| Status Certificates |
3.1 |
Policy for status holder is given in Chapter 3 of FTP. |
| Application for Grant of Status
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3.2 |
Application for grant of status shall be filed by 31st March, in ANF
3A. An existing status holder shall be automatically treated to be an
equivalent status holder as given in Para 3.10 of FTP.. |
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3.2.1 |
Application shall be filed with jurisdictional RA / Development
Commissioner (DC). However, in cases where export performance of EOUs /
SEZs is clubbed together with company / firm / Group Company in DTA, the
same will be considered by jurisdictional RA (in DGFT) only. |
| 3.2.2 |
All newly issued Status certificates shall be valid from 1st April
of the year during which application for recognition was filed. For
renewals, application filed before expiry of current validity, renewals
shall have a validity commencing from 1st April of next licensing year;
otherwise validity period shall be 1st April
of year during which application was filed. All Status Certificates
shall be valid for a period of 5 years reckoned from the 1st April of
the relevant year. All Status Certificates valid beyond 31.3.2014 shall
continue to remain in force, in case provisions of Foreign Trade Policy
(2014-19) continue to recognize the status. Pending the finalization of
the applications for grant of recognition, existing status holders
who have applied for recognition before the expiry of their status,
shall have a grace period of 6 months. During this grace period of 6
months such status holders shall continue to be recognized as Status
holders even after the expiry of earlier Status Certificate i.e. till
September end, unless their applications are finally rejected or status
recognition is granted once again, as the case may be. |
| Maintenance of Accounts |
3.3 |
Status Holder shall maintain true and proper accounts of its exports
and imports based on which such recognition has been granted.Record
shall also be maintained during validity period and for a minimum period
of three years thereafter. These accounts shall be made available for
inspection to RA concerned or any authority nominated by DGFT. |
| Refusal / Suspension /Cancellation of
Certificate |
3.4 |
Status certificate may be refused or suspended or
cancelled by RA concerned, if status holder or any agent or
employee or authorized representative acting on his behalf:
(a) Fails to discharge export obligation imposed;
(b) Tampers with Authorisations;
(c) Misrepresents or has been a party to any corrupt or fraudulent practice in
obtaining any Authorisation;
(d) Commits a breach of FT (D& R) Act, or Rules, Orders made there under and
FTP; or
(e) Fails to furnish information required by this Directorate |
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3.4.1 |
A reasonable opportunity shall be given to status holder before taking any
action under above paragraph. |
| Appeal |
3.5 |
An applicant, who is not satisfied with decision taken to suspend
or cancel status certificate, may file an appeal to DGFT within 45
days. Decision of DGFT shall be final thereon. |
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3.6 |
SERVED FROM INDIA SCHEME (SFIS) |
| (a) |
Policy for SFIS is given in Chapter 3 of FTP. |
| (b) |
For foreign exchange earned during current financial year,
application for Duty Credit Scrip shall be filed on
monthly/quarterly/half-yearly/annual basis, at the option of the
applicant to be exercised along with first
application for the current financial year, with jurisdictional RA, in
ANF 3B along with documents
prescribed therein, for which the last date for filing application on
time shall be 12 months from the end of
relevant month / quarter / half-year /year periodicity. |
| (c) |
Service provider shall within one month of completion of imports
made or expiry of validity of Duty Credit
scrip whichever is earlier, submit a statement of imports made under it
to jurisdictional RA with a copy to
jurisdictional Excise authorities (service tax cell) wherever
applicable. |
Ineligible Remittances
and Services for SFIS
scheme |
3.6.1 |
Foreign exchange remittances other than those that are earned for
rendering of services would not be counted for entitlement. Thus, other
sources of foreign exchange earnings such as equity or debt
participation, donations, receipts of repayment of loans etc. and any
other inflow of foreign exchange, unrelated to rendering of service,
would be ineligible. For calculation of entitlement, following shall not
be taken into account. |
Proof of Landing for FMS and MLFPS |
|
