CUSTOM LAW SERVICES

Deemed Exports

Deemed Exports are supplies that do not leave country, are paid in Indian Rupees, but are still deemed to have been exported, reason being they compete with the duty free imports. Except for DEPB/ FMS/FPS/SFIS and Sales Tax, deemed exports are eligible for almost all advantages that physical exports receive. The merits of Advance Authorization / DFIA / EPCG (Export Promotion Capital Goods) and Drawback are available on inputs, while Exemption from or refund of Excise Duty is obtainable on output. Supplies mentioned below are regarded as deemed exports and they get the following benefits:

EOU’s, BTP, EHTP, STP

Supplies to EOU, BTP, EHTP, and STP from DTA (Domestic Tariff Area) are recognized as deemed exports. The supplier’s certain advantage grows up to the EOUs etc. They can get the Advance Authorization for their imports for the purpose of supplies to EOUs. The drawbacks for their suppliers also can be acquired by them. It is the choice of supplier about whether to take EOU or benefits.

POWER PROJECTS /REFINERIES

The deemed Exports benefit for their domestic procurement can be taken provided Power Projects where International Competitive Bidding (ICB) procedures have been followed at the IPP or at EPC stage. The gain could be in the form of Advance Authorization, or Duty drawback on the inputs. The purpose of deemed exports can be availed by the Contractor/Sub-contractors or other suppliers. The excise duty refunds exemption or refunds benefits can be availed by Mega Power Projects comprising the benefit mentioned above. The benefits can be derived by the suppliers or the Project owners themselves.

PROJECTS FUNDED BY WORLD BANK / ADB / JBIC / IFAD / OPEC / SIDA / UN AGENCIES

The ICB procedure followed projects which are financed as above are accountable to derive the benefit for deemed exports for their domestic procurement. The advantages could be in the form of Advance Authorization, or Duty Drawback on the Inputs and Excise Duty Refunds on the outputs. The benefits can be availed by the Contractor/Sub-contractors or other suppliers. The project owner or other supplier can procure the benefits. The project could be infrastructure project funded for ROAD, URBAN IMPROVEMENT etc.

OTHER PURPOSES LIKE OIL EXPLORATION BUSINESSES for which duty free imports are permitted. Supplies to Projects as above where ICB procedures have been followed can derive the benefit of Deemed Exports for their domestic procurement. The benefits could be in the form of Advance Authorization or Duty Drawback on the Inputs and Excise Duty Refunds on the outputs. The benefit can be availed by the Contractor/Sub-contractors or other suppliers. The benefit can be taken by the suppliers or the Project owners themselves.

ADVANCE AUTHORIZATION HOLDERS, DFIA HOLDERS, EPCG HOLDERS

The deemed export benefits can be received by domestic suppliers to the above authorization holders. Excise Duty Exemption for Advance Authorization holders and Excise Duty Refund for EPCG holders are the merits. In adjunct to that the indigenous supplier can import his own raw material duty free or can even get a drawback. The benefits can be taken by the suppliers or the Authorization holders.

What Ishtar Traders and Consultants LLP Offers?

We assist you in assessing the likelihood of the scheme for your purpose, absolute planning, costing at the stage of tendering etc. Then we provide assistance in functioning all the official procedure, documentation, application preparations, representation and synchronization with the relevant authorities till receipt of relevant Authorizations or Duty Drawbacks in the hands of the client.
We provide support to the suppliers to EOU or EOU themselves derive the benefit of deemed exports like Drawback, Advance License, Excise refund etc. The job comprises of complete work of carrying out all the formalities, documentation, application preparations, representation and synchronize with the relevant authorities to get the final benefit in the hands of the client.

DGFT Consultancy

While moving on the path of achievement, it has become more and more essential for us to provide Directorate General of Foreign Trade Consultancy Services. We have reaped abundant expertise in DGFT field. We have been providing DGFT consultancy service since last couple of years. We provide assistance to our client in different legal and other important formalities like obtaining IEC code, getting various licenses such as advance authorization, EPCG, DEPB etc and completing other formalities. Accrued with widespread experience, we bestow excellent service with a very economic and reasonable price.
What Ishtar Traders and Consultants LLP Offers
We provide DGFT Consultancy Services which are highly renowned as a one-window-solution provider for Importer-Exporter licensing related services in Delhi and in areas adjacent to Delhi.

