TaxTMI 
TaxTMI 
Revision of Foreign trade Policy (FTP) announced on 07.04.2006- Amendment of notification relating to EOU and Gems & Jewellery sector and Procedural changes made effected-reg
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.... am directed to invite your attention to the Annual supplement to Foreign Trade Policy, 1st September, 2004- 31st March, 2009, brought into effect from 1.4.2006 . The said Annual supplement to Foreign Trade Policy (FTP) and Handbook of Procedures (HBP) brings about certain changes relating to EOU/EHTP/STP Schemes and Gem and Jewellery Sector. To implement these changes, amendments have been made in the concerned notifications governing EOU/EHTP/STP schemes and Gems and Jewellery Sector. In this regard notification Nos 44/2006-Cus and 31/2006-CE, both dated the 17th May, 2006 may please be referred to. Important features of the amendments are discussed below: A. EOU/EHTP/STP Schemes 1. Procurement & supplies of spares & components The EOU....
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.... No 52/2003-Customs and 22/2003-CE dated the 31st March, 2003 has been amended suitably so as to allow duty free import and procurement of export promotion material like brochures, literatures, pamphlets, hoardings, catalogues and posters of products to the extent of 1.5% of the value of exports of the previous year. The export value of supplies of such promotional material shall not be counted towards fulfillment of NFE and for availing DTA entitlement as specified in para 6.8 of FTP. However, import of such promotional material shall be considered for computation of sum total of all imported goods for arriving at NFE. 3. Disposal of left over textile fabric or textile material In the FTP [ para 6.15(c)], there was a provision allowing....
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....sions of the notification No 52/2003-Customs and 22/2003-CE dated the 31st March, 2003 has been amended suitably (refer condition (4) (iiia) and para 2(i) respectively) so as to align with the revised provision of HBP. 5. Inter unit transfer of manufactured goods Paragraph 6.13 of the Foreign Trade Policy provides for transfer of manufactured goods from one EOU/EHTP/STP to another EOU/EHTP/STP unit. This provision has been revised so as to allow inter unit transfer of manufactured goods on the basis of prior intimation to the Development Commissioner and Customs/ Central Excise authorities following the procedure for in bond movement of goods. The corresponding provisions in the notification No. 52/2003-Cus and 22/2003-CE dated the 31st M....
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.... and 22/2003-CE dated the 31st March, 2003 (refer clause (ii) of para 6 and clause (ii) of para 5 respectively) governing duty free import and procurement of goods by EOU/EHTP/STP units, respectively, have been suitably amended so as to align with the revised provision of HBP. 7. Fast track Scheme for EOUs for import of goods EOUs having a status holder certificate under the Foreign Trade Policy shall be eligible for the Fast Track Clearance Procedure under para 6.39 of Hand Book of Procedure (HBP). To give effect to the provisions under para 6.39.3 of HBP, the Board has decided to extend the facility of importing goods without payment of duty on the basis of pre-authenticated procurement certificate to the units having physical export tu....
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....urisdictional Superintendent of Customs/Central Excise. Furthermore, EOUs exporting goods under self-sealing and self-certification procedure, shall submit a copy of such Shipping Bill along with Invoice and packing list to the jurisdictional Customs/Central Excise officer within twenty four hours of removal of goods. For the current financial year, this facility can be availed from 1st July, 2006. 9. Declaration of warehousing station The Board has received representations that no uniform procedure is followed for declaration of warehousing station which causes delays. Warehousing station is to be notified by the Board for appointment of public warehouse and licensing of the private warehouse in terms of Section 9 of the Customs Act, 196....
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....r/platinum by Gems & Jewellery EOUs Gems & jewellery EOUs were required to export gems and jewellery within 90 days from the date of release of gold/silver/platinum when these were released on loan basis. The same time period is now prescribed even in case of outright purchase of precious metal from the nominated agencies. (Refer para 6.2 (f) of FTP) B. Gems & Jewellery Export Promotion Scheme 1. Export of cut and polished precious and semi precious stones for treatment and re-import In order to give boost to Gems and jewellery sector, a new provision has been inserted in para 4A.20.1 of the FTP to allow treatment of cut and polished precious and semi precious stones to enhance the quality and afford higher value in the international m....