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TMI BlogForeign Trade Policy (FTP) announced on 31.8.2004- Amendment of notifications relating to EOU and Gems and Jewellery Export Promotion Schemes- RegX X X X Extracts X X X X X X X X Extracts X X X X ..... on to the new Foreign Trade Policy (FTP), 1st September, 2004- 31st March, 2009, brought into effect from 1.9.2004 .The New Foreign Trade Policy and Handbook of Procedures (HOP) Vol I, 2004-2009, replace the old Exim Policy and Handbook of Procedures 2002-2007. In the new Foreign Trade Policy and HOP certain changes have been introduced relating to EOU/EHTP/STP Schemes and Gem and Jewellery Export Promotion Scheme. To implement the changes amendments have been made in the notifications governing duty free import/ procurement of goods and DTA sale of goods by EOU/EHTP/STP . Amendments have also been made in the notifications relating to Gem and Jewellery Schemes. In this regard notification Nos 87/2004-Cus and 46/2004-CE, both dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ( including STP/EHTP units) are allowed to import as well as procure goods from domestic tariff area without payment of duty. Therefore, there was no necessity for extending CENVAT credit facility to them . However, some EOU's have to procure their raw materials on payment of duty also. As a trade facilitation measure, it has been decided to allow EOUs (including STP/EHTP units) an option either to procure the goods from DTA without payment of duty under CT-3 procedure or to procure the goods on payment of duty and avail CENVAT credit. The credit could be utilized by them as per the Cenvat Credit Rules, 2004, including payment of duty on their DTA sales . 5. The EOU's can also take credit of the Service Tax borne by them which will in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods manufactured by EOU/EHTPSTP, where basic duty and CVD, both. are 'nil' [either tariff rate or effective rate], such goods would be treated in the same manner as non-excisable goods manufactured by an EOU. In other words, when such goods are cleared into DTA, duty foregone on inputs utilized for production of such goods will have to be paid (as in the case of non-excisable goods vide para 6 of notfn no 22/2003-CE dated 31.3.2003 and para 3 of notfn no 52/2003-Cus dated 31.3.2003 ) 9. For implementation of the said provision, notification Nos. 22/2003-CE dated 31.3.2003 and 52/2003-Cus dated 31.3.2003, governing duty free domestic procurement and import of goods, respectively, by EOUs and EHTP/STP units, have been amended . (iv) S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le of goods on payment of concessional rate of duty by EOUs and EHTP/STP units, has been suitably amended by inserting an 'Explanation II' in the notification. (v)Disposal of Left Over Material /Fabrics into DTA on Payment of Duty on Transaction Value instead of Value Declared at the Time of Import 13. In the new FTP, in paragraph 6.15 (c), it has been provided that in the case of textile sector, disposal of leftover material/fabrics up to 2% of CIF value or quantity of import, whichever is lower, shall be allowed on payment of duty on value determined as per customs valuation rules, subject to the certification of Central excise/Customs Officers that these are leftovers. 14. To implement this, notification No. 52/2003-Cus, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... low depreciation to EOU/EHTP/STP on the lines of SEZ units. 17. To implement this, notification Nos. 52/2003-Cus, and 22/2003-CE, both dated 31.3.2003 have been suitably amended (vii) Duty free import of consumables by Gem and Jewellery units. 18. Earlier, notification No. 41/99-Customs, dated 28.4.1999 provided for duty free import of specified consumables, when imported against Replenishment Licence referred to in paragraph 8.88 of the earlier Hand Book of Procedures, upto 1% of FOB value of preceding financial year of exports of Gem and Jewellery or cut and polished diamonds. In the new FTP [para 1B.1(iv)(c)], a provision has been incorporated for enhancing this duty free import entitlement of consumables for metals other than ..... X X X X Extracts X X X X X X X X Extracts X X X X
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