TMI BlogAnnual Supplement to Foreign Trade Policy, 2004-09 (updated as on 7th April,2006) – Introduction of Duty Free Import Authorization (DFIA) Scheme and Changes made in Existing Export Promotion Schemes – regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... n of Duty Free Import Authorization (DFIA) Scheme and Changes made in Existing Export Promotion Schemes - regarding. ----------- The Foreign Trade Policy, 2004-2009 and Handbook of Procedures (Vol.I) incorporating the Annual Supplement as updated on 7 th April, 2006 has been notified by DGFT vide notification No. 1(RE-2006) / 2004-2009 dated the 7 th April, 2006. The new Foreign Trade Policy (FTP) and Handbook may be perused for details. It may be seen that a new scheme called the Duty Free Import Authorization Scheme has been introduced in place of DFRC Scheme w.e.f. 1.5.2006. The DFRC Scheme got abolished on 30.4.2006. Likewise, the Target Plus Scheme (TPS) has been deleted from the Policy. Besides, a number of changes have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llage industry products and is now called Vishesh Krishi Gram Udyog Yojana. The list of products will be notified by DGFT in due course. Some other changes have also been made in this scheme. One important change is that the entitlement has been reduced to 3.5% (from 5%) for all products in cases where the exporter has availed the benefits of duty exemption / duty remission schemes under Chapter 4 of the Policy and Duty Drawback. The EOUs and SEZ units have been excluded from the purview of Vishesh Krishi Upaj Gram Udyog Yojana, meaning thereby that these units will not be eligible for the benefits of the scheme. 3.1 Notification No. 41/2005-Customs dt. 9.5.2005 has been amended by notification No. 43/2006-Customs dt. 5.5.2006 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence for annual requirement has been deleted from the Handbook. [Para 4.24 A(e)] 5.1 As part of proposals for Annual Supplement, it was brought to the notice of the Board by DOC that although the requirement of logged DEEC book has been withdrawn from the FTP in consultation with DOR w.e.f. 1.4.2002 in the case of Advance License for Annual Requirement Scheme, the Customs field formations are insisting the same for want of deletion of the clause from the corresponding Customs notification. Notification No.94 / 2004-Cus dated 10.9.2004 has since been amended vide notification No. 43/2006-Customs dt. 5.5.2006 so as to delete the requirement of DEEC book. 5.2 A sub para has been added below para 8.2(d) of the Policy to cover supply and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v) Utilisation of duty credit earned under the scheme shall not be permitted for payment of duty in case of import of vehicles. [Para 3.6.4.5 of the Policy] vi) Utilisation of duty free credit scrip earned under the scheme shall be permitted for payment of duty in case of import of capital goods under lease financing in terms of provision in para 2.25 of the Policy. [Para 3.6.4.9 of the Policy] 6.1 Notification No. 92/2004-Cus, dt. 10.9.2004 has been amended by notification No. 43/2006-Cus, dt. 5.5.2006 and may be perused for details. Other Miscellaneous Changes 7. Apart from the above, a number of other changes including some changes of procedural nature have been incorporated in the Policy and Handbook. Some of them are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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