Assistance to State Governments to Infrastructure Development
of Exports (ASIDE) |
3.1 |
Scheme for Assistance to States for Infrastructure Development of
States for Exports (ASIDE) is formulated to encourage participate
in promoting exports, and is administered by Department of
Commerce (DoC). |
|
|
Objectives of ASIDE include:
- Developing infrastructure such as roads connecting production
centers with ports,
- Setting up of Inland Container Depots (ICD) and Container
Freight Stations (CFS),
- Creation of new State level export promotion industrial parks/ zones,
- Augmenting common facilities in existing zones,
- Equity participation in infrastructure projects,
- Development of minor ports and jetties,
- Assistance in setting up of common effluent treatment
facilities,
- Stabilizing power supply, and
- Any other activity as may be notified by DoC.
- Details of ASIDE are
available at http://commerce.nic.in.
|
Market Access Initiative (MAI) |
3.2 |
MAI scheme is intended to provide financial assistance for
medium term export promotion efforts with sharp focus on a country /
product, and is administered by DoC.
Financial assistance is available for Export Promotion Councils
(EPCs), Industry and Trade Associations (ITAs), Agencies of State Governments,
Indian Commercial Missions (ICMs) abroad and other eligible entities as may be
notified.
A whole range of activities can be funded under MAI scheme. These include,
amongst others,
-
Market studies,
- Setting up of showroom / warehouse,
- Sales promotion campaigns,
- International departmental stores,
- Publicity campaigns,
- Participation in international trade fairs,
- Brand promotion,
- Registration charges for pharmaceuticals, and term export
promotion efforts with sharp focus on a country / product,
- Testing charges for engineering products.
Each of these export promotion activities can receive financial assistance from
Government ranging from 25% to 100% of total cost depending upon activity and
implementing agency.
Full text of guidelines is available at http://commerce.nic.in.
|
Marketing Development Assistance (MDA) |
3.2.1 |
MDA Scheme is intended to provide financial assistance for a
range of export promotion activities implemented by EPCs, ITAs on a regular basis every year. The scheme is administered by DoC.
Assistance includes, amongst others, participation in
-
Trade Fairs and Buyer Seller meets abroad or in
India, and
-
Export promotion seminars.
Financial assistance with travel grant is available to exporters traveling
to Latin America, Africa, CIS region, ASEAN countries, Australia and New
Zealand. In other areas, financial assistance without travel grant is available.
MDA assistance is available for exporters with annual export turnover upto Rs 15
Crores. Full text of guidelines is available at
http://commerce.nic.in.
|
Meeting Legal |
3.2.1.1 |
DOC would provide financial assistance to deserving exporters on
recommendation of EPCs for meeting cost of legal expenses for trade
related matters. However, financial assistance would be restricted to
statutory compliances such as registration charges, litigation in anti
dumping and countervailing cases, etc. as provided under the Market
Access Initiative (MAI) Scheme of DOC. (This para is replaced by
DGFT Notification No 36(RE-2008)/2004-2009, Dated 02-09-2008.)
[Old - DOC would provide financial assistance to deserving
exporters on Expenses for Trade recommendation of EPCs for meeting cost of legal
expenses for Related Matters trade related matters. ] |
Towns of Export Excellence(TEE) |
3.3 |
A number of towns have emerged as dynamic industrial clusters
contributing handsomely to India’s exports. It is necessary to grant recognition to these industrial clusters with a view to maximizing their potential and enabling them to move higher in the value chain and
tap new markets.
Selected towns producing goods of Rs. 1000 Crore or more will be notified as TEE
based on potential for growth in exports. However for TEE in Handloom,
Handicraft, Agriculture and Fisheries sector, threshold limit would be Rs. 250
Crores.
Recognized associations of units will be able to access funds under MAI scheme
for creating focused technological services. Common service providers in these
areas shall be entitled for EPCG scheme. Further such areas will receive
priority for assistance under ASIDE scheme.
