TaxTMI 
TaxTMI 
Various amendment in EOU/EPZ Scheme
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....procured from nominated agencies, the value of such goods shall be included under B. 3. Paragraph 6.8 (c) is corrected as under:- " DTA sale shall be admissible only to similar goods as that of the goods manufactured and exported from the unit. In case of doubt in regard to similar nature of goods, the matter shall be referred to the BOA for decision". 4. In paragraphs 6.8(e) and 6.8 (f), the words and expression "Appendix 14-M" is corrected to read as "Appendix 14-L". 5. A new paragraph 6.9 (d) is added as under: " ITA -I items to be cleared in the DTA shall undergo tariff change at four digit level. Only the value added products, which have undergone the process of manufacture would be allowed to be clear in the DTA. 6. Paragraph 6.20 (d) is corrected as under: "The depreciation norms for capital goods of units, including electronics, would be subject to an overall limit of 90% as notified by the Department of Revenue. (i) Depreciation for computers and computer peripherals for all types of electronic units would be as follows: 10% for every quarter in the first year; 8% for every quarter in the second year; 7% for every quarter in the third year; ....
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....Tariff Area (DTA)" is corrected as under : " Please see Paras 6.12 & 7.9 of EXIM policy and paras 6.12 & 7.9 of this Handbook." 14. B) Clause (c) in the Undertaking and Declaration to Annexure 1 of Appendix 14 G, is deleted and the exiting clause (d) is renumbered as (c). 15. The note at the beginning of Appendix 14-K pertaining to " Guidelines on revival/ debonding of sick EOU/ EPZ units" is corrected as under: (Please see Para 6.28 of EXIM Policy & Para 6.28 of this Handbook) 16. A) The note at the beginning of Appendix 14-L pertaining to the "Norms of Scrap/ Waste Material for an export product under export oriented units and units in export processing zones" is corrected as under: "Please see Para 6.8 of Policy and 6.8 of this Handbook." B) S.No 107 of Appendix 14 L is amended as under: S.No Goods Manufactured Goods Used Percentage of scrap or waste on imported goods 107 Silk fabrics Mulberry raw silk/ Douppion yarn 35% 17. The email ID of Development Commissioner, Cochin at S.No 36 of Appendix 24 pertaining to "List of Licensing Authorities and their Jurisdiction", is corrected as under : "[email protected]" 18. The following cor....
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.... review of performance of each operational unit and its compliance with the conditions of approval shall be undertaken by the Development Commissioner before the end of the first quarter of the following financial year; (2) A summary of annual performance review will be sent by each Development Commissioner to the Ministry of Commerce for information under the three formats indicated below latest by 31st July every year; Proforma I: Comparative statement of performance and monitoring as compared to previous year; Proforma II: Summary of annual performance of the EOU/EPZ/SEZ units, sector - wise with sectoral sub - totals. Proforma III: Unit-wise statement on NFE and NFEP showing the result of review. PART(A) 3. CRITERIA FOR ANNUAL MONITORING: The criteria for keeping the unit under watch or initiating penal action in respect of EOU/EPZ units would be as follows : i) Watch - If there is shortfall in achieving the NFE/NFEP and/or Export Performance (as per norms in Exim Policy) at the end of 1st and IInd year; ii) Penal action -If at the end of 3rd or subsequent year the NFE/NFEP/EP are not achieved as per Exim Policy, Show Cause Notice will be issued. After ....
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....ommissioners of EPZs and concerned Customs / Central Excise Officers on six monthly basis i.e. April - September each year to be completed in the following quarter on the basis of QPRs furnished by the EOUs and for the full financial year on the basis of APR to be completed in the following quarter. The formats of QPR/APR have been prescribed in the LUT at Appendix 14D. (b) Joint review of EP/NFEP of the EOUs would be conducted by the DC / JDC and jurisdictional Deputy Commissioner/Asstt. Commissioner of Customs and Central Excise in the office of Commissioner of Customs/Central Excise where representative of units would also be invited. This will help them to understand the scheme and clear the doubts about operation. The Development Commissioner are advised to identify the number of Customs and Excise Commissioners where the meetings are to be held and work out a scheduled for visiting each of these places. It is suggested that at least two places should be visited each month, so that all places are covered within a period of three months. Some places may be covered by JDC and in the next six months, these could be interchanged between JDC and DC. For EPZ/SEZ units, this revie....
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....rts should be made to identify the reasons for shortfall/poor performance and unit-wise action plan should be prepared for removal of bottlenecks through such a review. (e) Based on the joint review, Development Commissioner concerned would prepare a report for the information of the Department of Commerce and CBEC and suggest corrective measures to enable the defaulting units to fulfil their obligations as per Exim Policy/Customs Notifications PROFORMA-I I. APPROVAL AND IMPLEMENTATION OF EOUS / EPZ UNITS: No. of valid approved units : No. of units cancelled : No. of units finally debonded : No. of exporting units : No. of units under implementation : No. of units yet to be implemented : II. result of monitoring : EOU/EPZ units 2000 - 2001 1999 - 2000 a. Units with shortfall in NFEP and/or EP (as per norms in Appendix - I.) at the end of 1st and 2nd year. b. Units which have failed to achieve NFEP / EP as per Appendix-I at the end of 3rd or subsequent years. c. Details of outstanding export proceeds (where the period of realisation is not extended by the competent authority) beyond 180 days at the end of financial ye....
