Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Policy Circular No. 90(RE-2008)/2004-09
New Delhi: 15th May 2009
Subject: Nexus with Exported Products under Target Plus Scheme, Clarification
thereof.
Attention is invited to Para 3.7.6 of Target Plus Scheme Provision in FTP RE2004
and FTP RE2005 and
Policy Circular No. 10 (RE-2008)/2004-09 dated 5.6.2008
(whereby procedure for endorsement of permitted imports on duty credit scrips,
issued under Target Plus Scheme was laid down). Doubts have arisen in the Trade
and Industry as well as in the Customs as to whether the condition of ‘nexus
with exported products’ would apply to permitted imports of Agricultural
Products, including import of edible oil through STC/MMTC.
The matter has been examined in detail. It is clarified that “Agricultural
Products covered under Chapter 1 to 24 except 6(a) to 6(f) listed in
Policy
Circular 10 (Re2008) dated 5.6.2008.”as listed at Sr. No. 6 of Policy Circular
10(RE2008) dated 5.6.2008 and endorsed on the Duty Credit Scrips issued under
Target Plus Scheme, are permitted only when nexus with exported products is
clearly established. Accordingly, all Duty Credit Scrips issued under Target
Plus Scheme shall be automatically endorsed with the following condition:
“Sr. No. 6 (as endorsed on the duty credit scrips issued under Target Plus
Scheme in terms of Policy Circular 6(RE2008) dated 5.6.2008) is permitted to be
imported only when ‘nexus with exported products’ is clearly established. The
condition of ‘nexus with exported products’ is mandatory in terms of Para 3.7.6
of the Policy FTP RE2004 and FTPRE2005.”
All RAs to ensure that this condition is endorsed on Duty Credit Scrips being
issued or if submitted for revalidation; and Customs to ensure that the
condition of nexus is fulfilled while permitting imports.
This issues with the approval of DGFT.
(A.K. Singh)
Joint Director General of Foreign Trade
To, All Regional Authorities
All Customs Authorities
[Issued from F.No.01/94/180/308/AM07/PC-3(Part2)]