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8/3/2019 Revised Ftp
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8/3/2019 Revised Ftp
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Policy inRetrospect
4
Policy in Retrospect
This being the annual updation of Foreign Trade Policy 2009 14
(which was announced on 27th August, 2009) one cannot expect too
many changes.
The recession is said to be over and therefore additional fiscal
support by way of incentives would be for those sectors only which
are still lacking behind.
Exports have increased compared to 2008 2009 and 2009 2010.
But, the growth is moderate compared to earlier years, 2002 2007.
The excise duties have been increased from 8% to 10% in the last
Budget and the revenue receipts for the year 2010 2011 as
presented in the Union Budget 2011, read as under
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5
Revenue Receipt(Rs. in Crore)
534094465103474218Net Tax Revenue
208997164832164361Less States' Share
356031602500Less - NCCD transferred to theNational Calamity Contingency Fund
/ National Disaster response fund
165116101602Taxes of the Union Territories
680005800065000Service Tax
132000102000106477Union Excise Duties
1150008447798000Customs
603511425Other taxes and Duties
128066131421112850Income tax
301331255076256725Corporation tax
746651633095641079Gross Tax Revenue
1. Tax Revenue
REVENUE RECEIPTS
2010-2011
BudgetEstimates
2009-2010
RevisedEstimates
2009-2010
BudgetEstimates
6
Revenue Foregone in financial years 2008-09 and
2009-10(Rs. in crore)
79.54%50229968.59%414099Grand Total
6.01%379707.36%44417Less Export credit related
85.56%54026975.95%458516Total
39.43%24902137.39%225752Customs duty
27.04%17076521.25%128293Excise Duty
6.48%409296.22%37570Personal Income-tax
12.60%7955411.08%66901Corporate Income-tax
Revenue
Foregone
as a per
cent of
Aggregate
Tax
Collection
in 2009-10
Revenue
Foregone
in 2009-
10
Revenue
Foregone
as a per
cent of
Aggregate
Tax
Collection
in 2008-09
Revenue
Foregone
in 2008-09
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7
Not es: Aggregate Tax Collection refers to the aggregate of net direct
and indirect tax collected by the Central Government.
The figure of Aggregate Tax collection for 2008-09 is at actuals
and that for 200910 is based on revised estimates.
To conclude, the amount of revenue foregone continues toincrease year after year. As a percentage of aggregate tax
collection, revenue foregone remains high and shows an increasing
trend as far as Corporate Income-tax is considered for the financial
year 2008-09. In case of indirect taxes the trend shows a significant
increase for the financial year 2009-10 due to reduction in customs
and excise duties. Therefore, to reverse this trend expansion in thetax base is called for.
8
Revenue Foregone on Account of Export Promotion
Concessions(Rs. in crore)
38862059Vishesh Krishi and Gram Udyog Yojana
(VKGUY)10
2651220Target Plus Scheme9
206418Duty Free Entitlement Credit Certificate8
16461268Duty Free Import Authorization Scheme7
43111DFRC6
32042324SEZ5
88067092DEPB Scheme4
55747833EPCG3
801513401EOU/EHTP/STP2
1068212389Advance License Scheme1
2009-10(Estimated)
2008-09(Provisional)
Name of the SchemeSr.No.
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9
Revenue Foregone on Account of Export Promotion
Concessions (Rs. in crore)
3797044417
Revenue Foregone on account of input
tax neutralization or exemption schemes
to be reduced from Gross Revenue
Foregone on account of Customs Duty
15
56524636
Less Revenue Foregone on account of
incentive schemes mentioned at sl. nos. 8
to 12
14
4362249053Total13
769408Focus Market Scheme12
526531Served from India Scheme11
2009-10
(Estimated)
2008-09
(Provisional)Name of the Scheme
Sr.
No.
10
N.B.:
These aforesaid estimates of revenue foregone do not include revenue
foregone on account of adhoc exemption orders issued under section 25
(2)* of Customs Act, 1962, that relates to circumstances of an
exceptional nature.
*Section 25 (2) reads as under:
If the Central Government is satisfied that it is necessary in the public
interest so to do, it may, by special order in each case, exempt from
the payment of duty, under circumstances of an exceptional nature to
be stated in such order, any goods on which duty is leviable.
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11
Revenue & Exports
1.5900.4603886VKGUY10
0.1080.031265Target Plus Scheme9
0.0840.024206DFCE Certificate80.6730.1951646DFIA Scheme7
0.0180.00543DFRC6
1.3110.3793204SEZ5
3.6021.0428806DEPB Scheme4
2.2800.6595574EPCG3
3.2780.9488015EOU/EHTP/STP2
4.3691.26310682Advance License
Scheme
1
% of indirect tax
collection
[Cus.+ C.Ex.+
Service Tax=
Rs.244477/-
crore]
% of total
exports
Rs.
845506/-
crore
Revenue forgone
amount for the
year 2009-10
(Estimated)
[In Rs. Crore]
Name of the SchemeS.
No.
12
15.5314.49137970Revenue Foregone on account of
input tax neutralization or
exemption schemes to be reduced
from Gross Revenue Foregone on
account of Customs Duty
15
2.3120.6685652Less Revenue Foregone on account
of incentive schemes mentioned at
sl. nos. 8 to 12
14
17.8435.15943622Total13
0.3150.091769Focus Market Scheme12
0.2150.062526Served from India Scheme11
To conclude:
The provisions made by finance ministry for release of funds towards export
promotion would ultimately decide the future of all promotional schemes.
Hence, one should not expect too much on actual incentives.
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UnderstandingPolicy
14
Export Promotion Schemes for
import/procurement of Inputs
DutyExemption
Duty
Neutralisation /
Remission
Rewards/Incentives
by way of DutyCredit
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Adv. Autho.
Import DomesticProcurement
All Import dutiesincluding Anti-
dumping duty andsafeguard duty are
exempted.
Excise Duty isexempted and
domesticmanufacturergets Deemed
Exports benefits
Import
Basic Customs
Duty exempted
[CVD is payable,
however,importer can get
Cenvat Credit]
Duty Exemption
EOUTransferable
DFIA
16
Drawback
If CenvatCredit
is availed
If CenvatCredit
is not availed
Drawback islimited to
customs duty
only
Drawback is
available for
Customs +
Excise dutiespaid
Duty Neutralisation / Remission
Exemption and Neutralisation / Remission
are mutually exclusive
DEPB
Neutralisation of BCD
on inputs as perSION. It can be
debited for payment
of any Customs Dutyon permissible
imports
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Served
from India
Scheme
[SFIS]
Vishesh
Krishi and
Gram Udyog
Yojana
[VKGUY]
Focus
Market
Scheme
[FMS]
Duty Credit
Scrip of 10%
Duty Credit
Scrip of 5%
Duty Credit
Scrip of 3%
Focus Product
Scheme [FPS]/
Market Linked
Focus Products
Scrips [MLFPS]
Duty Credit
Scrip of 2%
Rewards/Incentive Schemes
administered by DGFT
Duty credit scrips are Transferable, they can besold and premium can be earned [except SFIS]
18
Schemes specifically for
import/procurement of Capital Goods
EPCGScheme
EOUScheme
Status Holder
Incentive
Scrip
Zero DutyEPCG
Scheme
for
specified
sectors
3% EPCGScheme
for all
sectors
Works as
zero duty.
