Attention is invited to para 4.4.7 of the Foreign Trade Policy which states as under:

“No CENVAT credit facility shall be available for inputs either imported or procured indigenously against the Authorization”.

Similarly Customs Notification No. 40/2006 dated 1st May, 2006 provides that for exports made under DFIA, the CENVAT facility under CENVAT Credit Rules 2004 for the facility under Rule 18 or Rule 19(2) under Excise Rules 2002 cannot be availed in respect of the inputs used in the product exported under DFIA.

Instances have come to our notice where exporters have availed these benefits in respect of exports made under DFIA.

In light of the above and to avoid inconvenience to the Trade while processing applications it has been decided that the exporters applying for DFIA should furnish a declaration as given under:-

“I/We hereby declare that neither we nor our Supporting Manufacturer(s) has availed the CENVAT Credit Facility under CENVAT Credit Rules 2004 or facility under Rule 18 or Rule 19(2) of Central Excise Rules 2002 in respect of inputs used in the product exported under DFIA.

I/we shall be liable to penal action under Foreign Trade (Development & Regulation) Act, 1992 in case the declaration furnished above is found to be incorrect or false.

In case of merchant exporter or manufacturer exporters utilizing the services of the supporting manufacturer, the above declaration should be signed jointly by the applicant merchant exporter as well as supporting manufacturer(s).
 

(S. S. SANDHU)
Zonal Joint Director General of Foreign Trade