PUBLIC NOTICE NO. 69/2004-09, DT. 07/04/2005

Amendment(s) in HB.Vol.1 (DFCE SCHEME FOR STATUS HOLDERS)

In exercise of powers conferred under paragraph 2.4 of the Export and Import Policy, 2002-07, the Director General of Foreign Trade hereby makes the following amendments in the Handbook of Procedures (Vol.1):

1. The first three lines of Para 3.2.6A (Reproduced below for clarity) are amended to read as follows:

Existing provision

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 Rs. 25 crores in the year 2003-04.

Amended provision

The scheme will be applicable to status holders/ star export houses who had achieved minimum export turnover of Rs. 25 crores in the year 2003-04.

2. Appendix 17D contained as Annexure ‘A’ to this Public Notice prescribing the application format for the Duty Free Credit Entitlement Scheme for status holders for the year 2003-04 replaces the earlier Appendix 17D.

This issues in Public interest.

Sd/-
(K. T. Chacko)
Director General of Foreign Trade

(Issued from F.No. 1/94/180/Public Notice/AM04/PC.IV)

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Annexure A

Appendix 17D

APPLICATION FORMAT FOR DFCE SCHEME FOR STATUS HOLDERS 2003-04

Incorporating Notification No.28 dated 28.01.2004, Public Notice no.40 dated 28.01.2004 and Notification No.38 dated 21.04.2004

File No.:_____________________________________________           Date: ______________________

1.	Name and address	: .............................................. ................................................ ................................................
2.	I E Code Number	: ..............................................
3.	Details of Status Certificate For the year 2003-‘04 a) Status b) Status Certificate Number c) Date of Issuance d) Valid from e) Valid upto	: Export House [ ] Trading House [ ] Star Trading House [ ] Super Star Trading House [ ] : .............................................. : .............................................. : .............................................. : ..............................................
4.	RCMC No.and date	: ..............................................

5A. Details of Group Companies

SN	Names of the Group Company	Eligible Export turnover (Rupees in Crores)
		2003-04	2004-05
1
2
3
	Total Group turnover

If the applicant is part of a Group company as defined in Chapter 9 of Foreign Trade Policy, Entitlement will be adjusted in terms of Para 3.7.4 of Foreign Trade Policy.

5B. Details of Exports:

S.No.	Categories	FOB Value of Exports In US $ (Free Foreign Exchange other than US$ should be convertedinto US$ as notified by Customs)
		2002-‘03	2003-‘04
01.	Annual exports turnover
02.	Exports made in categories (i to vii)mentioned at Sr. No.6 of thedeclaration appended hereto
03.	Exports made in categories mentionedat Sr. No.7 of the declarationappended hereto
04.	Third Party Exports not covered by Sr no 8(i) of the declaration
05.	Eligible Exports =1-(2 + 3 + 4)

6. Details of Eligible Exports mentioned in row 5 of Sr. No.5B above:

Category of Exports	Broad Productcategoryof Items exported	2002-’03		2003-‘04		Names & Addressof the Associate Mfr/supporting Mfr/job workeror FactoryAddress of The applicant
		Value in Free Foreign Exchange in US$		Value in Free Foreign Exchange in US$		Factory addresses
		Exports made	FOB re-alized	Export Made	FOB re-alized
(1)	(2)	(3)	(4)	(5)	(6)
A) Direct Exports As manufacturer Exporter or As merchant Exporter tied to Manufacturer (with Documentary Evidence)	1. Engineering
	2. Chemicals
	3. Plastics
	4. Leather and Leather Products
	5. Sports Goods
	6. Fish and Fish Products
	7. Food Products
	8. Handicrafts
	9. Electronics
	10. Textiles
	11. Miscellaneous
	Total
B) Eligible Third Party exports as Declared in 8(i)Of the declaration Appended	ELIGIBLE EXPORTS UNDER THIS CATEGORY
	1. Engineering
	2. Chemicals
	3. Plastics
	4. Leather and Leather Products
	5. Sports Goods
	6. Fish and Fish Products
	7. Food Products
	8. Handicrafts
	9. Electronics
	10. Textiles
	11. Miscellaneous
	Total
C) Grand Total Equals (Total of A + Total of B) above

