Amendments in the Handbook of Procedures Vol. 1, 2004-09, applicable for the exports during 2005-06; (i.e. updated on 31.03.2005 and amended from time to time) - DGFT - 22 /2006

Amendments in the Handbook of Procedures Vol. 1, 2004-09, applicable for the exports during 2005-06; (i.e. updated on 31.03.2005 and amended from time to time) PUBLIC NOTICE NO. 22/2006 Dated 15/06/2006 In exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy, 2004-09, the Director General of Foreign Trade hereby makes the following amendments in the Handbook of Procedures Vol. 1, 2004-09, applicable for the exports during 2005-06; (i.e. updated on 31.03.2005 and amended from time to time): 1. Application form (Appendix 17 D) is annexed as Annexure A to this Public Notice for Target Plus Scheme (2005-06) for export period 2005-06. 2. Appendix 17E and Para 3.2.5 (VIII) of Handbook of Procedures (Vol.1 2004-09) updated on 31.03.2005 is deleted. 3. Para 3.2.5 (IX) is added as under: "Applicants shall file the applications in Appendix 17D to the jurisdictional Zonal Office (Mumbai, Kolkata, Chennai, Delhi CLA) depending upon the location of Registered Office / head Office of the applicant. The respective Zonal Committees in the Zonal offices shall consider the applications and issue the licence or otherwise." 4. Para 3.2.5 (X) is added as under: "Application should be filed manually only to the jurisdictional Zonal Office." This issues in Public interest. (K. T. Chacko) Director General of Foreign Trade and Ex Officio Additional Secretary to the Government of India (Issued from File No. 01/94/180/172/AM06/PC.I) Annexure A APPENDIX 17-D Application Form for Target Plus Scheme for Exports Effected during 2005-06 (Please see paragraph 3.7.1 to 3.7.8 of the Foreign Trade Policy 2004-09 applicable for the exports during 2005-06; (i.e. updated on 31.03.2005 and amended from time to time) and paragraph 3.2.5 of the Handbook of Procedures (Vol. 1) 2004-09 applicable for the exports during 2005-06; (i.e. updated on 31.03.2005 and amended from time to time). FOR OFFICIAL USE File No._________________________________ Date:____________ 1. Name and Address : ………………………………………………………………………………………… …………………………………………… 2. I E Code Number : ……………………………………… 3. Details of Status Certificate For the year 2005-'06 a) Status b) Status Certificate Number c) Date of Issuance d) Valid from e) Valid up to : 1 / 2 / 3 / 4 / 5 Star Export House / EH / TH / STH / SSTH (tick the relevant Status) :…………………………………… :…………………………………… :…………………………………… :…………………………………… 4 RCMC No. and Date : …………………………………… Issued by : …………………………………… 5. Details of All Star Export Houses of the Group (see Note 1) Sr. No. Names of the Group Company Status of the Company (1 / 2 / 3 / 4 / 5 Star Export House / EH / TH / STH / SSTH) Eligible Export Turnover (Rupee in Crores) 2004-05 2005-06 1 2 3 Total Group Turnover of all the Star Export Houses 6. Calculation of Value of Export and Entitlement: (see Note 2 to 10) Sr. No. Categories FOB Value of Exports in US$ A B 2004-05 2005-06 Row 01 Annual Export Turnover Row 02 Exports made in categories (a to k) mentioned at Sr. No. VI of the declaration appended hereto Row 03 Eligible Exports = Row 01 - Row 02 Row 3A Incremental Growth in US $ (in %) = 100* (Column B of Row 3 - Column A of Row 3)/Column A of Row 3 Row 04 Eligible Exports (in Rupees) Row 05 FOB Value of Exports under Vishesh Krishi Upaj Yojana for exports during 2004-05 and 2005-06 (in Rupees) Row 06 Eligible Export for Duty Free Credit Entitlement (in Rupees) =(Column B of Row 05 - Column A of Row 05) Row 07 Percentage of amount Realized as per Bank Realization Certificate out of Row 06 in the Year 2005-06 (in %) (attach a calculation sheet as per format prescribed) Row 08 Value Cap on Target Plus Duty Free Credit Entitlement (in Rs) = 5% * Column A of Row 06 Row 09 Total Target Plus Duty Free Credit Entitlement Eligible for (in Rs) = {5% * (Column B of Row 06 - Column A of Row 06)} or {Value Cap in Row 08 above}, whichever is lower Row 10 Value for Target Plus Duty Free Credit Entitlement applied for (in Rs) = {Row 07 * Row 09} or {Row 07 * Value Cap in Row 08 above} whichever is lower Row 11 Balance Target Plus Duty Free Credit Entitlement due (in Rs) = Row 09 - Row 10 Row 12 Value wise details of Product Groups Sr. No. Product Groups FOB Value of Eligible Exports in Rs (2005-06) 1 Engineering 2 Chemicals 3 Plastics 4 Leather Leather Products 5 Sports Goods 6 Fish Fish Products 7 Food Products 8 Handicrafts 9 Electronics 10 Textiles 11 Miscellaneous 7. Breakup for the Split-up Target Plus Entitlement, if any, requested for: Sr. No. Entitlement Break-up of the Entitlement for split-up Port of Registration 8. Details of the Application Fee: a) Value of DD/TR: b) No. Name of the issuing bank: 9. Port of