Government of India
Ministry of Finance
Department of Revenue
New Delhi dated the 27th September, 2010
Circular No. 38 /2010-Cus.
To
All Chief Commissioners of Customs
All Chief Commissioners of Customs & Central Excise/ Central Excise
All Director Generals under CBEC,
All Commissioners of Customs, Customs (Preventive)
All Commissioners of Customs & Central Excise/ Central Excise
Sir/Madam,
Sub: Foreign Trade Policy (FTP), 2009-14 – regarding.
The Annual Supplement to the Foreign Trade Policy (hereinafter referred to as
the FTP), 2009-2014 and the Handbook of Procedures (Vol.I) (hereinafter referred
to as the Handbook) have been notified by the DGFT vide notification
No.
1(RE-2010) / 2009-2014 dated 23th August 2010 and
Public Notice
1(RE-2010)/2009-14 dated 23th August 2010 respectively. The Department of
Revenue has since issued notification Nos.88/2010-Cus,
89/2010-Cus &
90/2010-Cus
all dated 01.09.2010,
91/2010-Cus dated 06.09.2010,
92/2010-Cus dated
10.09.2010,
93/2010-Cus dated 14.09.2010 & 97/2010-Cus dated 21.09.2010 to
implement the Policy and the Handbook. The FTP, Handbook and the above mentioned
notifications may please be perused for details. The salient features of the
changes are discussed below:
- New schemes.
Annual Export Promotion Capital Goods scheme
The annual supplement has introduced a provision in para 5.2 D of the FTP that
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 authorization for annual requirement may not indicate the capital goods
which can be imported under the authorization. However, the authorization shall
indicate export product(s) to be exported under the authorization. The
authorization holder shall submit a Nexus Certificate from an independent
Chartered Engineer (CEC), certifying nexus of imported capital goods with the
export product, to the Customs authorities at the time of clearance of imported
capital goods. Notification No. 92/2010-Cus dated 10.09.2010 refers in this
regard.
- Changes in the existing Export Promotion schemes
- Zero duty Export Promotion Capital Goods (EPCG) Scheme
This scheme has been extended upto 31.3.2012. Further, the scheme has been
expanded by adding some more sectors like rubber products, paints and varnishes,
glass and glassware, ceramics, paper, books, animal by-products, ossein and
gelatine, graphite products and explosives, marine products, sports goods and
toys, engineering products (iron & steel, pipes and tubes and ferro alloys).
Notification no. 92/2010-Cus dated 10.09.2010 may please be referred.
- Status Holder Incentive Scheme (SHIS)
This scheme has been extended upto 31.3.2012 and has been expanded by adding
some more sectors rubber products, paints and varnishes, glass and glassware,
ceramics, paper, books, animal by-products, ossein and gelatine, graphite
products and explosives, sports goods and toys, electronic products, engineering
products (iron & steel, steel pipes, tubes and fittings thereof and ferro
alloys). Notification no. 92/2010-Cus dated 10.09.2010 has been issued in this
regard.
- Applicability of benefits under Zero Duty EPCG & SHIS schemes
Para 5.1A to HBPv.1(2009-14) as notified on 27-08-2009 provided that benefit of
Zero Duty EPCG Scheme & SHIS shall not be simultaneously available in the same
year. The HBPv.1 (RE 2010) has made this provision clear by providing in para
3.10.3 to the effect that SHIS scrips will not be issued in the year in which
Zero Duty DPCG authorization has been issued and that the SHIS scrips which are
not issued in a particular year for the reason that Zero Duty EPCG authorization
has been issued in that year shall not be issued in subsequent years also. The
Customs notifications Nos.
101/2009-Cus dated 11.09.2009,
102/2009-Cus dated
11.09.2009 and
104/2009-Cus dated 14.09.2009 have been accordingly amended vide
notification No. 92/2010-Cus dated 10.09.2010.
- Served From India Scheme (SFIS)
As per existing Notification No. 91/2009-Cus, import of vehicles is not allowed
under the Served From India Scheme(SFIS), even if such vehicles are freely
importable under the Foreign Trade Policy. However, after the announcement of
Annual supplement to the Foreign Trade Policy, vehicles which are in the nature
of professional equipment such as Airfield Fire Fighting and Rescue Vehicles (AFFRVs),
Heavy Duty Modular Trailer Combination, Reach Stackers etc. for use by the
service provider in his regular service business have been allowed to be
imported against SFIS scrips. However, personal vehicles such as motor cars/
Sports Utility Vehicles(SUVs) / Multi Utility Vehicles (MUVs) etc. are not
permitted to be imported against SFIS scrips. Notification no. 90/2010-Cus dated
01.09.2010 refers in this regard.
- Agri-Infrastructure Incentive Scrip (AIIS).
The Agri Infrastructure Scrips (AIIS) issued under para 3.13.4 of the FTP
Vishesh Krishi Gram Udyog Yojana (VKGUY) can now be transferred to units in
Parks recognized by the Ministry of Food Processing Industries, for import of
cold chain equipment. This facility, however, shall not be allowed to developers
of Agri parks. The Notification no. 90/2010-Cus dated 01.09.2010 has been issued
in this regard.
- Advance Authorization Scheme
The goods imported under Advance Authorization for Annual Requirement have been
exempted from anti-dumping duty & Safeguard duty on the same lines as the goods
imported under normal advance authorization scheme. Notification no. 90/2010-Cus
dated 01.09.2010 may please be referred.
- DEPB Scheme
There is no change in the scheme except that the scheme shall now be valid upto
30.06.2011. Necessary amendments in the existing Notification
No. 97/2009-Cus
dated 11.9.2009 will be made at the appropriate time.
- Miscellaneous changes
- The export duty on export of imported raw hides & skins and semi- processed
leathers from bonded warehouse, has been reduced from the present level of 60%
to Nil. The Notification No. 88/2010-Cus dated 01.09.2010 refers in this regard.
- The import of duty free embellishments has been allowed to polyester
made-ups in line with the facility available to cotton made ups. The
Notification
No. 21/2002-Cus dated 01.03.2002 has been amended vide Notification
No. 89/2010-Cus dated 01.09.2010 accordingly.
- The import of duty free embellishments has been allowed to handloom
made-ups also in line with the facility available to cotton made ups (other than
handloom). The Notification No. 21/2002-Cus dated 01.03.2002 has been amended
vide Notification No. 91/2010-Cus dated 06.09.2010 accordingly.
- The list of existing items which are allowed duty free for Gem and Jewellery sector has been extended and items, namely, tags and lables, security
sensors on cards, staple fibre, poly bags, if imported by the Gem and Jewellery
sector have been permitted within the overall limits already allowed under the
scheme. The notification No. 97/2010-Cus dated 21.09.2010 amending existing
notification no.
41/1999-Cus dated 28.04.1999 has been issued in this regard.
- Five new ports including Ennore (Tamil Nadu) have been notified for the
purpose of imports and exports under Export promotion Schemes.
- These instructions may be brought to the notice of the trade / exporters by
issuing suitable Trade / Public Notices. Suitable Standing orders/instructions
may be issued for the guidance of the assessing officers. Difficulties faced, if
any in implementation of the Circular may please be brought to the notice of the
Board at an early date.
- Receipt of this Circular may kindly be acknowledged.
Yours faithfully,
(NAJIB SHAH)
JOINT SECRETARY
Telefax-011-23341079
F.NO.605/33/2010-DBK