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| 1. Introduction |
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In order to fulfil the long - felt need for a leaflet giving
guidelines and practical help both to new comers and those
established in the export import trade, we have made an
attempt here to bring a detailed step approach to problems
and procedures one has to go through in the export-import
field
We are rendering our services sincerely, effectively and
satisfactorily since last 45 years in the field of Exports,
Imports an Industries from tiny units to trading house.
Several small units are now enjoying Export/Trading House
status and winning prestigious Govt Export Awards because
our consultancy by far has proved to be as modern as Digitial
computersand as traditional as temple due to our systematic
and upto date working ideas on result and revenue oriented
schemes at resonable remmunneration
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have been liasioning with several Central as well as States
Govt.partments viz. Director General of Foreign Trade (DGFT),
Secretariat of Industrial Approvals(SIA) in the office of
Ministry of Industry (MOI), Reserve Bank of India (RBI), Central
Board of Excise & Customs (CBEC), Dept. of Tourism, Ministry
of Industry of States for Small Scale Industries (SSI). |
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Expertise
Through
Experience
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Liberalised Export-Import Policy, Competitive World Markets
& widening scope for export growth are challenges to
Export Import trade. If you want to meet the challenge for
progress, allow us to assist you. Our speciality of consultancy
lies in the field towards obtaining you the extra benefit
at no extra cost.
As the govt. is interested in boosting exports, necessary
guidelines are being revised from time to time. It may be
a gem of an idea if you consult us to have specific guidelines,
as we have almost everything you need.
On board with us is a team of experienced Senior bankers,
leading finance experts, Exports-Import Executives well
versed in international trade & business. They bring
with them a wealth of experience to help address the problems
of growth in your business with competitive trade terms.
In the current competitve environment, where efficiency
and speed are vital, Export & Import order with matching
finance are hard to come by, We are sure you will find our
services useful to your business. This booklet will provide
you with basic information about us, our services &
its modalities. We shall be delighted if you could visit
our website or write / call / fax / email to us for the
discussion.
Look forward to rendering our beneficial services to your
organisation.
| Yours Sincerely, |
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Gunvantray v. parekh
Impex Solution
Bharat Parekh
Tel : 2345 38 38 & 2346 38 38 Fax : 91 22 2345 3737 M : 9820034262
Email : impexsolution@vsnl.net
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Foreign Trade HelpDesk - Your Online Exim Consultant
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Any query on Indian Foreign trade related issues?
Get Free Advise
Infodriveindia introduces the first-of-its-kind online
Foreign Trade HelpDesk to answer your queries on any
issue related with Indian Foreign Trade.
Backed by a pool of well qualified, mission-critical
experts, this customised service will answer your
queries in the most comprehensive manner. Be it related
to procedural hurdles or compliance of formalities,
tariffs & duties or legal counseling… Just
let us know the specific requirement(s). And you will
be recommended with the most viable solution to mitigate
your problem.
Coming Soon : Complete End to End Solution - including
advise , liaison & representation of your cases
at various levels of Departments Concerned.
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Questions on following
Areas will be answered
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| 2. Advance Import Licence
100% duty free |
1) Scope
Under the Advance Import Licence scheme, an exporter can either
obtain Duty-Free import from foreign countries or can acquire
from indigenous sources the Raw Materials, Intermediates,
Components, Consumables, Parts, Accessories, Packing Materials,
Computer Softwares etc. required for direct use in the product
to be exported for fulfilling an export order. |
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MORE ECONOMICAL
MORE BENIFICIAL
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2) Eligibility
All Manufacturer-Exporters and Merchant Exporters including
Exporters of Deemed-Exports and intermediate manufacturers,
can opt for 100% Basic Duty Free Advance Licence with/without
Additional Import Duty (CVD).
A) Application should be made before actual export shipment.
B) Export Shipments can be made before receipt of Advance
Licence. Prior Imports, (in full/part), ie. before making
any export shipment, is also permissible.
C) THIRD PARTY exports is also allowed. |
3) Import duty
No Import Duty is payable under specific cases i.e. 100% Duty
Free. |
4) Utilisation
100% Basic Duty free Advance Licences and goods thus imported
against said licences are freely Transferable / Saleable to
any person/firm/company, if issued, without any Actual user
Condition. |
5) Benefits
Licence is transferable, if issued, without any Actual User
Condition. Income-tax exemption on Premium earned upon transfer
of Advance Licence as per prescribed I.T. Rules.
More opportunities of Export could be seized as inputs could
be obtained / available at an international price or premium
could be earned upon transfer of Advance Licences.