(a) Foreign Exchange remittances:
I. related to Financial Services Sector
1. Raising of all types of foreign currency Loans;
2. Export proceeds realization of clients;
3. Issuance of Foreign Equity through ADRs / GDRs or other similar instruments;
4. Issuance of foreign currency Bonds;
5. Sale of securities and other financial instruments;
6. Other receivables not connected with services rendered by financial
institutions; and |
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II. earned through contract/regular employment abroad
(e.g. labour remittances); |
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(b) Payments for services received from EEFC Account; |
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(c) Foreign exchange turnover by Healthcare
Institutions like equity participation, donations etc. (However,
remittances received on account of medical treatment, surgery, testing,
consultancy and health care provided by the institution shall be
eligible.); |
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(d) Foreign exchange turnover by Educational Institutions like
equity participation, donations etc. (However remittances received on
account of the course fees and consultancy provided by the institution
shall be eligible.); |
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(e) Export turnover relating to services of units operating under
SEZ / EOU / EHTP / STPI / BTP Schemes or supplies of services made to
such units; |
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(f) Clubbing of turnover of services rendered by SEZ /EOU / EHTP /
STPI / BTP units with turnover of DTA Service Providers; |
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(g) Service Providers in Telecom Sector (Sr. No 2C of Appendix 10); |
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h) Foreign Exchange earnings for Services provided by Airline and
Shipping Lines Service providers for routes plying from any country X to
any country Y only, not touching India at all; and |
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i) Exports of Goods. |
| 3.7 |
VISHESH KRISHI AND GRAM UDYOG YOJANA
(VKGUY) |
| 3.7.1 |
Policy pertaining to VKGUY is given in Chapter 3 of FTP. Appendix
37A contains the list of VKGUY items along with the admissible date of
export. Application for grant of Duty Credit scrip under VKGUY for
exports made from 27.8.2009 onwards shall be made to RA concerned in
ANF3C along with documents prescribed therein. Listed products shall be
eligible for Duty Credit Scrip upon exports on or after the Date
of Export indicated in the relevant Appendix. |
| 3.7.2 |
Policy pertaining to the Agri. Infrastructure Incentive Scrip under
VKGUY is given in Para 3.13.4 of Chapter 3 of FTP.
All Status Holders may apply for grant of Duty Credit scrip for export
made during current year to RA, CLA, New Delhi in ‘ANF 3D - ANF for
Policy Para 3.13.4.’ along with documents prescribed therein.
Applicants may file one application before the last date prescribed for
each half year period (Apr-Sep / Oct-Mar).
Applications for exports during Apr-Sept period shall be filed from 15th
January till 15th February of current year and for exports during
Oct-Mar period, applications shall be filed from 1st May till 31st May
of the next licensing year.
Applications received after the last date shall be summarily rejected,
as Para 9.3 and Para 9.4 shall not be applicable. The allocation of duty
credit scrips by RA, CLA, New Delhi, under Para 3.13.4 of FTP, shall be
done proportionate to the eligible claims of individual applications,
vis-à-vis the total eligible
claims of all the status holders put together, received for each half
year (Apr-Sep / Oct-Mar) periods, in such a way that the total benefits
granted for all status holders put together does not exceed the limit
prescribed for each half year in Para 3.13.4 of FTP. Accordingly if the
total eligible claim of all the status
holders put together is, say, Rs 200 Cr, each applicant status holder
would be granted one-fourth of the claim an applicant is eligible for |
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FOCUS MARKET SCHEME (FMS) |
| 3.8 |
Policy pertaining to FPS is given in Chapter 3 of FTP. Notified
Products are listed in Appendix 37D. |
| 3.8.1 |
An application for exports made from 27.8.2009 onwards shall be
filed, with RA concerned in ANF3C along with documents prescribed
therein. Eligibility of Focus Product (as in Appendix 37C) shall be
determined from date of export as per Para 9.12 of HBP v1. |
| 3.8.2 |
Applicant shall be required to submit proof of landing of export
for FMS and MLFPS consignment in specified market.
