Notification No. 19 dated 22^nd October 1997

In exercise of powers conferred by section 5 of the Foreign Trade (Development and Regulation) Act. 1992 (No: 22 of 1992} read with paragraph 1.3 of the Export and Import Policy, 1997-2002 published in the Gazette of India extraordinary, Part-II-Section- 3 Sub- section (ii} vide S.NO. No. 283(E) dated 31.3.97, the Central Government hereby makes following amendments in the Export and Import Policy, 1997-2002:

1.������ The words Passbook Scheme appearing in paragraph h 6.5 shall be amended to read to Duty Entitlement Passbook Scheme.

2.������ The second sentence of paragraph 7.14 shall be amended to read as follows:

"The export obligation shall be fulfilled within a. period of 8 months except in the case of supplies under Special Imprest Licence/ Advance Licence to t e projects/ turnkey projects in India/ abroad where the export obligation must be fulfilled during the contracted duration of execution of the project/ turnkey projects."

3.������ The following shall be added at the beginning of paragraph 7.25.

"The objective of Duty Entitlement Passbook Scheme is to neutralise the incidence of basic customs duty on the import content of the export product. The neutralisation shall be provided by way of grant of duty credit against the export product. The duty credit under the scheme shall be calculated by taking into account the deemed import content of the said export product as per Standard Input Output Norms and determine the basis customs duty payable on such deemed imports. The value addition achieved by export of such product shall also be taken into account while determining the rate of duty credit under the Scheme".

4.������ The existing paragraph 9.28 shall be re-numbered as 9.28(a).

5.������ The following shall be added as sub-paragraph 9.28(b):

"The existing EHTP/ STP Units may also apply for conversion to EOU Units and vice versa. In such cases the Units will continue to remain in bond and avail the permissible concessions in duties and taxes as applicable under the relevant scheme."

6.������ Paragraph 12.6 shall be amended to read as follows:

"For the purpose of calculation of the Net Foreign Exchange earned on exports, the value of all the licences including the value of 2.5 times of the DEPB credit earned/ granted and the value of duty free gold/ silver/ platinum taken from nominated agency shall be deducted from the FOB value of exports made by the person. However, the value of freely transferable Special Import licences. EPCG licences and the value of licences surrendered during the validity of licence shall not be deducted.�

������� 7.������ The marginal heading against paragraph 12.11 shall be amended to read as "Transitional arrangement".

8.������ The marginal heading against paragraph 12.12 shall be "Criterion for renewal ".

9.������ The level of export performance for the purpose of recognition as given in paragraph 12.13 and introduced by Notification No. 6/ 197-2002 dated 9th June 1997 shall be amended to read as follows:

2.���� This issues in public interest.