Software technology park units import for training

Circular No.37/1995 date 18/4/95

Subject: Imports by 100% Export Oriented Unit Software Technology Park units for training purpose.

I am directed to say that the Board is in receipt of a reference from the Department of Electronics that a Software Technology Park (STP) Unit has not been permitted to import certain equipments meant for utilisation within the unit for training of professionals. In this regard, the Board's attention has been I drawn to the Ministry of Commerce Notification No.33/(RE)/92-97, dated 22,3.1994 which vide para 2.12 allows the use of computer system within the STP units for training purpose subject to the condition that no computer terminal will be installed outside the STP unit for this purpose.

2. The matter has been examined by the Board. There is no doubt that as a policy any STP unit is permitted to utilise the imported equipments for purpose of training within the unit itself. However, it is to be appreciated that such STP units are set up with the primary intention of exports and not training. Accordingly, if such units set up for export purpose use the equipment also for training there can be no objection. It is clear that in such cases the declared intention at the time of import would be to fulfil the export obligation under the STP scheme and if this is so the customs may have no objection for import of the equipment under the respective notification.

3. In view of the aforesaid facts, I am directed to clarify that imports by STP Units should be permitted by the Customs authorities in terms or the relevant customs notifications and if later the equipments are used for training purpose also we may have no objection.

Sd/-
S.M. Bhatnagar
Under Secretary to the Government of India

F.No. 305/7/95-FTT

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