Notified TEE are listed in Appendix 7 of HBP v1. |
Brand Promotion Quality |
3.4.1 |
Central Government aims to encourage manufacturers and
exporters
and Quality to attain internationally accepted standards of quality for their
products. Central Government will extend support and assistance
to Trade and Industry to launch a nationwide programme on quality awareness and
to promote total quality management. |
Test Houses |
3.4.2 |
Central Government will assist in modernisation and
upgradation of test houses and laboratories to bring them at par with
international standards. |
Quality Complaints / Disputes |
3.4.3 |
Regional Sub-Committee on Quality Complaints (RSCQC)
set up at Regional Offices of this Directorate shall investigate
quality complaints received from foreign buyers. Guidelines for settlement
of quality complaints, in particular, and such other complaints, in general, are
given in Appendix-16 of HBP v1. |
Trade Disputes Affecting Trade
Relations |
3.4.4 |
If it comes to DGFT notice or he has reason to believe that
an export or import has been made in a manner that
-
is gravely prejudicial to trade relations of
India with any other country; and / or
- is gravely prejudicial to interest of other persons engaged in
exports or imports; and / or
- has brought disrepute to the country;
DGFT may take action against such exporter or importer in accordance with FT
(D&R) Act, Rules and Orders made there- under and FTP.
|
|
3.5 |
EXPORT AND TRADING HOUSES |
Export and Trading Houses |
3.5.1 |
Merchant as well as Manufacturer Exporters, Service Providers,
Export Oriented Units (EOUs) and Units located in Special
Economic Zones (SEZs), Agri Export Zones (AEZs), Electronic
Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and
Bio-Technology Parks (BTPs) shall be eligible for Status. |
Status Category |
3.5.2 |
Applicant shall be categorized depending on his total FOB
(FOR -
for deemed exports) export performance during current plus previous three years
(taken together) upon exceeding limit given below. For Export House (EH) Status,
export performance is necessary in at least two out of four years (i.e., current
plus previous three years). |
|
|
Status Category |
Export Performance
FOB/FOR Value
(Rupees in Crores) |
Export House (EH) |
20 |
Star Export House (SEH) |
100 |
Trading House (TH) |
500 |
Star Trading House (STH) |
2500 |
Premier Trading House (PTH) |
7500 [Old - 10000 ] (This figure
is relpaced by
DGFT NOTIFICATION No 88/2008, Dated 26.02.2009.) |
|
|
Note 1. |
Exporters in Small Scale Industry (SSI) / Tiny Sector /Cottage Sector, Units registered with KVICs / KVIBs, Units located in North
Eastern States, Sikkim and Jammu & Kashmir, Units exporting handloom /
handicrafts / hand knotted or silk carpets, exporters exporting to countries in
Latin America / CIS / sub-Saharan Africa as listed in Appendix-9, Units having
ISO 9000 (series) / ISO 14000
(series) / WHOGMP / HACCP / SEI CMM level-II and above status granted by
agencies listed in Appendix-6 of HBP v1, exports of services and exports of agro
products shall be entitled for double weightage on exports made for grant of
status. Double Weightage shall be admissible to Merchant as well as Manufacturer
Exporters. However, a shipment can get double weightage only once in any one of
above categories.
- (a) Transfer of export performance from one to another is not
permitted. Therefore disclaimer system shall not be allowed for counting
of export turnover.
- Exports made on re-export basis shall not be counted for
recognition.
- Exports made by subsidiary of a limited company shall be
counted towards export performance of limited company for recognition,
only if limited company has a majority share holding in subsidiary
company.
- Deleted
|
|
Privileges |
3.5.2.1 |
A Status Holder shall be eligible for following facilities:
-
Authorisation and Customs clearances for both imports and exports on
self-declaration basis;
- Fixation of Input-Output norms on priority within 60 days;
- Exemption from compulsory negotiation of documents through banks.
Remittance / Receipts, however, would be received through banking
channels;
- 100% retention of foreign exchange in EEFC account;
- Enhancement in normal repatriation period from 180 days to 360 days;
- Deleted
- Exemption from furnishing of Bank Guarantee in Schemes under FTP;
and
- SEHs and above shall be permitted to establish Export
Warehouses, as per DoR guidelines.
