3.7.2.1

The status holders shall be eligible for the following new/ special facilities:

i) Licence/certificate/permissions and Customs clearances for both imports and exports on self-declaration basis.

ii) Fixation of Input-Output norms on priority within 60 days;

iii) Exemption from compulsory negotiation of documents through banks. The remittance, however, would continue to be received through banking channels;

iv) 100% retention of foreign exchange in EEFC account;

v) Enhancement in normal repatriation period from 180 days to 360 days.

vi) Duty free import entitlement for status holders having incremental growth of more than 25% in FOB value of exports (in free foreign exchange) subject to a minimum export turnover of Rs. 25 crore (in free foreign exchange). The duty free entitlement shall be 10% of the incremental growth in exports. Such entitlement can be used for import of capital goods, office equipment and inputs for their own factory or the factory of the associate/supporting manufacturer/job worker. The entitlement/ goods shall not be transferable.

Note 1.- For the purpose of calculating the value of exports, the following exports shall not be taken into account, namely:-

(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.

Note—2. - The incremental growth of exports by an exporter shall not, directly or indirectly, be transferred to any other exporters.”

Note-3 - Government reserves the right in public interest, to specifiy the export products, which shall not be eligible for calculation of incremental growth/ entitlement. Similarly, the government may also notify the list of goods, which shall not be allowed for imports under the scheme.

Note-4 – These guidelines will be applicable to the exports made on or after 1.04.2003.

Note-5 - The entitlement will be in terms of duty credit.

(Above Note 1 to 5 has been inserted vide & for Paragrph 3.7.2.1 - refer NTF NO. 28/2003, DT. 28/01/2004)

Note 6.- The export of the following products and categories of products would not be permitted for counting entitlement under the Duty Free Entitlement Certificate 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

Note 7: 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.

(Above Note 7 has been replaced vide NTF. NO. 24/2007, DT. 23/08/2007)

[OLDNote 7. The following items would not be allowed for imports under Duty Free Credit Entitlement Certificate for Status Holders:

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

(Above Note 6 & 7 has been inserted vide NTF. NO. 38/2003, DT. 21/04/2004)

Note 8: CENVAT/Drawback: Additional Customs duty/excise duty paid in cash or through debit under the DFCE entitlement certificate shall be adjusted as CENVAT credit or Duty Drawback as per rules framed by the Department of Revenue.

Note 9: It shall be necessary that the FOB value of exports (including the exports under Note 1 & Note 6 above) during the licensing year 2003-04 does not fall below the FOB value of exports (including the exports under Note 1 & Note 6 above) in the previous licensing year.

(Above Note 8 & 9 has been inserted vide NOTIFICATION NO. 06/2005, DT. 04/06/2005)

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(Please refer PN. No. 40/2003, Dt. 28/01/2004 for clarifications relating to the policy/ procedure for implementing the scheme.)

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

(Exempts goods when imported into India against a duty free entitlement credit certificate-reg. please refer CUS NTF NO.53/2003 DATE 01/04/2003)

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