Applicableonly for status
holders of
specified
sectors
Zero duty
for EOU/
EHTP/
STP/BTP units
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Issues listed byTask Force with
respect to FTP
20
EDI system should be developed for issuance of ARO /
Invalidation under Advance/EPCG Licenses
Status of redemption of licenses should be available on
DGFT server
Message exchange with Customs should be implementedfor other variants of Advance License i.e. Annual
Advance License and DFIA
Message exchange with Customs should be implemented
for Chapter 3 FTP schemes
Offline software facility should be provided for filingapplications on DGFT server
Online application facility should be provided for status
holder certification
EDI and other IT-related issues with DGFT should be
resolved
2.
Application fee for export promotion-related licenses
(e.g., DEPB, Advance Authorization, EPCG) should not
be charged on ad-valorem basis
1.
Whether
implemented ()or pending ()
Issues listed by Task ForceSr.
No.
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21
Import of spares should be permitted without restriction,
with a corresponding export obligation
10.
Requirement of submission of hard copies of DEPB EDI
shipping bills should be done away with
9.
Priority treatment should be given to Status Holders while
processing applications in DGFT and Customs
8.
Requirement of separate Legal Undertakings for each
license and each organization may be should be done away
with
7.
Requirement of submission of export order for issue of
export license may be done away with
6.
Requirement of submission of Proforma Invoice for issue of
import license for restricted items may be done away with
5.
Adhoc norms should apply to all cases for the same exportproduct upto one year in retrospect4.
Requirement of submission of Chartered EngineerCertificate with Para 4.7 applications may be removed
3.
22
SION for fashion related goods need to be revised at regular intervals
and self-certification should be allowed for para 4.7 cases
20.
The norms for calculating average export obligation value under
EPCG scheme need to be revised
19.
An annual EPCG license scheme should be devised, specially for theservice sector
18.
Requirement of submission of Chartered Engineer Certificate for
issuance of EPCG licenses may be removed
17.
Passport copy of the applicant should be accepted for issuance of IEC16.
The monthly exchange rate notified by Customs may be allowed to
be used for converting shipping bills into FFE, in the EPCG scheme
15.
Duplicate verification of documents by Customs after redemption of
licenses to be done away with
14.
Time taken for redemption of Advance Authorization / EPCG licenses
should be reduced through better monitoring and self-certification
13.
MDA assistance should be company-specific and not individual-
specific
12.
Time for submission of installation certificate by EPCG holders
should be relaxed in case of delays by Central Excise
11.
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23
Suggest ions by Sudhakar Kast ure as amember of Task Force
DEPB Rate Schedule to be aligned to ITC HS
Classification for Export & Import Items
24.
Simplification of Invalidation of Authorisations
Invalidation process should be made simpler. Instead
of issuing ARO etc., a simple endorsement should be
done on the body of authorization.
23.
Para 3.12.8 of FTP: Procurement from Domestic
Sources - Local procurement is allowed under the
Served from India Scheme [SFIS]. It was recommended
to extend such facility for other Duty Credit Scrips
viz. FMS, FPS and VKGUY as well.
22.
DEPB application should be modified to include
FMS/FPS percentage also. Fees for DEPB to be
abolished.
21.
24
Clubbing of Advance Authorisation:
As per Para 4.1.3 of FTP there are no separate categories for
Advance Authorisation any more.
However, operationally, RAs treat Advance Authorisations issued
for intermediate supply and Deemed Exports separately and this
leads to unnecessary trouble and confusion.
Even in guidelines for applicants given in the application format
for clubbing, ANF 4D, prescribes that clubbing of Advance
Authorisation and Annual Advance Authorisation is not
permitted. This seems to be anomaly, as the basic provisions of
Clubbing [Para 4.20 of HBPv1] do not contain such provision.
It was therefore recommended that -
A clause should be included in clubbing provisions as well as
Export obligation provisions that Export or Deemed Export will
qualify for discharge of export obligation against any
authorisation howsoever, issued subject to time limit of 36
months for exports, and 30 months for imports.
Also the condition mentioned in ANF 4D for clubbing of Advance
Authorisation and Annual Advance Authorisation should be
deleted.
25.
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Para by Para Studyof Foreign Trade
Policy &
Procedures
Chapter 1B-FTP
Special Focus
Initiatives
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27
PARA 1B.1 - Special Focus
(ii) Technological Upgradation:
At the end of sub-point (a) following sentence is added, which is as
under:
This scheme is being expanded to cover more export product groups
including marine products, sports goods, toys, rubber & rubber products,
additional chemicals / allied products and additional engineering
products. The scheme is also being extended upto 31.3.2012.
Remarks:
Addit ion of more products.
New point at sr.no.(c) is added, which is as under;
(c) The facility of EPCG Scheme for Annual Requirement is beingintroduced to reduce documentation and transaction time.
Remarks:
Good pr ovision.
28
(iii) Support to status holders
In the para, Bold sentence is added.
The Government recognized Status Holders contribute approx.
60% of Indias goods exports. To incentivise and encourage the
status holders, as well as to encourage Technological upgradation of
export production, additional duty credit scrip @ 1% of the FOB
value of past export shall be granted for specified product groups
including leather, specific sub-sectors in engineering, textiles,
plastics, handicrafts and jute. This duty credit scrip can be used for
import of capital goods by these status holders. The imported
capital goods shall be subject to actual user condition. The status
holder incentive scrip scheme is being expanded to cover more
export product groups including marine products, sports goods,
toys, specified chemicals and allied products and additionalengineering products. The scheme is also being extended upto
31.3.2012.
Remarks:Welcome provi sion.
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(iv) Agriculture and Village Industry
Sub-point (f) of Agriculture and Village Industry is
substituted as under:
Substituted point (f) Additional flexibility for agri-infra scrip by way oflimited transferability to other status holders and theunits in Food Parks allowed.
Old point (f) Certain specified flowers, fruits & vegetables areentitled to a special duty credit scrip, in addition to thenormal benefit under VKGUY.
Remarks:Transferabil it y expanded t o Food Park unit s.
30
(v) Handlooms
Following new sub point is added(a) 2% bonus benefits under focus product scheme.
Bold sentence is added(c) Duty free import entitlement of specifiedtrimmings and embellishments is 5% of FOB value ofexports during previous financial year. Handloommade-ups have also been included for theentitlement.
