\,Y' (K. Ajaya Kumar) ELECTION COMMISSION OF INDIA NIRVACHAN SAD K. AJAYA KUMAR PRINCIPAL SECRETARY

Transcription

1 By Special Messenger/Fax ELECTION COMMISSION OF INDIA NIRVACHAN SAD K. AJAYA KUMAR PRINCIPAL SECRETARY N o.437 / 6 I CG CC&BE ASHOKAROAD NEW DELHI.IIOOOI February,2013 The Secretary to the Government of India Ministry of Finance, Department of Revenue,. 4'h Floor, Jeevan Deep Building, Sansad Marg, New Delhi - I I (Kind Attn.: Shri Rajiv Talwar, S u bj ect: Issue of Notifications under (r) customs Act and the centrar Excise Act for implementation of post export EpCC. duty credit Scrip scheme, (2) Import of catalyst for one subsequent charge under dpcg scheme and (3) fbr inclusion of Visakhapatnam airport in the list of airports permitted ioi export and import under Export Promotion Scheme - regarding, S ir, I am directed to refer to your Ministry retters Nos. 605/12/2012-DBK(pI.VI) and 609/ DBK alr dated gth February, 2013, on the subject cited, and to state that the Commission has no objection to the proposals contained therein. Yours faithfully, \,Y' (K. Ajaya Kumar)

2 Cl<i Ministry of Finance, Department of Revenue Shri S.K, Rudola, Nirvachan Sadan, Ashoka Road, New Delhi. 4th Floor, Jeevan Deep Building, Sansad Marg, New Delhi, dated the 8b February, 2013 Sir, Subject: lssuing Notifications under Customs Act and the Central Excise Act for implementation of post export EPCG duty credit Scrip scheme (0% and 3% variants) notified by Dept. of Commerce on (as amended on and ) - Requ'est for the concurrence of the Election Commission of lndia - reg. As a part of the Annual Supplement lo Foreign Trade Policy (FTP) one of the proposals agreed with the Dept. of Commerce related to an EPCG duty remission scheme in which all customs duties are paid in cash at the time of import of capital goods and on fulfilling export obligation, the proportionate duty is refunded in the form of transferable Post Export EPCG duty credit scrip issued by DGFT. The provisions of present EPCG scheme, which are not inconsistent, with this scheme would be applied, The proposal was considered revenue neutral and Finance Minister approved it on The DGFT notified the Scheme as a new Para 5.11 in Chapter 5 of FTP (EPCG Scheme) and 5.23 of HBP (vl), on The Department of Revenue had considered it necessary that provisions of present EPCG scheme, which are not inconsistent, with the scheme needed to be identified and also expressed certain other concerns. Consequent to discussions, the Department of Commerce made amendments to the scheme (notified on ) on Upon further discussions, more amendments were agreed by Dept. of Commerce on 7.1.'13 and Thereafter, the Finance Minister saw the file on and Dept, of Commerce agreed to two further amendments on All these amendments to the Scheme were notified on by the Director General of Foreign Trade (DGFT), 3. The basic difference of this scheme with the existing Export Promotion Capital Goods (EPCG) schemes is that in the existing schemes ofzero duty or 3% concessional'duty, an exemption is enjoyed by the importer which the Department honours if he fulfils the export obligation and other conditions. ln the new or alternate scheme, the duty is paid on the capital goods at the time of import and it can be given back when the exporter fulfils the export obligation (85% of applicable) and other conditions. The export obligation is slightly lower as duty is collected upfront by the Government..---

3 . lt is proposed to lssue 5 Notifications for implementation of the post export EPCG duty credit Scrip scheme (0% and 3% variants) under Customs Act and the Central Excise Act and thereby effect to FTP already notified by the Dept. of Commerce. The drafts of these notifications are being sent for vetting by the Law Ministry. Two Customs notiflcations will implement the scheme for the purpose of imports, while two Central Excise notifications will allow the usage of the scrips (0% and 3% variants) for domestic procurement. The flfth notification will be a Customs notification making consequential changes in the said two Customs notifications after the issuance of Central Excise notifications. lt may be mentioned that upon issue, these notifications will be uploaded on the Departmental website for information of departmental officers and the trade. 5. Since, at present, the existing Zero duty EPCG scheme is valid till , the 0% Variant of the Post Export EPCG duty credit scrip shall also have a condition that authorizations for import of capital goods on payment of duties in cash under the new scheme may be issued by DGFT till 3' The other existing basic provisions of EPCG scheme shall also be provided in the new scheme. These include prescription of a lower export obligation for units located in all North Eastern States and Sikkim. The new scheme is only an alternative to existing EPCG scheme and implements the Foreign Trade Policy provisions and has all - lndia character. The incentive provisions therein for units located in certain states are not confined to the states of Meghalaya, Nagaland and Tripura which are due for holding of assembly Elections, but shall be available to units in all North Eastern States and Sikkim.. 6. Kind concurrence of Election Commission, is solicited to issue the notifications for implementing Para of the Foreign Trade Policy that was introduced on and as amended on and 8.2,'1 3. Yours faithfully, Telefax