You are welcome to contact us for further details to avail
the benefits of 100% Basic Duty Free Advance Licence. |
6) Export Obligation Period
The Export Obligation Period under Advance Licence has been
enhanced from 12 months to 18 months and similarly the validity
of Advance Licence has also been enhanced from 12 months to
18 months, hence the exporter gets more time of export and
import. |
7) Revalidation and Extension
of Export Obligation Period
Incase the exporter is not able to complete exports even in
this enhanced period, provision has been made for extension
of export obligation period by Regional Licensing Authority
to the extent of 6 months on payment of penalty @ 1% of unfulfilled
export obligation value. This will also provide an incentive
to the exporter to complete export obligation within the extended
period of validity of advance licence. |
| 3. Approval or permission
from RBI |
| Foreign Exchange still
being the scarce & precious commodity under present environment,
Govt. of India selectively restricts the movement of the same.
Therefore, specific permission / approvals are required from
RBI. Our deep knowledge and experience with RBI could bring
approvals / permission expeditiously. |
| 4. Avail 9% (Nine) RBI
Relief Bonds (Tax Free Bonds) |
In the scenario with share market bitten by the scam, with
some banks compelled to down their shutters, with company
fixed deposit stopping the payment of interest, and the mutual
funds being burdened by allegations of fraudulent practices,
the exasperated investor is faced with the single problem
as to where he should keep his hard earned investible funds.
The investment in 9% RBI Relief Bonds (Tax Free Bonds) is
not affected by any such outside stresses and strains. The
investment is safest irrespective of ups and downs in financial
market. |
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DEDICATED
TO YOUR FUTURE AS WE NEVER BETRAY YOUR CONFIDENCE
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1.Rate of Returns
9% tax free payable half yearly of compounded with half
yearly rests and payable on maturity.
2. Limit of Investment
Minimum Rs. 1000/- Maximum : No Limit.
3. Maturity Value
The Maturity Value of Bonds shall be Rs. 1553 for every
Rs 1000/- in 5 years.
4. Liquidity
After 5 Years as per the terms of Bonds.
5. Tax Benefits
A. Interest is totally exempted from Income Tax
B. Interest is fully exempted from Wealth tax
6. Extra Benefits
A. The Bonds may be held by individual/jointly including
NRI.
B. The Bonds may be pledged with banks for the purpose
of obtaining advances.
C. The Bonds are tranferrable by endorsement.
D. Nomination facility is available.
E. Gifts of the Bonds made by an initial subscriber
will be exempted from gift tax subject of Rs. 5 Lakhs in
the aggregate in one or more years.
F. Subscription to Bonds will be in the form of Cash/draft/cheque
or matured Relief Bonds standing in the name of applicant.
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| 5. Approval of 100% Export
Oriented Unit (EOU)/Export Processing Zone (EPZ) |
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BRING THE
BEST FROM THE WORLD TO OFFER THE BEST TO THE WORLD
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In order to encourage uninterrupted exports, the govt hs been
allowing the units to set up as 100% EOU/EPZ for the purpose
of manufacturing goods for exports. Such units may be set
up in Export Processing Zone or outside EPZ. EOU can be set
up anywhere in the country. |
Facilities and incentives
for EOU/EPZ
| A. EOU/EPZ units can import
industrial inputs free of all custom duty. |
| B. Second Hand Capital Goods
/ Equipments can also be imported. |
| C. 100% Foreign Equity is
welcomed in EOU/EPZ units. |
| D. Leasing of Capital Goods
from domestic / Foreign leasing companies. |
| E. EOU/EPZ units can raise
foreign currency loans, subject to certain conditions. |
| F. FOB Value of Exports
of EOU/EPZ are allowed to be clubbed with that of parent
/ associate companies located in the domestic tariff
area (DTA) for the purpose of getting Export House Status. |
| G. EOU/EPZ units are exempted
from the payment of central and state sales tax. |
| H. Supplies from the Domestic
tariff area to EOU/EPZ units are considered as deemed
exports and are Hence exempted from payment of Excise
duty which means that high quality inputs are available
at lower cost. |
| I. EOU/EPZ units may export
goods through Export Houses. |
| J. DTA Sale allowed, subject
to conditions. |
| K. Revision of value addition
formula. |
| L. Facility for Trading,
Re-export after labelling, repacking, repairing reconditioning |
| M. Private Bonded Warehouse
to facilitate imports, Warehousing without payment of
duty. |
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| 6. Award
for Export Performance |
Our Consultancy shall certainly act as catalyst for boosting
your export performance to enable you to win prestigious Export
Awards as well as for Recognition as Export House & Trading
House. We also make application for claiming Awards from different
Central & State Govt. Agencies. |
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WE TURN
OPPORTUNITIES INTO ACHIEVEMENTS
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| 7. Cases of Non-Beneficial
exports effected under Free / DEEC Shipping Bills |
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Exporter effecting their exports under free Shipping Bill
are not entitled for any benefits. Exports effected under
DEEC Scheme also sometimes do not bring any benefits. Such
cases may be referred to us. |
| 8.
