Foreign Trade Policy – simplification or harassment?
A regular critical reader of this column, Rajesh Kalla wrote in about the simplification or otherwise of the requirement under para 5.3.2 of the Handbook Of Procedure of the HOP of the FTP.
Para 5.3.2 of the HOP
has undergone the following changes in the last 18 months.
1. HOP 2004-2009, dt. 07.04.06:
The Authorisation holder shall produce to the concerned(?) Regional authority a certificate from the Jurisdictional Central Excise authority confirming installation of Capital goods at the factory/premises of the Authorisation holder or his supporting manufacturer(s) vendor(s) within six months from the date of completion of imports. (certificate to be obtained from excise authorities and no mention about spares)
2. HOP 2004-2009,dt.19.04.07: Authorisation holder shall produce to concerned RA a certificate from jurisdictional Central Excise authority or an independent Chartered Engineer (CEC) confirming installation of Capital goods at factory premises of authorization holder or his supporting manufacturer(s) vendor(s) within six months from date of completion of imports. (Certificate to be procured either from Excise or Charted Engineer, hence some relief from going to Excise office regularly. Here also, para is silent about importation of spares.)
3. Public Notice No.22(RE-2007)/2004-2009,dt.17.07.2007:
Authorisation holder shall produce to concerned RA a certificate from Jurisdictional Central Excise authority or an independent Chartered Engineer (CEC) confirming installation of Capital goods at factory premises of authorization holder or his supporting manufacturer(s)/ vendor(s) within six months from date of completion of import. In the case of import of spares, the installation certificate shall be submitted by the importer within a period of three years from the date of import. (Here, certificate to be obtained from Excise OR Charted Engineer and importation of spares comes into picture.)
4. Public Notice No.54 (RE-2007)/2004-2009, dt 01.10.07:
Authorisation holder shall produce to the concerned RA a certificate from the Jurisdictional Central Excise Authority, confirming installation of Capital goods at factory premises of authorization holder or his supporting manufacturer(s)/ vendor(s) within six months from date of completion of import. In the case of import of spares, the installation certificate shall be submitted by the Authorisation holder within a period of three years from the date of import. However, in case of units not registered with Central Excise Authorities, the Authorisation holder shall produce to the concerned RA, a certificate from an independent Chartered Engineer confirming the said installation of Capital goods / spares. (Certificate from “Central Excise only”, other things remaining unchanged)
Commenting on this latest change DDT 712 - 04.10.2007 had commented, DDT understands that even the mighty Reliance had problems in getting these certificates from the mightier Central Excise Department and had outsourced this job to a consulting firm.
“How Government intelligence came to know within three months that authorisation holder should be deprived of certification from Charted Engineer and they should run from range to division to obtain certificate from Excise authorities”, wonders, Rajesh.
If getting a registration, which can be given in 45 minutes, is delayed as admitted by the Board, God alone knows how and when the certificate can be obtained. DDT learns that a company has outsourced getting these certificates at Rs. 15,000/- apiece.