7(a). Calculation of Duty Free Credit Entitlement:

Eligible Exports made			Export Growth rate (in %) (3)= 100 x {[(2)-(1)]/(1)}**in US $ (3)	Incremental value of exports			Duty free Credit Entitlement(7)= 10% of(5-1)x ex- change rate*** (7)
In 2002-03 (as at row 5 of Table 5B above)	In 2003-04 (as at row Cof Table 6 above)			Incremental exports in value terms 4=(2)-(1) (4)	FOB realized for exports made during 2003-04
					In US $ (5)	In Rs. (6)
US$ (1)	US$ (2)	Rs. *

Notes:

* The exports during 2003-04 should be minimum Rs.25 crore in order to be eligible for DFCE. In order to calculate the value in Rupees, FOB value of eligible exports should be as per shipping bill.

** The growth in % terms should be minimum 25% in US $ terms in order to be eligible for DFCE.

*** To arrive at the Rupee Value, the exchange rate on the date of issuance of DFCE will be taken into account.

7 (c). Total value of DFEC applied for issuance: Rs............................................................

7 (d). Breakup for the Split–up Duty Free Credit Entitlement, if any, requested for:

Sl.No.	Entitlement	Break-up of the Entitlement for split-up

8. Details of the Application Fee:

a) Number, date and Value of DD/TR:

b) Name of the issuing bank:

9. Port of Registration (for import purpose): ........................................................

	Ineligible Export Category	Exports (crores) 2003-04
1	Rough, uncut and semi polished diamonds
2	Gold, silver in any form including plain jewellery thereof
3	Food grains sourced from central pool maintained by FCI
4	Items exported under free shipping bills
5	Re-export of imported goods or exports made through transshipment;
6	Export turnover of units operating under SEZ/EOU/EHTP/STPI Schemes or products manufactured by them and exported through DTA units;
7	Deemed exports (even when payments are received in Free Foreign Exchange) and payment from EEFC account
8	Service exports
9	Supplies made by one status holder to another status holder;
10	Export performance made by one status holder on behalf of other status holder will not be eligible for entitlement under the scheme.
11	Supplies made or export performance effected by a non-status holder (Merchant exporter/ Manufacturer with any export performance in 2003-04) to a status holder if the applicant as well as the non status holder have less than 25 per cent incremental growth over their respective previous years direct export turnover.
12	Third party exports not covered by the declaration at sr no. 8(i)
	Total exports may contain overlapping categories also

Direct exporter and Supporting manufacturer Entitlement details

(Separate sheet to be submitted for direct exporter and each of the supporting manufacturers)Goods allowed to be imported under this scheme shall have a broad nexus with the products exported and a declaration in this regard shall be made by the applicant in Appendix 17D.

Name--
Address---
PAN Number
Phone No.---

SN	Products exported during 2003-04 (Eligible category products only)	Value of eligible exports		Product wise Duty credit**	Probable related import items***
					1	2	3
		US $	Rupees*X	Rupees Y
1
2
3
4
5
6
7
8
	Total		SX

* For Rupee Value use the FOB Value as per shipping bill.

** Product wise Duty credit to be computed by the following formula:

Yi= (Xi* Value of the total DFCE Entitlement) / SX

*** For more than 3 items, add columns or list.

DECLARATION

(Undertaking to be given by the applicant)

1. I/We hereby declare that this application is based on exports earning in free foreign exchange during the licensing year 2002-03 and 2003-04 and the benefit is being claimed in respect of export proceeds realized directly from the buyer only in our name and not in joint names.