We assure to provide our clients the most reliable DGFT Consultancy Services at within their means. Our DGFT Consultancy Services involve following:

Import and export code number. (IEC)
EPCG authorization
Advance authorization (des) – norms & no norms
DEPB authorization
Export house status application
Refund application for excess fee paid, ted
Fixation of norms
Negative list import license /export license
Monitoring of advance license/periodical returns for advance license, EPCG
Focus product scheme (fps)
Redemption of advance /EPCG licenses
Focus market scheme (FMS)
Vishesh Krishi Udyog Yojana (VKUY)
Preparation of error free documentation
Advice on the selection/utilization of different schemes offered by DGFT
Reasonable Service Charges.
Taking up challenging jobs which involves hard work.
Liaison Work Related: Ministry of Commerce ( DGFT) & Industry , Udyog Bhawan , New Delhi.:-
IEM & Industrial License Approval.
Appeal Matter –Under Foreign Trade Policy with DGFT (HQ), New Delhi.
Restricted / Negative List of Import License (Permission)
Project Import Approval.
Norm Fixation ,EOP Extension Matter, Clubbing Matter, EPCG Committee Approval.

Duty Exemption Scheme

The Duty Exemption Scheme facilitates duty free import of inputs requirement for export production. Under the scheme government can issue an Advance Authorization or DFIA to import inputs the duty free. In addition DEPB is issued after export as a script mentioning the duty amount that can be used for further imports.

INPUT – OUTPUT NORMS (SION)

The standard input-output norms (SION) have been published by the government for more than 6000 products. These are available in the Handbook of Procedures (Vol-II) of Exim Policy. The input-output norms are to be followed for duty free inputs, while applying for advance Authorization. Authorization can still be applied on self- declaration basis, if however no norms are available.

ADVANCE AUTHORISATION

An Advance Authorization is issued to permit duty free import of inputs, which are physically incorporated in the export product (making normal allowance for wastage) subject to genuine user condition. Such Authorizations avail exemption from payment of basic customs duty, additional customs duty, anti dumping duty and safeguard duty, if any.
Advance Authorization can also be issued for supplies within India that are classified as Deemed Exports. Purposes like supplies to Power Projects, Projects financed by WB/ADB/JBIC etc, EOUs etc.
Advance Authorizations are issued with a responsibility to export the quantity and value of goods mentioned therein in a fixed period of 24 months. Before imports customs ask for a bond or a bank guarantee towards security for duty saved, till export obligation is fulfilled.
Advance Authorizations or materials imported against it can-not be transferred even after completion of Export Obligation.
Advance Authorizations are also available for Annual Requirement on basis of SION as well as on SELF-DECLARATION

DUTY FREE IMPORT AUTHORISATION (DFIA)

DFIA is issued to a merchant-exporter or manufacturer-exporter for duty free import of inputs utilized in the manufacture of goods without payment of basic customs duty, additional customs duty/excise duty, antidumping duty and safeguard duty, if any. DFIA is issued on minimum value addition of 20%, and only for export of products covered under the SION. DFIA and or the material(s) imported against it are freely transferable after completion of Export Obligation.
DFIA can also be issued for supplies within India that are classified as Deemed Exports. Objectives like supplies to Power Projects, Projects funded by WB/ADB/JBIC etc, EOUs etc.
DFIA can also be issued for supplies within India that are classified as Deemed Exports. Objectives like supplies to Power Projects, Projects funded by WB/ADB/JBIC etc, EOUs etc.

DUTY ENTITLEMENT PASSBOOK SCHEME

The purpose of DEPB is to reduce the effect of the incidence of Customs duty deemed to have been suffered on the import content of the export product. The neutralization is provided by way of grant of duty credit against the export product. The duty credit is given as a prescribed percentage of FOB value of exports, made in freely convertible currency.
This duty credit can be used for import of any goods/capital goods which are not prohibited. The DEPB and/or the items imported against it are freely transferable.

INDIGENOUS SOURCING

The holder of advance Authorization and DFIA may also source their inputs from indigenous sources. In such cases, there can be exemption of excise duty payable by the indigenous supplier. Additionally, the indigenous supplier can import his own raw material duty free or can even get a drawback.

What Ishtar Traders and Consultants LLP Offers?

We can provide you assistance in assessing the feasibility of the scheme for your exports/domestic supplies, planning for maximum benefits, documentation, application preparations, representation and coordination with DGFT and other associated Government Departments unless & until you finally get the Authorisation.
In case of domestic procurement we can assist in getting essential invalidations from the authority, for duty free import of second stage raw materials and the Drawbacks, wherever applicable.

Later we will assist you in getting the ratification of the norms from the Norms Committee. Finally we can provide you assistance in redemptions of the Authorization.
We also undertake the jobs of Norms Fixation, DEPB rate fixation, Clarifications from the committee etc.

