Rs. 3 crores 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. A.20.1 Gems and Jewellery exporters shall be allowed to export cut and polished precious and semi-precious stones for the treatment and re-import as per customs rules and regulations. In case of r....