(vi) Handicrafts
New sub point (h) is added, which is as under:
(h) In addition to above, 2% bonus benefits underFocus Product Scheme for Handicraft exports.
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(vii) Gems & Jewellery
Bold words are added in sub point (b) under Sector (vii)
Gems & Jewellery, which reads as under:
(b) Duty Free Import Entitlement (based on FOB value
of exports during previous financial year) of
Consumables, Tools and additional items allowed for:
1. Jewellery made out of:
(a) Precious metals (other than Gold & Platinum) 2%
(b) Gold and Platinum 1%
(c ) Rhodium finished Silver 3%
2 . Cut and Polished Diamonds 1%
32
(viii) Leather and FootwearFollowing two new sub points are added
(a) Additional 2% bonus benefits under Focus Product Scheme.
(b) Finished Leather exports to be incentivized under FocusProduct Scheme.
Underlined words are replaced by bold words in sub para (i)
Re-export of unsold hides, skins and semi finished leather shall beallowed from Public Bonded warehouse (OLD- at 50% of theapplicable export duty) without payment of export duty.
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33
(ix) Marine Products
Sub point (e) is amended as under:New Para (e) Marine products are incentivized at special higher rate underVKGUY scheme.
Old Para (e) Marine products are considered for VKGUY Scheme.
Following new sub point (f) is added:(f) Marine sector included for benefits under zero duty EPCGscheme.
(x) Electronics and IT Hardware Manufacturing IndustriesTwo new sub points are added
(a) Export of electronic goods to be incentivized under FocusProduct Scheme.
(d) Electronics Sector included for benefits under SHIS scheme.
34
(xi) Sports Goods and Toys
Two new sub points are added
(e) In addition to above, 2% bonus benefits under
Focus Product Scheme for Sports Goods & Toys.
(f) Sports goods & Toys included for benefits under zero
duty EPCG and SHIS schemes.
General Remarks for point nos. (v), (vi), (vii), (viii),(ix ), (x) and (xi):Addit ional benefi t s are granted for vari ous sectors.
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Chapter 1-HBPIntroduction
36
PARA 1.1 Notification
Underlined words are replaced by bold words
In pursuance of the provisions of paragraph 2.4 of FTP,the Director General of Foreign Trade (DGFT) herebynotifies the compilations known as HBPv1, HBPv2 andSchedule of DEPB rates. These compilations, as amendedfrom time to time, shall remain in force until 31stMarch, 2014, except DEPB scheme, which shall continueto be operative till 31st, December 2010 or till a
replacement scheme is announced, whichever is earlier30th June, 2011.
Remarks:DEPB scheme ext ended upt o 30t hJune, 2011.
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Chapter 2-HBPGeneral Provisions
Regarding Imports
and Exports
38
PARA 2.49 Application for Grant of Export Licence/ Certificate /
Permission
In the first sentence of para mentioned after Point NO. IV ofprocedure/guidelines for filing/evaluation of applications forentering into an arrangement or understanding for site visits, on-siteverification and access to records /documentation - words forexport of any other item which is not restricted or prohibited forexport are substituted by words for export of items not coveredunder Drugs &Cosmetics Act, 1940, which have usage inhospitals, nursing homes and clinics, for medical and surgicalpurposes and are not prohibited for export..
Substituted words for export of items not covered under Drugs &Cosmetics Act, 1940, which have usage in hospitals, nursing homes
and clinics, for medical and surgical purposes and are not prohibitedfor export were appearing in the FTP earlier, which were replacedby PN No. 64 Dtd. 18.05.2010 and now are reintroduced.
Remarks:Reintroduction of earlier provision.
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PARA 2.70.6 - New EDI Initiatives Deleted
Deleted para reads as under:To further improve quality of services some new EDI
initiatives are being taken by DGFT:
Electronic Message Exchange between Customs and
DGFT in respect of incentive schemes under Chapter 3
will become operational by 31st December, 2009.
Remarks:In pract ice, Cust oms demand cert i f icate ofgenuineness from DGFT, which defeats the purpose of
EDI init iat ives otherwise also.
Chapter 3-FTP
Promotional
Measures
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41
PARA 3.12.6- Imports Allowed
Second sub-para of para 3.12.6 amended, which reads as under:
Utilization of Duty Credit scrip earned shall be permitted for
payment of duty in case of import of only those vehicles, which are
in the nature of professional equipment to the service provider.
Old para
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 freely importable under ITC (HS).
Remarks:
These would be vehicles similar to golf carts, battery operatedvehicles used to carr y equipments in studios et c. (mainly of f t heroad vehicles)
42
PARA 3.13.4 - Agri. Infrastructure
Incentive Scrip
i) In the first para, Para no. 3.7.2 of HBPv1 is replaced by Para no.3.4 of HBPv1.
Remarks:Para 3.4 of HBPv1 deals with refusal/suspension/ cancellationof stat us cert if icate and Para 3.7.2 of HBPv1 is relat ing to Agri .Inf rast ructure Incent ive Scrip .This is an error, wil l be correct ed subsequent ly.
ii) In last sub-para of para 3.13.4 following bold words are added:However, for import of Cold Chain Equipment, this Incentive Scrip
shall be freely transferable amongst Status Holders as well as toUnits (the term Units shall not include Developers) in the FoodParks.
Remarks:Limited additional transferability provided.
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43
PARA 3.15.2- Entitlement
[Focus Product Scheme (FPS)]
Following sub-para is added at the end of para 3.15.2
New sub-para:
Further, Focus Product(s) / sector(s) that are notifiedunder Table 7 of Appendix 37D shall be grantedadditional Duty Credit Scrip equivalent to 2% of FOBvalue of exports (in free foreign exchange) over andabove the existing rate for that product / sector fromthe admissible date of export / period specified in thepublic notice issued to notify the product / sector.
Remarks:BONUS
44
PARA 3.16.1- (Status Holders Incentive Scrip)
Bold words in first para are added:
With an objective to promote investment inupgradation of technology of some specified sectors aslisted in Para 3.16.4 below, Status Holders shall beentitled to incentive scrip @1% of FOB value of exportsmade during 2009-10, 2010-11 and during 2011-12, ofthese specified sectors, in the form of duty credit.
New sub-para added:
The Status Holders of the additional sectors listed inthe Para 3.10.8 of HBPv1 2009-14 (RE-2010) shall beeligible for this Status Holders Incentive Scrip on exportsmade during 2010-11 and 2011-12.
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45
PARA 3.16.1- (Status Holders Incentive Scrip)
Remarks:
St at us holder i ncent ive scri p is fur t her extended for
one more year f or 2011 2012 export s.
The benefi t s of t he scheme have been ext ended t oaddit ional sect ors such as Chemical & All ied products,paper, paperboard and articles thereof, ceramicproducts, re-fractories, glass & glassware, rubber &articles thereof, plywood and allied products,
electronics product s, sport s goods and toys and
addit ional engineer ing product s . Such addit ionalsectors shall be entitled for the benefit only on exportsmade duri ng 2010-11 and 2011-12.