EPCG: Export Promotion Capital Goods

An Advantageous Scheme for Procurement of Capital Goods
The import of capital goods (including CKD/SKD thereof as well as computer software systems and spares, jigs, fixtures, dies and moulds) at 0%/3.09% is allowed by the EPCG scheme. Customs duty as against the normal total of 23.895%/20.805%, thus providing a duty saved value of more than 20% of the import value. This is subject to an Export Obligation (EO) comparable to 6/8 times of duty conserved, to be accomplished over a period of 6/8 years reckoned from the date of issuance of license. For bigger projects, SSI etc. there are additional relaxed norms of EO.
The scheme covers manufacturer exporters with or without supporting manufacturer(s) / vendor(s), merchant exporters tied to supporting manufacturer(s) and Service Providers.
ACTUAL USER CONDITIONS: Until the export obligation is completed, import of capital goods is subject to Actual User Condition.
EXPORT OBLIGATION: The export of goods competent of being manufactured or produced by employing of the capital goods imported under the scheme requires to be fulfilled for the export obligation. In addition upto 50% of the EO can also be fulfilled by any alternate product of the company or even Group Company. Deemed Exports like supplies to Power Projects, Projects funded by WB/ADB/JBIC etc, EOUs etc. can also be utilized to fulfill the EO.
INDIGENOUS SOURCING: A person holding an EPCG license may source the capital goods from a domestic manufacturer in spite of importing them. The domestic manufacturer supplying capital goods to EPCG license holders shall be eligible for refund of Excise Duty paid by him. In addition the indigenous supplier can import his own raw material duty free and other benefits which can be discussed.

FOR MANUFACTURERS

This scheme is quite favorable to Manufacturer exporters as they can import their CG at a substantial discount. Especially or those manufacturers whose final product is not excisable or is exempt from excise duty (like those in Uttaranchal) since they cannot take the CENVAT credit of the CVD paid on imports and Excise Duty paid in Domestic markets.
Merchant Exporters tied with the supporting manufacturers can also use the scheme for concessional duty import of Capital Goods to be installed at the supporting manufacturers.

FOR PROJECTS

EPCG can be taken for the full projects where exports of goods or services can be envisaged by the use of the project or alternative products. This can be taken for Captive Power units also. EPCG can be taken along with Project Import scheme in case of new Projects.

FOR SERVICE PROVIDER

To reduce their Capital Cost, a range of service providers/exporters can take EPCG route. Service Providers like Hotels, Hospitals, Tour Operators, Taxi Operators, Construction Companies, Logistics companies can use the scheme to import/procure from domestic market, their capital goods at substantially reduced costs. The EO can be fulfilled by Forex Earnings through providing services, like that of Foreign Guests staying in the hotel, medical tourism etc.

FOR OTHERS

Different other sectors like Retail Sector in the country, Port Projects etc. can also utilize EPCG scheme to their advantage.

What Ishtar Traders and Consultants LLP Offers?

We can assist you in assessing the feasibility of the scheme for your exports/domestic supplies, planning for maximum benefits, documentation, application preparations, representation and coordination with DGFT and other associated Government Departments till you finally get the Authorisation.
In case of domestic procurement, we can assist in getting important invalidations from the authority, and the refund of Excise Duty. Later, we will assist you in redemptions of the Authorization. We also take matters of clarifications/relaxations etc. from the DGFT committees.

Foreign Trade Consultants

We are dedicated towards genuinely assisting our clients in the fields of EXIM (Export and Import) Consultancy. We have acquired sound knowledge and competence in the field; we provide import-export consultancy services and instruct the clients of the rules and regulations governing the same. We believe in swift and accurate solutions and are indeed renowned for delivering consultancy services in the minimum possible time to help our client reap the benefits of numerous exemptions incentives / assistance accessible under the Import-Export Policy of Government of India. Our team of specialists is well versed with the processes comprising documentation and paperwork. We provide assurance that all the legal rules and regulations are fulfilled through the electronic file entries thereby preventing delays at the port.

What Ishtar Traders and Consultants LLP Offers?

We offer expert consultancy on various import and export related matters. Our scope of services included for:

FOREIGN TRADE

Advance Duty Free Authorization for all items.
Authorization under Export Promotion Capital Goods (EPCG) Scheme.
Specific License for restricted items.
Annual Advance Authorization.
Vishesh Krishi & Gram Udyog Yojana Scheme.
Duty Free Import Authorization.
Duty Entitlement Pass Book Scheme.
Focus Market Scheme.
Focus Product.
Revalidation of import license.
Hi-tech Product Export Promotion Scheme.
Extension & Enhancement of import License.
Closure of license.

CUSTOM CLEARANCE

Export & import clearance.
Verification/registration of DEPB/FMS/fps/HTEPS.
Cancellation of B.G. Pertaining advance /EPCG license.
Re-export/re-import, return logistics.
Export & import forwarding.
Application for duty drawback under sec 74 & 75.
Preparation of error free documentation.
SVB registration/order finalization/refunds.
Updating of the latest developments in Foreign Trade Policy.
Free Consultation on the Export & Import policy and Procedures.
Reasonable Service Charges.
Taking up challenging jobs which involves hard work.

