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TaxTMI 
TaxTMI 
TaxTMI 
DUTY EXEMPTION & REMISSION SCHEMES
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....ived. 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 (ii) Interm....
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.... also be covered. For physical exports for which payments are not received in freely convertible currency, same shall be subject to value addition as specified in Appendix-11 of HBP v1. In case of Authorisation for import 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....
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....ed under Advance Authorisation / DFIA. Further items reserved for imports by STEs cannot be imported against Advance Authorisation / DFIA. However those items can be procured from STEs against ARO or Invalidation letter. STEs are also allowed to sell goods on High Sea Sale basis 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 indigen....
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....ebit under DEPB may also be adjusted as CENVAT Credit or Duty Drawback as per DoR rules. DUTY FREE IMPORT AUTHORISATION (DFIA) SCHEME Scheme 4.4.1 DFIA is issued to allow duty free import of inputs, fuel, oil, energy sources, catalyst which are required for production of export product. DGFT, by means of Public Notice, may exclude 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 cred....
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....rability, as provided in FTP (RE-2006). CENVAT Facility 4.4.7 CENVAT credit facility shall be available for inputs either imported or procured indigenously. 4.4.8 Deleted. GEMS AND JEWELLERY Scheme for Gems and Jewellery 4A Exporters of Gems and Jewellery can import / procure duty free inputs for manufacturing. Replenishment Authorisation 4A.1 Exporters may obtain Replenishment (REP) Authorisations from 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 Corporatio....
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....are placed on nominated agencies/status holder/exporters of three years standing having an annual average turnover of Rs. Five Crores during preceding three licensing years, foreign buyer may supply in advance and free of charge, gold / silver / platinum, alloys, findings and mountings of gold / silver / platinum for manufacture and export. Such supplies can also be in advance and may involve semi-finished jewellery including findings / mountings / components for repairs / re-make and export subject to minimum value addition of 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 Authorisatio....
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....bsp; Private / Public Bonded Warehouse 4A.18 Private / Public Bonded Warehouses may be set up in SEZ/ DTA for import and re-export of cut & Polished diamonds, cut & polished coloured gemstones, uncut & unset precious & semi-precious stones, subject to achievement of minimum VA of 5%. Diamond & Jewellery Dollar Accounts 4A.19 ^3[Firms and companies dealing in purchase/ sale of rough or cut and polished diamonds/precious metal jewellery plain, minakari and / or studded with / without diamond and/or other stones, with a track record of at least two years in import or export of diamonds / coloured gemstones/ diamond and coloured gemstones studded jewellery / plain gold jewellery, and having an average annual turnover 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; ....