CIR. NO. 29/2003, DT. 09/03/2004

Clarification on issues related to Duty Free Entitlement Certificate for service Providers

Attention is invited to the Policy Circular No.4 dated 14th May, 2003 wherein it was clarified by this office that certain items are not allowed to be imported under the scheme. Representations have been received to further clarify on the issue of consumables, office equipments and professional equipments and other relevant issues. Accordingly, the matter was discussed with Department of Revenue and it has been decided to clarify the following issues related to the Duty Free Entitlement Certificate for service providers as per "paragraph 3.8 of the Exim Policy:-

i) Import of consumables other than milk and dairy products, vegetable, horticulture and agriculture products would be permitted under the scheme. However, beverages, spirits and vinegar covered under Chapter 22 of ITC(HS) Classification or seafood items ( both processed and semi processed) are permitted to be imported.

ii) The scheme will not be available for 100% EOUs and units operating under SEZ, STPI and EHTP Schemes. The clubbing of turn over of services rendered by these units with the turn over of the DTA units shall also not be allowed.

iii) Payment received from export earners foreign currency (EEFC) account will not be counted for the scheme.

iv) Goods allowed to be imported under this scheme shall have nexus with the services rendered.

v) Policy Circular No.4 dated 14th May, 2003 stands withdrawn.

This issues with the approval of DGFT.

(A.K. SRIVASTAVA)
JT. DIRECTOR GENERAL OF FOREIGN TRADE

(File 01/92/180/19/AM04/PC.IV)

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