Capital Goods Import Licence for Used / Second Hand Plant
& Machinery |
All Used / Second Hand Plant & Machinery have been restricted
for imports and to be imported against Specific Import Licence
only subject to Payment of Duty. We may be approached with
Justification for import alongwith Catalogue / Pamphlet &
Manufacturing Licence. |
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ACCESS
TO MODERN MACHINES
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| 9.
Capital Goods New @ 0% or 10% Import Duty under EPCG Scheme |
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PROSPERITY
THROUGH INDUSTRY
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New Capital goods can be imported with a licence under the
Export Promotion Capital Goods (EPCG) Scheme by all manufacturer
or merchant exporter and service providers like Hotels,
Hospitals, Air Cargo Complexes etc Capital Goods can be
imported at a Concessional rate of Customs Duty according
to the conditions stated in the table.
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The export obligations shall be on FOB basis. However in
the case of Zero duty imports, the licence holder may opt
for fulfillment of the export obligation by exporting 5
times the CIF value of the capital goods/machineries on
NFE Basis or 6 times CIF Value of Capital Goods on FOB basis
within a period of 8 years from the date of issue of licence.
For the first time the facility of import of capital goods
is totally duty free i.e with zero duty under the EPCG Scheme,
has been extended to agriculture, aquaculture, animal husbandry,
floriculture, horticulture, pisciculture, virticulture,
poultry and sericulture products.
EPCG scheme has been further liberalised by reducing threshold
limit from Rs. 20 crores to Rs. 1 Crore for Import of Capital
Goods at zero duty by sector like electronics, food processing,
garments, leather, sports goods, gems and jewellery and
agriculture and allied sectors.
| CUSTOM
DUTY |
EXPORT OBLIGATION
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PERIOD |
| FOB
BASIS |
NFE
BASIS |
| Zero Duty (In case
CIF value is Rs. 1 cr. or more) |
6 times CIF value of
capital goods |
5 times CIF value of
capital goods |
8 Years |
| 10% |
4 times CIF value of
capital goods |
Not Applicable |
5 Years |
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a) Zero duty in case CIF value is Rs. 1 Cr.
For electronics, food processing textiles, plastic
leather, sports goods, gem & jewellery sectors
& produce & products of agriculture, aquaculture,
animal Husbandry, floriculture, horticulture, pisciculture,
virticulture, poultry, sericulture.
Bio-technology sector, the following sub-sectors
of the Engineering sectors; Machine tools, parts &
accessories thereof; automotive components & accessories;
bicycle parts & accessories; handtools, cutting
& small tools; casting & forgings (ferrous
& non-ferrous) all sorts; pumps, electric motors
& parts thereof; fasteners all types (ferrous
& non-ferrous); bright bars & shafting; scientific
& surgical instruments & the following subsector
of chemicals; Drug & drug intermediates, Dyes
and Dyes intermediates, inorganic chemicals, organic
chemicals
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6 times CIF value of
capital goods |
6 times CIF value of
capital goods |
6 years |
| b) Zero duty
incase CIF value is Rs. 10 lakhs or more for software
sector |
6 times CIF value of
capital goods |
5 times CIF value of
capital goods |
6 years |
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| 10. Deemed
Exports & Special Import Licence |
Deemed Exports means those transactions in which the goods
supplied do not leave the country and the payment for the
goods is received by the supplier in India. Following supplies
can be treated as Deemed Exports.
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DOING BUSINESS
IN INDIA AGAINST GLOBAL TENDER
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A. Supply of Goods against Licences issued under Duty
Exemption Scheme.
B. Supply of Goods to units located in Export Processing
Zone (EPZ) or Export Oriented Unites (EOU) or Software/Electronic
Hardware Technology Parks (STPs) or (EHTPs)
C. Supply of capital goods to holders of licences
under the Export Promotion Capital Goods (EPCG) schemeD.
Supply of goods to projects financed by multilateral or
bilateral agencies / funds as notified by the Dept. of Economic
Affairs, Ministry of finance under International competitive
bidding or under limited global tender system in accordance
with the procedures of those agencies / funds where the
legal agreements provide for tender evaluation without including
the custom duty.
E. Supply of capital Goods and spares to the extent
of 10% of the FOR Value to fertilizer plants if the supply
is made under the procedure of International Competitive
bidding.
F. Supply of goods to any project or purpose in respect
of which the Ministry of Finance, by a notification, permits
the import of such goods at Zero custom duty coupled with
the extension of benefits
G. Supply of goods to the power, Oil and Gas Sectors
including Refineries not covered in (f) above. Deemed Export
facilities have been extended to oil and gas sectors. Incase
of fixation of brand rate of drawback under deemed exports,
the provisional payment to the extent of 75% of claimed
amount incase of private companies and 90% in the case of
Public sector undertakings shall be given instantly pending
fixation of brand rate.
H. Supply of marine freight containers by 100% EOU
(Domestic Freight containers manufacturers) to Shipping
companies including shipping corporation of India provided
the said containers are exported out of India within 6 months
or such further period as permitted by customs.
I. Supply of goods to Talcher-II and Talcher-II Transmission
projects and Sasaram HVDC East-North Interconnector project
K. Domestic manufacturers supplying against EPCG
licence shall be entitled for deemed export drawback. Incase
of supply of Zero duty licence holder, the supplier can
import raw materials duty free under special imprest licence
| Benefits |
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(a) Special Imprest Licence/Advance Intermediate
Licence
(b) Deemed Exports Drawback Scheme
(c) Refund of terminal excise duty
(d) Special Import Licence at the rate of 6%
of the FOR value (excluding all taxes and
levies)
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| 11. Disputed
Problems |
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WE READ
THE POLICY ALPHABETS FOR YOU
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Export marketing is a complex
activity compared to domestic selling,. Exporters should therefore
have the required kowledge of the rules ad regulations relating
to export control, Customs/DGFT/Excise/Industry .RBI etc.but
still if any question or doubt arises in respect of the interpretation
of any provision contained in the policy. It may be a good
idea to consult us to have specific guidelines. |
| 12.
Duty Drawback claim and Fixation of Brand Rate |
| The Govt.. has fixed drawback
rates for many of the items. The rates are revised from time
to time according to the change in excise and custom duties.
The drawback represent a refund of non remitted excise and
custom duties on inputs used in the manufacture of export
products. In order to be eligible for drawback benefits, the
exporter should export the goods under drawback shipping bill. |
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The Triplicate Copy of shipping bill should be clearly
superscribed "Drawback claim Copy" on this copy,
the exporter should give apart from the usual details,
The following particulars should be given on this copy
1. Description of Goods
2. Sub serial number of the drawback schedule.
3. Rate at which drawback is claimed
4. Name of the Bank and Branch Nominated for receipt
of Drawback amount
5. Account Number to which the drawback amount may
be sent
Fixation of Brand Rate
The drawback can be fixed or revised in the following type
of cases -
A. Where the amount or Rate of Drawback has not been
determined .
B. Where the amount or Rate of Drawback determined
is low.
C. Deemed Export facilities have been extended to
oil and gas sectors. Incase of fixation of brand rate of
drawback under deemed exports, the provisional payment to
the extent of 75% of claimed amount incase of private companies
and 90% in the case of Public sector undertakings shall
be given instantly pending fixation of brand rate.
D. Where no All Industry Rate of Drawback is available
or the same is less than 4/5th of the duties paid on the
materials or components issued in the production or manufacturer
of the said goods, the exporter may apply for fixation of
brand rate.
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| 13. Duty
Entitlement Pass Book (DEPB) Scrip against Exports |
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DUTY SAVED
IS DUTY EARNED FOR IMPORT OF ANY ITEM AGAINST EXPORT
OF ANY ITEM
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The objective of Duty Entitlement Pass Book (DEPB) Scheme
is to neutralise the incidence of basic custom duty on the
import content of the export product. The neutralisation shall
be provided by way of grant of duty credit against the export
product. The credit under the DEPB Scheme is given as an incentive
to exporters. The incentive is not paid as money to the exporter
but can be used to offset his duty on future import. |
| A. Both Merchant and manufacturer
Exporters are eligible for DEPB Scheme. |
| B. The Value of the passbook
is not import entitilement, it is custom duty credit |
| C. Any item except those
appearing in the negative list of imports shall be allowed
to import. |
| D. DEPB Scheme is operated
only in case where DEPB rate are notified / fixed by
Ministry of Commerce |
| E. DEPB credit is available
on percentage of FOB Value of Exports |
| F. Export for which payment
are not received in freely convertible currency DEPB
is not allowed. |
| G. Application fee is Rs.
5/- per thousand for Duty Entitlement Credit |
| H. DEPB is valid for 12
months. No revalidation is allowed. |
| I. Post Export DEPB is Transferrable
& Pre Export DEPB is non transferrable. |
| J. No deemed Export facility
allowed. |
| K. Export is made in Blue
Colour Shipping Bill. |
| L. No Exchange Control Copy
of DEPB is required as it is required for Custom purpose
only. |
| M. Duplicate DEPB is not
issued incase of loss of Original DEPB. |
| N. Third Party Exports are
also admissible for grant of credit under DEPB. |
| O. Credit entitlement under
DEPB Schemes come to 15% or More the amount of credit
against each such export shall not exceed 50% of the
Present Market value (PMV) of the export product. |
| P. Application can be made
upon Consolidating all shipments of a particular period
upon realisation of Export proceed (Max 25 Shipping
Bills) single port registration from which export has
been effected. |
| Q. Since there is no restriction
on the nature of goods to be imported under DEPB Scheme,
goods which are being imported can be cleared under
DEPB and the exemption of 4% Special Additional Duty
of Customs can be availed. |
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| 14. Export House Recognition
Certificate on Physical Exports of Goods |
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SOARING
TO NEW HEIGHTS IN PERFORMANCE
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The Scheme for registration and recognition of export/trading
houses are intended to strengthen the negotiating capacity
in the foreign trade and to build up enduring relationship
between them and their supporting manufacturer.
