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TMI BlogDUTY EXEMPTION & REMISSION SCHEMESX X X X Extracts X X X X X X X X Extracts X X X X ..... ials used on which benefit of DBK is claimed. ADVANCE AUTHORISATION SCHEME Advance Authorisation 4.1.3 An Advance Authorisation is issued to allow duty free import of inputs, which are physically incorporated in export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts which are consumed / utilised to obtain export product, may also be allowed. DGFT, by means of Public Notice, may exclude any product(s) from purview of Advance Authorisation. Duty free import of mandatory spares upto 10% of CIF value of Authorisation which are required to be exported / supplied with resultant product are allowed under Advance Authorisation. Advance Authorisations are issued for inputs and export items given under SION. These can also be issued on the basis of Adhoc norms or self declared norms as per para 4.7 of HBP v1. Advance Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s) for: i) Physical exports (including exports to SEZ); and/ or ii) Intermediate supplies; and /or iii) supply of goods to the categories mentioned in paragraph 8.2 (b), (c), (d), (e), (f), (g), (i) and (j) of FT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some or all inputs are supplied free of cost to exporter by foreign buyer. In such cases, for calculation of VA, notional value of free of cost inputs along with value of other duty-free inputs shall be taken into consideration. However, if all inputs are supplied free of cost, exporter shall also have option to follow provision prescribed by DoR. Export Obligation 4.1.9 Period for fulfillment of export obligation under Advance Authorisation shall be as prescribed in HBP v1. Provision for BIFR units 4.1.9A Any firm / company registered with BIFR or any firm / company acquiring a unit, which is under BIFR shall be allowed Export Obligation Period (EOP) extension as per rehabilitation package prepared subject to approval of BIFR or 5 years if not specified, without payment of composition fee. Above provisions apply also to SSI units as per rehabilitation scheme of concerned State government. Advance Authorisation for Annual Requirement 4.1.10 Advance Authorisation can also be issued for annual requirement. Status Certificate holder and all other categories of exporters having past export performance (in preceding two years) shall be entitled for Advance Authorisatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, under Schedule II of ITC (HS). Admissibility Drawback 4.1.14 In case of an Advance Authorisation, drawback shall be available for any duty paid material, whether imported or indigenous, used in goods exported, as per drawback rate fixed by DoR, Ministry of Finance (Directorate of Drawback). Drawback allowed shall be mentioned in Authorisation. DUTY FREE REPLENISHMENT CERTIFICATE 4.2 Deleted. 4.2.1 to 4.2.8 Deleted. 4.2.9 Scheme has been withdrawn for exports with effect from 1.5.2006. Exports made till 30.4.2006 shall be governed by chapter 4 of FTP (as amended upto 31.3.2007). DUTY ENTITLEMENT PASSBOOK (DEPB) SCHEME Duty Entitlement Passbook Scheme (DEPB) 4.3 Objective of DEPB is to neutralise incidence of customs duty on import content of export product. Component of Special Additional Duty and customs duty on fuel shall also be allowed under DEPB (as a brand rate) in case of non-availment of CENVAT credit. Neutralisation shall be provided by way of grant of duty credit against export product. 4.3.1 An exporter may apply for credit, at specified percentage of FOB value of exports, made in freely convertible currency or payment made from foreign currency ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r which higher value addition is prescribed under Advance Authorisation Scheme shall be applicable. Export Obligation 4.4.5 Procedure and time period related to fulfillment of Export Obligation have been laid down in Chapter 4 of HBP v1. Transferability 4.4.6 Once export obligation has been fulfilled, request for transferability of Authorisation or inputs imported against it may be made before concerned RA. Once, transferability is endorsed, Authorisation holder may transfer DFIA or duty free inputs, except fuel and any other item(s) notified by DGFT. However, for fuel, import entitlement may be transferred only to companies which have been granted authorisation to market fuel by Ministry of Petroleum and Natural Gas. 2Once transferability is endorsed, imports / domestic procurement against authorisation or transfer of imported inputs / domestically procured inputs shall be subject to payment of applicable additional customs duty / excise duty. While endorsing transferability, authorisation would bear a note as to liability of such additional customs duty / excise duty. However, in case where CENVAT facility has not been availed, exemption from additional customs duty / ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cies are MMTC Ltd, Handicraft and Handloom Export Corporation (HHEC), State Trading Corporation (STC), the Project and Equipment Corporation of India Ltd (PEC), Premier Trading House under Paragraph 3.5.2 of FTP and any other agency authorised by RBI. Exporters (except EOU / units in SEZ) may obtain gold / silver / platinum from nominated agency(s). A bank authorised by RBI is allowed export of gold scrap for refining and import standard gold bars as per RBI guidelines. Items of Export 4A.5 Following items, if exported, would be eligible for facilities: (a) Gold jewellery, including partly processed jewellery and articles including medallions and coins (excluding legal tender coins), whether plain or studded, containing gold of 8 carats and above; (b) Silver jewellery including partly processed jewellery, silverware, silver strips and articles including medallions and coins (excluding legal tender coins and any engineering goods) containing more than 50% silver by weight; (c) Platinum jewellery including partly processed jewellery and articles including medallions and coins (excluding legal tender coins and any engineering goods) containing more than 50% platinum by weigh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings containing more than 50% platinum by weight. 4A.11 Such authorisations shall carry an export obligation to be fulfilled as per procedure specified in paragraph 4A of HBP v1. Advance Authorisation holder may obtain gold / silver / platinum from nominated agencies in lieu of direct import. Gem Replenishment Authorisation 4A.12 Gem Replenishment (Gem & Jewellery REP) Authorisation may be issued as given in paragraphs 4A.8, 4A.9 and 4A.10 above. In case of plain or studded gold / silver / platinum jewellery and articles, value of such Authorisations shall be determined with reference to realisation in excess of prescribed minimum VA. Such Gem REP Authorisations shall be freely transferable. Gem REP Rate and Item 4A.13 Replenishment Rate and item of import will be as prescribed in Appendix 12B of HBP v1. Diamond Imprest Authorisation 4A.14 Diamond Imprest Authorisation for import of cut and polished diamonds including semi processed diamonds, half cut diamonds, broken in any form, for mixing with cut and polished diamonds or for export as it is, may be issued for export of cut and polished diamonds and shall carry an EO. Eligibility 4A.14.1 An exporter of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of dollar loans from the bank; and (iv)Transfer to Rupee Account of exporter. Details of this DDA Scheme are given in HBP v1. A non DDA holder is also permitted to supply cut and polished diamonds to DDA holder, receive payment in dollars and convert same into Rupees within 7 days. Cut and polished diamonds and coloured gemstones so supplied by non-DDA holder will also be counted towards discharge of his export obligation and / or entitle him to replenishment Authorisation. Export of cut & Polished precious and semi-precious stones for treatment and re-import 4A.20.1 3Gems and Jewellery exporters shall be allowed to export cut and polished precious and semi-precious stones for the treatment and re-import as per customs rules and regulations. In case of re-export, the exporter shall be entitled for duty drawback as per rules. Import of precious metal scrap/used jewellery for melting and re-export of jewellery 4A.21 Import of precious metal scrap / used jewellery shall be allowed for melting, refining and re-export of jewellery as per the procedure laid down in HBP v1. However, such import shall not be allowed through hand baggage. Re-import of rejected jewellery 4A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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