2. I/We further certify that I/We am/are authorized to verify and sign the statement on behalf of the applicant.

3. I/We fully understand that any information furnished in the above statement, if proved incorrect or false, will render me/us liable to face any penal action or other consequences as may be prescribed in law or otherwise warranted.

4. I/We further declare that I/We has/have not applied or obtained another Duty Entitlement Certificate issued under paragraph 3.7.2.1(vi) of the Policy based on the exports in free foreign exchange during 2002-03 and 2003-04 from any other office of the DGFT.

5. I/We further declare that I/We shall comply with the provisions of the Exim Policy/Handbook of Procedure (Vol.1) and the relevant Customs notifications while importing the goods under the scheme and subsequent use of the same under actual user condition.

6. I/We further declare that for calculating the value of exports for the year 2002-03 exports under Sr. No.(i to iv) mentioned below and for 2003-04, the exports under Sr. No.(i to viii) below have not been taken into account.

(i) Re-export of imported goods or exports made through transshipment;

(ii) Export turnover of units operating under SEZ/EOU/EHTP/STPI Schemes or products manufactured by them and exported through DTA units;

(iii) Deemed exports (even when payments are received in Free Foreign Exchange) and payment from EEFC account;

(iv) Service exports;

(v) Supplies made by one status holder to another status holder;

(vi) Export performance made by one status holder on behalf of other status holder will not be eligible for entitlement under the scheme;

(vii) Supplies made or export performance effected by a non-status holder (Merchant exporter/Manufacturer with any export performance in 2003-04) to a status holder if the applicant as well as the non status holder have less than 25 per cent incremental growth over their respective previous years direct export turnover;

(viii) The exports made by an applicant within a group and the group to which it belongs has individually less than 25 per cent incremental growth of export;

(ix) The incremental growth of exports achieved by us has not been directly or indirectly, obtained by transferring exports of other exporters.

7. I/We declare that the following items have not been taken into account for computation of entitlement and export performance under Duty Free Credit Entitlement Scheme for Status Holders:

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

8. (i) I/We further declare that in case of third party exports, Export Order, Invoice, GR form, Bank Realization Certificate do not contain 2 names and are in name the of the applicant only;

(ii) Where goods are procured from a manufacturer, the shipping bill should contain the name of the exporter as well as the supporting manufacturer and no other party.

9. I/We further undertake that the goods imported under the DFCE to be issued shall have a Quantity and product nexus with the products exported.

10. I/We further undertake that in respect of capital goods and/or office equipments, a certificate from jurisdictional Deputy Commissioner Central Excise/Assistant Commissioner of Central Excise or an independent Chartered Accountant, as the case may be, shall be produced confirming installation and use of capital goods and/or office equipments in the importer’s factory or premises, within six months from the date of imports or within such extended period as the said Deputy Commissioner of Customs or Assistant Commissioner of Customs may allow.”

11. All discounts, commission have been excluded for the purpose of calculation of net FOB value of exports.

Signature:...........................

Name in Block Letters:............................

Designation:............................

Place:............................

Full Official Address:...............................

Residential Address:...........................

E-Mail address:...........................

Official

Stamp/Seal

NOTE

If an applicant is not satisfied with the calculation of entitlement under the DFCE scheme, he may approach the Grievance Redressal Committee at the Ministry of Commerce & Industry. The details are available at http://commerce.nic.in/grc.htm

CERTIFICATE OF CHARTERED ACCOUNTANT/COST AND WORKS ACCOUNTANT/ COMPANY SECRETARY

I/We hereby confirm that I/We have examined the prescribed registers and also the relevant records of M/s................. for the licensing period(s) ..... and hereby certify that:

i) M/s............................... (Name and address of the applicant) who is a Export House/Trading House/Star Trading House/Super Star Trading House have earned foreign exchange in their own name during the licensing years, 2002-03 and 2003-04 as per the details supplied in the details of exports at Sl.No.5, 6.

