Monthly Archives: August 2019

Sabka Vishwas – Legacy Dispute Resolution Scheme(SVLDRS) notified

Sabka Vishwas – Legacy Dispute Resolution Scheme notified ; to be operationalized from 1st September 2019

Government expects Scheme to be availed by large number of taxpayers for closing their pending disputes relating to legacy Service Tax and Central Excise cases

Posted On: 22 AUG 2019 7:46PM by PIB Delhi

In theUnion Budget 2019-20, the Hon’ble Finance Minister announced the Sabka Vishwas-Legacy Dispute Resolution Scheme, 2019. The Scheme has now been notified and will be operationalized from 1st September 2019. The Scheme would continue till 31st December 2019. Government expects the Scheme to be availed by large number of taxpayers for closing their pending disputes relating to legacy Service Tax and Central Excise cases that are now subsumed under GST so they can focus on GST.

AMAZON Now !!! Delivers within 2 Hours

The two main components of the Scheme are dispute resolution and amnesty. The dispute resolution component is aimed at liquidating the legacy cases of Central Excise and Service Taxthat are subsumed in GST and are pending in litigation at various forums. The amnesty component of the Scheme offers an opportunity to the taxpayers to pay the outstanding tax and be free of any other consequence under the law. The most attractive aspect of the Scheme is that it provides substantial relief in the tax dues for all categories of cases as well as full waiver of interest, fine, penalty, In all these cases, there would be no other liability of interest, fine or penalty. There is also a complete amnesty from prosecution.

For all the cases pending in adjudication or appeal – in any forum – this Scheme offers a relief of 70% from the duty demand if it is Rs.50 lakhs or less and 50% if it is more than Rs. 50 lakhs. The same relief is available for cases under investigation and audit where the duty involved is quantified and communicated to the party or admitted by him in a statement on or before 30th June, 2019. Further, in cases of confirmed duty demand, where there is no appeal pending, the relief offered is 60% of the confirmed duty amount if the same is Rs. 50 lakhs or less and it is 40%, if the confirmed duty amount is more than Rs. 50 lakhs. Finally, in cases of voluntary disclosure, the person availing the Scheme will have to pay only the full amount of disclosed duty.

As the objective of the Scheme is to free as large a segment of the taxpayers from the legacy taxes as possible, the relief given thereunder is substantial. The Scheme is especially tailored to free the large number of small taxpayers of their pending disputes with the tax administration. Government urges the taxpayers and all concerned to avail the SabkaVishwas – Legacy Dispute Resolution Scheme, 2019 and make a new beginning.

source: Press Information Bureau, Govt. of India / 22-aug-2019

text of the Notification No. 04/2019 Central Excise-NT is appended below

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Notification No. 04/2019 Central Excise-NT

New Delhi, the 21st August, 2019

GSR…….(E).- In exercise of the power conferred by sub-section (2) of
section 120 of the Finance (No. 2) Act, 2019, the Central Government hereby
appoints the 1st of September, 2019 as the date on which the Sabka Vishwas
(Legacy Dispute Resolution) Scheme, 2019 shall come into force.

F.No. 267/78/19-CX8(Pt III)
(Mazid Khan)
Deputy Commissioner CX-8

click for =>>> Rules under SVLDRS, 2019.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Notification No. 05/2019 Central Excise-NT

New Delhi, the 21st August, 2019

GSR…….(E).- In exercise of the powers conferred by sub-sections (1) and (2) of section
132 of the Finance (No. 2) Act, 2019 (23 of 2019), the Central Government hereby makes
the following rules, namely:-

1. Short title and commencement.– (1) These rules may be called the Sabka
Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019.
(2) They shall come into force on the 1st day of September, 2019.

2. Definitions.– In these rules, unless the context otherwise requires, –
(a) “Scheme” means the Sabka Vishwas (Legacy Dispute Resolution) Scheme,
2019, specified under Chapter V of the Finance (No.2) Act, 2019 (23 of 2019);
(b) “section” means the section of the Finance (No. 2) Act, 2019;
(c) “Form” means the Form annexed to these rules;
(d) Words and expressions used in these rules but not defined in these rules and
defined in the Scheme shall have the meanings respectively assigned to them in the
Scheme.