DEEMED EXPORTS

Duty Drawback – Fixation of DBK rates.
Duty Drawback – on All Industry Rate.
Issue/Renewal of Status Holder Certificate Star Trading/Super Star Trading House.
Registration with Export Promotion Council.
Drawback and Terminal Excise Duty Refund.
Fixation/Modification of norms for Advance License.
Issue/Amendment of IEC/RCMC/etc.

SPECIAL VALUATION BRANCH (SVB)

Filing application for finalization of SVB by the Customs.
Co-ordination with the customs department for finalization.
Assessment of provisional bill of entry and get finalized.
Closure of PD Bond executed with the customs department.
Obtaining the SVB final order from the customs department.
Preparation, submission and obtaining the refund of EDD amount paid from the customs department.

Import Export Registration

REGISTRATION WITH DFGT


No export or import shall be made by any person without an IEC number unless specifically exempted. IEC Code is unique 10 digit code issued by DGFT – Director General of Foreign Trade, Ministry of Commerce, and Government of India to the Companies. To import or export in India, IEC Code is mandatory. No person or entity shall make any Import or Export without IEC Code Number.
An application for grant of IEC number shall be made by the Registered/Head Office of the applicant and apply to the nearest Regional Authority of Directorate General Foreign Trade, the Registered office in case of company and Head office in case of others, falls in the ‘Aayaat Niryaat Form – ANF2A’ and shall be accompanied by documents prescribed therein. In case of STPI/ EHTP/ BTP units, the Regional Offices of the DGFT having jurisdiction over the district in which the Registered/ Head Office of the STPI unit is located shall issue or amend the IECs.
Only one IEC would be issued against a single PAN number. Any proprietor can have only one IEC number and in case where more than one IEC is allotted to a person, the same shall be surrendered to the Regional Office for cancellation.

REGISTRATION WITH EXPORT PROMOTION COUNCIL

Export promotion councils or EPC is a non-profit organization works for the promotion of various goods exported from India in the international market. EPC has been working with “Ministry of commerce and industry”, Government of India in a close association.
EPC works for many sectors for their promotion in international market. Some of the sectors are Apparel Export Promotion Council, Carpet Export Promotion Council, Wool & Woolens Export Promotion Council, Electronics And Computer Software Export Promotion Council.
So, it becomes important for an exporter to obtain a registration cum membership certificate (RCMC) from the EPC. An application for registration should be accompanied by a self certified copy of the IEC number. Membership fee should be paid in the form of cheque or draft after ascertaining the amount from the concerned EPC.
The RCMC certificate is valid from 1st April of the licensing year in which it was issued and shall be valid for five years ending 31st March of the licensing year, unless otherwise specified.

REGISTRATION WITH COMMODITY BOARDS

Commodity Board is registered agency designated by the Ministry of Commerce, Government of India for purposes of export-promotion and has offices in India and abroad. At present, there are five statutory Commodity Boards under the Department of Commerce. These Boards are responsible for production, development and export of tea, coffee, rubber, spices and tobacco.

REGISTRATION WITH INCOME TAX AUTHORITIES

Goods exported out of the country are eligible for exemption from both Value Added Tax and Central Sales Tax. So, to get the benefit of tax exemption it is important for an exporter to get registered with the Tax Authorities.

IEC CODE ONLINE APPLICATION FORM

The application can be downloaded in PDF or Word format. This is called “Aayaat Niryaat Form – ANF2A”. Along with IEC Code Number Application Form it is necessary to submit Appendix-18B Attested by Applicant’s Banker in his letter head with two passport size photo).
An IEC number allotted to an applicant shall be valid for all its branches/divisions/units/ factories as indicated in the format of IEC. Where an IEC Number is lost or misplaced, the issuing authority may consider requests for grant of a duplicate copy of IEC number, if accompanied by an affidavit. If an IEC holder does not wish to operate the allotted IEC number, he may surrender the same by informing the issuing authority. On receipt of such intimation, the issuing authority shall immediately cancel the same and electronically transmit it to DGFT for onward transmission to the Customs and Regional Authorities.

APPLICATION FEE FOR IEC CODE NUMBER

Rs. 250.00 Mode of Payment: In Demand Draft of any Bank or Payment through EFT (Electronic Fund Transfer by Nominated Bank by DGFT Like HDFC Bank, ICICI Bank, State Bank of India, UTI Bank, Punjab National Bank, Central Bank etc) or Application fee can deposited by TR6 Challan with Duplicate Copy in any branch of Central Bank of India and TR6 Challan need to be submit along with IEC Code Application.

FILING OF APPLICATION

Application can be filed online in DGFT website. Every application for an Import/Export license/ certificate/Authorisation/permission or any other purpose should be complete in all respects as required under the relevant provisions of the Policy/Procedures and shall be signed by the applicant as defined in paragraph 9.9 of the Policy. An incomplete application is liable to be rejected giving specific reason for rejection. However in case of manual applications, the applicant would furnish a soft copy of the application in MS word format.

PROFILE OF IMPORTER/ EXPORTER

Each Importer/Exporter shall be required to file importer/ exporter profile once with the Regional Authority in Part 1 of ‘Aayaat Niryaat Form – ANF2A’. Regional Authority shall enter the information furnished in Part 1 of ‘Aayaat Niryaat Form ANF-2A’ in their database so as to dispense with the need for asking the repetitive information. In case of any change in the information given in Part 1 of ‘Aayaat Niryaat Form ANF-2A’, importer/exporter shall intimate the same to the Regional Authority.

IMPORTERS OR EXPORTERS ARE EXEMPTED FROM OBTAINING IMPORTER-EXPORTER CODE NUMBER

Importers covered by clause 3 (1) [except sub-clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and (k)] of the Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993.
Ministries/Departments of the Central or State Government.
Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture.
Persons importing/exporting goods from/to Nepal provided the CIF value of a single consignment does not exceed Indian Rs.25,000.
Persons importing/exporting goods from/to Myanmar through Indo-Myanmar border areas provided the CIF value of a single consignment does not exceed Indian Rs.25,000.

However, the exemption from obtaining Importer-Exporter Code (IEC) number shall not be applicable for the export of Special Chemicals, Organisms, Materials, Equipments and Technologies (SCOMET) as listed in Appendix- 3, Schedule 2 of the ITC (HS) except in the case of exports by category (ii) above.

What Ishtar Traders and Consultants LLP Offers?

We offer Importer-Exporter Code Number registration services which are highly renowned as a one-window-solution provider for Importer-Exporter Code Number registration services in Delhi and areas adjacent to Delhi. We are one of the leading service providers in India for Importer-Exporter Code Number Registration. Our Importer-Exporter Code Number services may include following:

Obtaining initial registration such as the Import Export (IE) Code.
Compliance with procedures under the policy, maintenance and updating of records.
Assistance in filing various claims and relief’s under the policy with the authorities.
Advance Licence assistance, records and certifications.
Assistance in EPCG licenses, all related documents and certifications.
Consultancy related to foreign taxation, regulation of IATA and Double taxation.
Consultancy related foreign currency exchange.

Custom Law Services

Deemed Exports
DGFT Consultancy
Duty Exemption Scheme
EPCG Export Promotion
Foreign Trade Consultants
Import Duty Calculator
Import Export Registration
Project Imports
Promotional Measures for Exports
Foreign Restrictions (Imp/Exp)
Foreign SAD Refund

List of Documents to Apply for IEC Code

Covering Letter on your company’s letter head for issue of new IEC Code Number.
Two copies of the application in prescribed format (Aayaat Niryaat Form ANF 2A) must be submitted to your regional Jt. DGFT Office.
PAN Number
Current Bank Account
Bankers Certificate
Each individual page of the application has to be signed by the applicant.
Part 1 & Part 4 has to be filled in by all applicants. In case of applications submitted electronically.
No hard copies of Part 1 may be submitted. However in cases where applications are submitted otherwise, hard copy of Part 1has to be submitted.
Only relevant portions of Part 2 need to be filled in.
Rs 250.00 Bank Receipt (in duplicate)/Demand Draft/EFT details evidencing payment of application fee in terms of Appendix 21B.
Certificate from the Banker of the applicant firm in the format given in Appendix 18A.
Self certified copy of PAN issuing letter or PAN (Permanent Account Number) Card issued by Income Tax Authority.
Two copies of passport size photographs of the applicant duly attested by the Banker of the applicant.
The physical application containing required documents should reach DGFT RLA concerned within 15 days of its online submission.
E-mail is not mandatory. If it is provided it will facilitate faster communication.
Self addresses envelope with Rs.25/- postal stamp for delivery of IEC certificate by registered post or challan/DD of Rs.100/- for speed post.

Project Imports

THE SCHEME

Project Imports are enveloped under chapter 98 of ITC HS Classification and cover all goods, which are being imported for preliminary setting up of a unit or substantial growth of an existing unit. All goods can be reviewed under one customs tariff directing thus preventing any disputes with customs with regard to their cataloging.
Industrial Plants, Irrigation Projects, Power Projects, Mining Projects, Oil Exploration Projects and some other projects as notified by the government are enclosed under the scheme.

BENEFITS: Assessment under one heading: thus obviating all disputed with the customs regarding tariff classification.

