DEPARTMENT
OF COMMERCE
MINISTRY
OF COMMERCE AND INDUSTRY
DIRECTORATE
GENERAL OF FOREIGN TRADE (PC IV SECTION)
To,
ALL CONCERNED
Subject: Import of goods of Indian Origin under the
various Export Promotion Schemes
The issue of the import of goods of Indian Origin under the various
Export Promotion Schemes was considered
in the Policy Review Committee. The Committee went into the core issue of
availment of benefits by the exporter of these goods. Duty free or concessional
duty Import of such goods has the possibility of creation of a chain wherein
such goods could be exported after availing of export benefits and then
imported duty free or at concessional rate of duty at an effectively lower
price. The Department of Revenue also concurred with this view of
misutilisation and loss of revenue. In the light of this the Committee decided
to reiterate that the import of goods
of Indian origin under the Export Promotion Schemes is not permissible except
in terms of conditions laid down in Customs Notification 94/96 dtd 16.12.1996.
A
similar apprehension was also expressed by the Department of Revenue in the
case of export of goods of foreign origin under the various export promotion
schemes. As the objective of all export promotion scheme is to give duty
benefits on the inputs required for manufacturing of goods, these schemes
entail a condition of conversion of inputs into finished product in the
country. In the line with this reasoning, the export of goods of foreign origin
under these schemes will not be permitted , unless the goods have been
manufactured or re-processed or on which any operation has been carried out in
India.
However,
the aforesaid circular shall not be applicable
where no benefits are being claimed by exporter in terms of para 11.7 and 11.8 of the Exim
Policy
This
issues with the approval of the DGFT.
Dy Director
General of Foreign Trade
(File No: 01/94/180/52/AM02/
PC IV)