It is likely that you may be entitled to get a recognition
as Export/Trading House Certificate on the basis of your
export performance during the preceding one or three licensing
years from 1st April to 31st March.
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The Conditions
for grant of eligibility certificate and the special facilities
granted to export/trading houses are stated below on the basis
of FOB / NFE realised in freely convertible currencies.
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PERIOD APRIL TO MARCH 1999-2000
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| TYPE OF |
FOB |
FOB |
NFE |
NFE |
CLASS OF EXPORTER |
| STATUS |
96-99 |
98-99 |
96-99 |
98-99 |
MFR. / MERCHANT |
| EH |
4 |
6 |
3.33 |
5 |
MANUFACTURER |
| TH |
20 |
30 |
16.66 |
25 |
MANUFACTURER |
| EH |
6 |
9 |
5 |
7.5 |
MERCHANT |
| TH |
30 |
45 |
25 |
37.5 |
MERCHANT |
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PERIOD APRIL TO MARCH 2000-2001
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| TYPE
OF |
FOB |
FOB |
NFE |
NFE |
CLASS
OF EXPORTER |
| STATUS |
97-00 |
99-00 |
97-00 |
99-00 |
MFR. / MERCHANT |
| EH |
5 |
7.33 |
4 |
6 |
MANUFACTURER |
| TH |
25 |
37.33 |
20.66 |
30 |
MANUFACTURER |
| EH |
7.5 |
11 |
6 |
9 |
MERCHANT |
| TH |
37.5 |
56 |
31 |
45 |
MERCHANT |
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Please send us your Past Export Performance for the years
1996-97, 1997-98, 1998-99, 1999-2000 showing FOB Value in
Rs. of each product exported during each year as per following
format, stating if you are a Merchant-Exporter or Manufacturer
Exporter.
Sr.
No |
Licensing
Year |
Product Wise
Description |
Country
Wise |
FOB Value
of Exports |
| A |
1.4.96 to 31.3. 1997 |
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| B |
1.4.97 to 31.3. 1998 |
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| C |
1.4.98 to 31.3. 1999 |
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| D |
1.4.99 to 31.3. 2000 |
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Upon examination of your previous export performance. We
shall inform your good selves about the possibility of becoming
an Export & / or Trading House.
Benefits
Following benefits are available to Export Houses / Trading
Houses :
1. Transferable special import licence
a. The Licence shall be issued against your past Export
Performance. No separate Export Performance is required
for issue of Special Licence.
b. Several items of imports including Consumer Goods &
Car are allowed for Import.
c. No Bank Guarantee is required on prior imports under
Advance Licences & DEPB.
d. Expeditious assessment of Bills of Entry and Shipping
Bills by Customs on priority basis.
e. Enhancement of annual credit limits by Bank on priority
basis.
f. Securing ECGC Covers.
g. Complete exemption from pre-shipment inspection as per
Policy.
IMPORTANT
The last date for submission of application for all types
of Export House/Trading House Recognition is 30th November
or as extended.
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| 15. Export of Bulk Indian
Agro Products under Negative List |
1. All Export products under
Negative list are eligible under this Scheme and can be availed
by any Registered Exporter.
2. Substantial Demand abroad for All Variety of Indian Pulses
including flour made therefrom |
All Variety
of Indian Pulses including Flour Made Therefrom
A. Moong Dal
B. Urad Dal
C. Masoor Dal
D. Tur Dal
E. Gram / Gram Dal
F. Val / Val Dal |
G. Moth
H. Besan (Gram Flour)
I. Chori / Chora
J. Rajma (Red Kidney Beans)
K. Lobiya (Black Eye Beams)
L. Papdi |
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GREAT DEMAND
IN ABROAD FOR INDIAN PULSES
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CEREALS
Following items are covered
under Export Licence
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| 16. Excise Refund |
| Manufacturing Units
having predominant exports can encash their excess Modvat.
Such cases may be refered to us. |
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17. Financial Assistance Schemes for Agro Products
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AGROEXPORT
DEVELOPMENT FINANCE
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The
operational aspect of the policy have the twin objectives
of ensuring necessary checks and balances for effective utilisation
of various incentives and finance facilities on the one hand,
and to bring about export on the other hand. Financial Assistance
is provided to the exporters under Various Schemes approved
by Ministry of Finance. |
| 18. Finance for Pre-Post
Shipment Factoring-Forfaiting |
We will arrange to finance against your export receivables.