CONCESSIONAL DUTY : Effective duties under Project Imports are lower than the normal and depends on the kind of Project. For Industrial Projects/ Non Mega Power Projects etc., all items covered under the Project Imports now attracts only 5% Basic Customs Duty. In addition CVD + ACVD + CESS is leviable which makes the total duty to approx. 20.941%. As against a normal total of 23.895% is payable on the Capital Goods alone. The scheme thus offers a saving of approx. 3%.

EPCG: can also be availed of along with the Project Imports. This simultaneous availment of two schemes can lower the export obligations under EPCG scheme.

THE PROCEDURE

Projects need to be permitted by the Ministry of Industry or any other concerned Administrative ministry to be qualified under the scheme. After this they require to be registered up with customs where most of the imports are to take place, along with the import license if relevant. Cash security along with Bank Guarantee/Bond needs to be offered, which gets cashed in after conclusion of imports.
EPCG if availed along with Project Import needs to be taken from the DGFT office.

What Ishtar Traders and Consultants LLP Offers?

We can help you in full planning, documentation, application preparations, representation and coordination with the Ministry of Industry or the relevant Government Departments till you with no going back get the approval. Upon receipt of approval we can assist in getting the same registered with the concerned customs house. Upon completion of Import we can assist in redemption of the Bonds/BG given at the customs. In addition if EPCG is also envisaged we can assist in getting the same issued from DGFT office.
We also commence the turnkey project of a particular project in association with our associates. This may include logistics, customs clearances, licensing, approvals Duty benefit schemes like EPCG and related requirements. This helps the client in interacting with only one agency, and a much better planning, documentation sequencing and utilization of benefits, and helps in substantial cost reductions.

Promotional Measures For Exports

Export promotion has been defined as “those public policy measures which actually or potentially enhance exporting activity at the company, industry, or national level”. Although many forces determine the international flow of goods and services, export promotion is one of the principal opportunities that governments have to influence the volume and types of goods and services exported from their areas of jurisdiction.
Government of India, like in almost all other nations, has been endeavoring to develop exports. Export development is important to the firm and to the economy as a whole. Government measures aim, normally, at an overall improvement of the export performance of the nation for the general benefit of the economy. Such measures help exporting firms in several ways.
Export Promotion strategy promotes only the industries that have potential for developing and competing with foreign rivals. Since the goal is to trade abroad, there becomes competition, which in turn remedies the returns to scale. The main goal of the export promotion is to prepare the “potential” industries for competition with the foreign rivals. So the industries at their childhood must be protected for a while.
Exporters, facing the increasing competition, have to improve their technologies, their quality continuously in order to compete with their rivals. They have to make research and development studies.
Comparative advantage theory implies that a country must specialize in the production that uses the mostly possessed factors of production. By this way the structure of the overall industry is in harmony with the country structure. If the country has advantage in human capital then the EP strategy may be a remedy to the unemployment problem.
The indirect effect of the EP strategy appears in the export values of the countries. The increase in exports raises the foreign exchange inflow. However, there may be an increase in import expenditures due to the increasing income of the country, which in turn worsens the country’s trade balance.

Promotional Measures For Exports

Promotional Measures give direct incentives to the exporters for

Market Access Initiatives (for studies, brochures etc.),
Marketing Development Assistance for participation in trade fairs etc.
Providing services to international market
Marketing in difficult markets like certain African, Latin American and CIS markets
Marketing difficult products like those from rural areas.
Special agricultural products, and rural industrial products.
High-Technology Products
Achieving quantum growth in exports under Erstwhile Target Plus Scheme

Some Of The More Popular Scheme Are :

SFIS (SERVED FROM INDIA SCHEME)

Gives a value of 10% of the FE earned from export of services in the previous year in the form of duty credit script. The Script can be used for duty free procurement of any Capital Goods or consumables related to any service sector business of the script holder, from International as well as domestic sources. In case of Hotels and Restaurants it can be used even for import of foods items and liquor. Is Actual User and non transferable (except within the group)

VKGUY (VISHESH KRISHI AND GRAM UDYOG YOJNA)

The scheme offers a duty credit script equivalent to 5%/3% of previous year’s exports of certain agricultural & forest products. For flowers fruits and vegetable exporters it will be 7%/5% depending upon the benefits they are availing. The script is transferable to other importers

FMS (FOCUS MARKET SCHEME)

The scheme incentivizes exports to Certain Latin American, African ,CIS Countries. It offers 3% of the previous year’s exports in the form of duty credit script, which is transferable

FPS (FOCUS PRODUCTS SCHEME)

The scheme incentivizes exports of certain items of rural and semi urban origin. It offers 2% of the previous year’s exports in the form of duty credit script, which is transferable. For the export of certain Toys and Sports Goods from 1.4.08, a script of up-to 6.25% value is available. For High value added products script of upto 2.5% is available.

