TIOL-DDT 45 · the untouched capture
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<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 45</font><br> 2 2 2005<br> Wednesday</b></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b>Fast track clearance procedure for EoUs : Board announces draft circular</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> DDT, on 28.1.2005, had pointed out that the Fast Track announced by the Commerce Ministry had been put on hold by the CBEC. Now that the DGFT had announced the revised Fast Track Scheme, it was also pointed out that CBEC has to come out with its own circular to put the scheme on track- fast or slow. We are happy to report that the scheme is moving, though at a very slow track. The CBEC has issued a draft circular on the issue and obviously wants suggestions from stake holders.<br> <br> DDT had also pointed out that some of the facilities announced in the original policy are missing in the amended version. We are happy to report that the Board Circular seeks to restore most of those benefits now. <br> <br> Highlights of the proposed Board Circular are:-<br> <br> 1. Self sealing of containers and factory stuffing are not incorporated in the DGFT Public Notice, but Board is generous. These are facilities available to all(not EOUs alone)<br> <br> 2. No Physical examination of goods at the Gateway Port but selective examination at the EOUs – Commissioners to issue guidelines.<br> <br> 3. The request for permission for DTA clearance of rejects by eligible EOUs shall be considered on priority and the decision on the request for permission shall be communicated within 7 working days. <b>What happens if it is not given? Any remedy</b>? <br> <br> 4. <b>All</b> EOUs (not status holders alone) shall be allowed export of samples on the prior intimation to the jurisdictional Assistant/Deputy Commissioners. <br> <br> 5. The eligible EOUs may take out their capital goods or parts thereof for repair after intimating the jurisdictional Assistant/Deputy Commissioner of Customs or Central Excise.<br> <br> 6. It is allowed to install computers not exceeding two in numbers and a Fax machine obtained duty free in their administrative/registered office outside the bonded premises.<br> <br> 7. <b>In respect of the following activities of a status holder, permission will not be required from the Development Commissioner or the jurisdictional Central Excise authority.</b> <br> <br> (i) DTA sale of finished products<br> (ii) Participation in exhibition <br> (iii) Personal carriage of Gems & Jewellery for export promotion tours subject to fulfillment of conditions of FTP<br> <br> 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 as per the DGFT’s Public Notice, <b>whereas, Board’s draft circular is silent on it. </b><br> <br> What is clear from all these high sounding words, is that there is really nothing new. Board allows the DGFT to announce a new fast track but is only willing to concede what it had already allowed. Several concessions announced in the policy like <br> <br> 1) Sub-contracting shall be based on prior intimation of the process and the details of the sub contractor on annual basis ( no permission)<br> <br> 2) No prior permission required for:<br> <br> i) import of capital goods <br> ii) laptop from outside the approved premises <br> iii) Inter -Unit Transfer <br> iv) Sub-contracting <br> v) Replacement/repair of imported indigenous goods<br> <br> are now conveniently forgotten. The sad part is that when the concessions are announced, they are done with a lot of fanfare, but when they are withdrawn, hardly any publicity is given. An EOU wrote to us that they were not even aware that the Fast track is put on hold!<br> <br> But one good deed that needs special mention is Board’s gesture to publish the draft circular for public scrutiny. Now we can’t blame the Board if there are mistakes and omissions. So please send in your suggestions and objections to the Board. You can also send your suggestions to <b>editor@taxindiaonline.com</b>. We will forward your suggestions to the Board. The draft Circular actually does not mention whether they want suggestions ( but obviously they do) and if so where to send them. So we will take the responsibility of delivering your suggestions to the Board. Please mark your subject as <b>fast track</b> in your mails to us.<br> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=83&filename=wnew/draftcir.htm"><b>Click here for the Draft Circular.</b></a> <br> <br> <b>Metal Scrap imported prior to 25.10.2004</b><br> <br> DGFT has amended the HOP to provide that metal scrap imported prior to 25.10.2004 and not yet cleared for home consumption can be cleared either by producing a pre-shipment certificate or after 100% physical examination. <br> <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2004/dgft04pub051.htm"><b>DGFT PN 51/2004-09 dated 31.1.2005</b></a><br> <br> <font color="#006633"><b>RBI frames procedure for compounding of contravention of FEMA</b></font><br> <br> The power to compound contravention (remember it is no more offence) under FEMA is vested with the RBI for most cases and Enforcement Directorate for hawala cases. Now the RBI has framed the procedure for applying for compounding with a view to provide comfort to the citizens and corporate community by minimizing transaction costs, while taking severe view of wilful, malafide and fraudulent transactions. <br> <br> 1) Application in the prescribed form to the competent authority with the fee and memorandum to The Compounding Authority, [Cell for Effective implementation of FEMA (CEFA)], Foreign Exchange Department, 110th Floor, Central Office Building, S. B. Singh Road, Fort, Mumbai- 400001.<br> <br> 2) Proceedings to be completed within 180 days.<br> 3) Compounded amount to be paid within fifteen days.<br> <br> <b><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=49&filename=notification/rbi/2004/rbi04cir031.htm">RBI Circular No. 31 dated 1.2.2005</a></b><br> <br> <b>Mail your comments to vijaywrite@taxindiaonline.com </b><br> <br> <font color="#FF0000"><b>Until tomorrow with more of DDT</b></font></font></p> <p align="justify"><font color="#FF0000"><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Day<br> </font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"></font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <br> </font></p> </body> </html>