Registration (for import purpose): ………………………… (for splits, please state the port of registration of each split, in Sr. No. 07 above) 10. Endorsing supporting manufacturer as co-licensee, details thereof (optional): Goods allowed to be imported under this scheme shall have a broad nexus with the product exported and a declaration in this regard shall be made by the applicant in Appendix 17D. For the purpose of import entitlements under this scheme, 'broad nexus' would mean goods imported with reference to any of the product groups of the exported goods within the overall value of the entitlement certificate. Sr. No. of Supporting Manufacturer Name, Address, PAN Number, Phone No. of Associate Manufacturer / Supporting Manufacturer / job worker Sr. No of Product Group Product Groups FOB Value of Eligible Exports 2005-06 1 1 US$ Rupee 2 3 Sub Total 2 1 2 Sub Total 11. DECLARATION CUM UNDERTAKING I. I/We hereby declare that this application is based on exports made (in free foreign exchange) during the licensing year 2004-05 and 2005-06 and benefit is being claimed in respect of export proceeds realized in conformity with requirement prescribed in Para 3.2.5 (I) of Handbook of Procedures (Vol. 1) 2004-09, applicable for the exports during 2005-06; (i.e. updated on 31.03.2005 and amended from time to time). II. I/We further certify that I/We am/are authorized to verify and sign the statement on behalf of the applicant. III. I/We fully understand that any information furnished in the above statement, if proved incorrect or false, will render me/us liable to face any penal action or other consequences as may be prescribed in law or otherwise warranted. IV. I/We further declare that I/We has/have not applied nor obtained another Target Plus DFCE Entitlement Certificate issued under paragraph 3.7.1 of the Policy based on the exports made (in free foreign exchange) during 2005-06. V. I/We further declare that I/We shall comply with the provisions of the Foreign Trade Policy/Handbook of Procedure (Vol.1) and the relevant Customs notification while importing the goods under the scheme and subsequent use of the same under actual user condition. VI. I/We further declare that for calculating the value of exports, the following exports have not been taken into account, namely: (a) Export of imported goods covered under Para 2.35 of the Foreign Trade Policy or exports made through transshipment. (b) Export turnover of units operating under SEZ/EOU/EHTP/STPI/ BTP Schemes or Supplies made to such units or products manufactured by them and exported through DTA units. (c) Deemed exports (even when payments are received in Free Foreign Exchange and payment is made from EEFC account). (d) Service exports. (e) Diamonds and other precious, semi precious stones. (f) Gold, silver, platinum and other precious metals in any form, including plain and studded jewellery. (g) Ores and Concentrates, of all types and in all forms (h) Cereals, of all types. (i) Sugar, of all types and in all forms. (j) Crude / Petroleum Oil Crude / Petroleum based Products covered under ITC HS codes 2709 to 2715, of all types and in all forms. (k) Export performance made by one exporter on behalf of another exporter. VII. I/We further declare that export documents are in conformity with requirement prescribed in Para 3.2.5 (I) of Handbook of Procedures Vol. I 2004-09, applicable for the exports during 2005-06; (i.e. updated on 31.03.2005 and amended from time to time). VIII. I/We undertake that the export performance has not been transferred to or transferred from any other exporter. IX. I/We have not applied for/ taken the benefit of Vishesh Krishi Upaj Yojana for the exports during 2005-06 for which I am taking benefit under the Target Plus scheme except for calculation of percentage incremental growth. X. I/We further declare that in respect of capital goods and/or office equipments, a certificate from jurisdictional Deputy Commissioner Central Excise/Assistant Commissioner of Central Excise or an independent Chartered Accountant, as the case may be, shall be produced confirming installation and use of capital goods and/or office equipments in the importer's factory or premises, within six months from the date of imports or within such extended period as the said Deputy Commissioner of Customs or Assistant Commissioner of Customs may allow." Official Stamp/Seal Signature: :..................... Name in Block Letters: :..................... Designation: :..................... Place: :..................... Full Official Address: :..................... Residential Address: :..................... E-Mail address: :..................... NOTES Note 1: Method of Adjustment of Export Performance under Para 3.7.4 If the applicant is part of a Group Company as defined in Chapter 9 