HTPEPS (HIGH-TECH PRODUCTS EXPORT PROMOTION SCHEME)

Provides upto 1.25% of previous year’s exports in the form of a duty credit script. Alternatively a duty credit script of 5% of the incremental growth may be taken at the option of the exporter. All the above except SFIS can also be availed by EOU/EHTP/BTP who are not availing of direct tax benefits/exemptions.

What Ishtar Traders and Consultants LLP Offers?

We assist in identification of the benefits available under the relevant scheme which is suitable to your business. Further we do documentation required, application preparations, representation and coordination with DGFT and other concerned Government Departments till the receipt of final script. Later we will assist you in actually realizing the value of the script in cash.

Restrictions For Imports/Exports

There are restrictions on imports and exports for various strategic, healths, and other reasons. There can be quantitative and qualitative restrictions on the imports and exports. If the goods are not banned, the government can give a permission/license for specific reasons.

PRINCIPLES OF RESTRICTION:

(a) Defend the public morals (b) Protection of human, animal or plant life or health (c) Protection of patents, trademarks and copyrights and the obstruction of deceptive practices (d) Prevention of prison labor (e) Protection of national riches of artistic, historic or archaeological worth (f) Preservation of exhaustible natural resources (g) Protection of trade of fissionable Substance or material from which they are resulting; and (h) Prevention of traffic in arms, ammunition and trappings of war.

LABELING AND MARKING RULES FOR IMPORTS:

Specifies that MRP, generic name of product, month and year of entry in trade channel, importer name and address and amount in standard units must be carried importantly on the “principle display panel” of the of prepackaged goods for retail sale only.

TECHNICAL STANDARDS FOR QUALITY:

The government has subjected imports of certain products to compulsory compliance of Indian Quality Standards. The foreign manufacturers and exporter are compulsory to register with Bureau of Indian Standards (BIS) to meet the terms with this requirement. Quality Standards are not relevant on imports made under Advance Licenses for physical exports published with authentic user condition. Similarly the imports made for re-export purposes are also exempted from the quality standards.

IMPORT OF SECOND HAND GOODS:

All second hand goods are restricted for imports and may be imported only in accordance with the provisions of the Policy, ITC (HS), Public Notice or a license / certificate / permission issued in this behalf.
The following substances may be imported without a license / certificate / permission IUI
Second Hand Capital Goods except personal computers, laptops, photocopiers, air-conditioners, diesel- generating sets.
Any form of metallic waste, scrap, seconds and defectives, other than those which are of a value below the value specified for any such items by a notification issued in this behalf, and excluding hazardous, toxic waste, radio active contaminated waste/ scrap containing radio active material.
Woolens rags / synthetic rags / shoddy wool in completely mutilated form subject to the condition that mutilation must conform to the requirements as specified by the customs authorities.
PET bottle / waste
Import of all types of ships may be made without a license / certificate / permission on the basis of guidelines issued by Ministry of Shipping and as per the age/residual life norms prescribed by the Ministry of Shipping.

SCOMET ITEMS:

Special Chemicals, Organisms, Materials, Equipments & Technologies (SCOMET) items can be exported/imported from India only against a license issued for this purpose, as per the international bargain for strategic reasons.

AGRICULTURE PERMIT SYSTEM:

The import of agriculture products like Plants / Plant Materials / Fruits / Seeds for Consumption is controlled by the Ministry of Agriculture, by measures of Phyto-sanitary Certificate. The goods upon access into India are subjected to plant quarantine inspection and treatment alongside a fee.

SANITARY IMPORT PERMIT FOR ANIMAL PRODUCTS IMPORTS:

Animal products importers are obliged to fabricate a sanitary permit at the customs gate before entry into the country. Meat and meat products, eggs, milk and milk products, pet food, embryos, ova or semen and other live stock products from livestock are covered.

LICENSE:

Restricted goods can be imported / exported through a license or as per procedure in a public notice for this. Restricted item license / certificate / permission may be granted by the Director General of Foreign Trade or any other licensing authority authorized by him in this behalf. The DGFT / Licensing authority may take the assistance and advice of a facilitation committee. The Facilitation Committee consists of representatives of technical authorities and Departments / Ministries concerned
The DGFT / Licensing authority may take the assistance and advice of a facilitation committee. The Facilitation Committee consists of representatives of technical authorities and Departments / Ministries concerned

What Ishtar Traders and Consultants LLP Offers?

We can assist you in identifying the feasibility of getting a license, planning, documentation, application preparations, representation and coordination with DGFT and various other ministries and departments, till you finally get the approval/license.

Special Additional Duty (SAD Refund)

In exercise of the powers conferred by the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby Exempts the goods falling within the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India for subsequent sale, from the whole of the Additional Duty of customs livable thereon under sub-section (5) of section 3 of the said Customs Tariff Act (hereinafter referred to as the said additional duty).