3. Form of declaration under section 125 .- (1) The declaration under section
125 shall be made electronically at https://cbic-gst.gov.in in Form SVLDRS-1 by the
declarant ,on or before the 31st December,2019.
(2) A separate declaration shall be filed for each case.
Explanation.- For the purpose of this rule, a “case” means –
(a) a show cause notice, or one or more appeal arising out of such notice which is
pending as on the 30th day of June, 2019; or
(b) an amount in arrears; or
(c) an enquiry or investigation or audit where the amount is quantified on or before
the 30th day of June, 2019; or
(d) a voluntary disclosure.

4. Auto acknowledgement.– On receipt of declaration, an auto acknowledgement
bearing a unique reference number shall be generated by the system.

5. Constitution of designated committee.– (1) The designated committee under
section 126 shall consist of –
(a) the Principal Commissioner or Commissioner of Central Excise and Service Tax,
as the case may be, and the Additional Commissioner or Joint Commissioner of Central
Excise and Service Tax, as the case may be, in a case where the tax dues are more than
rupees fifty lakh:
Provided that there shall be only one such designated committee in a Commissionerate
of Central Excise and Service Tax;
(b) the Additional Commissioner or Joint Commissioner of Central Excise and
Service Tax, as the case may be, and the Deputy Commissioner or Assistant
Commissioner of Central Excise and Service Tax, as the case may be, in a case where
the tax dues are rupees fifty lakh or less:
Provided that there will only be one such designated committee in a Commissionerate of
Central Excise and Service Tax;
(c) the Principal Additional Director General (Adjudication) or Additional Director
General (Adjudication), Directorate General of Good and Services Tax Intelligence
(DGGI), and Additional Director or Joint Director, Directorate General of Good and
Services Tax Intelligence(DGGI), Delhi.
(2) The members of the designated committee mentioned in clause (a) and (b) of
sub-rule (1) shall be nominated by the Principal Chief Commissioner or Chief
Commissioner of Central Excise and Service Tax, as the case may be.
(3) The members of the designated committee mentioned in clause (c) of sub-rule
(1) shall be nominated by Pr. Director General or Director General, Directorate General of
Good and Services Tax Intelligence (DGGI), as the case may be.

6. Verification by designated committee and issue of estimate, etc.– (1) The
declaration made under section 125, except when it relates to a case of voluntary
disclosure of an amount of duty, shall be verified by the designated committee based on
the particulars furnished by the declarant as well as the records available with the
Department.
(2) The statement under sub-sections (1) and (4) of section 127, as the case may be,
shall be issued by the designated committee electronically, within a period of sixty days
from the date of receipt of the declaration under sub-rule (1) of rule 3, in Form SVLDRS-3
setting forth therein the particulars of the amount payable:
Provided that no such statement shall be issued in a case where the amount payable, as
determined by the designated committee is nil and there is no appeal pending in a High
Court or the Supreme Court.
(3) Where the amount estimated to be payable by the declarant exceeds the amount
declared by the declarant, then, the designated committee shall issue electronically,
within thirty days of the date of receipt of the declaration under sub-rule (1) of rule 3, in
Form SVLDRS-2, an estimate of the amount payable by the declarant along with a notice
of opportunity for personal hearing.
(4) If the declarant wants to indicate agreement or disagreement with the estimate
referred to in sub-rule (3) or wants to make written submissions or waive personal
hearing or seek an adjournment, he shall file electronically Form SVLDRS-2A indicating
the same:
Provided that if no such agreement or disagreement is indicated till the date of personal
hearing and the declarant does not appear before the designated committee for personal
hearing, the committee shall decide the matter based on available records.
(5) On receipt of a request for an adjournment under sub-rule (4), the designated
committee may grant the same electronically in Form SVLDRS-2B:
Provided if the declarant does not appear before the designated committee for personal
hearing after adjournment, the committee shall decide the matter based on available
records.
(6) Within thirty days of the date of issue of Form SVLDRS-3, the designated committee
may modify its order only to correct an arithmetical error or clerical error, which is
apparent on the face of record, on such error being pointed out by the declarant or suo
motu by issuing electronically a revised Form SVLDRS-3.

7. Form and manner of making the payment.– Every declarant shall pay
electronically the amount, as indicated in Form SVLDRS-3 issued by the designated
committee, within a period of thirty days from the date of its issue.

