TaxTMI 
TaxTMI 
Foreign Trade Policy (FTP), 2009-14 - regarding
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....bove mentioned notifications may please be perused for details. The salient features of the changes are discussed below: I. New schemes. (1) Status Holder Incentive Scheme (SHIS) The scheme has been introduced vide paragraph 3.16 of the Policy. Under the scheme, Status Holders are entitled to incentive scrip @1% of FOB value of export of goods of certain specified sectors made during 2009-10 and during 2010-11. The scrips will be valid for a period of 2 years for import of capital goods with actual user condition. The status holders who avail the benefits under Technological Up gradation Fund Scheme (TUFS) (a scheme administered by the Ministry of Textiles, Government of India) or zero duty EPCG scheme in a particular year shall not be eligible for Status Holders Incentive Scrips for that year. Notification No. 104/2009-Cus dated 14.9.2009 has been issued to operationalize the SHIS. This may be perused for details. (2) Agri-Infrastructure Incentive Scrip (AIIS). Para 3.8.6 of FTP (04-09) permitted issue of scrips against exports of agricultural exports for import of specified capital goods. This was part of the Vishesh Krishi and Gram Udyog Yojana (VKGUY) scheme. A new name h....
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....fication number 92/04-Cus dated 10.9.2004. There is no change in the scheme. Notification No. 91/2009-Cus dated 11.9.2009 has been issued to operationalize the scheme under the new Policy. The notification may be perused for details. (3) Vishesh Krishi and Gram Udyog Yojana (VKGUY). The scheme as it existed under FTP (2004-09) was operationalized vide notification number 41/05-Cus dated 2.5.2005. There is no change in the scheme except that the scrips earlier issued under erstwhile para 3.8.6 of the FTP (04-09) shall now be issued as AIIS already mentioned above. Notification No.95/2009-Cus dated 11.9.2009 has been issued to operationalize the scheme under the new Policy. The notification may be perused for details. (4) Focus Market Scheme (FMS) The scheme as it existed under FTP (2004-09) was implemented vide notification number 90/06-Cus dated 1.9.2006. There is no change in the scheme. Notification No. 93/2009-Cus dated 11.9.2009 has been issued to operationalize the scheme under the new Policy. The notification may be perused for details. (5) Focus Product Scheme (FPS) The scheme as it existed under FTP (2004-09) was implemented vide notification number 91/06-Cus dated 1.....
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....n defined in the explanation to the notifications. In this regard, it is clarified that, the there is no need to furnish any Bank Guarantee ordinarily along with the bond, as the imports are taking place after fulfilment of Export Obligation. However, if the assessing officer, based on past record of the importer, feels that some revenue safe guarding measure is necessary, then a bond backed with sufficient bank guarantee may be taken. (b) the importer also has an option to pay additional duty of customs on the imported materials and clear the goods without furnishing any bond as specified above. This additional duty of customs so paid shall be eligible for availing CENVAT Credit under CENVAT Credit Rules, 2004. (c) if the facility under rule 18 (rebate of duty paid on materials used in the manufacture of resultant product) or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 or CENVAT credit under CENVAT Credit Rules, 2004 has not been availed, then the imported materials can be cleared without furnishing a bond specified above. However, the importer will have to furnish a proof to the assessing officer to the effect that the 'said facilities' have not been availed. ....
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....acturer provided the same is endorsed on the authorisation by the Regional Authority. If, the authorisation holder is registered with Central Excise, he has the option of getting names of the jobber endorsed by Central Excise as per central excise rules in lieu of RA endorsement. In case the manufacturer exporter holding the authorisation is not registered / not required to be registered with central excise authority, job work may be allowed as per central excise rules and regulations without insisting for endorsement of supporting manufacturers' name. The new customs notifications have been aligned with the provisions of the Policy and the Handbook. Condition (x) of Notification Nos. 96/2009-Cus, 99/2009-Cus and 112/09-Cus may kindly be referred to in this regard. (iv) Para 4.5 of the Handbook provides that the duty free material imported or procured against an authorisation can be taken to the project site as per the provisions of the ANF-4A and the DOR guidelines in this regard. This provision has been implemented vide condition (xi) of the notification No 112/09-Cus dated 29.9.09. The following guidelines are prescribed in this regard:- The facility, for the present, shall ....
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....onal Commissioner of Customs. (vii) The importer was required to produce evidence of discharge of export obligation to the customs within 30 days of the expiry of EO period under the existing notifications. This period has been extended to 60 days. (7) Duty Free Import Authorization (DFIA) Scheme: The scheme as it existed under FTP (2004-09) was implemented vide notification No. 40/06-Cus dt 1.5.2006. The notification as amended last vide notification no 17/2009-Cus dated 19.2.2009. It was later given effect to retrospectively vide clause 92 of Finance Bill 2009. The scheme has been operationalized in the new Policy vide notification No. 98 /2009-Cus dated.11.9.2009. The following changes have been made in this scheme in the new Policy / customs notification:- (i) The duty free replenishments imported under the scheme cannot be transferred to the units located in areas, which are availing the area specific exemptions of Central Excise Duty. (para 4.34 of Handbook refers). (ii) The period to re-export the defective and unfit for use materials imported under the advance authorization scheme has been lowered from the existing period of three years to six months, which is exten....
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....f installation of capital goods and certified by the Chartered Engineer in the nexus certificate would be allowed to be sold on payment of applicable Customs duties. (v) Para 5.14 of new HBP Vol.1 (2009-14) provides that in the event of non-fulfilment of EO, the EPCG Authorization holder may pay duties of customs through the scrips issued under reward /DEPB scheme also. The interest on such duty and penalties, if any, however shall be paid in cash. (9) DEPB Scheme The scheme as it existed under FTP (2004-09) was implemented vide notification number 89/05-Cus dated 4.10.05. There is no change in the scheme except that the notification mentions the date upto which it will be valid viz. 31.12.10 . Notification No. 97/2009-Cus dated 11.9.2009 has been issued to operationalize the scheme under the new Policy. The notification may be perused for details. III. Deleted Schemes The Hi-Tech Products Export Promotion Scheme (HTPEPS) has been deleted in the new Policy. The products covered under the said scheme have been shifted to the Focus Product scheme (FPS). IV. Miscellaneous changes (i) The exports / imports under export promotions (EP) schemes are currently permitted from speci....
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.... excluded for computation of benefits under the reward schemes. As regards 'commissions', the Policy vide para 3.17.3, has clarified that the foreign agency commission will be restricted to 12.5% of FOB value for computation of rewards. It is therefore clarified that the duty credit scrips pending for registration may be decided as per the above position and the said scrips may be permitted to be utilised. (iv) The number of duty free commercial / gem & jewellery samples has been increased from the existing limit of 15 to 50 pieces without changing the value limits prescribed in the notification No. 154/94-Cus dated 13.7.94 as amended subject to compliance of terms and conditions specified therein. The notification No. 154/94-Cus has been amended vide 109/09-Cus dated 24.9.09. (v) The notification Nos. 92/04-Cus, 41/05-Cus, 90/06-Cus, 91/06-Cus, 64/08-Cus and 136/08-Cus issued to operationalize EPCG and reward schemes provided that, 'the foreign exchange counted towards fulfilment of export obligation (over and above the average) under the Export Promotion Capital Goods scheme shall not be eligible for benefits under the scheme'. The said clause has been deleted in the new noti....