- For status holders, a decision on conferring of ACP Status shall be
communicated by Customs within 30 days from receipt of application with
Customs.
- As an option, for Premier Trading House (PTH), the average level of
exports under EPCG Scheme shall be the arithmetic mean of export
performance in last 5 years, instead of 3 years.
|
|
3.5.3 |
Deleted |
|
3.6 |
SERVICES EXPORTS |
Services Exports |
3.6.1 |
Services include all 161 tradable services covered under
General
Agreement on Trade in Services (GATS) where payment for such
services is received in free foreign exchange. A list of services is
given in Appendix-10 of HBP v1. |
Registration cum Membership Certificate |
3.6.2 |
Software exporters shall register themselves with
Electronics and Software EPC. Exporters of 14 specific services listed in Sl. No. 34 of Appendix-2 of HBP v1 are required to register themselves
(RCMC) for with Services EPC. Other service exporters shall register themselves
Service Providers with Federation of Indian Exporters Organisation (FIEO).
Common Facility 3.6.3 Government shall promote establishment of Common Facility
Centres
Centres for use by home-based service providers, particularly in areas like
Engineering & Architectural design, Multi-media operations,
Software developers etc., in State and District-level towns, to draw
in a vast multitude of home-based professionals into services export
arena. |
|
3.6.4 |
SERVED FROM INDIA SCHEME (SFIS) |
Objective
|
3.6.4.1 |
Objective is to accelerate growth in export of services so as
to
create a powerful and unique ‘Served From India’ brand, instantly
recognized and respected world over. |
Eligibility
|
3.6.4.2 |
All Service Providers, of services listed in Appendix 10 of HBP v1, who
have a total free foreign exchange earning of at least Rs. 10 Lakhs in
preceding financial year / current financial year shall qualify for Duty
Credit scrip. For Individual Service Providers, minimum would be Rs 5 Lakhs.
(This Para replaced by
DGFT Notification No 44/2008, Dated : 23-09-2008.)
[Old - All Service Providers, of services listed in Appendix-10 of
HBP v1,
who have a total free foreign exchange earning of at least Rs. 10
Lakhs in preceding financial year shall qualify for Duty Credit scrip.
For Individual Service Providers, minimum would be Rs. 5 Lakhs. ] |
Entitlement
|
3.6.4.3 |
All Service Providers (except Hotels, Restaurants and other Service
Providers in Tourism Sector) shall be entitled to Duty Credit scrip
equivalent to 10% of free foreign exchange earned during preceding financial
year / current financial year, as the case may be. (This Para is
replaced by
DGFT Notification No 44/2008, Dated : 23-09-2008.)
[Old - All Service Providers (except Hotels, Restaurants and other
Service
Providers in Tourism Sector) shall be entitled Duty Credit scrip
equivalent to 10% of free foreign exchange earned during preceding
financial year. ]
However services and service providers as listed in Paragraph 3.18.1
of HBP v1 shall not be entitled. |
Remittances |
3.6.4.3.1 |
Free foreign exchange earned through International Credit
Cards
and other instruments as permitted by RBI for rendering of service
shall also be taken into account for computation of Duty Credit
scrip. |
Hotels Restaurants & Other Service providers in tourism sector |
3.6.4.4 |
Hotels of one-star and above (including managed hotels) and heritage
hotels approved by Department of Tourism (DoT) and other Service providers
in tourism sector registered with DoT as well as Clubs having residential
facility of minimum 30 rooms shall be entitled to duty credit scrip
equivalent to 5% of free foreign exchange earned during preceding financial
year / current financial year, as the case may be.
Stand-alone restaurants will be entitled to duty credit equivalent to 10% of
foreign exchange earned by them in preceding financial year / current
financial year, as the case may be. (This para replaced by
DGFT Notification No 44/2008, Dated : 23-09-2008.)
