Chapter 3 - PROMOTIONAL MEASURES - Foreign Trade Procedure (RE - 2007)/ 2004-09

CHAPTER-3 PROMOTIONAL MEASURES Status Certificates 3.1 Policy for status holder is given in Chapter 3 of FTP. Application for Grant of Status Certificate 3.2 Application for grant of status shall be filed by 31stMarch, in ANF 3A. An existing status holder shall be automatically treated to be an equivalent status holder as given herein under: Status as per FTP (2004-09) (RE 2006) Converted Status as per FTP (2004-09) (RE 2007) One Star Export House Export House Two Star Export House Star Export House Three Star Export House Trading House Four Star Export House Star Trading House Five Star Export House Premier Trading House 3.2.1 Application shall be filed with jurisdictional RA / Development Commissioner (DC). However, in cases where export performance of EOUs / SEZs is clubbed together with company or firm / Group Company in DTA, the same will be considered by jurisdictional RA only. 3.2.2 All newly issued Status certificates shall be valid from 1stApril of the year during which application for recognition was filed. For renewals, application filed before expiry of current validity, renewals shall have a validity commencing from 1stApril of next licensing year, otherwise validity period shall be 1stApril of year during which application was filed. 1 All Status Certificates shall be valid for a period of 5 years reckoned from the 1st April of the relevant year. All Status Certificates valid beyond 31.3.2009 shall continue to remain in force, in case provisions of Foreign Trade Policy (2009-14 continue to recognize the status. Pending the finalization of the applications for grant of recognition, existing status holders who have applied for recognition before the expiry of their status, shall have a grace period of 6 months. During this grace period of 6 months such status holders shall continue to be recognized as Status holders even after the expiry of earlier Status Certificate i.e. till September end, unless their applications are finally rejected or recognition granted as once again the case may be. 3.2.3 Deleted To 3.2.5 Maintenance of Accounts 3.3 Status holder shall maintain true and proper accounts of its exports and imports based on which such recognition has been granted. Record shall also be maintained during validity period and for a minimum period of three years thereafter. These accounts shall be made available for inspection to RA concerned or any authority nominated by DGFT. Refusal/ Suspension/ Cancellation of Certificate 3.4 Status certificate may be refused or suspended or cancelled by RA concerned, if status holder or any agent or employee or authorized representative acting on his behalf: (a) Fails to discharge export obligation imposed; (b) Tampers with Authorisations; (c) Misrepresents or has been a party to any corrupt or fraudulent practice in obtaining any Authorisation; (d) Commits a breach of FT (D R) Act, or Rules, Orders made there under and FTP; or (e) Fails to furnish information required by this Directorate. 3.4.1 A reasonable opportunity shall be given to status holder before taking any action under above paragraph. Appeal 3.5 An applicant, who is not satisfied with decision taken to suspend or cancel status certificate, may file an appeal to DGFT within 45 days. Decision of DGFT shall be final thereon. 3.6 to Deleted 3.12 3.12.1 Deleted 3.12.1.1 Deleted 3.12.2 to Deleted 3.12.4 3.13 to Deleted 3.17 3.17.1 to Deleted 3.17.7 3.18 SERVED FROM INDIA SCHEME (SFIS) (a) Policy for SFIS is given in Chapter 3 of FTP. (b) A single consolidated application for Duty Credit scrip shall be filed with jurisdictional RA in ANF 3B along with documents prescribed therein. (c) to (f) Deleted (g) Service provider shall within one month of completion of imports made or expiry of validity of Duty Credit scrip whichever is earlier, submit a statement of imports made under it to jurisdictional RA with a copy to jurisdictional Excise authorities (service tax cell) wherever applicable. (h) (i) Deleted Ineligible Remittances and Services 3.18.1 Foreign exchange remittances other than those that are earned for rendering of services would not be counted for entitlement. Thus, other sources of foreign exchange earnings such as equity or debt participation, donations, receipts of repayment of loans etc. and any other inflow of foreign exchange, unrelated to rendering of service, would be ineligible. For calculation of entitlement, following shall not be taken into account. (a) Foreign Exchange remittances: I. related to Financial