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.... Imports : 11. NFE : 12. NFEP` 13. Difference in Export Obligation : 14. DTA Sale : 15. Details of outstanding export proceeds (where the period of realisation is not extended by the competent authority) beyond 180/360 days at the end of financial year. (180 days for EOU/EPZ units & 360 days for SEZ units) 16. Revenue contributions by the unit (a)Excise duty on DTA sale during the financial year (b)Income tax paid, if any, during the year (c)State taxes, cess duties & levies(including CST paid on domestic procurement). 17. Remarks : ANNEXURE - I CALCULATION OF NFEP/NFE 1. While calculating NFEP/EP achieved, following basic components are to be taken into consideration: i. Amortised value of capital goods and technical know how fee ii. Value of import of R. M. (which is consumed during the year and consumables, spares, etc.). iii. Other outflow of foreign exchange towards royalty, interest on external commercial borrowings etc. iv. Value of physical exports effected excluding DTA sales but including supplies made under para 6.9and 7.8(c) of the policy. 2. Amortised Value of Capital Good....
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....to = 173.13 - (10 + 100.93 + 10.72)x 100 173.13 = 29.73% APPENDIX- 14 F GUIDELINES FOR SALE OF GOODS IN THE DOMESTIC TARIFF AREA(DTA)BYEOU/EPZ/EHTP/STP UNITS: NOTE: Please see Paragraphs 6.8 and 6.9 of the Policy and paragraphs 6.8 and 6.9 of the Handbook of Procedures. I. DTA SALE ENTITLEMENT FOR EOU/EPZ UNITS : Paragraphs 6.8 of the Export and Import Policy and....
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..../product diversification. In such cases, the unit would be entitled to advance DTA sales linked to the exports envisaged from the expansion or new production streams or through product diversification . However, no advance DTA sale would be admissible to a DTA unit converted into EOU except in respect of new production stream as a result of change of technology. h) The DTA sale entitlement would accrue if the NFEP achieved by the unit is not less than the minimum stipulated level in the Appendix-I of the Policy on cumulative basis. i) EOUs engaged in the manufacture of perishable items like floriculture, horticulture, pisciculture can also avail the facility of simultaneous sale in DTA of such perishable items on quarterly basis, while earning DTA entitlement on exports made during the said quarter. Such permission can be granted in advance by the DC concerned subject to the condition that the unit has achieved positive NFE cumulatively upto the previous quarter. j) Units in the service sector can also avail DTA sale as per procedure mentioned above. k) DTA sale of instant tea will be allowed upto 20% of FOB value of exports in the form of tea bags or bulk. II. SALE ....
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....rientation of the scheme is maintained. IV. SALE OF REJECTS Sale of rejects is also permitted in the DTA, as provided for in para 6.8(a) of the Export and Import Policy and para 6.8(a) of the Handbook of Procedures. V. SALE OF BY-PRODUCTS: The sale of by-products in the DTA is also permitted as per provision of para 6.8(h) of the Policy after inclusion of the item in LOP/LOI . ANNEXURE - A APPLICATION FOR DTA SALE PERMISSION UNDER PARA 6.8(b) OF THE EXIM POLICY ------- FOR THE PERIOD (QUARTERLY/HALF YEARLY/ANNUAL) I. PROJECT DETAILS: 1. Details of the unit (i) Name & Address of the unit: (ii) IEC No. 2. LOI/LOP/IL No. & Date: 3. Details of the products approved for manufacture and export in the LOP/LOI/IL Item(s) of Manufacture/ Service Present installed capacity 1. 2. 3. 4. Date of commencement of production: II DETAILS OF ADVANCE DTA SALE 5. Details of advance DTA sale permitted, if any Approval No. and Date Particulars of products/ service permitted Value 1. 2. 3. ....
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.... i) F.O.B. value of physical exports made in the last five years or less as applicable Rs. Ii.) Value of supplies made under para 6.9 of the Exim Policy Rs. Iii) Total Rs. 2. DETAILS OF CAPITAL GOODS INCLUDING DG SET AND OTHER OFFICE EQUIPMENTS IMPORTED IN THE LAST FIVE YEARS OR LESS AS APPLICABLE (I) CIF VALUE OF IMPORTED CAPITAL GOODS (YEAR WISE) IN THE LAST FIVE YEARS OR LESS AS APPLICABLE Ist year IInd year IIIrd year IVth year Vth year Total (II)VALUE OF IMPORTED CG PROCURED FROM ANOTHER EOU/EPZ UNIT OR FROM A LEASING COMPANY IN THE LAST FIVE YEARS OR LESS AS APPLICABLE Ist year IInd year IIIrd year IVth year Vth year VIth year 3. AMORTISED VALUE OF CAPITAL GOODS (Please see Note below for calculation) Rs. 4. DETAILS OF IMPORTED RAW MATERIAL (i) Total CIF value of imported raw materials, consumables including POL products and components etc. in the last five years or less applicable Rs. (ii) ....