Vishesh Krishi Gram Udyog Yojana scheme - Applicability of Notification No 41/2005-Cus – CBEC Clarifies
As per para 3.8.6 of the Foreign Trade Policy (FTP) Status Holders have been incentivized with duty credit scrips equal to 10% of the FOB value of agricultural exports(including benefits entitled under para 3.8.2 of the FTP). These Duty Credit Scrips can be used to import specified capital goods/equipment meant for development of agricultural infrastructure.
In this connection, Directorate General of Foreign Trade had requested the Board to issue a circular to implement the aforesaid provision.
Board Clarifies:-
1. Notification No.41/2005-Cus exempts all goods including capital goods which are freely importable, when imported into India against the duty credit certificate issued under Vishesh Krishi Gram Udyog Yojan (VKGUY) in accordance with para 3.8 of FTP. Since para 3.8 of FTP covers para 3.8.6 also, the present Notification No 41/2005-Cus would cover imports under para 3.8.2 and para 3.8.6 of FTP.
2. In terms of provisions of the FTP, the duty credit scrips under para 3.8.2 are issued to all exporters against the export of notified items. These scrips can be used for the import of inputs or goods including capital goods which are freely importable. Further, the scrips are freely transferrable.
3. However, the duty credit scrip under para 3.8.6 of FTP can be issued only to status holders against the agricultural exports and can be used only for the clearance of capital goods and equipments as specified in the said para. Further, these duty credit scrips are subject to actual user condition and are not transferable.
4. In view of the above differences in the scrips issued under para 3.8.2 and para 3.8.6 of FTP, it is desirable that the scrips are properly verified before allowing import of permitted goods.
5. It is also suggested that, due care may be taken in granting the exemption to only those goods as permitted under the respective policy paragraphs. Care may also be taken in permitting transferability only to those scrips which are issued under Para 3.8.2 of FTP.
Board wants the Chief Commissioners and Commissioners to bring these instructions to the notice of the field officers by issuing suitable Standing orders/instructions.
CBEC Circular No. 8/2009 – cus Dated: February 16, 2009