Services Sector 1. Raising of all types of foreign currency Loans; 2. Export proceeds realization of clients; 3. Issuance of Foreign Equity through ADRs / GDRs or other similar instruments; 4. Issuance of foreign currency Bonds; 5. Sale of securities and other financial instruments; 6. Other receivables not connected with services rendered by financial institutions; and II. earned through contract / regular employment abroad (e.g. labour remittances); (b) Payments for services received from EEFC Account; (c) Foreign exchange turnover by Healthcare Institutions like equity participation, donations etc. (However, remittances received on account of medical treatment, surgery, testing, consultancy and health care provided by the institution shall be eligible); (d) Foreign exchange turnover by Educational Institutions like equity participation, donations etc. (However remittances received on account of the course fees and consultancy provided by the institution shall be eligible); (e) Export turnover relating to services of units operating under SEZ / EOU / EHTP / STPI / BTP Schemes or supplies of services made to such units; (f) Clubbing of turnover of services rendered by SEZ / EOU / EHTP / STPI / BTP units with turnover of DTA Service Providers; and (g) Export of Goods. 3.18.2 Deleted. Vishesh Krishi and Gram Udyog Yojana (VKGUY) 3.19 3.19.1 Policy pertaining to VKGUY is given in Chapter 3 of FTP. Appendix 37A contains the list of VKGUY items. Application for grant of Duty Credit scrip under VKGUY for export made from 1.4.2007 onwards shall be made to RA concerned in ANF 3C along with documents prescribed therein. Applicant may file one or more applications subject to condition that each application shall contain not more than 50 shipping bills. All shipping bills in any one application must relate to exports made from one Customs House only, which shall be the port of registration for Duty Credit Scrip. Application for obtaining Duty Credit scrip shall be filed within a period of twelve months from date of exports or within six months from date of realization or within three months from date of printing / release of shipping bill, whichever is later, in respect of shipments for which claim is being filed. 3.19.2 Deleted. 3.19.3 For direct as well as third party exports, the Export documents viz Export Order, Invoice, GR form, Bank Realization Certificate should be in the name of applicant only. 3.19.4 to Deleted. 3.19.9 3.19.10 VISHESH KRISHI AND GRAM UDYOG YOJANA (VKGUY) Policy pertaining to the VKGUY benefits under Para 3.8.6 is given in Para 3.8.6 of Chapter 3 of FTP (RE2007), as amended. All Status Holders may apply for grant of Duty Credit scrip for export made during 2007-08 to RA, CLA, New Delhi in 'ANF for Para 3.8.6' along with documents prescribed therein. Applicants may file one application before the last date prescribed for each half year period (Apr-Sep / Oct-Mar). Applications for exports during Apr-Sept 2007 shall be filed from 15.1.2008 till 15.2.2008 and for exports during Oct-Mar 2008 applications shall be filed from 1.5.2008 till 31.5.2008. Applications received after the last date shall be summarily rejected, as Para 9.2 and Para 9.3 shall not be applicable. Date of exports shall be determined in terms of Para 9.12. Application form 'ANF for Para 3.8.6' is annexed, as Annexure I. Application fee shall be the same as it is for VKGUY benefits under Para 3.8.2. 9 The allocation of duty credit scrips by RA, CLA, New Delhi, under Para 3.8.6 of FTP (RE2007), shall be done proportionate to the eligible claims of individual applications, vis- -vis the total eligible claims of all the status holders put together, received for each half year (Apr-Sep 2007 / Oct-Mar 2008) period, in such a way that the total benefits granted for all status holders put together does not exceed the limit prescribed for each half year in Para 3.8.6 of FTP (RE2007). Accordingly if the total eligible claim of all the status holders put together is, say, Rs 200 Cr, each applicant status holder would be granted one-fourth of the claim an applicant is eligible for. FOCUS MARKET SCHEME (FMS) 3.20 Policy pertaining to FMS is given in Chapter 3 of FTP. Notified Markets are listed in Appendix 37C. 3.20.1 An application for exports made during 2006-07 and exports made during 2007-08 shall be filed separately, with RA concerned in ANF 3D along with documents prescribed therein. An application shall contain no more than 50 shipping bills. For exporter with more than 50 shipping bills in one year, multiple applications can be filed and