8. Proof of withdrawal of appeal from High Court or Supreme Court.– Proof of
withdrawal of appeal or writ petition or reference before a High Court or the Supreme
Court, as the case may be, under sub-section (7) of section 127 shall be furnished
electronically by the declarant.

9. Issue of discharge certificate.– The designated committee on being satisfied
that the declarant has paid in full the amount as determined by it and indicated in Form
SVLDRS-3, and on submission of proof of withdrawal of appeal or writ petition or
reference referred to in rule 8, if any, shall issue electronically in Form SVLDRS-4 a
discharge certificate under sub-section (8) of section 127 within thirty days of the said
payment and submission of the said proof, whichever is later:
Provided that in a case where Form SVLDRS-3 has not been issued by the designated
committee by virtue of the proviso to sub-rule (2) of rule 6, the discharge certificate shall
be issued within thirty days of the filing of declaration referred to in sub-rule (1) of rule 3.

F. No. 267/78/19 – CX8 (Pt III)
(Mazid Khan)
Deputy Commissioner CX-8

source: CBIC / Central Excise

know your Foreign Trade Policy -7A

TRANSPORT AND MARKETING ASSISTANCE FOR SPECIFIED AGRICULTURE PRODUCTSi

7(A).00

Transport and Marketing Assistant (TMA) for export of Specified Agriculture Products to specified destinations would be available as per Department of Commerce‟s Notification No. 17/3/2018-EP (Agri. IV) dated 27.2.2019, as amended from time to time. A copy of the said notification is available in Hand Book of Procedures, 2015-20.

7(A).01

The procedure for availing assistance under the scheme would be as given in Chapter 7(A) of Handbook of Procedure, 2015-20.

i Para 7(A) amended vide notification dated 58/2015-20 dated 29.03.2019

Department of Commerce vide Notification no. 17/3/2018-EP (Agri.IV) dated 27.2.2019, as amended, brought out ‘Transport and Marketing Assistance (TMA) for Specified Agriculture Products’ scheme.

The procedures to avail assistance under the scheme was detailed vide Public Notice No.82/2015-2020 dated 29.3.2019 followed by Public Notice No. 12/2015-2020 dated 25.6.2019.

further Trade Notice 29/2019-20 Dated the 8th August, 2019 details regarding Online filing of applications for claiming assistance under ‘Transport and Marketing Assistance (TMA) for Specified Agriculture Products’ Scheme.

source:dgft

know your Foreign Trade Policy -7

“Deemed Exports” for the purpose of this FTP refer to those transactions in which goods supplied do not leave country, and payment for such supplies is received either in Indian rupees or in free foreign exchange. Supply of goods as specified in Paragraph 7.02 below shall be regarded as “Deemed Exports” provided goods are manufactured in India.

“Deemed Exports” for the purpose of GST would include only the supplies notified under Section 147 of the CGST/SGST Act, on the recommendations of the GST Council. The benefits of GST and conditions applicable for such benefits would be as specified by the GST Council and as per relevant rules and notification.

AMAZON Now !!! Delivers within 2 Hours

Supply of goods by a manufacturer and under categories (e) to (h) by main / sub-contractors shall be regarded as “Deemed Exports”:

Supply by manufacturer:

(a) Supply of goods against Advance Authorisation / Advance Authorisation for annual requirement /DFIA;

(b) Supply of goods to EOU / STP / EHTP /BTP;

(c) Supply of capital goods against EPCG Authorisation;

Deemed exports shall be eligible for any / all of following benefits in respect of manufacture and supply of goods, qualifying as deemed exports, subject to terms and conditions as given in HBP andANF-7A:Penal Action

(a) Advance Authorisation / Advance Authorisation for annual requirement /DFIA.

(b) Deemed Export Drawback for BCD.

(c) Refund of terminal excise duty for excisable goods mentioned in Schedule 4 of Central Excise Act 1944 provided the supply is eligible under that category of deemed exports and there is no exemption.

Supply of goods will be eligible for refund of terminal excise duty as per Para 7.03 (c) of FTP, provided recipient of goods does not avail CENVAT credit/rebate on such goods.

Conditions for refund of deemed export drawback

Supplies will be eligible for deemed export drawback as per para 7.03 (b) of FTP, as under:
Penal Action

The refund of drawback in the form of Basic Customs duty of the inputs used in manufacture and supply under the said category shall be given on brand rate basis upon submission of documents evidencing actual payment of basic custom duties.

