TIOL-DDT 42 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<html>
<head>
<title>Untitled Document</title>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1">
</head>
<body bgcolor="#FFFFFF">
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#0000FF" size="3">TIOL-DDT
42</font><br>
28 1 2005<br>
Friday</b></font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>Fast track clearance for EOUs – DGFT notifies procedure</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>THE</b>
Foreign Trade Policy 2004-09 had announced a fast track clearance policy for
EOUs having status holder certificates. Paras 6.39.1 to 6.39.13 of the Handbook
detailed the scheme. Obviously the Finance Ministry was not very happy with
the Commerce ministry’s largesse. In para 21 of the Circular No 54/2004
– cus dated 13.10.2004, CBEC informed the world that <b>Paras 6.39.1 to
6.39.13 of the HOP relating to Fast Track clearances for EOUs, are under review
and its implementation may be deferred till a final view is communicated by
this Ministry.</b> What the Commerce ministry announced as the policy of the
country, the Finance ministry put on hold. Obviously the Commerce ministry had
been asked to amend these paras, which they have now done. The entire scheme
has been rewritten. The new paras allow the following facilities. <br>
<br>
1. <b>Eligibility:</b> EOUs having a status holder certificate are eligible
for the Fast Track Clearance Procedure.<br>
<br>
2. <b>No examination</b> of import cargo at the Port of import. The jurisdictional
Commissioner of Customs / Central Excise may, however, examine consignments
at the unit’s place on random basis;<br>
<br>
3. <b>Pre- authenticated procurement certificates:</b> The units having physical
export turnover of Rs. 15 crores and above in the preceding financial year shall
be allowed to import goods without payment of duty on the basis of pre-authenticated
procurement certificate issued by the jurisdictional Customs/ Central Excise
Authority.<br>
<br>
4. <b>Fax and computer outside:</b> EOUs may install one fax machine and two
computers in their administrative / registered office outside the bonded premises
under prior intimation to the jurisdictional Asst / Deputy Commissioner of Customs
or Central Excise.<br>
<br>
5. <b>DG sets:</b> Procurement of DG set of capacity commensurate with the actual
requirement of the unit shall be permitted under intimation to the Development
Commissioner and the jurisdictional Central excise Authority.<br>
<br>
6. <b>Removal of capital goods for repair:</b> The units may remove their capital
goods or parts thereof for repairs under prior intimation to the jurisdictional
Asstt. / Deputy Commissioner of Customs or Central Excise.<br>
<br>
7. <b>Priority for DTA clearance of rejects.</b> Request for permission for
DTA clearance of rejects shall be considered by the jurisdictional Excise authority
on priority basis.<br>
<br>
8. <b>Personal carriage of samples</b> of Gems & Jewellery by status holder
EOUs are allowed subject to the limit fixed in Para 6.24 without a need for
prior permission from Development Commissioner/ Customs / Central Excise.<br>
<br>
9. <b>No permission required for</b><br>
<br>
i. DTA sale of finished products<br>
<br>
ii. Participation in exhibition<br>
<br>
iii. Personal carriage of Gems & Jewellery for export promotion tours<br>
<br>
<b>Let us have a look at the facilities originally announced in the Policy and
those missing now.</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>1.
</b>facility can be availed on the basis of self certification.<b> It is not
clear how to avail the facility now.</b><br>
<br>
2. No security or surety for B-17 bonds. <b>This provision does not find a place
now. Should they provide surety/security?</b><br>
<br>
3. clearance of goods on the basis of self certification. <b>This also is absent
now. Will Customs supervise clearances?</b><br>
<br>
4. For the purpose of examination of both import and export cargo at Gateway
port, the procedures applicable to SEZ units shall apply. <b>Now no examination
at the ports, but the officers can verify at the units. <br>
</b><br>
5. clearance of waste and scrap without any permission. <b>Now permission will
be given on <font color="#006633">top priority.</font> <br>
</b><br>
6. No examination of import cargo at port of import and at the unit's premises.
<b>Now unit’s premises are not that free.</b><br>
<br>
7. All the domestic procurements/imports duty free shall be made by the units
on the strength of self issued <br>
CT3/Procurement Certificates. <b>Certificates will now be issued by the department.</b><br>
<br>
8. Export of samples, return of rejected imported/indigenous material will be
made by the unit without seeking any permission. <b>This has gone missing from
the new paras; go and seek permission.<br>
</b><br>
9. Procurement of DG set shall be permitted without the permission from Development
Commissioner and the jurisdictional Dy. Commissioner, Central Excise. <b>Now
no permission is required, but please intimate.</b><br>
<br>
10. The status holder units shall be eligible for factory stuffing without any
permission. <b>This is absent in the new scheme. Is it disallowed now?</b><br>
<br>
11. The clearance of samples and temporary removal of Capital Goods and parts
for repair shall be allowed on self-certification basis. <b>This is also missing.
