TIOL-DDT 2581 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3"><s><strong><font size="2"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3"><s><strong><font size="2"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=23157"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2015_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="300" height="148" hspace="5" border="0" align="right" ></a></font></strong></font></strong></font></strong></font></strong></font></strong></s></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></s></font></strong></font><font color="#663399" size="3">TIOL-DDT 2581</font><br> 21 04 2015<br> Tuesday</strong></font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">WTO - Concerns about investment measures favouring local products in India </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Committee on Trade-Related Investment Measures (TRIMs) of the WTO last week considered complaints about investment measures that have raised concerns on allegedly favouring domestic over imported products through local-content requirements. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The EU expressed concerns about India's local content requirements in solar power generation projects. It said that it is interested in understanding the rationale behind this measure because it believes Indian companies do not yet have the capacity to provide these types of equipment. India's representative said she had sent the EU questions to the capital, and maintained that the measure in question is consistent with the GATT and the TRIMs Agreement. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The EU reiterated concerns expressed at previous meetings about certain preferences of India to domestically manufactured electronic goods and telecommunications products. Japan, the US and Canada shared the EU's concerns. India noted that it had previously answered questions about this measure.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">India also complained that answers by the US to its questions about US local content requirements in some of the renewable energy programmes are still inadequate. </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/DDT_2581.jpg" alt="Legal Corner Icon" width="517" height="369" hspace="5" border="0" align="center"></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Any idea what the picture shows? They are elephant tusks recently seized by Thai Customs. Ivory has little inherent value but is a prized possession.</font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600">Foreign Trade Policy 2015-20 - CBEC Explains</font></strong></em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has issued a Circular explaining the salient features of the changes in the schemes of reward or incentive/advance authorization or DFIA/EPCG or post export EPCG. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Reward/Incentive Schemes:</strong> Reward in the form of duty credit shall be issued by the DGFT to service providers of notified services located in India under the Service Exports from India Scheme (SEIS) or to export of notified goods (including from SEZs) to notified markets / countries under the Merchandise Exports from India Scheme (MEIS) of the Policy. The MEIS includes reward on specified items that are transacted using e-commerce platforms when their export is made through foreign post offices/courier terminals at Chennai, Delhi and Mumbai for which procedures to be adopted shall be issued separately by <em><strong>concerned</strong></em> wings of CBEC. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Simplifications from earlier schemes include that both SEIS and MEIS reward duty credits are freely transferable and may be used to debit customs duty on import of any goods (except appendix 3A items), debit service tax on procurement of services or debit central excise duty on domestic procurement of excisable goods (without exception for appendix 3A items); the basic customs duty debited in SEIS/MEIS duty credit may also be allowed as drawback. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Advance Authorization & DFIA schemes:</strong> Advance Authorization for Annual Requirement has been restricted to cases of standardised norms (no self-declared norms). Only a post-export transferable DFIA with exemption from basic customs duty is provided for. Fuel cannot be imported under the new DFIA. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Export Promotion Capital Goods (EPCG) Scheme</strong>: The Board Circular states, "To further provide impetus to domestic production, the Policy has <strong>increased the lowered export obligation</strong> (when capital goods are sourced indigenously) from 10% to 25%. (<font color="#FF0000">What does this mean? As per para 5.01 of the Policy, the Export Obligation for EPCG is 6 times the duty saved. As per para 5.04, in case of indigenous sourcing of Capital Goods, the Export Obligation shall be 25% less than the EO stipulated in Para 5.01. This was earlier 10%. This means, in case of indigenous sourcing of Capital Goods, the Export Obligation shall be 75% of 6 times the duty saved, which was earlier 90% of this 6 times duty. This is what the Board means by<strong> increased the lowered export obligation</strong>.</font>) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Facility of exemption from furnishing bank guarantees (BG) or of giving concessional BG under the export promotion schemes:</strong> The Board had noticed a practice in one jurisdiction of prescribing BGs of 1% to 5% of the duty saved amount before new authorisations were registered when EODC for an existing authorisation was not produced in the prescribed time. The Board views that such a practice imposes transaction cost on exporters because every case of pending EODC is not a case of default in export obligation determined by the competent authority and even the enforcement of bond executed for such existing authorisation may not be due. Further, choosing varying levels of BGs also creates room for generation of grievances against field officers. The field formations are expected to avoid similar practices. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc5NjE=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No.14/2015-Cus., Dated: April 20, 2015 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">High Level 'Customs Clearance Facilitation Committee' (CCFC) </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has issued a Circular which starts with, </font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has in recent times taken a number of measures to create an environment for ease of doing business and trade facilitation. The measures include the simplification of Customs procedures, reduction of documents, message exchange between Government agencies engaged in Customs clearance, and use of digital signature for electronic submission of Customs process documents. Continuing in this direction, it has now been decided with the approval of the Cabinet Secretary to establish a high-level administrative body at each seaport and airport with the responsibility of ensuring expeditious Customs clearance of imported and export goods . </font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Accordingly, the Board has decided to set up a <strong>Customs Clearance Facilitation Committee (CCFC) at every major Customs seaport and airport</strong> with immediate effect. The Chief Commissioner of Customs/Commissioner of Customs in charge of the seaport and airport concerned would head the CCFC. Its membership would include the senior-most functionary of the following departments/agencies/stakeholder at the particular seaport/airport: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Food Safety Standards Authority of India/Port Health Officer (PHO) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Plant Quarantine Authorities </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Animal Quarantine Authorities</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) Drug Controller of India (CDSO) </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Textile Committee</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vi) Port Trust/Airport Authority of India/Custodians </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vii) Wild Life Authorities </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(viii) Railways/CONCOR </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ix) Pollution Control Board </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(x) Any other Department/Agency/stakeholder to be co-opted on need basis. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Terms of Reference </strong>for the CCFC are: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Ensuring and monitoring expeditious clearance of imported and export goods in accordance with the timeline specified by the parent ministry/Department concerned; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Identifying and resolving bottlenecks, if any, in the clearance procedure of imported and export goods; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Initiating Time Release Studies for improvement in the clearance time of imported and export goods; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) Having internal consultations to speed up the clearance process of imported and export goods and recommending best practices thereto for consideration of CBEC/Departments/Agencies concerned; and </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Resolving grievances of members of the trade and industry in regard to clearance process of imported and export goods. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CCFC shall meet once a week or more frequently, if considered necessary by the chair. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Is it feasible for such a high power committee to meet once a week? Can you expect the Chairman of a Port Trust to come to the Custom House every week to attend a meeting chaired by the Customs Commissioner? </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc5NjA=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No.13/2015-Cus., Dated: April 13, 2015 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Exemption to mega power projects - Indiabulls to Rattan India - Govt Amends Notifications </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>LIST</strong> 32A in Customs Notification 12/2012-Customs, dated the 17th March, 2012 lists mega power projects eligible for exemption. Sr. No. 82 of the list is the project of Indiabulls Power Ltd. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Similarly in Central Excise Notification No. 12/2012-Central Excise, dated the 17th March, 2012, List 11 has mega power projects eligible for exemption. Sr. No. 75 of the list is the project of Indiabulls Power Ltd. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The name of Indiabulls Power Ltd was changed to Rattan India Power Ltd with effect from 30th October 2014. The Government has amended both the above notifications to change the name of Indiabulls to Rattan India. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc5NTc=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Notification No.27/2015 - Cus., Dated: April 17, 2015 </strong></font></a></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc5NTg=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No.22/2015 - Cx., Dated: April 17, 2015 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Anti Dumping Duty on Phenol -JIT Saved </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> had imposed provisional anti dumping duty on imports of Phenol originating in, or exported from, Thailand and Japan, by Notification No. 53/2010 dated 19th April 2010. This Notification specifically mentioned that "The Anti Dumping duty imposed under this notification shall be effective upto and inclusive of the 18th day of October, 2010" </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, from 19th October 2010, this anti dumping duty was not in force. And the Government was sleeping. They woke up on 1 st December 2010 and imposed definitive anti dumping duty on the goods for a period of five years from the date of imposition of the provisional anti-dumping duty, that is, the 19th April 2010. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This definitive anti dumping would end on 19th April 2015. But this time around they were well aware of the sunset and extended the life of the notification Just In Time (JIT), just a day before the expiry. Board deserves our kudos! </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc5NTk=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No.14/2015 - Cus.(ADD), Dated: April 17, 2015 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">FTP - Export Policy of Sugar to EU and US - Free </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">GOVERNMENT has amended Chapter 17 of Schedule 2 of ITC(HS) Classification of Export and Import Items, by <em>which Export of Preferential Quota sugar to EU and USA</em> has been moved from “STE” to “Free” regime subject to certain conditions.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc5NjM=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 3/2015-2020., Dated: April 20, 2015</font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Want to meet DGFT Officers? </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> has been under consideration for some time that the meetings between the officers of DGFT and the Members of Trade/Public in respect of pending issues/grievances etc be made more fruitful and result oriented. To achieve this objective, DGFT has decided to streamline the procedure for interaction and in so far as DGFT Headquarters is concerned, visiting hours between 3 P.M. - 5 P.M. each working day would be earmarked for meetings with non officials/ Members of Trade. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While, visitors would be free to seek meetings with the officers of DGFT, who are authorised to interact, during the visiting hours, yet it would be more beneficial if prior appointment is fixed and the specific issues proposed to be discussed are spelt out in advance. This would enable the officers to prepare beforehand for the meeting and also inform the prospective visitors of their pre-occupation (if any) enabling alternative appointment. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This would help in saving the time of the visitors who otherwise have to waste their time waiting for a particular officer when such an officer may be pre-occupied elsewhere or be on tour or on leave. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This arrangement is applicable only for meetings with officers working in DGFT Headquarters. The DGFT has advised the RAs to issue similar trade notices at the local level. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is great that a Government Department is concerned about the waste of time of the citizens. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Maybe the Revenue Departments should learn from this. Often assessees are asked to attend offices and when they arrive, the concerned officers are not available. Many babus in the Revenue get a kind of pleasure in making people wait. Some of them don't even bother to inform the assessee or his counsel when they cancel ‘personal hearings' without a concern for the time of others. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Recently a lawyer told me, </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">I had a hearing before the Commissioner who was the Commissioner for Central Excise and Service tax. On the date of hearing, I called up the Adjudication Superintendent, who was in charge of Central Excise. He told me that the Commissioner was not available and hearings on Central Excise matters are postponed, but he did know about Service Tax. Mine was a service tax case; so I asked him about my case. He said he didn't know about that - you should ask the Service tax Superintendent. He gave me the information that Commissioner was on leave and away in his native place a thousand miles away, but he cannot tell me about the hearing in Service Tax cases! </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Sometimes, Counsels travel from distant places only to be told in the last moment that the officer is not available. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As far as possible, the Courts inform the public whenever a judge is going to be absent - but babus are not mere judges.</font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc5NjI=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Trade Notice 1/2015., Dated: April 20, 2015</font></strong></a></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more<strong> DDT </strong></font></p> <p><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></strong></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@tiol.in"><strong>vijaywrite@tiol.in</strong></a></font></p> </body> </html>