Penal Action

In case, claim is filed by submitting mis-declaration/mis-representation of facts, then in addition to effecting recovery under Para 7.10(b) above, the applicant shall be liable for penal action under the provisions of F.T. (D&R) Act, Rules and orders made there under.

source: dgft.gov.in

know your Foreign Trade Policy -6

EXPORT ORIENTED UNITS (EOUs),

ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs),

SOFTWARE TECHNOLOGYPARKS (STPs) AND

BIO-TECHNOLOGY PARKS (BTPs)

Objectives of these schemes are to promote exports, enhance foreign exchange earnings, attract investment for export production and employment generation.

Units undertaking to export their entire production of goods and services(except permissible sales in DTA), may be set up under the Export Oriented Unit (EOU) Scheme, Electronics Hardware Technology Park (EHTP) Scheme, Software Technology Park(STP) Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods, including repair, re-making, reconditioning, re-engineering, rendering of services, development of software, agriculture including agro-processing, aquaculture, animal husbandry, bio-technology, floriculture, horticulture, pisciculture, viticulture, poultry and sericulture.

Trading units are not covered under these schemes.

An EOU / EHTP / STP / BTP unit may export all kinds of goods and services except items that are prohibited in ITC (HS).

AMAZON Now !!! Delivers within 2 Hours

Application for setting up an EOU shall be considered by Unit Approval Committee (UAC)/ Board of Approval (BoA) as the case may be, as detailed in the Hand Book of Procedure. A detail of administration of EOUs and power of DC is given in HBP.

In case of units under EHTP / STP schemes, necessary approval / permission under relevant paras of this Chapter shall be granted by officer designated by Ministry of Communication and Information Technology, Department of Electronics & Information Technology, instead of DC, and by Inter-Ministerial Standing Committee (IMSC) instead of BOA.

On approval, a Letter of Permission (LoP) / Letter of Intent (LoI) shall be issued by DC / designated officer to EOU / EHTP / STP / BTP unit. The validity of LoP/LoI shall be given in the Hand Book of Procedures.

Only projects having a minimum investment of Rs.1 Crore in plant & machinery shall be considered for establishment as EOUs.

Import of capital goods will be on a self-certification basis. Goods imported by a unit shall be with actual user condition and shall be utilized for export production.

And shall be without payment of duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 and additional duty, if any, leviable thereon under Section 3(1), 3(3) and 3(5) of the said Customs Tariff Act. Such imports and/ or procurements shall be made without payment of integrated tax and compensation cess leviable thereon under section 3(7) and 3(9) of the Customs Tariff Act, 1975 as per notification issued by the Department of Revenue and such exemptions would be available upto31.03.2020.

AMAZON Now !!! Delivers within 2 Hours

Import / Domestic Procurement of Goods

Goods permitted to be imported / procured from DTA shall include:

(a) Raw materials, components, consumables, intermediates, spares and packing materials.

(b) Capital goods, whether new or second-hand, including inter-alia following and their spares:

(1) DG sets, captive power plants, transformers and accessories for all above.

(2) Pollution control equipment.

(3) Quality assurance equipment.

(4) Material handling equipment, like fork lifts and overhead cranes, mobile cranes, crawler cranes, hoists and stackers.

(5) Un-interrupted Power Supply System (UPS), Special racks for storage, storage systems, modular furniture, computer furniture, anti- static carpet, teleconference equipment, Servo Control System, Air-conditioners / Air conditioning system, panel for electrical and special data transmission cable.

(6) Security Systems

(7) Tools, jigs, fixtures, gauges, moulds, dyes, instruments and accessories.

(c) Raw materials for making capital goods for use within unit.

(d) Others including:Penal Action

(1) Prototypes and technical samples for existing product(s) and product diversification development or evaluation.

(2) Drawings, blue prints, charts, microfilms and technical data.

(3) Office equipment, including PABX, Fax machines, projection system, Computers, Laptop and Server.

(e) Spares and consumables for above items.

(f) Any other items not mentioned above with approval of BOA.

Second hand capital goods, without any age limit, may also be imported with or without payment of duty/ taxes as provided under Para 6.01(d) (ii) above.

EOU / EHTP / STP / BTP unit shall be a positive net foreign exchange earner.

