NTF. NO. 19/1997, DT. 22/10/1997

Export Houses, etc. - New Criteria for registration/recognition for 1997-98 and 1988-99
Export Houses, etc. - New Criteria for registration/recognition for 1997 -98 and 1988-99E.O. Fulfilment criteria for supplies to projects changed DEPB -Criteria for duty credit -NFEP criteria changed EHTP/STP Units allowed to convert into EOU unit.

In exercise of powers conferred by section 5 of the Foreign Trade (Development and Regulation) Act. 1992 (No: 22 of 1992) read with paragraph 1.3 of the Export and Import Policy, 1997-2002 published in the Gazette of India extraordinary, Part-II-Section- 3 Sub-section (ii) vide S.O. No. 283(E) dated 31.3.97, the Central Government hereby makes following amendments in the Export and Import Policy, 1997-2002:

1. The words Passbook Scheme appearing in paragraph h 6.5 shall be amended to read to Duty Entitlement Passbook Scheme.

2. The second sentence of paragraph 7.14 shall be amended to read as follows:

"The export obligation shall be fulfilled within a. period of 8 months except in the case of supplies under Special Imprest Licence/Advance Licence to the projects/turnkey projects in India/abroad where the export obligation must be fulfilled during the contracted duration of execution of the project/turnkey projects."

3. The following shall be added at the beginning of paragraph 7.25.

"The objective of Duty Entitlement Passbook Scheme is to neutralise the incidence of basic customs duty on the import content of the export product. The neutralisation shall be provided by way of grant of duty credit against the export product. The duty credit under the scheme shall be calculated by taking into account the deemed import content of the said export product as per Standard Input Output Norms and determine the basis customs duty payable on such deemed imports. The value addition achieved by export of such product shall also be taken into account while determining the rate of duty credit under the Scheme".

4. The existing paragraph 9.28 shall be re-numbered as 9.28(a).

5. The following shall be added as sub-paragraph 9.28(b):

"The existing EHTP/STP Units may also apply for conversion to EOU Units and vice versa. In such cases the Units will continue to remain in bond and avail the permissible concessions in duties and taxes as applicable under the relevant scheme."

6. Paragraph 12.6 shall be amended to read as follows:

"For the purpose of calculation of the Net Foreign Exchange earned on exports, the value of all the licences including the value of 2.5 times of the DEPB credit earned/granted and the value of duty free gold/silver/platinum taken from nominated agency shall be deducted from the FOB value of exports made by the person. However, the value of freely transferable Special Import licences. EPCG licences and the value of licences surrendered during the validity of licence shall not be deducted

7. The marginal heading against paragraph 12.11 shall be amended to read as "Transitional arrangement".

8. The marginal heading against paragraph 12.12 shall be "Criterion for renewal ".

9. The level of export performance for the purpose of recognition as given in paragraph 12.13 and introduced by Notification No. 6/197-2002 dated 9th June, 1997 shall be amended to read as follows:

Transitional arrangement for recognition For the period 1997-98 and 1998-99

12.13

An exporter has an option to get recognition for the period of one year 1997-98 and for the year 1998-99 based upon the level of export performance as given in this paragraph 12.7 shall be applicable to exporters seeking recognition under this paragraph.

FOB Criterion			NFE Criterion
Category	Average FOB vlaue of export made during the preceding three licensing years in Rupees	FOB value of export made during the preceding licensing year, in Rupees	Average Net foreign exchange value of exports made during the preceding three licensing years in Rupees	Net foreign exchange value of exports made during the preceding licensing year,in Rupees

(1)	(2)	(3)	(4)	(5)
(For 1997-98)
Export Houses	10 Crores	15 Crores	8 Crores	12 Crores
Trading House	50 Crores	75 Crores	40 Crores	60 Crores
Star Trading House	250 Crores	375 Crores	200 Crores	300 Crores
Super Star Trading	750 Crores	1125 Crores	600 Crores	900 Crores
(For 1998-99)
Export Houses	15 Crores	22.50 Crores	12 Crores	18 Crores
Trading House	70 Crores	112.5 Crores	60 Crores	90 Crores
Star Trading House	375 Crores	562.5 Crores	300 Crores	450 Crores
Super Star Trading	1125 Crores	1687.5 Crores	900 Crores	1350 Crores

2. This issues in public interest.

Sd/-
(S.B.Mohapatra)
Director General of Foreign Trade
and Ex-Officio Addl. Secretary to the Govt. of India

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