[Old - Hotels of one-star and above (including managed hotels) and
heritage hotels approved by Department of Tourism (DOT) and other Service registered with DOT as well as Clubs
Providers in having residential facility of minimum 30 rooms shall be entitled
to
Tourism Sector duty credit scrip equivalent to 5% of free foreign exchange
earned
during preceding financial year.
Stand-alone restaurants will be entitled to duty credit scrip equivalent
to 10% of free foreign exchange earned during preceding financial
year. ] |
Imports Allowed |
3.6.4.5 |
Duty Credit scrip may be used for import of any capital
goods
including spares, office equipment and professional equipment, office
furniture and consumables; that are otherwise freely importable under
ITC (HS). Imports shall relate to any service sector business of
applicant.
Utilization of Duty Credit scrip earned shall not be permitted for
payment of duty in case of import of vehicles, even if such vehicles
are and / or restricted freely importable under ITC (HS).
(The new world "and / or restricted" inserted by
DGFT NOTIFICATION No 88/2008, Dated 26.02.2009.)
In case of hotels; clubs having residential facility of minimum 30
rooms; golf resorts and stand-alone restaurants having catering
facilities, Duty Credit scrip may also be used for import of
consumables including food items and alcoholic beverages. |
|
Non Transferability
|
3.6.4.6 |
Entitlement / goods (imported / procured) shall be
non transferable
(except within group company and managed hotels) and be subject
to Actual User condition. |
|
3.6.4.7 to
3.6.4.9 |
Deleted |
Procurement from Domestic Sources |
3.6.4.10 |
Utilization of Duty Credit Scrip shall be permitted
for payment of excise duty in terms of DoR notification issued in this behalf,
for
procurement from domestic sources of items permitted under Para 3.6.4.5. |
|
3.7 |
Deleted |
|
3.8 |
VISHESH KRISHI AND GRAM UDYOG YOJANA
(VKGUY) |
|
|
(SPECIAL AGRICULTURE AND VILLAGE INDUSTRY SCHEME) |
Objective
|
3.8.1 |
Objective of VKGUY is to promote exports of
-
Agricultural Produce and their value added
products;
-
Minor Forest Produce and their value added
variants; for exports w.e.f
1.4.2004;
-
Gram Udyog Products, for exports w.e.f 01.04.2006;
- Forest Based Products, for exports w.e.f 01.04.2007; and
- Other products, as notified from time to time.
Such products shall be listed in Appendix 37A of HBP v1.
|
Entitlement |
3.8.2 |
Duty Credit scrip benefits are granted with an aim to
compensate high transport costs. Exporters, of products notified in Appendix
37A of HBP v1, shall be entitled for Duty Credit scrip equivalent to
5% of FOB value of exports (realized in free foreign exchange).
However, Duty Credit scrip benefits shall be granted only at a reduced rate of
3.5% of FOB value of exports ([Deleted - realized ] in free foreign exchange) in such cases
where exporter has availed benefits under Chapter 4 of FTP for import of Inputs.
[Old - Chapter 4 of FTP for import of
Agriculture Inputs ] (these words amended by
DGFT NOTIFICATION No.
52(RE-2008)/2004-2009, dated : 30th, October 2008) (other than
catalysts, consumables and packing materials) relating to export item under
this scheme. (In this para word “realized” deleted. by
DGFT NOTIFICATION No 88/2008, Dated 26.02.2009. )
However, for exports made w.e.f. 1.4.2008, Flowers, Fruits and
Vegetables, as listed in Table 13 of Appendix 37A, shall be entitled
to an additional duty credit scrip equivalent to 2.5% of FOB value of exports;
over and above the 5% / 3.5% VKGUY entitlement.
Period of exports for which entitlement is granted is given in Appendix
37Aof HBP v1. However, New additional products notified / clarified
in Appendix 37A of HBP v1 shall be entitled for Duty Credit Scrip on exports,
w.e.f 1.4.2008, unless otherwise specified. |
|
3.8.2.1 |
Exports made by EOUs / BTPs who do not avail direct tax benefits/
exemption shall be eligible, provided the same is not covered under Paragraph
3.8.2.2. |
|
3.8.2.2 |
Following exports shall not be taken into account for Duty Credit scrip
entitlement.