Positive NFE = A – B>0 Where

„NFE‟ is Net Foreign Exchange;

„A‟ is FOB value of exports by EOU / EHTP / STP / BTP unit;

„B‟ is sum total of CIF value of all imported inputs and CIF value of all imported capital goods, and value of all payments made in foreign exchange by way of commission, royalty, fees, dividends, interest on external borrowings / high sea sales during first five year period or any other charges. It will also include payment made in Indian Rupees on high sea sales.

“Inputs” mean raw materials, intermediates, components, consumables, parts and packing materials.

Scrap / waste / remnants arising out of production process or in connection therewith may be sold in DTA, as per SION notified under Duty Exemption Scheme, on payment of applicable duties and/ or taxes and compensation cess.

There shall be no duties / taxes on scrap / waste / remnants, in case same are destroyed with permission of Customs authorities. The expression “no duties/ taxes” shall not include applicable taxes and cess under the GST laws.

(i) EOU/EHTP/STP /BTP units, including gems and jewellery units, may be on the basis of annual permission from Customs authorities, sub – contract production processes to DTA through job work which may also involve change of form or nature of goods, through job work by units in DTA.

(ii) These units may sub – contract upto 50% of overall production of previous year in value terms in DTA with permission of Customs authorities.Penal Action

EOU may, with annual permission from Customs authorities, under take job work for export, on behalf of DTA exporter, provided that goods are exported directly from EOU and export document shall jointly be in name of DTA/ EOU. For such exports, DTA units will be entitled for refund of duty paid on inputs by way of brand rate of duty drawback. However, such brand rate of drawback shall be as per Customs and Central Excise Duties Drawback Rules, 2017 and shall be limited to Customs duties and Central Excise Duties (in respect of eligible items covered under Schedule IV of Central Excise Act, 1944).

Sub – contracting of both production and production processes may also be under taken without any limit through other EOU/EHTP/ STP/ BTP/ SEZ units, on the basis of records maintained inunit.

EOU/EHTP/STP/BTP units may sub – contract part of production process abroad and send intermediate products abroad as mentioned in LoP. No permission would be required when goods are sought to be exported from sub – contractor premises abroad. When goods are sought to be brought back, prior intimation to concerned DC and Customs authorities shall be given.

In case an EOU / EHTP/ STP/BTP unit is unable to utilize goods and services, imported or procured from DTA, it may be:

(i) Transferred to another EOU/EHTP/STP/BTP/SEZ unit; or

(ii) Disposed of in DTA with intimation to Customs authorities on payment of applicable duties and/ or taxes and compensation cess. In addition, exemption of duties of Customs leviable under First Schedule of the Customs Tariff Act, 1975 availed, if any on the goods , at the time of import will also be payable and submission of import Authorisation; or

(iii) Exported.

(iv) Such transfer from EOU/EHTP/STP/BTP unit to another such unit would be treated as import for receiving unit.

Time Bound Disposal of Applications

DC shall dispose of applications expeditiously. Following time schedule shall normally be followed to dispose of applications provided application is complete in all respects and is accompanied with prescribed documents.

S. No. Category of Application Time limit for disposal (days)
1 Issue of LoP / LoI 15
2 Conversion of LoP / LoI 15
3 Acceptance of LUT 3
4 Renewal of LUT 3
5 Permission for broad banding / Diversification 3
6 Permission for change in locations 7
7 Permission for Advance DTA sale 2
8 Permission for merger of units 7
9 Permission for enhancement of production capacity 3
10 Cancellation of LoP 3
11 Permission for debonding / exit 7
12 Permission for DTA sale 2
13 Eligibility certificate for employment visa for lower level technicians 2
14 Issue of Green Card 2
15 Renewal of Green Card Same day
16 Permission to lease CG 1
17 Permission for disposal of scrap / waste 2

source: dgft

know your Foreign Trade Policy -5

EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME – is to facilitate import of capital goods for producing quality goods and services and enhance India’s manufacturing competitiveness.

Capital goods for the purpose of the EPCG scheme shall include:
(i) Capital Goods as defined in Chapter 9 including in CKD/SKD condition
thereof;
(ii) Computer systems and software which are a part of the Capital Goods
being imported;
(iii) Spares, moulds, dies, jigs, fixtures, tools & refractories; and
(iv) Catalysts for initial charge plus one subsequent charge.