Any one of the following documents should suffice, as a proof
of landing of export consignment in specified Focus Market:
(i) A self attested copy of import bill of entry filed by
importer in specified market, or
(ii) Delivery order issued by port authorities, or
(iii) Arrival notice issued by goods carrier, or
(iv) Tracking report from the goods carrier (Shipping Line/
Airline etc. or his accredited agent in India) duly certified
by them, evidencing arrival of export cargo to
destination Focus Market, or
(v) For Land locked Focus Market, Rail/Lorry receipts of
transportation of goods from Port to Land locked Focus
Market, or
(vi) Any other documents that may satisfactorily prove to
RA concerned that goods have landed in / reached the
Focus Market.
In case of (iv) and (vi) above, the accredited agent of the
Goods Carrier must certify that he is the accredited agent of
the concerned Goods Carrier on the date of issuance of the
tracking report / document.
Further, in the case of issuance of any other document under
(vi) above, the accredited agent must state that he has verified
that this proof of landing of goods in relevant Focus Market is
given based on information available in the Goods Carrier’s
backup database and he has issued this document accordingly. |
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FOCUS PRODUCT SCHEME (FPS) |
| 3.9 |
Policy pertaining to FPS is given in Chapter 3 of FTP. Notified
Products are listed in Appendix 37D. |
| 3.9.1 |
An application for exports made from 27.8.2009 onwards shall be
filed, with RA concerned in ANF3C along with documents prescribed
therein. Eligibility of Focus Product (as in Appendix 37D) shall be
determined from date of export as per Para 9.12 of HBP v1. |
| 3.9.2 |
The procedure for filing applications against export of Market
Linked Focus Products under FPS (Para 3.15.3 of FTP) will be the same as
laid down for Focus Product Scheme in Para 3.9.1 above. In case of
applications for grant of benefit under Market Linked Focus Product
scheme, for proof of landing
of export consignment in specified market, Para 3.8.2 of HBP Vol.1 shall
apply. |
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| 3.10 |
Procedure for Status Holders Incentive Scrip |
| 3.10.1 |
Policy pertaining to Status Holders Incentive Scrip is given in Para
3.16 of Chapter 3 of FTP. |
| 3.10.2 |
Application for grant of Duty Credit Scrip under SHIS (Para
3.16 of FTP) for exports made during 2009-10 or for exports made during
2010-11, as the case may be, shall be made to jurisdictional RA
concerned in ANF3E along with documents prescribed therein. |
3.10.3
|
The last date of filing the application shall be 31st March 2011 for
SHIS Application on exports made during 2009-10 (and 31st March 2012 for
SHIS Application on exports made during 2010-11). |
| 3.10.4 |
As Para 3.17.8 of FTP does not apply to SHIS, shipments where VKGUY,
FMS, FPS (including MLFPS) benefits have been claimed/will be claimed by
applicant or by the supporting manufacturer (based on disclaimer by the
exporter) shall be entitled for SHIS benefits to the exporter Status
Holder. SHIS is entitled for shipments where foreign exchange
realisation is in the name of applicant Status Holder. |
| 3.10.5 |
Merchant Status Holders shall have the facility to list the
supporting manufacturer till the date of filing of the Application for
claiming the SHIS benefits.
To list the supporting manufacturer, proof of supporting manufacturer
may be given to RA concerned by giving any of the export documents
(Shipping Bill/Bill of Export/ARE forms/Customs/Bank attested Invoices)
evidencing the same.