46
PARA 3.16.4
Following sub-para added at the end of para 3.16.4:
The Status Holders of the additional sectors listed in
the Para 3.10.8 of HBPv1 2009-14 (RE-2010) shall be
eligible for this Status Holders Incentive Scrip on exports
made during 2010-11 and 2011-12.
Remarks:The additional sectors shall now enjoy the benefit ofSt at us Holders Incent ive Scri p.
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Chapter 3-HBPPromotional
Measures
48
PARA 3.7.2 (VKGUY)
Third para of Para 3.7.2 of HBPv1 is amended, which reads as
under:
Applications received after the last date shall be summarily
rejected, as Para 9.2 [OLD- Para 9.3] and Para 9.3 [OLD-Para 9.4]
shall not be applicable.
Remarks:Para 9.3 of HBPv1 is related to imposition of late cut, Para 9.4of HBPv1 is relat ed to supplementar y clai ms.
Here also t here is an err or, as Para 9.2 of HBPv1 is aboutDenomination of Import Authorisation / Licence / Certificate /Permissions.
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49
PARA 3.10 - Procedure for Status
Holders Incentive Scrip
Para 3.10.3 amended to read as under:
Amended Para:
The last date of filing the application shall be 31st March
2011/2012/2013 for SHIS scheme for exports made during 2009-
10/2010-11/2011-12 respectively.
Further, in view of fourth sub-para of Para 5.1A of HBPv1:
a) Para 9.3 of HBPv1 shall not be applicable for SHIS Scheme in
cases where the SHIS application (say for exports made during
2009-10) has been filed after the prescribed date (i.e. after
31st March 2011) and Zero Duty EPCG Authorisation has beenissued to the applicant by any RA during the year 2010-11 (from
1.4.2010 till 31.3.2011).
50
b) Similarly for SHIS Applications for exports made during 2010-11
& 2011-12 filed late (i.e. after the prescribed dates of 31stMarch 2012/2013 respectively), Para 9.3 shall not be applicablein cases where Zero Duty EPCG Authorisation has been issued tothe applicant by any RA during the year 2011-12 (from 1.4.2011till 31.3.2012) or 2012-13 (from 1.4.2012 till 31.3.2013) as thecase may be.
c) In case SHIS Application is filed within the prescribed date(for exports made during 2009-10/2010-11/2011-12 as thecase may be, including any supplementary claim under Para9.4 of HBPv1) and where Zero Duty EPCG Authorisation hasbeen issued to the applicant by any RA during the relevantyear (i.e. during 2010-11/2011-12/2012-13 respectively, asthe case may be), SHIS application shall be summarily
rejected in view of fourth sub-para of Para 5.1A of HBPv1.
Old para 3.10.3:The last date of filing the application shall be 31st March 2011 forSHIS Application on exports made during 2009-10 (and 31st March2012 for SHIS Application on exports made during 2010-11).
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51
Remarks:
Date of filing of application would be within one yearof t he year of export s eff ect ed.
Duty credit scrip appli cati ons shall not be considered:
In case, it is filed beyond prescribed last date of
application. In case, Zero Dut y EPCG Scheme is avai led in t he
par t icular peri od i .e. 201011, 201112 & 201213.
Provision of late cut is not applicable, which please
not e.
52
PARA 3.10.8 New para added
The following additional sectors shall be eligible for
Status Holders Incentive Scrip on exports made during
2010-11 and 2011-12:
Contd.
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53
Various codes(xi)Misc. Products (Codes 3201, 32029010, 32030010, 3604,
3605, & 38021000)
Various codes(x) Graphite Products (Codes 3801, 85451100 and 85451900) &
Explosives (Codes 3601, 3602 and 3603)
Codes 05061039 and
35030020
(ix) Ossein & Gelatine
Various codes(viii) Animal By-products (Codes 35030030, 05069099,
05079010, 05079020, 05079050, 23011010, 23011090,
96062910 and 96063010)
Chapter 49(vii) Books, Publications & Printings
Chapter 48(vi) Paper, Paper Boards & Paper products
Chapter 69(v) Ceramics / refractories
Chapter 44(iv) Plywood and allied products
Chapter 70(iii) Glass and glassware
3208, 3209, 3210(ii) Paints, Varnishes & Allied Products
4001 to 4010,
4014 to 4017(i) Rubber products,
Chemical & Allied Products (other than Bulk minerals,
Granite/Stones, Processed minerals, Cement, Clinkers and
asbestos)
1
ITC(HS)Products / Product GroupsSl.
No.
Contd
54
(iii) Ferro Alloys
(ii) Pipes and tubes
(i) Iron and Steel
Chapter 72Engineering products for the three groups
indicated below4
Chapter 95 and Codes
420321, 650610
Sports Goods and Toys3
Electronics Products2
Remarks:SHIS is now ext ended t o above ment ioned addi t ional sectors.
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55
PARA 3.11 - Common procedural features for
promotional schemes, applicable to all schemes in
this chapter, unless specifically provided for:
PARA 3.11.8 - Declaration of Intent on Free Shipping Bills
Bold paras are reintroduced which were deleted and replaced videPN.82 dtd.16.07.2010 and other paras are newly introduced:
For export shipments filed under Free Shipping Bill category,for exports of products / to markets eligible under Chapter 3 ofFTP (Appendix 37A, 37C, 37D), the exporter shall state theintention to claim benefits under Chapter 3 of FTP by declaringon the Free Shipping Bills as under:
I/We, hereby, declare that I/We shall claim the benefits, asadmissible, under Chapter 3 of FTP.
This declaration shall not be required for export shipments underany of the schemes of Chapter 4 (including drawback) or Chapter5 of FTP.
Contd
56
Further for products, markets notified during the year, this
declaration shall be necessary for exports under Free ShippingBills, only after a grace period of one month from the date ofrelevant public notice.
Moreover for exports made prior to date of notification ofproducts / markets, such a declaration will not be required, sinceexport shipments under Free Shipping Bills have already takenplace.
Newly i ntr oduced paras are :
For exports made w.e.f 1st January 2011, the above Paragraph shallbe replaced as under:
For products/markets listed in Appendix 37A, 37C, 37D that areeligible for benefit under Chapter 3 of FTP, exporters shall declaretheir intention to claim benefit by stating in all categories ofShipping Bills as under:
I/We, hereby, declare that I/We shall claim the benefits, asadmissible, under Chapter 3 of FTP.
Contd
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This declaration shall also be required on export shipments under
any of the Schemes of Chapter 4 or Chapter 5 or Chapter 6 of FTP aswell as on Bills of Exports filed for Supply to SEZ. No claim under
Chapter 3 shall be admissible without this declaration. However,
Schemes names are not required to be mentioned in the declaration
of intent.