Import under EPCG Scheme shall be subject to an export obligation equivalent to 6 times of duties, taxes and cess saved on capital goods, to be fulfilled in 6 years reckoned from date of issue of Authorisation. Authorisation shall be valid for import for 18 months from the date of issue of Authorisation. Revalidation of EPCG Authorisation shall not be permitted.

Authorization holder shall produce, within six months from date of completion of import, to the concerned RA, a certificate from the jurisdictional Customs authority or an independent Chartered Engineer, at the option of the authorisation holder, confirming installation of capital goods at factory/premises of authorization holder or his supporting manufacturer(s).

Where the authorisation holder opts for independent Chartered Engineer‟s certificate, he shall send a copy of the certificate to the jurisdictional Customs Authority for intimation/record.
Penal Action
In case of failure to fulfil export obligation or any other condition of authorisation, authorisation holder shall be liable for action under FT (D&R) Act, 1992, as amended, Orders and Rules made thereunder, provisions of FTP/HBP, Customs Act, 1962, as amended from time to time or any other law in force.

Green Technology Products
The Export Products covered under Paragraph 5.10 of FTP which provides for reduced export obligation of 75% for green technology products are:
(i) Equipment for Solar Energy decentralized and grid connected products,
(ii) Bio-Mass Gassifier,
(iii) Bio-Mass/Waste Boiler,
(iv) Vapour Absorption Chillers,
(v) Waste Heat Boiler,
(vi) Waste Heat Recovery Units,
(vii) Unfired Heat Recovery Steam Generators,
(viii) Wind Turbine,
(ix) Solar Collector and Parts thereof,
(x) Water Treatment Plants,
(xi) Wind Mill, Wind Mill Turbine / Engine,
(xii) Other Generating Sets – Wind powered,
(xiii) Electrically Operated Vehicles – Motor Cars,
(xiv) Electrically Operated Vehicles – Lorries and Trucks,
(xv) Electrically Operated Vehicles – Motor Cycles/Mopeds, and
(xvi) Solar Cells.

source: DGFT

know your Foreign Trade Policy -4

DUTY EXEMPTION /REMISSION SCHEMES – enable duty free import of inputs for export production, including replenishment of inputs or duty remission.

Duty Exemption Schemes. – The Duty Exemption schemes consist of the following:
 Advance Authorisation (AA) (which will include Advance Authorisation for Annual Requirement).
 Duty Free Import Authorisation (DFIA).

Duty Remission Scheme.  -Duty Drawback (DBK) Scheme, administered by Department of Revenue.

Scheme for Rebate on State and Central Taxes and Levies (RoSCTL), as notified by the Ministry of Textiles on 07.03.2019, and implemented by the DGFT.

Advance Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer.

Minimum value addition required to be achieved under Advance Authorisation is 15%.

AMAZON Now !!! Delivers within 2 Hours

Imports under Advance Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. Import against supplies covered under paragraph 7.02 (c), (d) and (g) of FTP will not be exempted from payment of applicable Anti-dumping Duty, Countervailing Duty, Safeguard Duty and Transition Product Specific Safeguard Duty, if any. However, imports under Advance Authorisation for physical exports are also exempt from whole of the integrated tax and Compensation Cess leviable under sub-section (7) and sub-section (9) respectively, of section 3 of the Customs Tariff Act, 1975 (51 of 1975), as may be provided in the notification issued by Department of Revenue, and such imports shall be subject to pre-import condition. Imports against Advance Authorisations for physical exports are exempted from Integrated Tax and Compensation Cess upto 31.03.2020 only.

Validity period for import of Advance Authorisation shall be 12 months from the date of issue of Authorisation.

Period for fulfillment of export obligation under Advance Authorisation shall be 18 months from the date of issue of Authorisation. Period of EO fulfillment under an Advance Authorisation shall commence from date of issue of Authorisation, unless otherwise specified.

Extension in export obligation period for Authorisations issued under Appendix-4J (issued under FTP 2015-20) shall be allowed for a period not more than the half of the stipulated export obligation period. In such cases, composition fee shall belevied @ 0.5% per month of unfulfilled FOB value, in case exports effected are more than 50% within initial Export Obligation period and @ 1% per month where less than 50% exports have been effected within initial export obligation period.

