TaxTMI 
TaxTMI 
DUTY EXEMPTION & REMISSION SCHEMES
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....dition (VA) for the purpose of this Chapter (Except for Gems and Jewellery Sector) shall be:- VA A - B = ----------- x 100, where B A = FOB value of export realised / FOR value of supply received. B = CIF value of inputs covered by authorisation, plus value of any other input used on which benefit of DBK is claimed or intended to be claimed. ADVANCE AUTHORISATION SCHEME 4.1.3.1 Advance Authorisation 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, ^4[***] 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 the purview of Advance Authorisation. 4.1.3.2 Mandatory spares which are required to be exported / supplied with the resultant product can be allowed duty free but upto 10% of CIF value of Authorisation. 4.1.3.3 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. ....
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....n the manufacture of dutiable goods whether within the same factory or outside (by a supporting manufacturer), for which the authorisation holder shall produce a certificate from either the jurisdictional Central Excise Superintendent or Chartered Accountant, at the option of the exporter, at the time of filing application for EODC to RA concerned. (b) Further the manufacturing wastes / scrap, as allowed, can be disposed off with the payment of applicable duty even before fulfilment of export obligation. 4.1.6 Minimum Value Addition (a) Advance Authorisation necessitates exports with a minimum value addition of 15%, except for items specified in Appendix 11B of HBP v1 and for items in Gems & Jewellery Sector, for which value addition would be as per paragraph 4A.2.1 of HBP v1. Exports to SEZ Units / supplies to Developers / Co-developers, irrespective of currency of realization, would also be covered. (b) 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. (c) In case of Authorisation for import of Tea, minimum value addition under Advance Authorisat....
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....ect import has option to source them either against Advance Release Order (ARO) or Invalidation letter denominated in free foreign exchange / Indian rupees. However, supplies may be obtained against Authorisation from EOU / EHTP / BTP / STP / SEZ units, without conversion into ARO or Invalidation letter. (b) Transferee of DFIA shall also be eligible for ARO / invalidation letter facility. Validity period of ARO shall be as prescribed in HBP v1. 4.1.12 Back-to-Back Inland Letter of Credit Holder of Advance Authorisation, Advance Authorisation for Annual Requirement and DFIA may, instead of applying for an ARO or Invalidation letter, avail of the facility of Back-to-Back Inland Letter of Credit in accordance with procedure specified in HBP v1. 4.1.13 Importability /Exportability of items that are Prohibited / Restricted/ STE (a) No export or import of an item shall be allowed under Advance Authorisation / DFIA if the item is prohibited for exports or imports respectively. ^12[Export of a prohibited item may be allowed under Advance Authorisation provided it is separately so notified subject to the conditions given therein.] (b) Items reserved for imports by ST....
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....uch group of inputs. Proportion of these inputs actually used/consumed in production of export product shall be clearly indicated in shipping bills. (c) At the time of discharge of export obligation (EODC) or at the time of redemption, RA shall allow only those inputs which have been specifically indicated in the shipping bill.] DUTY FREE IMPORT AUTHORISATION (DFIA) SCHEME 4.2.1 Scheme 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. 4.2.2 Entitlement (a) 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. (b) DFIA shall be issued in accordance with Policy and procedure in force on date of issue of Authorisation. (c) 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 applicatio....
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....ability of such additional customs duty / excise duty. However, in case where CENVAT facility has not been availed, exemption from additional customs duty / excise duty would be available even after endorsement of transferability on DFIA. ^3[(d) Exemption from Antidumping Duty and Safeguard Duty would be available on actual user basis only, i.e. before endorsement of 'transferability] 4.2.7 CENVAT Facility CENVAT credit facility shall be available for inputs either imported or procured indigenously. DUTY ENTITLEMENT PASSBOOK (DEPB) SCHEME 4.3 Duty Entitlement Passbook Scheme (DEPB) Objective of DEPB is to neutralise incidence of customs duty on import content of export product. Component of customs duty on fuel (appearing as consumable in the SION) shall also be factored in DEPB rate. Component of Special Additional Duty shall also be allowed under DEPB (as brand rate) in case of non-availment of CENVAT credit. Neutralisation shall be provided by way of grant of duty credit against export product. The DEPB Scheme stands discontinued in respect of exports made on or after 1.10.2011. 4.3.1 (a) An exporter may apply for credit, at specified percentage of ....