Further, for products / markets notified during the year, the
declaration of intent shall be necessary for exports under all
categories of Shipping Bills only after a grace period of one month
from the date of relevant Public Notice which notifies such product
/ market. For exports made prior to date of notification (i.e. the
date of the relevant Public Notice which notified such product /
market), such a declaration will not be required since export
shipments have already taken place.
Remarks: Procedural clari f icat ion.
Chapter 4-FTP
Duty Exemption &
Remission Schemes
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59
PARA 4.1.10- Advance Authorisation
for Annual Requirement
Sentence in bold is added in first sub para. Remaining
sub paras remain unchanged.
Advance authorisation can also be issued for annual
requirement. Imports are exempted from payment of
basic customs duty, additional customs duty,
education cess, antidumping duty and safeguard duty,
if any.
Remarks:
This is just compliance, which was otherwise due;since goods impor t ed are not meant for domest icconsumpt ion.
60
GEMS AND JEWELLERY
PARA 4A.1.1
Word in bold is deleted from the sentence
Replenishment authorisation may also be issued for
consumables & tools as per paragraph 4A.28 of HBP v1.
Remarks:
Tools are not input s and hence this delet ion.
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Chapter 4-HBPDuty Exemption &
Remission Schemes
62
PARA 4.7.1 - Entitlement
i) Words in bold are added in the second sub para
However, in cases where NC has already ratified norms
for same export and import products in respect of an
authorization obtained under paragraph 4.7, such norms
shall be valid for a period of one year, both with
retrospectively as well as prospectively, reckoned from
the date of ratification.
Contd
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63
PARA 4.7.1 - Entitlement
ii) Sentence in bold is added at the end of third sub para
In such cases Authorisations shall be issued by RA concerned under
"Adhoc Norms Fixed" category and application copies need not be
forwarded to NC for fixation / ratification of norms. Where the
application has already been forwarded before the ratification of
Norms, the RA shall finalise the case as per the norms
subsequently ratified by NC in a similar case.
Remarks:This would solve the problems of pending cases for redemption
purposes, pr ovided the provision is implemented in tr ue spir it .
64
PARA 4.20 - Facility of Clubbing
Sentence in bold is added at the end of the para
Facility of clubbing shall be available only for redemption/regularisation of cases and no further import or export shall beallowed. For this facility, authorisations are required to havebeen issued under similar Customs notification even pertainingto different financial years. However in case of Authorisationsissued in 2004-09 period and thereafter, Advance Authorisationswith different customs notification can be clubbed. Advanceauthorisation for annual requirement can also be clubbedwith the advance authorisation.
Remarks:Long overdue amendment f inall y approved.
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65
PARA 4.21 - Enhancement/ Reduction in the value ofAuthorisation
Bold words are deleted, in the first sentence of this para
In respect of an Advance Authorisation, RA concerned (as
per their financial powers) may consider a request for
Remarks:Al l enhancement / reduct ion t o be carr ied out byregional authority, only procedural simplification.
66
GEMS AND JEWELLERYPARA 4A.28 - Replenishment Authorisation for Import ofConsumables etc.
Words in bold are added in the first sub para
A replenishment authorization for duty free import ofConsumables, Tools and other items namely, Tags and labels,Security censor on card, Staple wire, Poly bag (as notified byCustoms) for Jewellery made out of precious metals (other thanGold & Platinum) equal to 2% and for Cut and Polished Diamondsand Jewellery made out of Gold and Platinum equal to 1% of FOBvalue of exports of the preceding year, may be issued on productionof Chartered Accountant Certificate indicating the exportperformance. However, in case of Rhodium finished Silverjewellery, entitlement will be 3% of FOB value of exports of suchjewellery. This Authorisation shall be non- transferable and subjectto actual user condition.
Remarks:Good Provision
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Chapter 5-FTPExport Promotion
Capital Goods
Scheme
68
PARA 5.1 Zero duty EPCG Scheme
i) The additional products are added in second sub para.
The added products are marked in bold.
The scheme will be available for exporters of
engineering & electronic products, basic chemicals &
pharmaceuticals, apparels & textiles, plastics,
handicrafts, chemicals & allied products, leather &
leather products, paper & paperboard and articles
thereof, ceramic products, refractories, glass &glassware, rubber & articles thereof, plywood and
allied products, marine products, sports goods and
toys subject to exclusions as provided in HBP Vol. I.
Contd
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69
ii) In third sub para, the operational period of Zero duty
EPCG Scheme is extended for the further period of one
year. The old and new sentence is as under:
Old sentence of third sub para:
The zero duty EPCG scheme will be in operation till
31.3.2011.
New sentence of third sub para:
The zero duty EPCG scheme will be in operation till
31.3.2012.
Remarks:Zero Dut y EPCG scheme has been ext ended by onemore year till 31.03.2012.
70
PARA 5.2D EPCG Authorization for Annual
Requirement
New para added, which reads as under:
EPCG Authorization can also be issued for annual
requirement to Status Certificate Holders and all other
categories of exporters having past export performance
(in preceding two years), both under zero duty and 3%
duty Schemes. The annual entitlement in terms of duty
saved amount shall be upto 50% of FOB value of Physical
Export and / or FOR value of Deemed Export, inpreceding licensing year.
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PARA 5.2D EPCG Authorization for Annual
Requirement
Remarks: Good provision.
Export er shall now have the flexi bili t y t o get a high valueEPCG authorisation by filing application on Annual basis,inst ead of mult iple i ndivi dual appli cat ions.
It wi ll reduce paper work against fi ling of mult ipleapplications and monitoring thereof.
It wi ll also reduce t ransact ion t ime and cost .
It is appli cable only t o t he St atus Holder AND othercategories of exporters having export in atleast precedingtwo years.
The upper li mit of dut y saved amount f or t he purpose ofEPCG authori sati on is li mit ed to 50% of preceding year sexports.
Chapter 5-HBP
Export Promotion
Capital Goods
Scheme
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PARA 5.1A Exclusions under Zero
Duty EPCG Scheme
Second and third sub paras are amended. The amended
paras are as under:
Chapters 1, 2, 4 to 24, 25 to 27, 31, 43, 44 (except
plywood and allied products), 45, 47, 68, 71, 81 (metals
in primary and intermediate forms only), 89, 93, 97, 98.
ITC(HS) 4011 to 4013, ITC(HS) 7401 to 7406, 7501 to
7504, 7601 to 7603, 7801,7802, 7901 to 7903, 8001, 8002
and 8401. However, zero duty EPCG Scheme will be
available for handicraft exports under Chapters 5, 68,97.
74
Remarks:
Benef it of t he scheme is expanded to cover paper & paperboard andarticles thereof, ceramic products, refractories, glass & glassware,rubber & art icles t hereof, plywood and alli ed product s, mari ne
product s, sport s goods and t oys and addit ional engineeringproducts.
