PARA 3.2.6A

Duty Free Import Entitlement for Status Holders-Guidelines

The scheme will be applicable to status holders who were also status holders as on 31.3.2003 and who had achieved minimum export turnover of 25 crores in the year 2003-04

I. For direct as well as third party exports, the Export documents viz Export Order, Invoice, GR form, Bank Realization Certificate should be in the name of applicant only. However for the third party exports, where goods have been procured from a manufacturer, the shipping bill should contain the name of the exporter as well as the supporting manufacturer.

II. Goods allowed to be imported under this scheme shall have a nexus with the products exported and a declaration in this regard shall be made by the applicant in Appendix 17D.

III. The licensing authority shall at the time of issuance of the duty free credit entitlement certificate endorse the name of the associate manufacturer/ supporting manufacturer/job worker on the certificate as declared by the applicant. Goods imported against such entitlement certificate shall be used by the status holder or his supporting manufacturer [Deleted- / job worker] in proportion to the value of their direct contribution to the entitlement. However, RA concerned can list the Job-Worker(s), upon request made as per Annexure A to this Public Notice, at any time during the validity of duty free credit entitlement certificate. Acronyms used for duty free credit entitlement certificate are ‘DFCEC’ or ‘DFCE’ scrips, which means ‘duty credit scrip’ issued under the scheme.

(In above III, the words "/job worker" - deleted and third sentence - added vide PN NO. 112/2007, DT. 15/02/2008)

IV. The last date for filing of such applications shall be 31st December.

V. The duty free credit entitlement certificate shall be issued with a single port of registration. For each duty free credit entitlement certificate, split certificates subject to a minimum of Rs 5 lakh each and multiples thereof may also be issued. A fee of Rs 1000/- each shall be paid for each split certificate. However, a request for issuance of split certificate(s) after issuance shall be permitted and Split certificate with different port of registration shall also be allowed. [OLD-However, a request for issuance of split certificate(s) shall be made at the time of application only and shall not be considered at a later stage.]

(In (V), last sentence has been replaced by PN. NO. 28/2007, DT. 24/07/2007)

VI. The duty free import entitlement certificate shall be valid for a period of 12 months from the date of issue. Over and above the extended validity granted automatically, vide Public Notice No 28 (RE-2007)/2004-09 dated 24.07.2007; maximum two revalidations, for one year each from date of expiry, are allowed. Application for revalidation may be made within 2 months of expiry, on the letter head of the applicant, to RA concerned. [OLD- The status holder shall within one month of the last imports made under this certificate or within one month of expiry of the certificate which ever is earlier, submit a statement of imports/ utilization made under the certificate as per Appendix 17E, to the jurisdictional Regional Licensing Authority who have issued the Certificate with a copy to the jurisdictional Excise authorities. ]

(In above VI, second sentence has been replaced vide PN NO. 112/2007, DT. 15/02/2008)

The certificate that are valid on date of issue of this Public Notice, shall have an extended validity for a further period of 12 months from the issue of this Public Notice, without requirement of endorsement of extended validity on the certificate from concerned regional authority.

(In (VI), Second para has been added vide PN. NO. 28/2007, DT. 24/07/2007)

(Above Para 3.2.6A has been added vide PN. No. 40/2003, DT. 28/01/2004)

The Certificates / Scrips, which are valid as on the date of issue of this Public Notice, shall have an extended validity for a further period of 12 months from the date of issue of this Public Notice, and there shall be no requirement of endorsement of this extended validity on the Certificate/Scrip from the concerned regional authority.

(Above para has been added vide PN. NO. 68/2009, DT. 26/05/2010)