4 fl Government of lndia of Finance, Department of Revenue Shri S.K. Rudola, Nirvachan Sadan, Ashoka Road, New Delhi. 4tn Floor, Jeevan Deep Building, Sansad Marg, New Delhi, dated the 8tt February, 2013 *um ffit'l Sir, Subject: lssuing Notification allowing import of catalyst for one subsequent charge under EPCG scheme - Request for the concurrence of the Election Commission of lndia- reg. For the purposes of the Annual Supplement to Foreign Trade Policy (FTP) , the Finance Ministeis approval was obtained on to allow catalyst for one subsequent charge (the initial charge catalyst being already permitted) with certain conditions under the Export Promotion Capital Goods (EPCG) scheme and accordingly amending Customs Notification Nos,'100/2009, 101/2009, and 103/2009 all dated 1' for this purp0se. 2. After, the Dept of Commerce made amendments to the FTP on (w.e.f, ) in this regard, the corresponding amendment in the Customs notifications could not be made immediately as there was some disagreement on the conditions subject to which the import would be allowed. As a result, the matter was again seen by Finance Minister on and 2' so as to take into account certain concerns of Department of Commerce. The matter has now attained finality, 3. ln view ofthe foregoing, it is proposed to issue the enclosed draft Customs Notiflcation to amend the above mentioned 4 Customs notifications to specify the importability of the catalyst for one subsequent charge also and the conditions for it. The import would also be subject to fulfilment of export obligation which is a feature of the EPCG scheme. This will give effect to FTP provisions introduced on by Dept. of Commerce. Upon issue, the amendment will be uploaded on the Departmental website for information of departmental offlcers and the trade. All who satisfy the conditions may avail the import under the EPCG scheme. The addition of the item (catalyst for one subsequent charge) in the items that can be imported is not meant specifically for units located in a particular state(s). 4. AstheModel Code of Conduct has taken effect from consequent to announcement of the Assembly Elections in Meghalaya, Nagaland and Tripura, the kind concurrence of Election Commission, is solicited to issue the notification. Encl: As above Yours faithfuily, Telefax:

5 ,*\w7' \ \\' <\Y \,t A,.,{. ',/' F.No.609/09/2013-DBK Government of lndia Ministry of Finance, Department of Revenue Shri S.K. Rudola, /k N.ir:vachan Sadan, Ashoka Road, 4rh Floor, Jeevan Deep Building, Sansad Marg. New Delhi, dated the lth February, 2013 lssuing notification for inclusion of Visakhapatnam airport in the list of airports permitted for export and import in the Customs Notifications under Export Promotion (EP) Schemes of Foreign Trade Policy - reg. This Department had conditionally accepted the Deptt. of Commerce proposal to include Visakhapatnam iirport in the list of ports permitted for export and import in the Customs Notifications under Export Promotion (EP) Schemes of the Foreign Trade Policy The condition was that the Visakhapatnam airport would be first provided EDI connectivity/ infrastructure. This had Finance Minister's approval dated and it was notified by Deptt. of Commerce in the HandBook of Procedures Vol I (Para 4.19) to the Foreign Trade Policy ( ) as amended on The Chief Commissioner of Customs, Visakhapatnam has on confirmed provision of EDI connectivity and infrastructure at Visakhapatnam airport. 3. Accordingly, to implement the amendment dated in Foreign Trade Policy, the Finance Minister has on , approved the specific amendment of 31 Customs notifications where the name of Visakhapatnam airport shall be added. A list of the existing ports/ airports/ lcds/lcs is enclosed for information. 4. ln the light of the above position, the enclosed draft Customs Notification is proposed to be issued shortly. Upon issue, it will be uploaded on the Departmental website for information of Trade & lndustry. The notification will enable export and import under Export Promotion Schemes of the Foreign Trade Policy to occur on a regular basis through Visakhapatnam airport, if the trade and lndustry chooses to do so. This does not appear to have a specific impact on the states of Meghalaya, Nagaland and Tripura where assembly elections have been announced. The kind concurrence of Election Commission is solicited to notify the said amendment. Encl: As above Yours faithfully. Telefax: