3.2.5

The status holders having an annual incremental growth of more than 25% in the FOB value of exports (in free foreign exchange) shall be entitled to the facility of duty free credit entitlement subject to achieving a minimum annual export turnover of Rs.25 crore (in free foreign exchange). Such status holders shall be entitled to duty free credit entitlement certificate to the extent of 10% of the incremental growth in exports.

Accordingly, status holders who will achieve more than 25% growth in exports in the year 2003-04 (in free foreign exchange) as compared to the exports made in 2002-03 (in free foreign exchange) subject to a minimum export of Rs.25 crore (in free foreign exchange) shall be entitled for duty free credit entitlement certificate @10% of the incremental growth in exports.

The duty free credit entitlement can be used for import of capital goods, office equipments and inputs provided the same is freely importable under ITC(HS). Such goods shall be non transferable. Goods imported against such entitlement certificate shall be used by status holder or his supporting manufacturer/ jobworker provided the name and address of the supporting manufacturer/jobworker is endorsed on the certificate issued by RLA.

Application shall be filed with jurisdictional regional authority as per the address given in the Status Certificate.

Accordingly Zonal Committee is abolished. Zonal Offices shall transfer applications filed with them(including pending and deficient applications) to RA concerned, for further processing.

(Above paras has been replaced by PN. NO. 28/2007, DT. 24/07/2007)

[OLD-
Application shall be filed with the jurisdictional regional licensing authority as per the address give in status certificate. The application for the duty free credit entitlement certificate would be made in Appendix-17D.]

The duty free entitlement certificate shall be valid for a period of 12 months. The status holder shall within one month of the expiry of the validity of the duty free entitlement certificate, submit a statement of imports made under the certificate as per Appendix-17E to the jurisdictional Regional Licensing Authority.

(Following items would not be taken into account for computation of entitlement and export performance under Duty Free Credit Entitlement Scheme for Status Holders vide PN. No. 40/2003, Dt. 28/01/2004

a. Rough, uncut and semi polished diamonds

b. Gold, silver in any form including plain jewellery thereof

c. Food grains sourced from central pool maintained by FCI

d. Items exported under free shipping bills )

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(Please refer PN. NO. 42/2004, DT. 06/01/2005 for following)

In terms of Para 3.2.5 of Handbook of Procedures (Vol.I), import of Agricultural Products listed in Chapter 1 to 24 of ITC (HS) Classification of Export and Import items except the following shall be allowed:

(i) Garlic, Peas and all other Vegetables with a Duty of more than 30% under Chapter 7 of ITC (HS) Classification of Export and Import items.

(ii) Coconut, Areca Nut, Oranges, Lemon, Fresh Grapes, Apple and Pears and all other fruits with a Duty of more than 30% under Chapter 8 of ITC (HS) Classification of Export and Import items.

(iii) All spices with a Duty of more than 30% under Chapter 9 of ITC (HS) Classification of Export and Import items (except Cloves).

(iv) Tea, Coffee and Pepper as per Chapter 9 of ITC (HS) Classification of Export and Import items.

(v) All Oil Seeds under Chapter 12 of ITC (HS) Classification of Export and Import items.

Further, Natural Rubber as per Chapter 40 of ITC (HS) Classification of Export and Import items shall also not be allowed for import under the Scheme.

Import of all edible oils classified under Chapter 15 of ITC (HS) Classification of Export and Import items, shall be allowed under the scheme only through STC and MMTC.”

[OLD-
(Following items would not be allowed for imports under Duty Free Credit Entitlement Certificate for Status Holders Vide PN. No. 40/2003, Dt. 28/01/2004

a. Import of agricultural Products listed in Chapter 1 to 24 of ITC (HS) Classification of Export and Import items except the following shall be allowed:

(i) Garlic, Peas and all other Vegetables with a Duty of more than 30% under Chapter 7 of ITC (HS) Classification of Export and Import items.

(ii) Coconut, Areca Nut, Oranges, Lemon, Fresh Grapes, Apple and Pears and all other fruits with a Duty of more than 30% under Chapter 8 of ITC (HS) Classification of Export and Import items.

(iii) All spices with a Duty of more than 30% under Chapter 9 of ITC (HS) Classification of Export and Import items (except Cloves).

(iv) Tea, Coffee and Pepper as per Chapter 9 of ITC (HS) Classification of Export and Import items.

(v) All Oil Seeds under Chapter 12 of ITC (HS) Classification of Export and Import items.

Further, Natural Rubber as per Chapter 40 of ITC (HS) Classification of Export and Import items shall also not be allowed for import under the Scheme.

Import of all edible oils classified under Chapter 15, shall be allowed under the scheme only through STC and MMTC. ]

(Above a. has been amended vide PN. NO. 41/2004, DT. 04/01/2005)

[OLD-
a. Agricultural products which fall under Chapters 1-24 of ITC (HS) Classification of Export and Import items ) ]

(Please refer POLICY CIR NO. 13/2006, DT. 20/07/2006 - Clarification regarding meaning of term ‘Duty’ means ‘Basic Customs Duty’ - Utilizing DFCE issued under DFCE for Status Holder Scheme and Target Plus Scheme)

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