-
- Export of imported goods covered under Para 2.35 of FTP;
- Exports through transshipment, meaning thereby thatexports originating in
third country but transshipped through India;
- Deemed Exports
- Exports made by SEZ units; and
- Items, which are restricted or prohibited for export under
Schedule-2 of Export Policy in ITC (HS)
|
|
3.8.3 to
3.8.5 |
Deleted |
|
3.8.6 |
For exports during 2008-09, all Status Holders (having status recognition w.e.f 1.4.2008) exporting products covered under ITC HS Chapters 1 to 24, shall
be incentivized with duty credit scrip equal to 10% of FOB value of agricultural
exports (including benefits entitled under paragraph 3.8.2) provided that the
total benefits for all status holders put together does not exceed Rs 100 Cr
(i.e. Rs
50 Cr for each half year) and the conditions specified in Para 3.19.10 of HBP v1
(RE2008) are satisfied. Zonal Office CLA, New Delhi shall be the licensing
office for grant of the benefit to all status holders.
The following capital goods / equipments shall be permitted for import:-
- Cold storage units including Controlled Atmosphere (CA) and Modified
Atmosphere (MA) Stores, pre-cooling Units and mother storage for onions
etc.;
- Pack Houses (including facilities for handling, grading, sorting and
packaging etc.);
- Reefer Van / Containers; and
- Other Capital Goods / Equipments as may be notified in
Appendix 37F.
Imported capital goods/equipment shall be utilized for storage, packing etc. (as
in (ii) above) and transportation of agricultural products (including
agro-processed perishable products).
This additional benefit shall be subject to actural user condition and hence
non-transferable.
|
|
3.9 |
FOCUS MARKET SCHEME (FMS) |
Objective |
3.9.1 |
Objective is to offset high freight cost and other externalities
to select
international markets with a view to enhance our export competitiveness in these
countries. |
Entitlement |
3.9.2 |
Exporters of all products to notified countries (as in
Appendix 37C
of HBP v1) shall be entitled for Duty Credit scrip equivalent to
2.5% of FOB value of exports for each licensing year commencing from 1st April,
2006.
However New additional Markets notified in Appendix 37C of
HBP v1 shall be entitled for Duty Credit scrip on exports w.e.f
1.4.2008. |
|
|
3.9.2.1 |
Deleted
[Old - Exports made by EOUs / EHTPs / BTPs who do not avail direct tax benefits
/ exemption shall be eligible, provided the same is not covered under Paragraph
3.9.2.2. ] ( This sub para is now deleted by
DGFT NOTIFICATION No 58/2008, dated : 14-11-20083.) |
|
3.9.2.2 |
Following exports shall not be taken into account for computation
of entitlement:
-
Export of imported goods covered under Para 2.35 of FTP;
-
Exports through transshipment, meaning thereby thatexports originating in
third country but transshipped through India;
- Export turnover of SEZ units or supplies made to such units or
SEZ products exported through DTA units;
- Deemed Exports;
- Service Exports;
- Diamonds and other precious, semi precious stones;
- Gold, silver, platinum and other precious metals in any form,
including plain and studded Jewellery;
- Ores and Concentrates, of all types and in all forms;
- Cereals, of all types;
- Sugar, of all types and in all forms;
- Crude / Petroleum Oil & Crude / Petroleum based Products covered
under ITC HS codes 2709 to 2715, of all types and in all forms;
- Items, which are restricted or prohibited for export under
Schedule-2 of Export Policy in ITC (HS);
- Cement, all types and in all forms; and
- Deleted
[ Old -Primary Steel Products as listed in Public Notice No. 130
(RE2007)/2004-09 dated 27.03.2008, as amended from time to time. ]
( Point m is now deleted by
DGFT NOTIFICATION No 58/2008, dated : 14-11-20083.)
|
|
3.9.2.3 |
Deleted |
|
3.9.3 to
3.9.6 |
Deleted |
|
3.10 |
FOCUS PRODUCT SCHEME (FPS) |
Objective |
3.10.1 |
Objective is to incentivise export of such products, which have
high employment intensity in rural and semi urban areas, so as to offset
infrastructure inefficiencies and other associated costs involved in marketing
of these products. |
Entitlement |
3.10.2 |
Exports of notified products (as in Appendix 37D of HBP v1)
to all
countries (including SEZ units) shall be entitled for Duty Credit scrip
equivalent to 1.25% of FOB value of exports for each licensing year commencing
from 1st April, 2006.