of Foreign Trade Policy, Entitlement will be adjusted in terms of Para 3.7.4 of Foreign Trade Policy. If any of the Star Group Companies show negative growth, necessary adjustment would be made by RLA to retain the last years' export performance of each individual star export house, out of the export performance of the applicant company of the group. The balance after adjustment would be counted for the export performance of the applicant company for grant of Target Plus Scheme benefits. Illustrative example is given in the following table to clarify the above. Where Company B is the applicant company and there are only two star export houses in the group. Illustration (Company B is eligible on difference between Adjusted Export Performance for 2005-06 and FOB Value of eligible exports for 2004-05) Companies in the Group FOB Value of eligible exports 2004-05 FOB Value of eligible exports 2005-06 Adjustment Export Performance after Adjustment for 2005-06 A 50 10 40 50 B 60 122 -40 82 Total (A + B) 110 132 132 Groups Growth Positive Similarly, if export performance after adjustment falls below 72 (i.e. below 20% required minimum incremental growth rate) then the applicant company is not eligible or if the combined performance of all Star Export House companies of the Group falls below 110 then all Star export houses of this group are not eligible. Note 2: The FOB Value of Export (in free foreign exchange) in US$ and in Indian Rupees for this application has to be taken from Shipping Bill. For export bills in currencies other than US$, the conversion into US$ may be taken by cross conversion on basis of the conversion rate of US $ to Rupee and the conversion rate of other currency (say Euro) to Rupee as notified by the Customs on the date of let exports order of the shipment. Note 3: Deleted. Note 4: Calculating the eligibility i) The Value of Eligible Export in 2004-05 (previous year) should be greater than or equal to Rs 10 Crores as in Column A of Row 04 of Sr. No. 6. ii) Minimum Percentage Incremental growth in exports as in Row 03A of Sr. No. 6 should be greater than or equal to 20%. Note 5: The entitlement shall be calculated on the minimum percentage incremental growth in FOB value of exports of 20% in the current licensing year (2005-06) over the previous licensing year (2004-05), and the rate of entitlement shall be 5%. Note 6: Incremental growth beyond 100% will not qualify for computation of duty credit entitlement. Note 7: The export product groups shall be the product groups listed in Row 12 of Sr. No. 6. Miscellaneous would cover the residual product group category. Note 8: Applicant can claim the balance entitlement due as per Row 11 of Sr. No 6 of this application by filing a single consolidated supplementary application within 3 months of receipt of last realization as per RBI guidelines. No Supplementary cut will be imposed in such a case. Note 9: In case exports made under Sr. No. IV of the declaration appended hereto are covered by more than a single category, the applicant may choose to declare such exports in any one of the said categories as reflected in the Sr. No (vii) of the CA certificate. Note 10: If an applicant is not satisfied with the calculation of entitlement under the scheme, he may approach the Grievance Redressal Committee at the Ministry of Commerce Industry. The details are available at http://commerce.nic.in/grc.htm. Documents to be enclosed with the application form: 1. Copy of the status holder certificate valid during 2005-06. 2. Copy of RCMC valid during 2005-06 and valid currently. 3. CA Certificate as per enclosed annexure to Appendix 17D. 4. Statement of Export and Realization (for Eligible Exports) duly certified by the Bankers as per Appendix 22A, consolidated for each Bank. (Can be downloaded from Website www.nic.in/eximpol) 5. Application fee in the form of DD/TR Challan. 6. Any other Document that may be specified or called for. Annexure to Appendix 17D Target Plus Scheme for Status Holders (2005-06) CERTIFICATE OF CHARTERED ACCOUNTANT/COST AND WORKS ACCOUNTANT/COMPANY SECRETARY I/We hereby confirm that I/We have examined the prescribed registers and also the relevant records of M/s................. for the licensing period(s) ..... and hereby certify that: i) M/s............................... (Name and address of the applicant) who is a Star Export House has made exports in his own name during the licensing years, 2004-05 and 2005-06 as per the details supplied in the details of exports at Sr.No.5, 6 and the benefit is being claimed in respect of export proceeds realized in conformity with requirement prescribed in Para 3.2.5 (I) of Handbook of Procedures Vol. I 2004-09, applicable for the exports during 2005-06; (i.e. updated on 31.03.2005 and amended from time to