Request for further extension of six months after first extension as in (b) above can be considered by Regional Authority, provided Authorisation holder has fulfilled minimum 50% export obligation in quantity as well as in value, on pro-rata basis. This will be subject to payment of composition fee @ 0.5% per month on unfulfilled FOB value of export obligation. No further extension shall be allowed by Regional Authority. This provision shall also be applicable to Advance Authorisations issued during FTP 2009-2014. However, only two extensions of six months each as mentioned above can be allowed subject to payment of composition fee and under no circumstance Regional Authority shall allow any extension beyond 12 months from date of expiry of EO period. At the time of filing application for second EO extension, the Authorisation holder will have to submit a self declaration to RA stating that unutilised imported/domestically procured inputs are available with the applicant.

DFIA Scheme

Duty Free Import Authorisation is issued to allow duty free import of inputs. In addition, import of oil and catalyst which is consumed / utilised in the process of production of export product, may also be allowed.

Duty Free Import Authorisation shall be exempted only from payment of Basic Customs Duty (BCD).

Minimum value addition of 20% shall be required to be achieved.

Export shall be completed within 12 months from the date of online filing of application and generation of file number.

The record of shipping bills and other documents related to export is required to be maintained by the applicant for a period of 3 years from the date of issuance of scrip for post issue scrutiny and recovery purposes. Licensing Authority may call such documents in original at anytime within 3years.In case the applicant fails to submit the original documents on demand by Licensing Authority, the applicant shall be liable to refund the rebate granted along with interest at the rate prescribed under Section28AA of Customs Act 1962, from the date of issuance of scrip.

 

know your Foreign Trade Policy -3

EXPORTS FROM INDIA SCHEMES –The objective of schemes is to provide rewards to exporters to offset infrastructural inefficiencies and associated costs.

There shall be following two schemes for exports of Merchandise and Services respectively:
(i) Merchandise Exports from India Scheme (MEIS).
(ii) Service Exports from India Scheme (SEIS).

Duty Credit Scrips shall be granted as rewards under MEIS and SEIS.

The Duty Credit Scrips and goods imported / domestically procured against them shall be freely transferable. The Duty Credit Scrips can be used for :

(i) Payment of Basic Customs Duty and Additional Customs Duty specified under sections 3 (1), 3 (3) and 3 (5) of the Customs Tariff Act, 1975 for import of inputs or goods, including capital goods, as per DoR Notification, except items listed in Appendix 3A.

(ii) Payment of Central excise duties on domestic procurement of inputs or goods,

(iv) Payment of Basic Customs Duty and Additional Customs Duty specified under Sections 3 (1), 3 (3) and 3 (5) of the Customs Tariff Act, 1975 and fee as per paragraph 3.18 of this Policy.

today’s DEAL

click >>>on the below link to shop with
In Association with Amazon.in

Stand Strong: You Can Overcome Bullying (and Other Stuff That Keeps You Down)

Merchandise Exports from India Scheme (MEIS) -Objective of the Merchandise Exports from India Scheme (MEIS) is to promote the manufacture and export of notified goods/ products.

Exports of notified goods/products with ITC[HS] code, to notified markets as listed in Appendix 3B, shall be rewarded under MEIS. Appendix 3B also lists the rate(s) of rewards on various notified products [ITC (HS) code wise]. The basis of calculation of reward would be on realised FOB value of exports in free foreign exchange, or on FOB value of exports as given in the Shipping Bills in freely convertible foreign currencies, whichever is less, unless otherwise specified.

The following exports categories /sectors shall be ineligible for Duty Credit Scrip entitlement under MEIS
(i) Supplies made from DTA units to SEZ units
(ii) Export of imported goods covered under paragraph 2.46 of FTP;
(iii) Exports through trans-shipment, meaning thereby exports that are originating in third country but trans-shipped through India;
(iv) Deemed Exports;
(v) SEZ/ EOU /EHTP/ BTP /FTWZ products exported through DTA units;
(vi) Export products which are subject to Minimum export price or export duty.
(vii) Exports made by units in FTWZ.

Service Exports from India Scheme (SEIS)

Service Providers of notified services, located in India, shall be rewarded under SEIS. Only Services rendered in the manner as per Para 9.51(i) and Para 9.51(ii) of this policy shall be eligible. The notified services and rates of rewards are listed in Appendix 3D.

Additional Customs duty specified under Sections 3(1), 3(3) and 3(5) of the Customs Tariff Act, 1975 /Central 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 or notifications. Basic Custom duty paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per DoR rules or notifications.

