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'Incentives available only if imported goods are re-exported with a new identity'

Source : BUSINESS_STANDARD
Last Updated: Mon, Oct 28, 2013 21:32 hrs

Can we claim benefits under Focus Product Scheme, Focus Market Scheme or Incremental Exports Incentivisation Scheme against export of imported goods after subjecting them to the processes mentioned in the definition of 'manufacture' at Para 9.36 of the Foreign Trade Policy (FTP)?
In all the above schemes, incentives are not available against re-export of imported goods. Para 9.36 of the FTP gives a wide definition of 'manufacture', including processes such as refrigeration, re-packing, polishing, labelling, re-conditioning, repair, remaking, refurbishing, testing, calibration and re-engineering. Many of these processes do not change the identity of the imported goods. In my opinion, if the process you carry out on imported goods brings into existence a new product with a different name, character or use and you export that new product, then you will be eligible for incentives under the schemes you have mentioned. However, if the product that you export has the same identity as the imported goods, then you will not be eligible for incentives.



Is there any restriction of land routes through which exports under bond/UT-1 or rebate claim can be made to Nepal?
Notifications no. 42/2001-CE(NT) dated 26.06.2001 dealing with exports under bond/UT-1 and no. 19/2004-CE(NT) dated 6.9.2004 dealing with exports under rebate claim do not make any mention of any specific land routes for exports to Nepal. However you must take note of the notification no. 63/94-Cus (NT) dated 21.11.1994, as amended, which lists the Land Customs Stations (LCS) notified under Section 7 of the Customs Act, 1962. You can export to Nepal only through the notified LCS.

As indenting agents, we earn commission from our foreign principals. The Services Exports Promotion Council has advised us to obtain a Registration-Cum-Membership Certificate from them and claim Served from India Scheme (SFIS) benefits under the head distribution services. We are interested, provided we can use the SFIS scrips for payment of duties on import of tanning chemicals for our trading business. Can we do that?
Your services are not covered under Appendix-41 of the Handbook of Procedures, Vol.1 (HB-1), which lists the services eligible for SFIS benefits. Secondly, even if you get SFIS duty credit scrips, you can use them only for capital goods and consumables relating to your service sector.

We have obtained licence / authorisation under Post Export Promotion Capital Goods scheme. However, we are unable to get it registered with Customs because the same is not transmitted from the website of DGFT to ICEGATE. We are unable to file the EDI Bill of Entry under Scheme Code 34, as the system does not accept it. Our goods imported three weeks back are incurring demurrage. What to do?
Please approach the Commissioner with a request to file a manual Bill of Entry. If you apprehend further delay, to save on demurrage, you may ask for permission to move the goods to a public bonded warehouse under Section 49 of the Customs Act, 1962. Meanwhile, you may take up the matter with EDI section in the DGFT's office.

Business Standard invites readers' SME queries related to excise, VAT and exim policy. You can write to us at smechat@bsmail.in

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