Supplies though not Import, but treated as Import for NFE purpose - Central Excise Practice Manual (OLD) - Central Excise

Supplies though not Import, but treated as Import for NFE purpose The following supplies to EOUs, although not import from outside India, are taken into account for calculation of import for the purpose of computing NFE of the unit:- (i) Value of goods purchased on High seas basis against payment in Indian rupees. (ii) All payments made in foreign exchange by way of export commission, royalty, fees, dividends, interest on external commercial borrowings or any other charges implying outflow of foreign exchange. (iii) Value of goods obtained from other SEZ units/EOU/ EHTP/STP/BTP/Bonded warehouse/international exhibitions held in India/precious metal procured from nominated agency. Explanation : For computation of NFE, the value of imported capital goods and lump-sum payment of foreign technology know-how fee would be amortized at the rate of 10% per year from 1st year to 10th year. The value of goods imported on free of cost/loan basis/leased from leasing company also would be counted for computation of NFE. It may be mentioned that the rates prescribed for amortization are different from the rates prescribed for depreciation at the time of debonding. However, a unit exiting prior to expiry of 10 years, the NFE will be calculated on the value of capital goods and payment of foreign technical know-how fee based on the rate of deprecation allowable on the goods.[ Ref: para 2 of the CBEC Circular No. 12/2008-Customs ]