However, for exports made w.e.f. 1.4.2008, Toys and Sports Goods as detailed in
Table 2 of Appendix 37D shall be entitled to duty credit scrip equivalent to
6.25% of FOB value of exports. Further, for exports made w.e.f. 1.4.2008, High
Value Added Manufactured goods, as notified in Table 9 of Appendix 37D, shall be
entitled to duty credit scrip eqivelent to 2.5% of FOB value of exports.
However, New additional products notified / clarified in Appendix
37D of HBP v1 shall be entitled for Duty Credit scrip on exports w.e.f 1.4.2008.
However, special product(s)/sector(s), having high labour intensity, covered
under Table 13 of Appendix 37D, shall be granted duty credit scrip
equivalent to 5% of FOB value of exports., Admissible date of export for
special product(s) / sector (s) shall also be notified in Table 13 of
Appendix 37D of HBP v1.(This new para is inserted by
DGFT NOTIFICATION No 88/2008, Dated 26.02.2009.)
|
|
3.10.2.1 |
Exports made by EOUs / EHTPs / BTPs who do not avail direct tax
benefits / exemption shall be eligible, provided the same is not covered under
Paragraph 3.10.2.2. |
|
3.10.2.2 |
Following exports shall not be taken into account for computation
of entitlement.
-
- Export of imported goods covered under Para 2.35 of FTP;
- Exports through transshipment, meaning thereby thatexports originating in
third country but transshipped through India;
- Export turnover of SEZ units or SEZ products exported through
DTA units; and
- . Deemed Exports
|
|
3.10.2.3 |
Deleted |
|
3.10.3 to 3.10.6 |
Deleted |
Market Linked Focus Product |
3.10.7 |
For exports w.e.f 1.4.2008, Products of high export
intensity (which are not covered under present FPS List) but which
have a low penetration in countries (which are also not covered under present
FMS list) would be incentivised and entitled to a duty credit scrip equivalent
to 1.25% of FOB value of exports, provided that the product / sector are
destined to specified linked markets for that particular product / sector. Such
products / sectors, along with their linked markets, shall be notified in Table
10 of Appendix 37D of HBP v1. |
|
3.10.8 |
For exports of special products/sectors, the duty credit scrip under
this scheme shall be 2.5% of FOB value of exports; and such
products/sectors, along with their linked markets, and admissible date of
exports, shall be notified in Table 12 of Appendix 37D of HBPv1.This
para is added by
NOTIFICATION No 90/2008 92(RE-2008)/2004-09 DATED :2nd
March,2009.) |
|
3.10.9 |
For exports of specified Leather products as notified in Table 1 of Appendix
37D and specified Garments as notified in Table 14 of Appendix 37D, duty
credit scrip under MLFPS shall be granted at the rate of 2% on FOB value of
Exports when exported to specified linked markets. Such products / sectors
along with their linked markets and admissible period / date of exports
shall be notified in Table 14 of Appendix 37D of HBP Vol.1.(This para
is added by
NOTIFICATION No 90/2008 92(RE-2008)/2004-09 DATED :2nd
March,2009.) |
|
3.11 |
HIGH-TECH PRODUCTS EXPORT PROMOTION SCHEME (HTPEPS) |
Objective |
3.11.1 |
Objective is to incentivise export of High Technology products. |
Entitlement |
3.11.2 |
Exports of High Technology products (as notified in Appendix
37E
of HBP v1) in free foreign exchange to all countries, shall be entitled for Duty
Credit Scrip equivalent to:
- 1.25 % of FOB value of exports; or
- 5% of incremental growth in FOB value in free foreign exchange
[Old -(realized as per BRC/ FIRC) ] of
exports of notified products for current year (i.e., 2008-
09) over previous year (i.e., 2007-08) (all taken together) and similarly for
each subsequent licensing year.(This para is amended by
DGFT NOTIFICATION No 88/2008, Dated 26.02.2009.)