Since t here is addi t ion and delet ion i n Chapt ers and ITC (HS) codes,
it is necessary t o check t he exclusion li st carefull y before availi ng ofZero Duty EPCG Scheme. (The l ist is given below)
44Chapt er deleted f rom Zero EPCG
Scheme for Handicraft Export s
7201 to 7212, 7218 to 7220, 7224
to 7226
ITC (HS) delet ed f rom exclusion
list
4011 to 4013,ITC (HS) added under exclusion
list
3, 40, 44 (except plywood andalli ed products), 48, 49, 69, 70
Chapt ers delet ed f rom exclusionlist
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75
PARA 5.2A EPCG Authorisation for
Annual Requirement
New para added, which reads as under:
The Authorization for Annual Requirement will be issued subjectto the following conditions in addition to other terms andconditions governing the EPCG scheme:-
Authorizations shall be issued with a specific duty saved amountand corresponding export obligation. The applicant would berequired to indicate export products proposed to be exportedunder the authorization.
The authorization holder shall also be required to submit a NexusCertificate from an independent Chartered Engineer (CEC) inAppendix 32A, to the Customs authorities at the time of clearance
of imported capital goods. A copy of the CEC shall be submitted tothe concerned Regional Authority along with copy of the bill ofentry, within 30 days from the date of import of the CapitalGoods.
Contd.
76
Remarks: Procedural simpli f icat ion.
Now EPCG authori sati on for annual requirement can begrant ed upto 50% (dut y saved value) on FOB value of pr ecedingyears export s.
Detai ls of products proposed t o be export ed should be givenwhile f il i ng initi al applicat ion.
Nexus certificate as per prescribed format is to be submittedat t he time of physical i mport , at Cust oms aut hori t y i nst ead atinitial stage of application with concerned RA. Thereafter,copy of the same should be submitted to RA along with Bill ofEntr y, wit hin 30 days of import . In other words, nexus will bemonit ored by Cust oms inst ead of Regional Authori t y.
This provi sion would be very useful t o lar ge companies whereall details of imports are not finalised in advance. It willreduce the application fees substantially.
Very welcome provision.
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Chapter 8-HBPDeemed Exports
78
PARA 8.3.1 Procedure for claiming Deemed Exports
Drawback & Terminal Excise Duty Refund / Exemption
First point of the para is substituted as under
Words in bold are added
An application in ANF 8 along with prescribed documents, shall bemade by Registered office or Head office or a branch office ormanufacturing unit ofsupplier to RA concerned. Where applicantis branch office or manufacturing unit of a supplier, it shallfurnish self certified copy of valid RCMC. Recipient may also claimbenefits on production of a suitable disclaimer from supplier in theformat given in Annexure III of ANF 8 along with a self declaration
in the format given in Annexure II of ANF 8 regarding non-availmentof CENVAT credit in addition to prescribed documents.
Remarks:Good procedural simpli f icat ion.
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79
NOTE:
There are no practical changes made in the following chapters:
Chapter 1C-FTP - Board of Trade
Chapter 2-FTP - General Provisions Regarding Imports and
Exports
Chapter 6-FTP and HBPv1 - Export Oriented Units (EOUs),
Electronics Hardware Technology Parks (EHTPs), Software
Technology Parks (STPs) and Bio-Technology Parks (BTPs)
Chapter 8-FTP - Deemed Exports
Chapter 9-FTP - Definitions
Chapter 9-HBP - Miscellaneous Matters
Updates on SEZ
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Fact Sheet on Indian SEZ
No. of Notified SEZs as on 20.07.2010 358 (out of 575) +
(7 Central Govt. + 12 State/Pvt. SEZs)
No. of valid formal approvals 576
No. of valid in-principle approvals 155
Operational SEZ as on 31.12.2009 114 (Out of these 14 are
multi-product SEZs, remaining are IT/ITES, Engineering,
electronic hardware, textiles, Biotechnology, Gem& Jewellery
SEZs and other sector specific SEZs)
Units approved in SEZs as on 30.06.2010 3,048
Source: www. sezindi a.ni c.i n
82
SEZs-Area Requirement
Area Estimates
[approx]
(in hectares )
SEZ
1,98,992Total Area for proposed SEZs
1,29,668In-principal approvals
69,324Formally approved and notified
SEZs
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83
Fact Sheet on Indian SEZ
2,00,327 personsEmployment in Govt. SEZs
2,89,738 personsEmployment created in
notified SEZs (as on 30th
June 2010)
Rs. 1,49,744.55 crTotal Investment made in
notified SEZs (as on 30th
June 2010)
84
Fact Sheet on Indian SEZExports from the functioning SEZs during the last three years are as
under:
121.40%2,20,711.392009-2010
50%99688.872008-2009
93%666382007-2008
52%346152006-2007
24.71%22,8402005-2006
32%18,3142004-2005
39%13,8542003-2004
Growth Rate of exportsExports (Rs. crores)Year
Exports in 2010-11 as on 30.06.2010 - Rs. 58,685.46 crore
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Changes effectedtill August 2010
86
SEZ Draft Guidelines Dtd.13.11.09 -
Guidelines for Development of SEZs
Draft Guidelines were issued by the Ministry of
Commerce and Industry (MoC&I) on 5th August, 2009 and
were circulated to SEZ Developers. On getting
suggestions from the SEZ developers, revised draft
guidelines are issued by this notification.
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87
S.O. 75 Dtd. 13.01.2010
On 13th January, 2010 following sections of SEZ Act, 2005 have been
operationalised
Sections 20-Agency to inspect Section 21-Single enforcement officer or agency for notified
offences
Section 22-Investigation, inspection and search or seizure.
S.O. 76 Dtd. 13.01.2010
MoC&I specified acts or omissions punishable under the Foreign Trade
(Development and Regulation) Act, 1992 (28 of 2005) as notified
offences for the purposes of the Special Economic Zones Act, 2005.
S.O. 77 Dtd. 13.01.2010
MoC&I authorizes Development Commissioner [DC] to be the
enforcement officer in respect of the notified offences [as given in S.O.
76 Dtd. 13.01.2010] committed in a SEZ.
88
S.O. 78 Dtd. 13.01.2010
Director STPI would no more be In-charge of SEZ particularly IT/ ITES/Software SEZs.
S.O. No. 228 Dtd. 03.03.2010 Very important amendment. SEZs are authorized as deemed
licensee for the purposes of distribution of electricity. Hence notified SEZs (notified under sub-section (1) of section 4 of
the SEZ Act, 2005) need not make application for obtaining licencefor distribution of electricity under clause (b) of Section 14 of theElectricity Act, 2003.
S.O. No. 527 Dtd. 03.03.2010 Clause (u) of section 2 of the Special Economic Zones Act, 2005
(definition of offshore banking unit) would not apply to offsite
Automated Teller Machines [ATM] in the Special Economic Zones,and branches in Special Economic Zones by Banks, not licensed as
Offshore Banking Units; with the prior permission of the ReserveBank of India under section 23 of the Banking Regulation Act,1949.