supplementary cut (Para 9.4 of HBP v1) shall not be applicable. Shipments from EDI Ports and Non-EDI Ports cannot be clubbed in one application. Port of registration for EDI enabled ports shall be any one EDI port of exports, as per the choice of the applicant. In case of exports through non-EDI port, the port of registration shall be the relevant non EDI port of exports. Accordingly separate application shall be filed for each non EDI port. Last date for filing application shall be 6 months from the date of realization. Eligibility of Focus Product (including High-Tech products) (as in Appendix 37D) shall be determined from date of export as per Para 9.12 of HBP v1. However, exports for which realizations have already been received till the date of this Public Notice, the last date of filing application shall be 30.7.2008. 3.20.2 For direct as well as third party exports, the Export documents viz. Export Order, Invoice, GR form, Bank Realization Certificate should be in the name of applicant only. 3.20.3 Applicant shall be required to submit proof of landing of export consignment in specified market. Duty Credit scrip shall be granted on FOB value realized as per BRC / FIRC. 7 Any one of the following documents should suffice, as a proof of landing of export consignment in specified Focus Market: i. A self-attested copy of import bill of entry filed by importer in specified market, or ii. Delivery order issued by port authorities, or iii. Arrival notice issued by goods carrier, or iv. Tracking report from the goods carrier duly certified by them, evidencing arrival of export cargo to destination Focus Market, or v. Lorry receipts of transportation of goods from Port into the Focus Market, or vi. For Land locked Focus Market, Lorry receipts of transportation of goods from Port to Land locked Focus Market, or vii. Any other documents that may satisfactory prove to RA concerned that goods have landed in / reached the Focus Market. 3.20.4 to Deleted 3.20.8 FOCUS PRODUCT SCHEME (FPS) 3.21 Policy pertaining to FPS is given in Chapter 3 of FTP. Notified Products are listed in Appendix 37D. 3.21.1 An application for exports made during 2006-07 and exports made during 2007-08 shall be filed separately, with RA concerned in ANF 3E along with documents prescribed therein. An application shall contain no more than 50 shipping bills. For exporter with more than 50 shipping bills in one year, multiple applications can be filed and supplementary cut (Para 9.4 of HBP v1) shall not be applicable. Shipments from EDI Ports and Non-EDI Ports cannot be clubbed in one application. Port of registration for EDI enabled ports shall be any one EDI port of exports, as per the choice of the applicant. In case of exports through non-EDI port, the port of registration shall be the relevant non EDI port of exports. Accordingly separate application shall be filed for each non EDI port. Last date for filing application shall be 6 months from the date of realization. Eligibility of Focus Market (as in Appendix 37C) shall be determined from date of export as per Para 9.12 of HBP v1. However, exports for which realizations have already been received till the date of this Public Notice, the last date of filing application shall be 30.7.2008. 3.21.2 For direct as well as third party exports, the Export documents viz Export Order, Invoice, GR form, Bank Realization Certificate should be in the name of applicant only. 3.21.3 Duty Credit scrip shall be granted on FOB value realized as per BRC / FIRC. 3.21.4 to Deleted 3.21.8 3.22 HIGH-TECH PRODUCTS EXPORT PROMOTION SCHEME (HTPEPS) 3.22.1 Policy pertaining to HTPEPS is given in Chapter 3 of FTP. Notified High Tech Products are listed in Appendix 37E. 3.22.2 4In case the applicant wishes to avail the option given in Para 3.11.2 (a), the Procedure prescribed for claiming Focus Product Scheme benefits shall apply. For others, application for obtaining Duty Credit scrip for incremental growth in exports during current licensing year 2007-08 shall be filed in ANF 3F within a period of twelve months after expiry of current licensing year. Application filed in ANF 3F, shipments from EDI Ports and Non-EDI Ports can be clubbed in one application and the port of registration shall be any one of the ports of exports, as per the choice of the applicant. 3.23 COMMON PROCEDURAL FEATURES FOR PROMOTIONAL SCHEMES, APPLICABLE TO ALL SCHEMES IN THIS CHAPTER, UNLESS SPECIFICALLY PROVIDED FOR: Jurisdictional RA / RA Concerned 3.23.1 Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office, Registered Office, Branch Office address endorsed on IEC. However, once opted, no change would be allowed. 