CUSTOMS CIRCULAR NO: 102 /2007 DATED 14.09.2007

As amended by notification no: 93/2008-customs, dated 01.08.2008. As per the said notification the goods falling within the first schedule to the Customs Tariff Act, 1975, ( 51 of 1975), when imported in to India for subsequent sale, are exempted from whole of the Additional duty of customs leviable thereon under sub section (5) of sec-3 of the said Customs Tariff Act, subject to fulfillment of conditions stipulated therein.

EXEMPTION CONDITIONS

The exemption contained in this notification shall be given effect if the following conditions are fulfilled.
The importer of the said goods shall pay all the duties, including said Additional duty of customs leviable thereon as applicable at the time of importation of the subject goods.
The importer, while issuing the invoice for sale of goods, shall specifically indicate in the invoice that in respect of the goods covered therein, no credit of the additional duty of customs levied under sub section(5) of Sec3 of the Customs Tariff Act, 1975, shall be admissible.
The importer shall file a claim for the refund of the said additional duty of customs paid on the imported goods with the jurisdictional customs officer before the expiry of one year from the date of payment of the said Additional Duty of Customs, with the customs office from where the imported goods are cleared.
The importer shall pay on the sale of the said goods, the appropriate sales tax /or value added tax, as the case may be.

RULES/ DOCUMENTS

In terms of Special Additional Duty (SAD) Refund under notification No.102/2007 Dt 14/9/2007 as amended by notification No: 93/2008 DT 01.08.2008, read with Board Circular No:6/2008 – Customs 28.04.08, 16/2008- Customs 13.10.2008 and 18/2010, by submitting the following documents requirements:-
Form Number 102.
Certificate from Statutory Auditor / Chartered Accountant for unjust enrichment fulfillment.
Co-relation certificate of materials s ales Accounts.
Self Declaration/Undertaking.
Bill of Entry – Original (Duplicate Copy for importers).
Copy of Bill of Lading
Copies of VAT payment challans / returns evidencing payment of appropriate sales tax in respect of sale of imported goods covered under the above Bills of Entry
Duty payment Proof – TR6 Challans Original / Copy DEPB Scrips.
Packing List.
Copy of Import invoices/Commercial Invoices of sales of the imported goods in respect of which refund of the 4% Additional duty of customs is claimed.
Sales Invoice Photocopy and Original and Sales Summery.
Ledger certificate.
Covering Letter In the favor of Assistant. Comm.
Balance sheet.

Special Additional Duty (SAD) refund which are available to traders of importable items as per under notification No.102/2007 Dt 14/9/2007.

FOR MANUFACTURING UNITS: All type of raw materials & machinery, under DFI, EPCG, EOU, STP Units, advance licenses, re-import & exports.
RAW MATERIALS: Garment accessory, wood logs, polyester yarn.
BUILDING MATERIALS: Tiles, marble, wire mash, sanitary goods, glass sheets, sanitary-were, plywood & veneer board, wooden flooring, steam room.
HOUSEHOLD GOODS: Gift Items, blanket & prayer mats, mattresses, furniture, bed sheets, toasters, gas hobs, glassware.
FABRIC: Carpet, silk, suiting & shirting, Bonded, coated PU & PVC, flex, non-woven’s & Interlinings, knitted, flock. fur, cotton fusible.
PAPER : Stock lots, cardboard, Printing paper, art & craft, board, news prints, release paper, carbonless paper.
AUTOMOBILES : Clutch, bearings, steel bolls, plugs, motorcycle chains, wind glass, bumper, alloy wheels, seat cover.
WEARABLES : Shoes, socks, jackets, blazers, trousers, baby, products, belts, jeans pent, shirt.
PLASTICS & RUBBER: Articles, EVA, pet chips, PVC resin, flex, front-lit, foam, acrylic sheet, LLDEP, PVC sheet, synthetic rubber.
EATABLE : Wine & whiskey, Vegetable oil, confectionery, items, Juices, dry fruit, grain & spices, fresh Fruits, dairy products, seeds.

What Ishtar Traders and Consultants LLP Offers?

We offer our clients with Additional Duty Refunds that includes filing of documents that are required to be checked for internal consistency purposes and inter-correlation activities to make sets of claims. The criteria of filing claimed bills are on entry basis and monthly basis. This requires sumptuous understanding of commercial and taxation aspects of the supply chain with proper analysis of documents. Our Marketing Team is quite Talented and well versed in handling SAD Refund from Sea & Air. Our professionals assist in the following ways:

Preparation and filing of claims at various customs
Following up with the respective authorities
Appearing in personal hearing whenever required
Answering to all queries when required
Understanding the company’s business, type of imports and the subsequent sales
Advice on the data requirements on +payments of SAD and VAT
Identifying relevant documents and information
Advice on compiling and correlation documents and information.
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