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TMI BlogForeign Trade Policy, 2004-2009 – Changes made in Advance License, DFRC, EPCG, and DEPB Schemes, etc. – regX X X X Extracts X X X X X X X X Extracts X X X X ..... atus holders, agriculture and floriculture sector. Amendments have also been made in the existing DEPB, DFRC, EPCG and DEEC Schemes. The details of the new schemes introduced and changes made in the existing schemes are as follows. 2. Sector specific provisions: (i) Agriculture [Para 1 B.1(i)]. To boost export of agricultural products, several facilities have been extended under the Policy which include, interalia, (i) exemption from Bank Guarantee (BG) to units in Agri Export Zone (AEZ) under EPCG Scheme and (ii) allowing capital goods imported under EPCG Scheme to be installed anywhere in AEZ. It may be noted that in terms of paragraph 2.27.1 of the Foreign Trade Policy, the exporters who have an ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licy provision at (a) above, S.No.167 of notification No. 21/2002-Cus has been amended suitably vide notification No. 89/2004-Cus, dated 10.9.2004. As for the provision at (b) above, notification Nos.134/94-Cus, dated 22.6.1994 and 158/95-Cus, dated 14.11.1995 should take care of such situations. (iii) Handicrafts [paragraph 1 B. 1 (iii)]. The facilities extended to this sector include, interalia, (a) duty free import entitlement of trimmings and embellishments at 5% of the FOB value of exports made during the previous financial year; (b) authorizing the Handicraft Export Promotion Council to import trimmings, e mbellishments and consumables on behalf of those exporters for whom direct import may not to be via ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Upaj Yojana has been incorporated in the Policy at Paragraph 3.8 to promote export of fruits, vegetables, flowers etc. Under the Scheme, the exporters of such products are entitled for duty credit scrip equivalent to 5% of the FOB value of exports for each licensing year commencing from 1.4.2004. The goods imported under the Scheme are freely transferable. Duty credit may be used for import of inputs or goods including capital goods as may be notified. It has also been provided that additional customs duty / excise duty paid in cash or through debit under Vishesh Krishi Upaj Yojana may be adjusted as CENVAT credit or as duty drawback. The exemption notification for implementation of this Scheme will be issued in due course. 4. Target ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers (paragraph 3.8 of the earlier Policy) has been replaced by "Served From India" Scheme (paragraph 3.6.4 of the new Policy). Individual service providers who earn foreign exchange of at least Rs.5 lakhs, and other service providers who earn foreign exchange of at least Rs.10 lakhs will be eligible for a duty credit entitlement of 10% of total foreign exchange earned by them. In the case of stand-alone restaurants, the entitlement shall be 20%, whereas in the case of hotels and tourism sector it shall be 5%. Duty credit entitlement under this scheme may be used for import of capital goods including spares, office equipment and professional equipments, office furniture and consumables provided it is a part of mainline business of the certif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In respect of capital goods imported for technological upgradation the export obligation has been reduced to six times the duty saved. (iii) In case of a sick unit as notified by the Board for Industrial and Financial Reconstruction or where a rehabilitation scheme is announced by the concerned State Government in respect of sick units for their revival, extension of the export obligation period as per rehabilitation package or upto 12 years where such rehabilitation period is not specified, has been permitted. Paragraph 5.5.1 of the Policy may be referred to for details. (iv) The provision relating to block wise fulfillment of export obligation has been amended vide paragraph 5.8 of the Handbo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been issued to operationalise the DFRC Scheme under the new Foreign Trade Policy. 9. Deemed Exports 9.1 Chapter 8 of the Foreign Trade Policy deals with deemed exports. The new Policy provides for exemption from the Terminal Excise Duty where supplies are made against International Competitive Bidding. Hitherto, the terminal excise duty was refundable in all cases of deemed exports. 9.2 Accordingly, the excise duty has been exempted on all goods which are otherwise fully exempt from basic customs duty and CVD when imported and where supplies are made against International Competitive Bidding. A new entry at S. No 301 of notification No. 6/2002-CE has been inserted to this effect. 10. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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