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89
G.S.R. 501(E) Dtd. 14.06.2010
Amends SEZ Rules, 2006
Rule 3, 5, 6, 8, 9, 11 and 12 are amended and Rule 3A, 6A and 78
are inserted. By this notification, following Forms are also added.
APPLICATION FOR APPROVAL OF AUTHORISED OPERATIONSForm-C7
APPLICATION FORM FOR DENOTIFICATIONForm-C6
APPLICATION FOR DECREASE IN AREAForm-C5
APPLICATION FOR INCREASE IN AREAForm-C4
APPLICATION FOR SEEKING CHANGE IN SECTORForm-C3
APPLICATION FOR EXTENSION OF VALIDITY OF APPROVAL GRANTED
UNDER RULE 6(2)(b)
Form-C2
APPLICATION FOR EXTENSION OF VALIDITY OF APPROVAL GRANTED
UNDER RULE 6(2)(a)
Form-C1
APPLICATION FORM FOR APPROVAL OF CO-DEVELOPERForm-A1
Explanation on each amendment/insertion of rule is provided in
EPCES Cir. No. 113 Dtd. 14.07.2010.
90
G.S.R. 597(E) Dtd. 12.07.2010 Amends
Rule 5 (2) (b) of SEZ Rules, 2006
This notification amends Rule 5 (2) (b) related to sector specific
SEZ. The inserted proviso prescribes minimum built up area for
SEZs located in the cities as categorized under Annexure-IV.
Annexure IV is also inserted by this notification. The minimum built
up area prescribed is as under:
Third Proviso of Rule 5(2) (c) related to FTWZ is also amended. The
proviso says that in SEZ for a specific sector, FTWZ may bepermitted with no minimum area requirement, provided maximum
area of FTWZ should not be more than 20% of processing area. This
criterion under third proviso was applicable to Sector Specific SEZ,
now after amendment, this provision is made applicable to SEZs
having area less than 1000 hectares.
25% of the area specified in Rule 5(2)(b)B2 category cities
50% of the area specified in Rule 5(2)(b)B1 category cities
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91
EPCES Cir. No. 100 Dtd. 08.01.2010
This circular is issued referring A.P. (DIR Srs.) Cir. No. 22Dtd. 29.12.2009. In this circular it was clarified that SEZ
developers are allowed to open, hold and maintain EEFC
account and to credit up to 100% of their foreign exchange
earnings.
EPCES CIRCULAR NO. 104 DATED 2-3-2010 IT/ITES SEZs can also house electronic hardware units in
these SEZs.
For setting up a unit in the SEZ, where Industrial Licence is
required, permission can be given by Board of Approvals.
92
EPCES CIR. NO. 112 DTD. 16.06.2010 - Revised discussion paper on Direct
Tax Code, released by Ministry of Finance on 15-6-2010.
Very important circular relating to revised discussion paper on Direct Tax
Code (DTC) released by Ministry of Finance on 15th June, 2010.
Finance Minister has proposed in Revised DTC paper for discussion, in
Chapter VII that, provision to protect profit linked deductions of units
already operating in SEZs, for the unexpired period, will be incorporated.
However, he has further clarified that since Profit linked deductions are
distortionary in nature as they create an incentive to inflate profit as well
as to transfer profits from a taxable entity to a non-taxable one, it has
been decided not to extend the scope or the period of profit linked
deductions.
This amendment only meets the requirement of SEZ partially, as it protects
only the existing SEZ units. This would practically close the door for new
investment in the SEZ and hence, Dr. L.B. Singhal DG, EPCES, has invited
representations from the Industry upto 30.06.2010.
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93
Instruction No. 37 Dtd. 07.09.2009 Clarification on whetherimport, re-melt, re-make and export of imported finished jewelleryis an authorized activity in SEZIn view of the provisions contained in Section 2(r) of SEZ Act, 2005 readwith Rule 27(1) of SEZ Rules, it is clarified that import of jewellery andits remaking is an authorised manufacturing activity by an SEZ unitholding letter of approval for manufacturing of jewellery. Furtherimport would include re -import of exported jewellery.
Instruction No. 38 Dtd. 11.09.2009 - SEZ Online Project.MoC is executing agreement with NDML for SEZ online project. This isto establish a nationwide integrated e-governance solution for theadministration of SEZ and to facilitate speedy processing oftransactions of SEZ Developers SEZ units.
Instruction No. 39 Dtd. 11.09.2009 - Procedure for consideration ofoperational issues regarding SEZs.
Very important instruction. For approvals or operational issues relatedto SEZ, the matter should be referred to Unit Approval Committee[UAC] or Board of Approval [BoA] and not to the individual Departmentsof Government of India.
94
Instruction No. 40 Dtd. 01.10.2009-Effective implementation of the
Hazardous Waste Rules, 2008For ensuring compliance with Hazardous Waste Rules, 2008, following
recommendations are made by the Ministry of Environment and Forests[MOEF].
Officers of the State Pollution Control Boards [SPCBs] are advised to
attend the meetings of the Approval Committee and assist the
Development Commissioner [DC] in ensuring compliance of the
environmental regulations, especially Hazardous Waste (Management,Handling & Transboundary Movement) Rules, 2008.
SPCBs are also advised to monitor the units which are recycling/
reprocessing imported waste on a regular basis.
Instruction No. 41 Dtd. 13.11.2009 - Clarification on calculation of NFE
as per Rule 53 of the SEZ Rules, 2006NFE is to be calculated in rupee terms only. In cases where SEZ unit
achieves negative NFE due to foreign exchange fluctuations, they can
approach Approval Committee. However, in such cases, SEZ unit will have
to get the computations certified by the Authorised Bank, on a case to
case, basis.
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95
Instruction No. 42 Dtd. 18.11.2009 - Guidelines for consideration of
proposals for authorized operations by the BoA.All requests for carrying out authorized operations, whether covered in
the default list or not, are to be made initially to the concerned
Development Commissioner [DC]. The DCs will send only such
requests/items for consideration by BoA, which are outside their
powers with their recommendations.
Instruction No. 43 Dtd. 23.11.2009 - Procedure for seeking
clarification on policy issues relating to SEZ Act and Rules from
Department of Commerce.
This is to facilitate speedy disposal at the hands of Zonal DC related to
procedure for seeking clarification on policy issues relating to SEZ Act
and Rules from Department of Commerce
96
Instruction No. 44 Dtd. 24.11.2009 - Reports to be furnished by DCsfor review/monitoring of performance of SEZs
DCs are required to submit monthly reports for reviewing/monitoringof performance of SEZs in the prescribed forms A to F, formats ofwhich are given in the Instruction. Further, Zonal DCs are also requiredto submit such reports in the Format G and H. Following is the list ofthese formats.Format of monthly reports to be furnished
By DCsA. Approval of activities under SEZ Rules 17 & SEZ Rules 18,19B. Other PermissionsC. Permissions under Rule 74D. Statement on monthly Data on Export Duty, Import Duty and Duty
ForegoneE. Import and Export DataF. Statement in respect of SEZ Developers coming under the
Jurisdiction of DCI. Information regarding staffing positing in SEZs.
