TIOL-DDT 354 · the untouched capture
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<p align="justify"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
354</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
04 05 2006<br>
Thursday</b></font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Duty
Free Import Authorisation – Customs notification to give effect to FTP</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Foreign Trade Policy had announced a new scheme <b>Duty Free Import Authorisation.
</b>But the policy remains a policy and can be given effect to only when the
Customs translates the aspirations of the Commerce Ministry into executable
notifications. Now the Revenue Ministry has notified the scheme subject to the
conditions that:-</font></p>
<ul>
<li><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> the description,
value and quantity of materials imported are covered by the authorisation
and the authorisation is produced before the proper officer of customs at
the time of clearance.<br>
</font></li>
<li> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"> where import
takes place after fulfilment of export obligation, the shipping bill number(s)
and date(s) and quantity and Free on Board (FOB) value of the resultant product
are endorsed on the authorisation:<br>
</font></li>
<li> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"> where import
takes place before fulfilment of export obligation, the quantity and FOB value
of the resultant product to be exported are endorsed on the said authorisation;<br>
</font></li>
<li> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"> a bond is
executed in case of imports before fulfilment of export obligation.<br>
</font></li>
<li> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Imports and
exports are to be allowed only through certain ports.<br>
</font></li>
<li> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Input stage
rebate or duty free inputs or Cenvat credit should not be availed<br>
</font></li>
<li> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Proof of export
obligation to be produced<br>
</font></li>
<li> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Goods cannot
be disposed of before export obligation has been discharged in full.<br>
</font></li>
<li> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Transfer of
authorisation as well as goods is allowed after discharge of export obligation.<br>
</font></li>
<li> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Defective
material can be re exported within three years.</font></li>
</ul>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2006/ctariff06_040.htm"> <b><u>NOTIFICATION
NO. 40/2006-Cus, Dated: May 1, 2006</u></b></a></font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Agriculture/aquaculture
EOUs existing for more than two years exempted from bank guarantee for taking
out inputs and equipment to DTA farm</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As
per para 6.22 of the HOP in the recently announced FTP,</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6.22
EOUs engaged in production/processing of agriculture/ horticulture/aquaculture
products, may on the basis of annual permission from the Customs authorities
take out inputs and equipments (specified at Appendix-14- IJ) to the DTA farm
subject to the following conditions:-</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a)
Supply of inputs by the EOUs to the contract farm(s) shall be subject to the
input-output norms approved by the DGFT/BOA. </font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b)
There shall be contract farming agreement between the EOU and the DTA farmer(s).
</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c)
The unit engaged in export of agriculture/horticulture / aquaculture products
shall furnish bank guarantee equivalent to the duty foregone on the capital
goods/ inputs proposed to be taken out to the Deputy /Assistant Commissioner
of Customs /Central Excise. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now
this caluse (c) is amended to raed as:- </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“
(c) The unit has been in existence for at least two years and engaged in export
of agriculture / horticulture/ aquaculture products; otherwise it shall furnish
bank guarantee equivalent to the duty foregone on the capital goods/inputs proposed
to be taken out to the Deputy/Assistant Commissioner of Customs/Central Excise
till the unit completes two years.”</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
means that units which are in existence for more than two years need not furnish
the bank guarantee.</font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2006/dgft06pn006.htm">PUBLIC
NOTICE NO. 6 (RE-2006) /2004-2009, Dated: May 2, 2006</a></u></b></font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">The first private container
train rolls out</font></b></font></p>
<p ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The first private container train was flagged off from ICD
Garhi Harsaru near Gurgaon yesterday. Yet another great event indeed!</font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b> <font color="#006600">Customs officer loots
passenger</font></b></font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Veronica
Druce a 64 year old English woman landed up in Ghana</st1:country-region> with
loads of gifts for children in refugee camps. She opened a few boxes to show
the Customs officer what she carried. The officer told her that he had two children
and so he would take some soccer balls, books and clothing. He cleared her only
after he had his hoard. Though stunned, the woman was not angry – “the poverty
is unbelievable”, she says.</font></p>
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<TD><font color="#0000FF" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>mala
fide</strong></font><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
- (pronounced <i>mala faidi) – in bad faith</i></font></strong></TD>
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<p align=left ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
is not same as negligence</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
court must be convinced that the party seeking the remedy has no ulterior motive
for doing so</font></p>
<p align="justify" ><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
interest of Govt. of India should not be allowed to suffer on account of negligence
or <i>mala fide</i> inaction of the officials concerned – see Board Circular
No. 337/97 – Cx.</font></p>
<p align=center ><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399">Under capitalism, man
exploits man. Under communism, it's just the opposite. </font> - John Kenneth
Galbraith</b></font></p>
<p align="justify" ><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Tomorrow with more DDT </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice day. </font></p>
<p align="justify"><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@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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