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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 ..... iculture 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 export turnover of Rs 5 crore in current or preceding financial year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 viable; and (c) CVD exemption on import of trimmings, embellishments and consumables. For implementing the above provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h 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 Plus Scheme 4.1 The existing duty free credit entitlement certificate scheme for status holders (paragraph 3.7.2.1 of the earlier Policy) has been replaced by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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 certificate holder. Further, in case of hotel and stand alone restaurants, the duty credit entitlement may also be used for import of food items and alcoholic beverage. 5.2 Notification No.92/2004-Customs, dated 10.9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate 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 Handbook and two blocks have been prescribed for fulfillment of export obligation. Hitherto, there were four blocks for fulfillment of export obligation. 7.2 The EPCG Scheme allows import of capital goods to service providers in the Port Handling sector with the benefit that the export obligation may also be fulfilled by earning of such servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Import of second hand capital goods Import of second hand capital goods, including refurbished/reconditioned spares, shall be allowed. Hitherto, import of second hand capital goods of more than 10 years old was restricted. 11. Execution of BG/LUT It has been provided in paragraph 2.27.1. of the Foreign Trade Policy that all the exporters having export turnover of at least Rs 5 crores in the current or preceding financial year and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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