This facility is available when you sell to your buyers on
credit terms from 30 days to 120 days. In Domestic factoring,
we will purchase your invoices accepted by your customers
and offer pre-payment finance against them in association
with reputed International companies and Banks. |
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CONVERT
CREDIT SALE TO CASH SALE
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| 19. Fixation
of Norms for Advance Licence / DEPB |
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FIX YOUR
TARGET FOR A SECURE FUTURE
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In order to derive Maximum export benefits suitable for
your export product, it is advisable to get the specific
norms approved from Ministry of Commerce, new Delhi. as
Licensing Authority issues only 2 Duty Free Licences where
I-O Norms are not fixed. The restriction of two licences
may create the following problems.
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| a) Exports under two
licences may not be adequate to fulfill or establish long
term input-output requirements. |
| b) Input-Output norms
can only be settled when production has continued for a substantial
period of time. Export against two licences may not prove
the usage pattern conclusively |
| c) Input-Output norms
should be fixed based on production and consumption pattern
over a period of time. |
| 20. Gem & Jewellery
and Diamond REP Import Licence |
| The Exporters of Diamond,
Gem & Jewellery are eligible to obtain REP Licence. Such
Licence will be transferable / saleable to any person or firm
without any actual user condition. |
| Gem & Jewellery Scheme
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To Promote export of Gold Jewellery, the number of nominated
agencies permitted to stock gold was increased. At present
this is being done only by HHEC, SBI, MMTC and STC. This improvement
will make available adequate quantity of Gold to exports which
they can take on replenishment basis or on outright purchase
basis. Moreover, the EOU/EPZ units for Gem and Jewellery sector,
are being permitted to sell 10% of their output in the DTA
against special Import Licence(SIL) on payment of duty. |
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| 21. Gold Card Status for
Established - Export House |
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EXPORT
HOUSE GOLD CARD SINCE 1.4.1999 FOR LONGTERM BENEFITS
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Exporters who have attained or attain in future Export House,
trading House for three successive terms or more shall be
eligible for gold card status certificate which would enable
them to enjoy the benefits of Export House/ Trading House
irrespective of their actual performance thereafter as per
the guidelines issued in this regards from time to time. |
| 22. Green Card Status
for Manufacturer Exporters |
|
|
|
MFR. EXPORTER
GREEN CARD SINCE 1.4.1999 FOR SSI/SIA PREMIUM BENEFITS
|
|
All manufacturers exporting more than 50% of their production,
subject to a minimum of Rs. 1 crore in the preceding year,
shall be issued a green card by Ministry of Commerce, New
Delhi. This card will entitle the holder to such facilities
as may be specified from time to time. |
| 23. Identity card for
Nominees of your firm |
|
A. The Identity Card is compulsory in collecting import
licence / document
B. The Identity Card can be obtained in the Name of any
Executive or staff members. It is advisable to obtain I-Cards
in the name of staff to save time of executives.
|
|
| 24. Import of Negative
/ Restricted Item & Hotel Items |
|
|
|
POSITIVE
IDEA WITH NEGATIVE LIST OF ITEMS
|
|
The regional licensing authority have been empowered to
issue licence for negative list items on the basis of recommendations
received from the special licensing committee of the head
quarters. Following documents are required by us.
List of Documents
A. Import Export Code No.
B. R.C.M.C
C. Identity Card
D. Brochure
E. Justification
F. Proforma Invoice
G. SSI Certificate
|
| 25. Import of Passenger
Car and Automobile Vehicle |
Both New and Second hand Passenger cars and automobile vehicles
are in the Negative list of imports and their import is not
permitted except against a licence. |
|
|
|
EXPERIENCE
LUXURY CLASS OF AN AIRLINE ON GROUND
|
|
| 26. Life Long DEPB Enrollment
No. |
|
|
|
YOU MAKE
THE FLIGHT PLAN WE DO THE GROUND WORK
|
|
A new DEPB Enrollment number
has been made effective from 15.12.1998. Allotment of this
code number will be made to those who are in the field of
Import and Export activities. DEPB Enrollment No. is a pre
requisite for claiming export incentives like DEPB Scrip.
All Registered Manufacturers and Merchant Exporters are eligible
to receive DEPB scrip at the rate ruling from time to time
announced by Govt. under Import-Export Policy. All documents
in Original are required for establishment of Genuineness
for prevention of any fraud. |
| 27. Life Long Custom EDI
No. |
|
|
|
LAY THE
FOUNDATION FOR A SECURE FUTURE
|
|
A new Custom EDI number has been effective from 1.4.1998.
Before Starting the Export business all intending exporters
are required to obtain under the Foreign Exchange Regulations
a Code Number from customs, this number is to be cited on
the export declaration form (GR/PP) without which the customs
authorities will not permit the export. |
| 28. Life Long Importer
Exporter Code No. |
A new Import-Export Code number has been made effective from
1.4.1988. Allotment of this code number will be made to those
who are in the field of Import and Export activities the importers
code Number which are effective prior to 1.4.1988. will be
replaced by the new Import-Export Code Number from 1.4.1988.
