[To be published in the Gazette of India Extraordinary Part-ll, Section - 3,
Sub Section (ii)]
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Notification No.33/2015-2020
New Delhi, Dated: 13 October, 2017
Subject: Amendments in Foreign Trade Policy 2015-20 -reg
S.O. (E): In exercise of powers conferred by Section 5 of FT (D&R) Act, 1992,
read with paragraph 1.02 of the Foreign Trade Policy, 2015-2020, as amended from
time to time, the Central Government hereby makes following amendments in
Foreign
Trade Policy 2015-20.
1. Para 4.14 is amended to read as under:
"4.14: Details of
Duties exempted
Imports under Advance Authorisation are exempted from payment of Basic
Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty,
Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty,
wherever applicable. Import against supplies covered under paragraph 7.02 (c),
(d) and (g) of FTP will not be exempted from payment of applicable Anti-dumping
Duty, Countervailing Duty, Safeguard Duty and Transition Product Specific
Safeguard Duty, if any. However, imports under Advance Authorization for
physical exports are also exempt from whole of the integrated tax and
Compensation Cess leviable under sub-section (7) and sub-section (9)
respectively, of section 3 of the Customs Tariff Act, 1975 (51 of 1975), as may
be provided in the notification issued by Department of Revenue, and such
imports shall be subject to pre-import condition."
2. Para 5.01 (a) is amended to read as under:
"5.01 (a) EPCG Scheme allows import of capital goods
for pre-production, production and post-production at Zero customs duty. Capital
goods imported under EPCG scheme for physical exports are also exempt from whole
of the Integrated Tax and Compensation Cess leviable thereon under the
subsection( 7) and subsection (9) respectively, of section 3 of the Customs
Tariff
Act, 1975( 51 of 1975), as may be provided in the notification issued under
Department of Revenue. Alternatively, the Authorisation holder may also procure
Capital Goods from indigenous sources in accordance with provisions of paragraph
5.07 of FTP. Capital goods for the purpose of the EPCG scheme shall include:
i. Capital Goods as defined in Chapter 9 including in CKD/SKD condition thereof;
ii. Computer software systems;
iii. Spares, moulds, dies, jigs, fixtures, tools & refractories for initial
lining and spare refractories; and
iv.Catalysts for initial charge plus one subsequent Charge."
3. Para 5.01(c) is amended to read as under:
"5.01 (c) Import under EPCG Scheme shall be subject to an
export obligation equivalent to 6 times of duties, taxes and cess saved on
capital goods, to be fulfilled in 6 years reckoned from date of issue of
Authorisation."
4. Para 5.01(e) stands deleted.
5. Para 5.07 is amended to read as under:
"5.07 Indigenous Sourcing of Capital Goods and benefits to
Domestic Supplier
A person holding an EPCG authorisation may source capital goods from a
domestic manufacturer. Such domestic manufacturer shall be eligible for deemed
export benefit under paragraph 7.03 of FTP and as may be provided under GST
Rules under the category of Deemed Exports. Such domestic sourcing shall also be
permitted from EOUs and these supplies shall be counted for purpose of
fulfilment of positive NFE by said EOU as provided in Para 6.09 (a) of FTP."
6. Para 6.01(d) is amended to read as under:
"6.01 (d) (i) An EOU /EHTP /STP /BTP unit may import and
/or procure, from
DTA or bonded warehouses in DTA/ international exhibition held in India, all
types of goods, including capital goods, required for its activities, provided
they are not prohibited items of import in the ITC (HS) subject to conditions
given at para (ii) & (iii) below. Any permission required for import under any
other law shall be applicable. Units shall also be permitted to import goods
including capital goods required for approved activity, free of cost or on loan
/ lease from clients. Import of capital goods will be on a self-
certification basis. Goods imported by a unit shall be with actual user
condition and shall be utilized for export production.
(ii) The imports and/ or procurement from bonded warehouse in DTA or from
international exhibition held in India shall be without payment of customs duty
as provided under First Schedule to the Customs Tariff Act, 1975 and additional
duty of Customs leviable under Section 3(1), 3(3) and 3(5) and without payment
of Integrated Tax and GST Compensation Cess leviable
under section 3(7) and 3(9) of the Customs Tariff Act, 1975 as per notification
issued by the Department of Revenue
(iii) The procurement of GST goods from DTA would be on payment of applicable
GST taxes. The EOUs can procure excisable goods, falling in Fourth Schedule of
Central Excise Act, from DTA without payment of applicable excise duty. The
refund of GST taxes for supply from DTA to EOU would be available to supplier as
provided under GST rules subject to such conditions and documentations as
specified there in under GST rules."
7. Para 6.01(f) is amended to read as under:
"6.01(f) EOU / EHTP / STP / BTP units may import without payment of customs duty
as provided under First Schedule to the Customs Tariff Act, 1975 and additional
duty of Customs leviable under Section 3(1), 3(3) and 3(5) and without payment
of Integrated Tax and GST Compensation Cess leviable under section 3(7) and 3(9)
of the Customs Tariff Act, 1975 as per
notification issued by the Department of Revenue and / or procure from DTA,
with payment of applicable taxes under GST and/ or Cenvat, as the case may be,
certain specified goods for creating a central facility. Software EOU / DTA
units may use such facility for export of software."
8. Para 6.01(k) is amended to read as under:
"6.01(k) BOA may allow, on a case to case basis, requests of EOU / EHTP / STP/
BTP units in sectors other than Gems & Jewellery, for consolidation of goods
related to manufactured articles and export thereof along with manufactured
article. Such goods may be allowed to be imported / procured from DTA by EOU
with or without payment of duty as provided at Para 6.01
(d) (ii) and (iii) above, as the case may be, to the extent of 5% FOB value of
such manufactured articles exported by the unit in preceding financial year.
Details of procured / imported goods and articles manufactured by the EOU will
be listed separately in the export documents. In such cases, value of procured /
imported goods will not be taken into account for calculation of NFE and DTA
sale entitlement. Such procured / imported goods shall not be allowed to be sold
in DTA. BOA may also specify any other conditions."
9. Para 6.02 is amended to read as under:
"6.02 Second hand capital goods, without any age limit, may also be imported
without payment of customs duty as provided under First Schedule to the Customs
Tariff Act, 1975 and additional duty of Customs leviable under Section 3(1),
3(3) and 3(5) and without payment of Integrated Tax and GST Compensation Cess
leviable under section 3(7) and 3(9) of the Customs
Tariff Act, 1975 as per notification issued by the Department of Revenue."
Effect of this Notification:
Various provisions of Foreign Trade Policy 2015-20
is amended to enable certain additional duties/taxes/cess exemptions for Advance
authorisations, EPCG Authorisations and units under EOU/ EHTP / STP/ BTP Scheme.
(Alok Vardhan Chaturvedi)
Director General Of Foreign Trade
(Issued from F.No.01/94/180/201/AM-18/PC-4 (GST))