AMAZON Now !!! Delivers within 2 Hours

Facility of payment of custom duties and fee through duty credit scrips
(a) Duty Credit Scrip can be utilized / debited for payment of Custom Duties in case of EO defaults for Authorisations issued under Chapters 4 and 5 of Foreign Trade Policy. Such utilization /usage shall be in respect of those goods which are permitted to be imported under the respective reward schemes. However, penalty / interest shall be required to be paid in cash.
(b) Duty credit scrips can also be used for payment of composition fee under FTP, for payment of application fee under FTP, if any and for payment of value shortfall in EO under Para 4.49 of HBP 2015-20.

Status Holder

(a) Status Holders are business leaders who have excelled in international trade and have successfully contributed to country’s foreign trade. Status Holders are expected to not only contribute towards India’s exports but also provide guidance and handholding to new entrepreneurs.

(b) All exporters of goods, services and technology having an import-export code (IEC) number shall be eligible for recognition as a status holder. Status recognition will depend on export performance. An applicant shall be categorized as status holder on achieving export performance during the current and previous three financial years (for Gems& Jewellery Sector the performance during the current and previous two financial years shall be considered for recognition as status holder) as indicated in paragraph 3.21 of Foreign Trade Policy. The export performance will be counted on the basis of FOB of export earning in freely convertible foreign currencies

(c) For deemed export, FOR value of exports in Indian Rupees shall be converted in US$ at the exchange rate notified by CBEC, as applicable on 1st April of each Financial Year.

(d) For granting status, export performance is necessary in at least two out of four years.

 

 

 

 

Status Category

One Star Export House, if export perfomance FOB is US$3 million
Two Star Export House, if export perfomance FOB is US$25 million
Three Star Export House, if export perfomance FOB is US$100 million
Four Star Export House, if export perfomance FOB is US$500 million
Five Star Export House, if export perfomance FOB is US$2000 million

Privileges of Status Holders
A Status Holder shall be eligible for privileges as under:

(a) Authorisation and Customs Clearances for both imports and exports may be granted on self-declaration basis;

(b) Input-Output norms may be fixed on priority within 60 days by the Norms Committee; Special scheme in respect of Input Output Norms to be notified by DGFT from time to time, for specified status holder

(c) Exemption from furnishing of Bank Guarantee for Schemes under FTP, unless specified otherwise anywhere in FTP or HBP; Exemption from compulsory negotiation of documents through banks. Remittance / receipts, however, would be received through banking channels;

(d) Two star and above Export houses shall be permitted to establish Export Warehouses as per Department of Revenue guidelines.

(e) Three Star and above Export House shall be entitled to get benefit of Accredited Clients Programme (ACP) as per the guidelines of CBEC (website: http://cbec.gov.in).

(f) The status holders would be entitled to preferential treatment and priority in handling of their consignments by the concerned agencies.

(g) Manufacturers who are also status holders (Three Star/Four Star/Five Star) will be enabled to self-certify their manufactured goods (as per their IEM/IL/LOI) as originating from India with a view to qualify for preferential treatment under different preferential trading agreements (PTA), Free Trade Agreements (FTAs), Comprehensive Economic
Cooperation Agreements (CECA) and Comprehensive Economic Partnership Agreements (CEPA). Subsequently, the scheme may be extended to remaining Status Holders.

(h) Manufacturer exporters who are also Status Holders shall be eligible to self-certify their goods as originating from India as per Para 2.108 (d) of Hand Book of Procedures.

(i) Status holders shall be entitled to export freely exportable items (excluding Gems and Jewellery, Articles of Gold and precious metals) on free of cost basis for export promotion subject to an annual limit as below:

a. Annual limit of 2% of average annual export realization during preceding three licensing years for all exporters (excluding the exporters of following sectors-(1) Gems and Jewellery Sector, (2) Articles of Gold and precious metals sector).

b. Annual limit of Rupees One Crore or 2% of average annual export realization during preceding three licensing years, whichever is lower. (for exporters of the following sectors-(1) Gems and Jewellery Sector, (2) Articles of Gold and precious metals sector)

c. In case of supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN, WHO-PAHO and Government health programmes, the annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years.
The free of cost supplies made under provisions of Para 3.24(j) shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme.

source: DGFT