The following documents/records have been furnished by the applicant for verification of the export details and have been examined and verified by me/us namely:

a) Export Order, Invoice

b) Bank Certificate of foreign exchange earning/FIRCs and GR declaration

c) Shipping Bills

d) Any other document (please specify).

ii) (a). The financial information given in the above statement is in agreement with the relevant register and records; the same has been incorporated in the books of accounts maintained by M/s................... and their subsidiaries; and is also true and correct.

(b). I/We have verified that in case of third party exports, Export Order, Invoice, GR form, Bank Realization Certificate do not contain 2 names and are in the name of the applicant only . Where goods are procured from a manufacturer, the shipping bill contains the name of the exporter as well as the supporting manufacturer and no other party.

iii) It has been ensured that the information furnished is true and correct in all respect; no part of it is false or misleading and no relevant information has been concealed or withheld;

iv) Neither I, nor any of my partners is a partner, director, or an employee of the above-named entity or its associated concerns;

v) I/we fully understand that any statement made in this certificate, if proved incorrect or false, will render me/us liable to face any penal action or other consequences as may be prescribed in law or otherwise warranted.

vi) I have verified the direct export turnover figures of supporting manufacturers/ job worker as well as companies/firms on whose behalf exports have been made by applicant as third party as indicated in Annexure 1 and Annexure 2.

(* Strike out whichever are not applicable)

Signature.............................

Place..........

Tel.No. ............................

Official          
Stamp/ Seal       

Date...........
Regn. No. and Date of the
Corporate Membership..........

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Documents to be enclosed with the application form:

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1. Copy of the status holder certificate.

2. Copy of the balance sheet filed with Income Tax Authorities for the relevant year and CA certificate.

3. Self certified copies of shipping bills for direct and third party exports for the year 2003-04 and a statement of exports in the following format.

Name of the Direct /third party exporter	SB number	Let export date	Item description	FOB value	Date of realization of Money

4. Any other Document that may be specified or called for.

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(Please refer PUBLIC NOTICE NO. 15/2005, DT. 04/06/2005 for DELETED (APPENDIX - 17E))

APPENDIX-17-E

STATEMENT OF UTILISATION OF DUTY FREE CREDIT ENTITLEMENT FOR STATUS HOLDERS

Reference File Number under which duty free credit entitlement was issued	:.............................................. ................................................
Date of issue of entitlement	:......................................

1.	Name and Address	: ................................................. ...................................................
2.	I E Code Number	: ...................................
3.	(i) Status (ii) DFCE and its number and valid upto	: Export House :[]   Trading House :[]   Star Trading House :[]   Super Star Trading House:[] _______________________ _______________________
4.	Duty Free Credit Entitlement granted(in rupees lakhs)	: Rs._______________________
5.	Credit value utilised (in rupees lakhs)	: Rs._______________________

6. Details of imports made under the duty free credit entitlement:

Sl. No.	Description of import item	Effective Customs duty (in %age)	Value debited (in rupees lakhs)
(1)	(2)	(3)	(4)
1. 2. 3. 4.

DECLARATION

1. I/We further certify that I/We am/are authorized to verify and sign the statement on behalf of the applicant.

2. I/We fully understand that any information furnished in the above statement, if proved incorrect or false, will render me/us liable to face any penal action or other consequences as may be prescribed in law or otherwise warranted.

3. I/We further declare that I/We has/have made imports against the duty entitlement certificate issued under paragraph 3.7.2.1(vi) of the Policy based on the exports in free foreign exchange during 2002-03 and 2003-04.

4. The imports made under the Duty Free Credit Entitlement number...........……………………. Dated………………………… are those of capital goods/office equipment and inputs which are freely importable and which are required in my/our line of business or the line of business of the Associate Mfr./ Supporting Mfr./Job worker.

Signature	:...................................................
Name in block letters	:...................................................
Designation	:...................................................
Place	:...................................................
Date : ____________________      Full Official Address	:...................................................
Residential Address	:...................................................
E.Mail address	:...................................................

Official
Stamp/Seal

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