By Zonal DCsG. INFORMATION on CST claims and drawbackH. [No title is given, however, information relates to built up and land
space]
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97
Instruction No. 46 Dtd. 12.01.2010 - Setting up of small
scale units in Central Government SEZ
Development Commissioners of Central Govt. SEZ should give
preference to small scale units as defined under the Micro,
Small and Medium Enterprises Development Act, 2006.
DCs of the IT/ITES SEZs are required to ensure that the
IT/ITES SEZs are advised to set up incubators of size of
minimum 200 seats and the minimum 10% of the space in the
SEZ may be reserved for SSI IT/ITES units.
All other SEZs should allocate 10% space to SSI units.
98
Instruction No. 47 Dtd. 04.03.2010 - Procurement, Import andExport of Prohibited and Restricted Goods
Following clarifications are provided in respect of procurement, Importand Export of Prohibited and Restricted Goods Export of prohibited items is permitted provided required raw
materials are imported.
Items which are prohibited for import can also be imported by SEZUnits if such imports are made for manufacturing export goods.
In respect of supply of Restricted Items by a DTA unit to SEZDeveloper/Unit, the DTA unit can supply such items to a SEZDeveloper or unit for setting up of infrastructure facility or forsetting up of a unit.
DTA units can also supply restricted raw materials to SEZ unit forundertaking a manufacturing operation except refrigeration,cutting, polishing and blending.
However for all the above activities Prior Approval from Board ofApproval is required.
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99
Instruction No. 49 Dtd. 12.03.2010 - Clarifications on FTWZ issues
Ministry of Commerce & Industry has issued clarification on followingissues related to FTWZs. No approval for procurement of service Rental of immovable
property for office outside the Special Economic Zone/FTWZ canbe given.
Import of prohibited items will be as per Rule 27, Rule 26 andInstruction No.47 Dtd. 04.03.2010.
Diesel is permitted to be procured for authorized operations in theprocessing area including material handling equipment.
There are no limitations on Units set up in FTWZs located in SectorSpecific SEZs to carry out Trading and Warehousing Activities inrespect of any product.
Trading and Warehousing units located within FTWZ can carry outDTA to FTWZ and FTWZ to DTA transactions.
Requests for allowing cutting, polishing, blending etc. as part of
authorised operation of a FTWZ unit can be considered by theApproval Committee on a case to case basis based on the merits ofthe case.
100
Instruction No. 51 Dtd. 25.03.2010 - Declaration of Raw materialcomponents etc. imported by G&J units in respect of goods to be
manufactured by them
Important circular for G&J units in SEZ.
In terms of Rule 17 of the SEZ Rules SEZ units are required to file a
declaration in Form-F while submitting an application for setting
up of a unit. The Approval Committee considers the same before
granting Approval for issue of LOA.
In this connection, procedure prescribed in this instruction should
be followed by all G&J units for bringing in jewellery, broken
jewellery etc. for remaking, remelting, repairing, etc.
Instruction No. 52 Dtd. 20.04.2010 - Clarification on broad- banding
in IT/ITES Sector SEZIt is informed by this instruction that no approval of BoA is required in
case of developers in IT/ITES sector to broad-band their product
profile by including electronic hardware. This is because IT/ITES
includes both Hardware and Software.
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101
Instruction No. 58 Dtd. 21.05.2010 Allowing of authorized
employees of IT/ITES units in SEZ to work from home.
Off-site employees of the IT/ITES units in SEZ are also permitted to
work from home or from place outside the SEZ. It is also stated in theinstruction that IT units in DTA can carry out their job-work in a SEZ
Unit by following procedures mentioned in Rule 43 of SEZ Rules, 2006.
Instruction No. 59 Dtd. 18.06.2010 - Requests for transfer of units
from one SEZ to another SEZ
Board of Approval [BoA] permits shifting of units from one SEZ to
another SEZ, provided all such proposals are placed before the BoA.
Instruction No.60 Dtd. 06.07.2010 Clarification on holding of
goods by units in FTWZ.
Doubt raised by the FTWZ Developers: Whether units in the FTWZ
can hold goods on behalf of Foreign Buyer, DTA Supplier and Buyer.
Clarification provided by Department of Commerce: Subject toprovisions of Rule 18 (5) of SEZ Rules, 2006, FTWZ units can hold
goods on behalf of foreign supplier and buyer and DTA supplier and
buyer.
102
Instruction No. 61 Dtd. 14.07.2010 Withdrawal of Instruction Nos.36, 25, 24 and 16.
Following instructions are withdrawn
Instruction No. 36 Dtd. 03.09.2009 Instructions regarding
proposals to be considered by BoA
Instruction No. 25 Dtd.16.07.2009 Guidelines regarding Putting
up of a boundary wall
Instruction No.24 Dtd.16.07.2009 Guidelines for dealing with
Requests for change in area of SEZs
Instruction No. 16 Dtd. 11.06.2009 - Validity of Formal Approval
This is because issues addressed in these instructions are now
considered and carried out in the SEZ Law, by amending the SEZ Rules,
2006 by G.S.R. No. 501 Dtd. 14.06.2010.
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103
Instruction No. 62 Dtd. 23.07.2010 Procedure for clearance of
State SEZ Bills.
This is regarding faster procedure for clearance of State SEZ Bill. It isdecided that Department of Commerce will create consensus of all
concerned Departments and will send the recommendations and No
Objection of concerned Departments of Government of India to the
Ministry of Home Affairs [MHA] for final approval and MHA would get
the assent of the President on the Bill.
Instruction No. 63 Dtd. 10.08.2010- Procedure regarding removal of
goods to bonded warehouse under Rule 46(13) of SEZ Rules, 2006
Procedure for removal of goods from SEZ unit to the Bonded
Warehouse under Rule 46 (13) of SEZ Rules, 2006 has been prescribed
in this Instruction.
Instruction No. 64 Dtd. 11.08.2010 Role of Zonal DCsThis Instruction is about responsibilities allocated to the Zonal
Development Commissioner [DC].
104
Thought for the Day
T h e b e a u t y o f li fe is , w h i le w e ca n n o t u n d o
w h a t i s d o n e , w e ca n s e e i t , u n d e r s t a n d i t ,
le a r n f r o m it a n d ch a n g e .
S o t h a t ev e r y n e w m o m e n t is s p en t n o t in
re g re t , g u i l t , f e a r o r a n g e r , b u t i n
w is d o m , u n d e r s t a n d i n g a n d l ov e .
- B u d d h a
8/3/2019 Revised Ftp
53/53
105
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