Exporter may opt for either (a) or (b) above. However, applicants with ‘nil’
exports in base year shall not be eligible.
|
|
3.11.2.1 |
Exports made by EOUs / EHTPs / BTPs who do not avail direct tax
benefits / exemption shall be eligible, provided the same is not covered under
paragraph 3.11.4. |
Ceiling |
3.11.3 |
Duty Credit Scrip shall not exceed Rs 15 Cr for an exporter for
all shipments done in a licensing year put together, for which benefit is being
claimed under this scheme. |
Ineligible Exports /Categories |
3.11.4 |
Following shall not be counted for entitlement
- Export of imported goods covered under Para 2.35 of FTP;
- Exports originating in third country but transshipped through
India;
- Exports of SEZ units or SEZ products exported through
DTA units; and
- Deemed Exports.
|
|
3.12 |
COMMON PROVISIONS FOR SCHEMES UNDER THIS CHAPTER, EXCEPT WHERE SPECIFICALLY
PROVIDED FOR. |
CENVAT/ Drawback |
3.12.1 |
Additional customs duty/excise duty paid in cash or
through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty
Drawback as per DoR rules, except under SFIS. |
Special Provisions |
3.12.2 |
Government reserves right in public interest, to
specify export products or services or exports to such countries, which shall
not
be eligible for computation of entitlement.
Further Government reserves right to change ceiling on Duty Credit scrip under
this chapter.
Similarly, Government may also notify goods (in Appendix 37B of HBP v1), which
shall not be allowed for import under Duty Credit scripts. |
TRA Facility |
3.12.3 |
Utilization of Duty Credit Scrip for imports from a port
other than port of registration shall be allowed under Telegraphic Release
Advice (TRA) facility as per DoR notification. |
Imports Allowed |
3.12.4 |
Duty Credit Scrip may be used for import of inputs or
goods including
capital goods, provided same is freely importable and / or restricted under ITC (HS).
However, import of items listed in Appendix 37B of HBP v1 shall
not be permitted to be debited. (The new world "and / or restricted"
inserted by
DGFT NOTIFICATION No 88/2008, Dated 26.02.2009.) |
Free Transferability |
3.12.5 |
Duty Credit scrip and items imported against it
would be freely
transferable, except under SFIS. |
Exclusivity of Entitlement |
3.12.6 |
For a shipment, benefit under any one of schemes covered
in this Chapter can alone be claimed, at exporter’s option. |
Import under Lease financing |
3.12.7 |
Utilization of Duty Credit scrip shall be permitted for
payment of duty in case of import of capital goods under lease financing in
terms
of provision in Para 2.25 of FTP. |
Transfer of Export Performance |
3.12.8 |
Transfer of export performance from one to another shall not
be permitted. Thus, a shipment bill containing name of applicant
shall
be counted in export performance / turnover of applicant only if
export proceeds from overseas are realized in applicant’s bank
account and this shall be evidenced from BRC / FIRC.
However, for VKGUY, FMS and FPS, benefits can be claimed either by the
supporting manufacturer (along with disclaimer from the company / firm who
has realized the foreign exchange directly from overseas) or by the company
/ firm who has realized the foreign exchange directly from overseas.
(This Para added by
DGFT Notification No 31(RE-2008)/2004-2009,
Dated 19th August 2008) |
|
3.12.9 |
Duty Credit Scrips under Chapter 3 of FTP can also be utilized for
payment of duty against imports under EPCG scheme provided the item is
importable against the scrip. (This new para is inserted by (DGFT
NOTIFICATION No 88/2008, Dated 26.02.2009.) |