Listed Supporting Manufacturers shall be co-licensee of the SHIS Scrip. |
| 3.10.6 |
SHIS scrip can be used for payment of applicable duties on import of
Capital Goods (as defined in FTP) relating to the sectors specified in
Para 3.16.4 of FTP. The Scrip / the goods so imported shall be with
Actual User Condition. Imports of Capital Goods shall be related to any
of the sectors listed in Para 3.16.4 of FTP, without any sector wise
value limitation; even by the listed supporting manufacturers. |
| 3.10.7 |
Para 3.11.8 of this HBP shall not apply to this Scheme. Further,
Monitoring the realization of export proceeds shall be in terms of
3.11.12 & 3.11.13 of this HBP. |
Para 3.10.2 to 3.10.7 added by
DGFT
PUBLIC NOTICE No.54/2009-14, Dated : 08 April, 2010
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| 3.11 |
COMMON PROCEDURAL FEATURES FOR PROMOTIONAL SCHEMES,
APPLICABLE TO ALL SCHEMES IN THIS CHAPTER, UNLESS SPECIFICALLY PROVIDED
FOR: |
SCHEMES IN THIS CHAPTER, UNLESS SPECIFICALLY PROVIDED FOR:
| Jurisdictional RA/RA Concerned |
3.11.1 |
Applicant shall have option to choose Jurisdictional RA on the basis of
Corporate Office, Registered Office, Branch Office address endorsed on IEC.
However, once opted, no change would be allowed. |
|
3.11.2 |
Provisions contained in Chapter 2 and 9 of this HBP shall apply to all
Promotional Schemes.
However, it is clarified that in case the importer wants to use a specific
permission/license for import of a restricted item as well as pay the duty using
Duty Credit Scrip, then Duty Credit Scrip shall be allowed to be used only if
the item is also importable under the respective paras of Duty Credit Scrip
(reference FTP Paras 3.12.6, 3.13.4, 3.16.4, and 3.17.5). (This para inserted by
DGFT Public Notice No. 03/2009-14 New Delhi, Dated : 31st August, 2009
)
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| Port of Registration |
3.11.3 |
Duty Credit Scrip (including splits) shall be issued with a single port of
registration which shall be the port of export. After issue of Duty Credit
Scrip, but before registration with Customs, the Applicant can change the port
of registration from RA concerned. Before registration, authorities shall verify
genuineness of Duty Credit scrip, from RA concerned, until EDI system of message
exchange is put in place.
However, applicant may use Duty Credit Scrip for imports from any other port
(that includes ICD/LCS) after obtaining TRA from authorities at port of
registration. The above procedure shall be applicable only in respect of EDI
enabled ports. In case of exports through non-EDI ports, the port of
registration shall be the port of exports. |
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However, applicant may use Duty Credit scrip for imports from
any other port (that includes ICD/LCS) after obtaining TRA from
authorities at port of registration.The above procedure shall be
applicable only in respect of EDI enabled ports. In case of exports
through non-EDI ports, the port of registration shall be the port of
exports. |
| Facility for Split Scripts |
3.11.4 |
Split certificates of Duty Credit Scrip subject to a minimum of Rs 5 Lakh
each and multiples thereof may also be issued, on request at the time of
application with different port of registration.
After issue, request of splits shall be permitted with same port of registration
as appearing on the original scrip. The above procedure shall be applicable only
in respect of EDI enabled ports. |
Import from
private / public
bonded warehouses |
3.11.5 |
Entitlement can be used for import from private / public bonded warehouses
subject to fulfillment of paragraph 2.28 of FTP and terms and conditions of DoR
notification. |
| Re-export of defective/unfit goods |
3.11.6 |
Goods imported which are found defective or unfit for use, may be
re-exported, as per DoR guidelines. Where Duty Credit scrip has been used for
imports, Customs shall issue a certificate
containing particulars of scrip used, date of import of re exported goods and
amount debited while importing such goods. Based on this certificate, upon
application, a fresh Scrip shall be issued by concerned RA to extent of 98% of
debited amount, with same port of registration and valid for a period equivalent
to balance period available on date of import of the defective / unfit goods. |
Validity Period
& Revalidation |
3.11.7 |
Duty Credit Scrip shall be valid for a period of 24 months & Revalidation of
Duty Credit Scrip shall not be permitted unless covered under paragraph 2.13.1
or paragraph 2.13.2 A of HBP v1. (This para is replaced by
DGFT PUBLIC NOTICE No 38/2009-14, Date : 03-02-2010)
[Old- Duty Credit Scrip shall be valid for a period of 24 months. Revalidation of
Duty Credit Scrip shall not be permitted. ] |
Declaration of Intent
on Free Shipping Bills |
3.11.8 |
For export shipments filed under Free Shipping Bill category, for exports of
products / to markets eligible under Chapter 3 of FTP (Appendix 37A, 37C, 37D),
the exporter shall state the intention to claim benefits under Chapter 3 of FTP
by declaring on the Free Shipping Bills as under:
‘I/We, hereby, declare that I/We shall claim the benefits, as admissible, under
Chapter 3 of FTP’.
