PUBLIC NOTICE NO. 44(RE-03), DT. 28/01/2004

Mini EXIM Policy - Deemed Export Benefit for Supplies to Fertilizers Plant, Power Projects & Refineries - Claim of Deemed Exports DBK and Refund of Terminal

In exercise of powers conferred under Paragraph 2.4 of the Export and Import Policy 2002-2007, the Director General of Foreign Trade hereby makes the following amendments in Handbook of Procedures (Vol. I):

1. The following shall be added at the end of sub paragraph 8.6.4.1:

The benefit of deemed exports shall also be available on supplies made to Fertiliser plants, which have started in the 8th and 9th Plan periods and spilled over to the 10th Plan period.

2. Paragraph 8.6.5 shall be amended as under:

In terms of provision of paragraph 8.2(f) of the Exim Policy, 2002-07, the benefits of deemed exports under paragraph 8.3(a), (b), & (c) whichever is applicable would be available for items, import of which is allowed by the Department of Revenue at zero customs duty subject to fulfillment of conditions specified under Customs notification No.21/2002- dated 1/3/2002, as amended from time to time.

3. The first sentence of sub paragraph 8.6.6 is amended as under:

The supply of capital goods and spares upto 10% of the FOR value of the capital goods to the power projects in terms of paragraphs 8.2(g) shall be entitled for deemed export benefits provided the International Competitive Bidding procedures have been followed, at IPP/EPC stage.

4. Sub paragraph 8.6.6.1(b) is amended as under:

(a) “an inter state hydel power plant of a capacity of 500 MW or more”

5. Paragraph 8.6.6.2 is amended as under:

Supplies under paragraph 8.2(g) of the Policy to the new refineries being set up during the Ninth plan period, and spilled over to the Tenth plan period shall be entitled for deemed export benefits in respect of goods mentioned in list 17 specified in S.No.228 of Notification No.21/2002-Customs dated 1.3.2002, as amended from time to time. The domestic supplier shall be eligible for the benefits given in paragraph 8.3 (a) and (b) of the Policy, whichever is applicable.

6. Paragraph 8.8.2 and 8.8.3 pertaining to “Procedure for claiming deemed exports drawback and terminal excise duty refund” is amended as under:

8.8.2: Where no all Industry Rate of Duty Drawback is available or the same is less than 4/5th of the duties actually paid on the materials or components used in the production or manufacture of such goods, the exporter/supplier may apply for fixation of brand rate in the application form as given in Appendix 12B to the regional licensing authority/Development Commissioner of SEZs in respect of supplies made to EOU/SEZ as per jurisdiction indicated in Appendix 24 of the Handbook of Procedures Vol.I.

8.8.3: The claim application shall be filed along with the application for fixation of brand rate of duty drawback in case brand rate is required to be fixed. The provision of late cut under paragraph 9.3 and supplementary claim under paragraph 9.4 shall also be applicable under this sub-paragraph.

This issues in Public Interest.

(L. MANSINGH)
DIRECTOR GENERAL OF FOREIGN TRADE

File No: 01/94/180/Public Notice/ AM04/ PC IV

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