3.23.2 Provisions contained in Chapter 2,9 of HBP v1 shall apply to all Promotional Schemes. Port of Registration 3.23.3 Duty Credit scrip (including splits) shall be issued with a single port of registration as per choice of applicant. Before registration, authorities shall verify genuineness of Duty Credit scrip, from RA concerned, until EDI system of message exchange is put in place. However, applicant may use Duty Credit scrip for imports from any other port (that includes ICD / LCS) after obtaining TRA from authorities at port of registration. The above procedure shall be applicable only in respect of EDI enabled ports. In case of exports through non-EDI ports, the port of registration shall be the port of exports. Facility for Split Scrips 3.23.4 Split certificates of Duty Credit scrip subject to a minimum of Rs 5 lakh each and multiples thereof may also be issued, on request at the time of application with different port of registration. A fee of Rs 1000/- each shall be paid for each split certificate. After issue, request of splits shall be permitted with same port of registration as appearing on the original scrip. The above procedure shall be applicable only in respect of EDI enabled ports. In case of exports through non-EDI ports, the facility of splits shall not be allowed, after issue of scrip. Import from private / public bonded warehouses 3.23.5 Entitlement can be used for import from private / public bonded warehouses subject to fulfillment of paragraph 2.28 of FTP and terms and conditions of DoR notification. Re-export of defective / unfit goods 3.23.6 Goods imported and are found defective or unfit for use, may be re-exported, as per DoR guidelines. Where Duty Credit scrip has been used for imports, Customs shall issue a certificate containing particulars of scrip used, date of import of re-exported goods and amount debited while importing such goods. Based on this certificate, upon application, a fresh Scrip shall be issued by concerned RA to the extent of 98% of debited amount, with same port of registration and valid for a period equivalent to balance period available on date of import of the defective / unfit goods. Validity Period Revalidation 3.23.7 Duty Credit scrip shall be valid for a period of 24 months. Revalidation of Duty Credit scrip shall not be allowed. --------------------------------------------- Note : 1. Has been replaced vide Public Notice No.40 (RE-2007)/2004-2009 dated 30/8/2007 before it was read as, "However all Status Certificates shall lapse on 31.03.2009." 2. Has been replaced vide Public Notice NO. 103/2007 dated 17/01/2008 before it was read as, "Last date for filing application shall be 6 months from the date of realization or date of export in case of advance payment. Date of export shall be determined as per Para 9.12 of HBP v1. However for application filed as per procedure prescribed now, last date shall be 30.7.2008, for exports from 1.4.2007 till 31.1.2008. The above changes shall apply to FMS applications for exports made during 2006-07, for which the last date of filing is extended till 30th July 2008. The above shall not apply to applications already received, which can be finalised as per the procedure before this amendment." Above has been replaced vide Public Notice NO. 100/2007 Dated 10/01/2008 before it was read as, "FOCUS MARKET SCHEME (FMS) 3.20.1 A single consolidated application for all exports through EDI enabled ports shall be filed with RA concerned in ANF 3D along with documents prescribed therein. Application shall be filed on a six monthly basis, i.e. April- September Period and October - March Period where realization has been made during period of application. In case of Advance Payment (and in cases where Para 3.23.3 of HBP v1 applies), date of exports shall be taken into account for inclusion in period of application. Application for claiming Duty Credit scrip shall be submitted within a period of six months from last date of period of application (i.e. for April-September 2007 Period, last date shall be March 2008 and for October-March 2008 Period, last date shall be Sept. 2008). As FMS has been launched for exports w.e.f 1.4.2006, applications for grant of benefits for exports w.e.f 1.4.2006 shall be considered as under: (a) In respect of application for April-September 2006 period, last date for filing application shall be 31st March 2008. This shall include only those shipments exported on or after 1.4.2006 but for which realization has been received till 30.09.2006. (b) In