Served From India Scheme

3.18

a) The Policy for the Served From India Scheme is elaborated at Chapter 3 of Foreign Trade Policy.

b) A single consolidated application for the duty credit entitlement certificate shall be filed with the jurisdictional regional licensing authority in Appendix-36A by the Registered office in case of a company and Head Office in case of others. The last date for filing of such application shall be 31st December.

c) Where the applicant is the branch office or the individual units of the service provider, it shall furnish (i) self certified copy of any valid documentary evidence such as tax return etc. where the name of the branch/unit is given and (ii) an authority letter from the Registered Office of a company or head office of a firm, clearly, indicating that the Registered/Head office or its branches and unit(s) have not been declared defaulter or otherwise made in eligible for import/export under any of the provisions of the policy.

d) For each duty credit 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) shall be made at the time of application only and shall not be considered at a later stage.

The duty credit certificate shall normally be issued with a single port of registration. However the applicant may choose for different ports of registration for each split certificate.

e) The certificate holder intending to procure the item (s) from the indigenous sources/State Trading Enterprises in lieu of direct import has the option to source them against Advance Release Order (ARO) or invalidation letter, as the case may be, which shall be denominated in foreign exchange/Indian Rupees.

f) The entitlement can be used for import from private/public bonded warehouses subject to the fulfillment of provision of paragraph 2.28 of Foreign Trade Policy and the terms and conditions of the notification issued by Department of Revenue from time to time in respect of private/public bonded warehouses.

g) The duty credit entitlement certificate shall be valid for a period of 24 months. The service provider shall within one month of the completion of imports made or the expiry of the validity of the duty credit entitlement certificate whichever is earlier, submit a statement of imports made under the certificate as per Appendix-36B to the jurisdictional Regional Licensing Authority with a copy to the jurisdictional Excise authorities (service tax cell).

h) All the applicants under this scheme who are hotels ( 1 star and above, heritage hotels) and stand alone restaurants would ensure that they pass on the entire benefit of the duty credit entitlement to the consumer.

This would be confirmed by the submission of a certificate as per Annexure 1 to Appendix 36 B pertaining to the "Statement of Utilization of Duty Credit Entitlement for Status Providers" to the licencing authority.

(i) Only such foreign exchange remittances as are earned as amounts in lieu of the services rendered by the service exporter would be counted for computation of the entitlement under this scheme.

Other sources of foreign exchange earnings such as equity or debt participation, donations, repayment of loans and any other inflow of foreign exchange unrelated to the service rendered would not be counted for the computation of entitlement under the scheme.