</b><br>
<br>
12. Sub-contracting shall be based on prior intimation of the process and the
details of the sub contractor on annual basis to the jurisdictional Assistant
Commissioner/Deputy Commissioner of Central Excise. <b>This too is missing.</b><br>
<br>
13. No prior permission required for:<br>
<br>
(i) import of capital goods - <b>missing</b><br>
(ii) installation of fax machine – <b>now intimation is required</b><br>
(iii) laptop from outside the approved premises- <b>missing</b> <br>
(iv) DTA Sale of finished products – <b>allowed now also</b><br>
(v) Inter Unit Transfer - <b>missing</b><br>
(vi) Sub-contracting - <b>missing</b><br>
(vii) Participation in Exhibitions- <b>retained </b><br>
(viii) Personal carriage of Gems & jewellery for export promotion tours
-<b>retained</b><br>
(ix) Replacement/repair of imported indigenous goods - <b>missing</b><br>
(x) Supply of sale of samples - <b>missing</b><br>
(xi) Sale of unutilized material .- <b>missing </b><br>
<br>
Obviously,. CBEC was not prepared to give all that freedom to the EOUs. But
it appears that the CBEC and DGFT are not on talking terms! Why couldn’t
they discuss all these issues before putting it in the policy?. What is this
policy if the Commerce Minister tells the world that this is his policy and
after a few days, the CBEC says it does not like the policy and so put it on
hold and then after three months DGFT says its all changed?. <br>
<br>
Now CBEC will take its own time to issue circulars/ notifications to give effect
to this policy and may cause quite a lot of confusion. One thing is clear- CBEC
is not prepared to release its leash. An expert told me that the <b>so called
remote interface is a remote possibility.</b><br>
<br>
<b>Is it fair to have two agencies, the DGFT and the CBEC to confuse our exporters,
can’t we centralise the source of confusion to one agency?</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2004/dgft04pub050.htm">DGFT
PUBLIC NOTICE NO 50/2004-2009, dated, January 24, 2005</a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">
<font color="#009933"><b>More amendments to handbook</b></font><br>
<br>
Para 3.12 is amended to delete the reference to Appendix 27 and appendix 27
is amended.<br>
<br>
DGFT offices and regional offices of Export Promotion Councils authorised to
issue Certificate of origin- Sl. No. 38 and 39 added to Appendix-35. <br>
<br>
<a href="pdfnoti/pdfdgft/pdf2004/dgft04pub049.pdf">DGFT PUBLIC NOTICE NO 49/2004-2009,
dated, January 24, 2005 </a><br>
<br>
<font color="#009933"><b>No Contempt power for CAT?</b></font><br>
<br>
<b>Is the Government planning to disobey the CAT?</b> The Cabinet has approved
a proposal to remove the contempt power of the Central Administrative Tribunal.
A bill for this is to introduced in the next session of Parliament. Obeying
court orders is not a favorite pastime with the bureaucrats and may be of late
they must have come across <b>unjust</b> orders of the CAT which they did not
want to implement, but were stuck with this inconvenient contempt power. <br>
<br>
<font color="#009933"><b>Exchange rates announced for imported goods and export
goods</b></font><br>
<br>
Notification Nos <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2005/cnt05_009.htm"><font size="-2" face="Verdana">09</font></a>
and <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2005/cnt05_010.htm"><font size="-2" face="Verdana">10</font></a>/2005-NT-CUSTOMS,
dated, January 25, 2005 fix the exchange rates for imports and exports respectively
with effect from 1st February, 2005. Notifications 148 and 149/2004-Cus. (N.T.),
dated 28-12-2004 are superseded.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#009933">Anti
dumping duty on of Hexa Methylene Tetramine, commonly known as Hexamine re imposed.
<br>
</font></b><br>
The anti dumping duty on this product was first imposed vide Notification No.
42/2003-Cus., dated 17-3- 2003 which lapsed on 16.9.2003. Now the Designated
Authority has recommended re-imposition of the duty and the Government has re-imposed
the duty. <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=23&filename=notification/custom/2005/ctariff05_005.htm">No.
5/2005-CUSTOMS dated 27.1.2005</a></font></p>
<table width="450" border="0" cellspacing="0" cellpadding="5">
<tr>
<td><div align="justify">
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#009933">Spot
realisation</font></b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Spot realisation
is a favourite pastime of our Audit parties. A Superintendent heading
an Audit party was trying to convince the assessee into spot realisation.
At one point he exclaimed, "As an assessee you have an obligation
to pay the duties, and we expect you to eagerly pay them with a smile."<br>
<br>
"Thank God," said the assessee "I thought you were going
to want cash”</font></p>
</div></td>
</tr>
</table>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF0000">Until
tomorrow with more of DDT<br>
<br>
Have a Nice Day</font></b><br>
<br>
<b>Mail your comments to vijaywrite@taxindiaonline.com</b> </font></p>
</body>
</html>