TMI BlogNew Exim Policy 2002-07 and Handbook of Procedures, 2002-2007 - Amendments in the Notifications relating to EOU/EPZ/ETHP/STP/SEZ schemes – RegX X X X Extracts X X X X X X X X Extracts X X X X ..... 2-Cus, dated 24-6-2002 and 35/2002-CE, dated 24-6-2002. A copy each of the notifications is enclosed for easy reference. Introduction of new EXIM Policy HOP has also necessitated amendments in the existing circulars/instructions and the same has been made wherever necessary. The salient features of the changes are explained below: (i) General: 2. Under the previous Exim Policy and HOP, the EOU/ EPZ/ EHTP/ STP and SEZ schemes were covered under Chapters 9 and 9A respectively. In the new EXIM Policy and Handbook of Procedures, Vol.I, 2002-07, the EOU/ EPZ/ EHTP/ STP and SEZ schemes have been placed under Chapters 6 7 respectively. 3. In the existing notifications relating to EOU/EPZ/STP/EHTP/SEZ Schemes, at several places, references have been made to various paragraphs of the old EXIM Policy and HOP. Consequent to the re-numbering of Chapters and Paragraphs in the new EXIM Policy Handbook, these notifications were required to be amended suitably so as to reflect the new Chapter and Paragraph numbers. Further, in these notifications, references have been made to the Export and Import Policy, 1997-2002 and Handbook of Procedures, 1997-2002. The same required correctio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods by EOUs and units in EPZ/EHTP/STP/SEZ have been suitably amended so as to allow EOU/EPZ/STP/EHTP/SEZ units to procure goods without payment of duty from international exhibitions held in India. (iv) Contract Farming by Agriculture EOUs: 9. In paragraph 6.2(f) of the EXIM Policy 2002-07, a new provision has been incorporated so as to allow contract farming by the EOUs in agriculture and horticulture sector. Under this provision, the Export Oriented Units in agriculture and horticulture may import/procure duty free the goods specified in Appendix 14 B of the Handbook and take out the same to the fields of contract farmers for production or in connection therewith and bring back the produce for exports. 10. To implement the above change, notification Nos. 126/94-Cus, dated 3-6-94 136/94-CE, dated 10-11-94 governing duty free import/procurement of goods by agriculture and horticulture EOUs have been suitably amended so as to allow these EOUs to import/procure some additional micro irrigation items and to take out specified duty free imported/ procured goods for use in the farms/ fields of contract farmers and bring back produce to the EOUs for exports, subject to fulfi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s out of India. In this connection, a doubt has been raised as to whether duty free import/procurement facility should be allowed to EOUs/EPZ/SEZ units, which do not export services out of India but render such services in India, the payment of which is received in Indian Rupees. After consideration of the matter, it has been decided that the duty free import/ procurement facility would be allowed only to those service sector units which export services out of India and receive payment in freely convertible foreign currency and not to those units which render such services within the territory of India for which payment is received in Indian rupees. Accordingly, notification Nos. 53/97-Cus, dated 3-6-97; 137/2000-Cus, dated 19-10-2000; 1/95-CE, dated 4-1-95 52/2000-CE, dated 19-10-2000 have been suitably amended so as to exclude their applicability to service sector units, which do not export services out of India and receive payment in freely convertible currency. (viii) New Central Excise Rules, 2002 16. In the exemption notifications providing for duty free procurement of goods from indigenous sources by EOU/EPZ/STP/ETHP/SEZ units, there were references to the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. In the new Policy, this provision has not been included. 21. Taking note of this change, notification No. 20/97-CE, dated 11-4-1997 governing DTA sale of jewellery at a concessional rate of duty has been suitably amended so as to delete the provision regarding DTA sale of unsuitable broken/cut/polished diamond, rough diamonds precious and semi-precious stones etc. at a concessional rate of duty. (xi) Amendment in the List of Goods Allowed to be Imported/Procured Duty Free by the Units Operating under EOU/EPZ/STP/EHTP Scheme. 22. Under the erstwhile Handbook of Procedures, 1997-2002, para 9.8 had specified the list of goods, which were allowed to be imported / procured duty free by the units operating under EOU/EPZ/STP/EHTP Schemes. Now under new Exim Policy, para 6.2 of the HOP incorporates the said list. In this list, some changes have been made. The changes made are: (a) the item air-conditioners has been replaced by item Air-conditioning system . (b) the entry prototypes and technical samples for product diversification, development or evaluation has been replaced by the entry prototypes and technical samples for existing product(s) for product diversi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Board of Approvals. The units may also sell the surplus to other EOU/EPZ/STP/EHTP/SEZ units without payment of duty. However, the quantity of consumables and raw materials used for generation of power so transferred to another EOU/EPZ/STP/EHTP/SEZ units as quantified and approved by the Board of Approvals shall be accounted for by the supplying as well as receiving units for the calculation of NFEP/NFE. 26. To implement the above decision, notification Nos. 138/91-Cus, dated 22-10-91, 140/91-Cus dated 22-10-91, 95/93-Cus, dated 2-3-93, 96/93-Cus, dated 2-3-93, 133/94-Cus, dated 22-6-94, 55/97-Cus, dated 3-6-97, 137/2000-Cus, dated 19-10-2000, 126/94-CE, dated 2-9-94, 1/94-CE, dated 4-1-95 52/2000-CE dated 19-10-2000, governing duty free import/procurement of goods by EOUs and units in EPZ/STP/EHTP/SEZ units have been suitably amended vide notification No.65/2002-Cus and 36/2002-CE both dated 25-6-2002. The surplus power so sold in DTA by EOUs and units in EPZ/STP/EHTP may be adjusted against the DTA sale entitlement of the units in terms of value. DTA Sale of Gold Dust/Scrap/Wastage by Gem Jewellery Units in SEZ. 27. Under the EOU/EPZ scheme, dust/scrap sweepi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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