time). The following documents/records have been furnished by the applicant for verification of the export details and have been examined and verified by me/us namely: (Tick whichever is applicable and give details) a) Export Order, Invoice b) Bank Realization Certificate/ FIRCs and SDF/GR declaration c) Shipping Bills d) Any other document (please specify). ii) The financial information given in the above statement is in agreement with the relevant register and records; the same has been incorporated in the books of accounts maintained by M/s................... and their subsidiaries; and is also true and correct. I/We further declare that export documents are in conformity with requirement prescribed in Para 3.2.5 (I) of Handbook of Procedures Vol. I 2004-09, applicable for the exports during 2005-06 (i.e. updated on 31.03.2005 and amended from time to time). Where goods are procured from a manufacturer, the shipping bill contains the name of the exporter as well as the supporting manufacturer and no other party. iii) It has been ensured that the information furnished is true and correct in all respect; no part of it is false or misleading and no relevant information has been concealed or withheld; iv) Neither I, nor any of my partners is a partner, director, or an employee of the above-named entity or its associated concerns; v) I/We fully understand that any statement made in this certificate, if proved incorrect or false, will render me/us liable to face any penal action or other consequences as may be prescribed in law or otherwise warranted. vi) I/We have verified that the applicant has received the realization in his own name, as per the statement of exports and realization given below. Statement of Export for Eligible Exports Sr. No. Name of the Exporter as per Shipping Bill Shipping Bill Number Let Export Date Item Description Product Groups FOB Value of Eligible exports in 2005-06 (in US$) Total vii) I/We have checked the ineligible export categories details which are as under: Sr. No. Category FOB value of Exports (in US $) 2005-06 1 Export of imported goods covered under Para 2.35 of the Foreign Trade Policy or exports made through transshipment. 2 Export turnover of units operating under SEZ/EOU/EHTP/STPI/ BTP Schemes or Supplies made to such units or products manufactured by them and exported through DTA units. 3 Deemed exports (even when payments are received in Free Foreign Exchange and payment is made from EEFC account). 4 Service exports. 5 Diamonds and other precious, semi precious stones. 6 Gold, silver, platinum and other precious metals in any form, including plain and studded jewellery. 7 Ores and Concentrates, of all types and in all forms 8 Cereals, of all types. 9 Sugar, of all types and in all forms. 10 Crude / Petroleum Oil Crude / Petroleum based Products covered under ITC HS codes 2709 to 2715, of all types and in all forms 11 Export performance made by one exporter on behalf of another exporter. Above categories of exports may contain overlapping categories also viii) I/We have checked export turnover during 2004-05, the details which are as under: Sr. No. Description Exports during 2004-05 01 Annual Export Turnover 02 Exports made in categories (a to k) mentioned at Sr. No. VI of the declaration appended to the application. 03 Eligible Exports = Row 01 - Row 02 04 Eligible Exports (in Rupees) 05 FOB Value of Exports under Vishesh Krishi Upaj Yojana for exports during 2004-05 (in Rupees) Signature............................. Name: Address: Place.......... Tel. No. ............................ Date........... Regn. No. and Date of the Corporate Membership:.......... Official Stamp/ Seal Calculation Sheet for Row 7 of Sr. No 6 of Application for Target Plus Scheme for exports during 2005-06 Percentage of amount realized out of Row 06 of Sr. No 6 of Application Form for exports during the Year 2005-06 as per Bank Realization Certificate (in %) 1 2 3 4 Sr. No. Shipping Bill No Date FOB Value as per Shipping Bill FOB Value as per BRC* Total Percentage Realized (in %) = 100* Column 4 / Column 3 *Note: For the purpose of calculating the percentage of amount realized as per Bank Realization Certificate (BRC) out of Row 8 in the Year 2005-06 (in %), in case the FOB Value as per BRC (Column 4) is more than FOB Value as per Shipping Bill (Column 3), then column 4 value has be same as the value on Column 3 (i.e. The FOB value realized be limited to value as per Shipping Bill for the purpose of this calculation.) Official Stamp/Seal Signature: :..................... Name in Block Letters: :..................... Designation: :..................... Place: :..................... Full Official Address: :..................... Residential Address: :..................... E-Mail address: :.....................