3.8

"Services" include all the 161 tradable services covered under the General Agreement on Trade in Services where payment for such services is received in free foreign exchange. A list of services is given in Appendix-36 of Handbook (Vol.1). Service exporters are required to register themselves with Federation of Indian Exporters Organisation. However, software exporter shall register themselves with Electronic and Software Export Promotion Council.

The service providers as defined in paragraph 9.47, rendering services listed in Appendix–36 shall be entitled for all the facilities mentioned in the Policy. All provisions of the Policy shall apply mutatis-mutandis to such export of services as they apply to goods.

Service provider ( other than hotels) shall be entitled to duty free imports equivalent to 10% of the average foreign exchange earned by them in preceding three licensing years. However, hotels (one star and above), heritage hotels, stand-alone restaurants approved by Department of Tourism, Govt. of India and other service providers in tourism sector registered with Department of Tourism, Govt. of India shall be entitled for duty free imports equivalent to 5% of the average foreign exchange earned by them in preceding three licensing years. For one & two star hotels and stand- alone restaurants, the foreign exchange earned through international credit cards only shall be taken into account for the entitlement under the scheme. The duty free entitlement shall be used for import of any capital good including spares, office equipment(s) & professional equipment(s), office furniture(s) & consumables. However agriculture, dairy products, motor cars, sports utility vehicles and all purpose vehicles would not be allowed to be imported against this entitlement.

The entitlement and the goods shall be non transferable and would be available only to those service providers, who have a total foreign exchange earning of over Rs.30 Lakhs in the preceding one/two/three licensing years.

(Above sub-paragraph 3 has been amended vide NTF. No. 28/2003, DT. 28/01/2004)

[OLD -
Service provider (other than hotels) shall be entitled to duty free imports equivalent to 10% of the average foreign exchange earned by them in preceding three years. Hotels (having approval as three star or above categories by the Department of Tourism, Government of India) and other service providers in tourism sector registered with Deptt. of Tourism, Government of India shall be entitled for duty free imports equivalent to 5% of the average foreign exchange earned by them in the preceding three years subject to a minimum average foreign exchange earning of Rs.10 lakhs in the preceding three years. [OLD - Hotels shall be entitled for duty free imports equivalent to 5% of the average foreign exchange earned by them in preceding three years. ] The duty free entitlement shall be used for import of spares, office equipment and furniture, professional equipment and consumables other than agriculture and dairy products. The entitlement and the goods shall be non-transferable and would be available only to those service providers who have an average foreign exchange earning of over Rs. 10 lakhs in the preceding three licencing years. ]

(In sub para 3 Bold words has been corrected vide Ntf. No. 07/2003, Dt. 22/04/2003)

(Please refer Cir. No. 29/2003, Dt. 09/03/2004 for Clarification on issues related to Duty Free Entitlement Certificate for service Providers)

(Please refer CUS CIR NO. 10/2004 DATE 30/01/2004)

(Please refer CUS CIR NO. 98/2003 DATE 18/11/2003)

(Please refer CUS CIR NO.25/2003 DATE 01/04/2003)

(Exempts goods when imported into India against a duty free service entitlement credit certificate-reg. please refer CUS NTF NO.54/2003 DATE 01/04/2003)

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