Wait...
Search Global Export Import Trade Data
Recent Searches: No Recent Searches

Date: 01-10-2009
Notification No: DGFT Policy Circular No 09/2009-2014 DT.01/10/2009
Issuing Authority: DGFT  
Type: Circular
File No: 01/94/180/ Open House Meet -Amritsar /AM10/PC-4
Subject: Clarification with regard to: A: Deemed Export Benefits on supplies against Invalidation Letter / ARO. B: Value Addition requirement on clubbing - regarding.

GOVERNMENT OF INDIA
DEPARTMENT OF COMMERCE
DIRECTORATE GENERAL OF FOREIGN TRADE
UDYOG BHAWAN, NEW DELHI – 110 011

Policy Circular No. 9/2009-2014
Dated: 1st October, ’09.

To
All Regional Authorities;
All Commissioners of Customs;
Exporting Community

Subject: Clarification with regard to:
A. Deemed Export Benefits on supplies against Invalidation Letter / ARO.

B. Value Addition requirement on clubbing - regarding.

Attention is invited to paragraph 4.1.11 of FTP wherein the reference has been made to the facility of Invalidation Letter and Advance Release Order (ARO) for domestic procurement of the inputs for export production. Trade and Industry have represented that for want of specific provision stating the FTP benefits to the domestic supplier against Invalidation Letter / ARO, field formations at times raise objections.

In this regard, it is informed that the purpose of Invalidation letter / ARO is to facilitate duty neutralisation or inputs procured from the domestic market, in lieu of duty free imports allowed under the authorisation. Accordingly, it is clarified that against invalidation letter, the supplier can avail Advance Authorisation for Intermediate supplies and TED refund (wherever Excise exemption is not available against such supplies), whereas against ARO, the supplier is entitled for deemed export duty drawback, as applicable. Provision of Paragraph 4.1.11 of FTP has to be read with Paragraphs 8.3 and 8.4.1 of FTP.

  1. Value addition requirement on clubbing of Advance Authorisations of Paragraph 4.20 of HBP v1:-

    Trade and Industry have represented that since the minimum prescribed value addition under Advance Authorisation Scheme has been enhanced to 15% in the FTP 2009-14, the required minimum value addition for the purpose of clubbing of advance authorisations issued during the pre-2009-14 policy and that of 2009-14 policy, needs to be clarified for a uniform application by the Regional Authorities.

    In this regard, it is clarified that the value addition on clubbing should be the prescribed minimum value addition stated in the FTP and not the declared value addition given in the application. In case of clubbing of authorisations with different minimum prescribed value addition, the aggregate value addition should be the weighted average based on CIF value utilized in the respective authorisations.

    For clarity, an illustration is given below with reference to two Authorisations issued with different V.A Norms:
    1. CIF Value utilized under Authorisation A (issued under positive V.A provision): say, Rs. 1000/-.

    2. CIF value utilized under Authorisation B (issued under 15% V.A provision): say Rs. 2000/-.

    3. Minimum FOB Value required under Authorisation A shall be: Rs. 1000/-.

    4. Minimum FOB value required under Authorisation B shall be: Rs. 2300/-.

    5. Upon Clubbing, CIF value of the clubbed authorisation would be Rs. 3000/- and the minimum FOB value of the clubbed authorisation would be Rs. 3300/-.

      This will ensure that the prescribed minimum value addition on the respective authorisations is achieved indicating that the weighted average value addition for the clubbed authorisation is maintained.

      This issues with the approval of Competent Authority.

(Tapan Mazumder)
Joint Director General of Foreign Trade
Tel: 011-23061050
E-mail: tmazumder@nic.in
(Issued from F.No. 01/94/180/ Open House Meet -Amritsar /AM10/PC-4)

       

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 01-12-2022
Notification No. 101/2022 - Customs (N.T.)
Exchange rate Notification No. 101/2022-Cus (NT) dated 01.12.2022-reg

Date: 01-12-2022
Notification No. 40/2022-Central Excise
Seeks to amend No. 18/2022-Central Excise, dated the 19th July, 2022 to reduce the Special Additional Excise Duty on production of Petroleum Crude.

Date: 01-12-2022
Notification No. 41/2022-Central Excise
Seeks to further amend No. 04/2022-Central Excise, dated the 30th June, 2022, to reduce the Special Additional Excise Duty on Diesel.

Date: 01-12-2022
NOTIFICATION No. 04/2022-Central Excise (N.T.)
Appointment of the Commissioner of Central Excise and Service Tax (Appeals) as Central Excise officer for the entire territorial jurisdiction of the Principal Chief Commissioner/ Chief Commissioner of Central Excise and Service Tax for the purpose of passing Orders-in-Appeal for the CX & ST appeals filed after 30.06.2017-reg.

Date: 30-11-2022
Notification No. 100/2022-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg

Date: 29-11-2022
No.98 /2022-Customs (N.T.)
Amendment of notification no. 47/2022–Customs (N.T.), dated the 31st May, 2022

Date: 29-11-2022
NOTIFICATION No. 99/2022-Customs (N.T.)
Amendment of notification number 48/2022-Customs (N.T.) dated the 31st May, 2022

Date: 25-11-2022
NOTIFICATION No. 61/2022-Customs
Seeks to amend certain specific FTA/PTA notifications.

Date: 23-11-2022
NOTIFICATIONNo. 23/2022 – Central Tax
Seeks to empower the Competition Commission of India to handle anti-profiteering cases under CGST Act, 2017 with effect from 01.12.2022.

Date: 23-11-2022
NOTIFICATION No. 24/2022 – Central Tax
Seeks to make fourth amendment (2022) to CGST Rules with effect from 01.12.2022.



Exim Guru Copyright © 1999-2022 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001