respect of application for October-March 2007 period, last date for filing application shall be 31st March 2008. This shall include all shipments exported on or after 1.4.2006, but for which realization has been received till 31.3.2007. Exporters can file only one supplementary claim each, in case some shipments have not been included in original claim for April- September and October-March periods. This shall attract supplementary cut on claim amount, after ensuring that shipment has not been included in earlier claim. In case supplementary claim is filed late, late cut shall also be imposed. This shall apply even to exports made w.e.f 1.4.2006. The above procedure shall be applicable only in respect of EDI enabled ports. However, in case of exports through non-EDI ports, separate application shall be filed consolidating all shipments for each port. Such application for non-EDI shipments shall not be treated as supplementary application even if periodicity (Apr-Sept or Oct- Mar periods) is repeated." Above has been inserted vide Public Notice No. 73/2007 dated 24/10/2007 3. Has been substituted vide Public Notice No. 103/2007 dated 17/01/2008 before it was read as, "Last date for filing application shall be 6 months from the date of realization or date of export in case of advance payment. Date of export shall be determined as per Para 9.12 of HBP v1. However for application filed as per procedure prescribed now, last date shall 30.7.2008, for exports from 1.4.2007 till 31.1.2008. The above changes shall apply to FPS applications for exports made during 2006-07, for which the last date of filing is extended till 30.7.2008. The above shall not apply to applications already received, which can be finalised as per the procedure before this amendment." Above Para 3.21.1 has been substituted vide Public Notice No. 100/2007 dated 10/01/2008 before it was read as, "FOCUS PRODUCT SCHEME (FPS) 3.21.1A single consolidated application for all exports through EDI enabled ports shall be filed with RA concerned in ANF 3E along with documents prescribed therein. Application shall be filed on a six monthly basis, i.e. April- September Period and October - March Period where realization has been made during period of application. In case of Advance Payment (and in cases where Para 3.23.3 of HBP v1 applies), date of exports shall be taken into account for inclusion in period of application. Application for claiming Duty Credit scrip shall be submitted within a period of six months from last date of period of application (i.e. for April-September 2007 Period, last date shall be March 2008 and for October-March 2008 Period, last date shall be Sept. 2008). As FPS has been launched for exports w.e.f 1.4.2006, applications for grant of benefits for exports w.e.f 1.4.2006 and for supplementary claims shall be the same as under FMS: The above procedure shall be applicable only in respect of EDI enabled ports. However, in case of exports through non-EDI ports, separate application shall be filed consolidating all shipments for each port. Such application for non-EDI shipments shall not be treated as supplementary application even if periodicity (Apr-Sept or Oct- Mar periods) is repeated." Above has been inserted vide Public Notice NO. 73/2007 dated 24/10/2007 4. Has been substituted vide Public Notice No. 100/2007 dated 10/01/2008 before it was read as, "HIGH-TECH PRODUCTS EXPORT PROMOTION SCHEME (HTPEPS) 3.22.2 Application for grant of Duty Credit scrip under HTPEPS shall be made to RA concerned in ANF 3F along with documents prescribed therein. Application for obtaining Duty Credit scrip for incremental growth in exports during current licensing year 2007-08 shall be filed within a period of twelve months after expiry of current licensing year. The above procedure shall be applicable only in respect of EDI enabled ports. However, in case of exports through non-EDI ports, separate application shall be filed consolidating all shipments for each port. Such application for non-EDI shipments shall not be treated as supplementary application even if periodicity (Apr-Sept or Oct- Mar periods) is repeated." Above has been inserted vide Public Notice No. 73/2007 dated 24/10/2007 5. Has been inserted vide Public Notice No. 73/2007 dated 24/10/2007 6. Has been inserted vide Public Notice No. 73/2007 dated 24/10/2007 7. Has been inserted vide Public Notice No. 100/2007 dated 10/01/2008 8. Has been added vide Public Notice No. 93(RE-2007)/ 2004-2009 dated 27/12/2007 9. Has been added vide Public Notice No. 101(RE-2007)/ 2004-2009 dated 14/1/2008