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....ay also be for consumables as per paragraph 4A.28 of HBP v1. 4A.2 Import of Diamonds for Certification / Grading & Re-export The authorised offices/agencies in India of Gemological Institute of America (GIA) or any other agency approved in this regard shall be permitted to import diamonds to their laboratories for the purpose of certification/grading reports by them with a condition that the same should be re-exported with the certification/grading reports issued by them without any import duty as per the procedure laid down in HBP v1. 4A.2.1 Export of Cut & Polished Diamonds for Certification/ Grading & Re-import Following are authorised laboratories for certification/grading of diamonds of ^7[0.10] carat and above (i) Indian Diamond Institute, Surat, Gujarat; (ii) American Gem Society Laboratories (AGS Laboratories),8917 West Sahara Avenue, Las Vegas, Nevada 89117; (iii) Central Gem Laboratory, Miyagi Building, 5-15-14 Ueno Taito-Ku, Tokyo, Japan; (iv) Diamond Trading Company, Maidenhead, UK; (v) European Gemological Laboratory (EGL), USA; (vi) Gemological Institute of America (GIA), USA; (vii) Hoge Road Voor Diamond, Antwerp, (HRD); ....
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....thorised by RBI is allowed export of gold scrap for refining and import standard gold bars as per RBI guidelines. 4A.5 Items of Export Following items, if exported, would be eligible for facilities: (a) Gold jewellery, including partly processed jewellery and articles including medallions and coins (excluding legal tender coins), whether plain or studded, containing gold of 8 carats and above; (b) Silver jewellery including partly processed jewellery, silverware, silver strips and articles including medallions and coins (excluding legal tender coins and any engineering goods) containing more than 50% silver by weight; (c) Platinum jewellery including partly processed jewellery and articles including medallions and coins (excluding legal tender coins and any engineering goods) containing more than 50% platinum by weight. 4A.6 Value Addition Value Addition (VA) for gems and jewellery sector shall be as per paragraph 4A.2.1 of HBP v1. It would be calculated as under: A - B VA = ----------- x 100, where B A = FOB value of the export realised / FOR value of supply received. B = Value of inputs ( including domestically procured ) such as gold / s....
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....nt Authorisation Gem Replenishment (Gem & Jewellery REP) Authorisation may be issued as given in paragraph 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 determined with reference to realisation in excess of prescribed minimum VA. Such Gem REP Authorisations shall be freely transferable. 4A.13 Gem REP Rate and Item Replenishment Rate and item of import will be as prescribed in Appendix 12B of HBP v1. 4A.14 Export Promotion Tours/ Export of Branded Jewellery (a) Nominated agencies and their associates, with approval of Department of Commerce, and others, with approval of Gem & Jewellery EPC (GJEPC), may export gold / silver / platinum jewellery and articles thereof for exhibitions abroad. (b) Personal carriage of gold / silver / platinum jewellery, precious, semi-precious stones, beads and articles and export of branded jewellery is also permitted, subject to conditions as in HBP v1. 4A.15 Personal Carriage of Export / Import Parcels Personal carriage of gems and jewellery export parcels by foreign bound passengers and import parcels by an Indian importer/....
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....s & Jewellery exporters shall be allowed to re-import rejected precious metal jewellery as per para 4A.32 of HBP v1. 4A.20 Export and imports on consignment basis Gems & Jewellery exporters shall be allowed to export and import diamond, gemstones & jewellery on consignment basis as per HBP v1 and Customs rules and regulations. ------------------------- Notes:- 1. Inserted vide Notification No.11 (RE-2012) /2009-2014, Dated 22/08/2012 2. Inserted vide Notification No. 30 (RE-2012)/2009-2014, dated 3101/2013. 3. Inserted vide NOTIFICATION NO. 02 (RE-2013)/ 2009-2014 dated 18/04/2013. 4. Deleted vide NOTIFICATION NO. 02 (RE-2013)/ 2009-2014 dated 18/04/2013. , before it was read as, "energy". 5. Substituted vide NOTIFICATION NO. 02 (RE-2013)/ 2009-2014 dated 18/04/2013. Before it was read as, "Private/Public Bonded Warehouse - Private/Public Bonded Warehouses may be set up in SEZ/DTA for import and re-export of cut and Polished diamonds, cut and polished coloured gemstones, uncut & unset precious & semi-precious stones, subject to achievement of minimum VA of 5%....