It remains valid till any debarment by any authority. However,
for any change it is mandatory to incorporate all details
within 60 days of change. Penalty of Rs. 5000/- is levied
by government for any lapse. |
|
|
|
NO ADMISSION
WITHOUT GOVT PERMISSION
|
|
| 29. Marketing Development
Assistance (MDA) for Reimbursement of Export expenses |
Cash subsidy is available from Government to Export Houses
& Manufacturer Exporter for conducting Foreign Sales Cum
Study Tours, Participation in Exhibitions and Fair abroad
and bringing out sales literature and other Promotional materials
as well as advertising Indian Export items in publication
abroad. The applicant has to inform their plan 45 days in
advance. |
|
|
|
CA$H SUBSIDY
CO$T EFFECTIVE
|
|
| 30. NOC For Basmati Rice
& Non Basmati Rice |
|
|
NOC can be availed from apeda for Basmati Rice @ Rs. 50/-
Mt. (Non Refundable) and Non Basmati Rice @ Rs. 20/- Per Metric
Tonne ( 50% Refundable after Shipment on realisation) |
| 31. Obtaining of Manufacturing
Licence (Small Scale Industry Certificate (SSI)/Secretariat
of Indusrial Approval (SIA) |
Several incentives have been provided under import-export
policy for manufacturer-exporter therefore it is advisable
to become manufacturer and exporter inorder to derive max.
benefits under the current Policy, it is mandatory that the
exporters and manufacturer holds a valid SIA/SSI Registration.
You shall benefit immensely provided you consult us. |
|
| 32. Purchase of Expired
Non Transferrable / Valid Transferrable Advance / DEPB / SIL
Import Licence. |
|
We are interested in purchase of Expired Non Transferrable
/ Valid Transferrable Advance / DEPB / SIL Import Licence.
Please furnish following details with photostacopy.
| 1. Category of Advance
Lic. |
| 2. Total CIF Value
of Lic. ($) |
| 3. Total CIF Value
of Lic. (Rs.) |
| 4. Port of Registration |
| 5. Issue Date |
| 6. Licence validity |
| 7. Export Item |
Quantity |
FOB ($) |
FOB ($) (Rs.) |
| 8. Import Item |
Quantity |
CIF ($) |
CIF ($) (Rs.) |
|
|
| 33. Quota of Apparel /
Cotton / Powerloom / Synthetic Buy / Sell / Application |
|
|
|
AVAIL QUOTA
BEFORE YOU EXPORT
|
|
Exports of yarn, fabrics
and made ups of cotton, wool, manmade and silk vegetable fibre
blends are covered by the bilateral agreements with certain
countries and only cotton textile items are subject to quantitative
restraint and permitted to export upto specific limit prescribed
in the agreements. In respect of other items which are known
as non restricted items, exports of which are permitted by
the council. In both the cases the exporters are required
to obtain endorsements against shipping bills from the council
at Mumbai or its port offices. Council is also endorsing shipping
bills for non Quota items for shipment to countries as a general
endorsement excluding non restricted items. |
|
A. We undertake the assignment of claiming of quota
from Apparel, Synthetic & Rayon & Textile Export
Promotion Council AEPC SRTEPC and TEXPROCIL under different
systems.