This declaration shall not be required for export shipments under any of the
schemes of Chapter 4 (including drawback) or Chapter 5 of FTP.
Further for products, markets notified during the year, this declaration shall
be necessary for exports under Free Shipping Bills, only after a grace period of
one month from the date of relevant public notice.
Moreover for exports made prior to date of notification of products / markets,
such a declaration will not be required, since export shipments under Free
Shipping Bills have already taken place. |
Last date of filing of application for
Duty Credit Scrips, except
for FTP Para 3.13.4 and FTP
Para 3.16 |
3.11.9 |
Applications for obtaining Duty Credit Scrip shall be filed within a period
of twelve months from the date of export or within six months from the date of
realization or three months from the date of printing / release of shipping
bill, whichever is later, in respect of shipments for which claim is being
filed. Further, for shipments already made prior to the inclusion/modification
of the items / markets in relevant appendices by various Public Notices issued
from time to time; the last date for filing applications shall be six months
from the end of the month of the relevant Public Notice that included/
modified the items/markets, or the time period permitted in the first sentence
of this Para, whichever is later. For SFIS for current financial year, the last
date shall be 12 months from the end of application frequency period. |
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3.11.10 |
Shipments from EDI Ports and Non-EDI Ports cannot be clubbed in one
application. Port of registration for EDI enabled ports shall be the port of
export. In case of exports through
non-EDI port, the port of registration shall be the relevant non EDI port of
exports. Accordingly separate application shall be filed for each non EDI port. |
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3.11.11 |
Freely Transferable Duty Credit Scrip shall be granted
on FOB value of exports. FOB Value of Exports shall be taken from the Shipping
Bill (FOB value in free foreign exchange declared
on the Shipping Bill and converted into Indian Rupees at the Monthly Customs
Rate of Exchange on the date of LEO).
Date of export is determined as per Para 9.12 of HBPv1. Multiple Applications
can be filed and supplementary cut shall not be applicable. However, an
application shall contain a maximum of upto 50 shipping bills. |
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3.11.12 |
All the pre-realization cases are to be monitored by RA
concerned with respect to realization of export proceeds. The procedure
prescribed in Para 4.45 shall apply, mutatis mutandis, to freely transferable
Duty Credit Scrips issued under Chapter 3 on the pre-realization basis. However
for adjustment of excess / short realisation, procedure in Para 3.11.13 is to be
followed. |
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3.11.13 |
(i) In case there is no pending claim and there is no
cash deposit towards the amount immediately after the expiry of 12 months time
period from the date of issuance of the Scrip, the RA shall initiate necessary
action. If the Scrip holder does not pay the amount within 60 days of the expiry
of aforesaid 12 months time period, the scrip holder shall be required to pay
the said amount along with 15% interest per annum from the date of issuance of
the Scrip(s) for the Duty Credit for which BRC or Documentary evidence
(evidencing realisation of export proceeds as required under FTP or the
Procedure laid thereunder) could not be produced. In case the Scrip holder
surrenders the unutilized / partially unutilized Duty Credit Scrip, then
unutilized / partially unutilized credit shall be deduced from the payable
amount.
(ii) In case the FOB value realized in free foreign exchange is higher as
per BRC, when compared to the FOB value in free foreign exchange as declared on
the Shipping Bill(s) on which the original duty credit scrip was issued,
supplementary claim shall be filed within a period of six months from the date
of realization. |