B. Buying and Selling of Quota
|
| 34. Registration with
Export Promotion Council |
Membership and registration with the council is a pre-requisite
for claiming export incentive like DEPB, Quotas. In order
to derive any export benefits under the current Export - Import
Policy, it is mandatory that the exporter holds a valid RCMC
(Registration cum membership certificate of an Export Promotion
Council (EPC). Kindly consult us before becoming member of
any council as you may unnecessarily end up in paying hefty
annual subscription fees for every year for several export
promotion councils. |
|
|
|
REGISTRATION
- OUR NO.1 PRIORITY
|
|
| 35. Special Licence against
Foreign Exchange earned by Registered Exporters (Non Export
House) |
|
|
|
THE FUTURE
IS WORKING TOGETHER
|
|
The Union Commerce Ministry
has allowed the benefits of the Special Import Licence to
exporters, other than Export/Trading/Super Star Trading House,
who has directly exported goods, but excluding deemed exports,
of FOB Value of Rs. 5 Crore and above in the preceding Licensing
Year or an average FOB value of Rs. 2 Crores above during
the preceding (3) Three Licensing Years. |
Eligibility
All manufacturer-Exporters and Merchant Exporters can avail
benefits of Special Import Licence. |
| Sr. No. |
Licensing Year |
Period |
FOB Criteria |
SIL Rate |
Eligibility Condition |
| A. |
1.4.96 to 31.3.99 |
3 Year |
Average Rs. 2/- Crores |
4% |
Non-Export House |
| B. |
1.4.98 to 31.3.99 |
1 Year |
Rs. 5/- Crores & above |
4% |
Non-Export House |
| On examining your export
performance, we shall also inform your goodselves about the
possibility of your even becoming an Export House / Trading
House or for claiming Special Import Licence (SIL) as explained
above. |
| 36. Special
Licence on Quality Trade Mark ISO 9000 Series or equivalent
Std. |
Manufacturer/Processors who have acquired the quality status
of ISO 9000 (series) or ISO 14000 (Series) or HACCP Certification
or WHO-GMP or SEICMM level 2 and above Certification from
specified agencies shall be eligible for the grant of Special
Import Licence (SIL) @ 4% of the FOB Value of exports, excluding
deemed exports, if effected after 1.4.97. |
|
| PERIOD |
FOB |
SIL |
ELIGIBILITY |
| 1 OR 3 |
CRITERIA |
RATE |
CONDITION |
| 3 YEARS |
1 CRORE |
4% |
ISO/IS/ISD 9000 SERIES |
| 1 YEAR |
3 CRORE |
4% |
ISO/IS/ISD 9000 SERIES |
|
| 37. Transfer of Export
Performance |
|
|
1) Concept
Transfer of Export Performance (TEP essentially means the
transfer of the export orders from the Actual Exporter to
the Nominated Exporter. The Export Order may be largely backed
by irrevocable L/c. favouring new "Nominated Exporter".
|
|
All the responsibilities primarily lie with the Original
Exporter/Export Order holder as regards to fulfillment of
procedural formalities till the shipment and its corresponding
payment. Indemnify supply or for any other reasons, whatsoever,
will be the sole responsibility of the transferer and the
nominated exporter concerned will be indemnified in all
respects.
The Nominated Exporter stands to gain the following advantage:
|
|
2) Benefits
a) Global exposure of his Company
b) Any shortfall arising out of his Physical exports during
the preceding year is also made good.
c) This also helps him to retain his Export House status.
d) Increase in Banking limits.
e) It reduces the tax liability & Profit earned on exports
is exempted as per provisions of Income Tax announced in
Budget.
|
| 38. Value
Added Tax (VAT) Refund for expenses incurred abroad on Hotel
Travel & Food |
|
|
|
REFUND
OF ALL FOREIGN TAXES
|
|
Value added Tax wherever paid could be recovered subsequently
within specified time limits, if proper receipt is obtained
while on a sales promotion foreign tour or participation in
Exhibitions and Fair abroad.
A. Food, Travel, Accomodations, Car Rental, Gas, Telephone
Expenses etc.
B. Purchase of Imported Items.
C. Advertisement and Marketing Expenses |
|
1) Application
Vat recovery claim must cover a minimum of three months
period but not More than a Year. The period is covered as
under
| Sr. |
Countries |
Period |
Last Date |
| 1 |
EU |
Jan 1 to Dec. 31 |
Jun 30 |
| 2 |
Non EU |
Jul 1 to Jun 30 |
Dec 31 |
While invoice requirements may vary slightly from country
to country, all invoices submitted for VAT refund must include
the following information :-
2) Information
1. Name and address of the company filing for refund
2. Supplier's name, address and VAT registration number
3. Details of goods or services provided
4. Invoice date
5. Invoice total excluding VAT
6. The rate and amount of VAT charged.
7. Invoices that do not meet these requirements will be
rejected by the tax authorities.
|
| 39. Valuable International
Service Export House against Forex earnings |
Government allows registration and recognition of International
Service Export house with an objective to encourage service
providers who have engaged themselves in rendering services
in India or outside India in the expanding world trade. |
|
|
|
GREAT PERFORMANCE
ARISES WHEN THE BEST OF TWO MEET
|
|
|
The Service provider shall be eligible for recognition
as Service export Houses, International Services export
House, International Star Service Export House, International
Super Star Service export House on achieving the performance
level as mentioned below.
| Category |
Average free foreign exchange earning
during the preceding three licensing years, in Rupees
96-99 |
Free foreign exchange earning during
the preceding licensing year in Rupees
98-99 |
Average net free foreign exchange
earned made during the preceding three licensing years,
in Rupees
96-99 |
Net free foreign exchange made
during the preceding licensing year, in Rupees
98-99 |
| Service Export House |
4 Crores
|
6 Crores
|
3 Crores
|
5 Crores
|
| International Service Export House |
20 Crores
|
30 Crores
|
15 Crores
|
25 Crores
|
| International Star Service Export
House |
100 Crores
|
150 Crores
|
75 Crores
|
125 Crores
|
| International Super Star Service
Export House |
300 Crores
|
450 Crores
|
225 Crores
|
275 Crores
|
|
|
|
