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DGFT PUBLIC NOTICE No  21 /2002-07 dated 1.7.2002
Sub contracting under EOU/EPZ/ SEZ, DE benefits for supplies to EOU/EPZ/ EHTP/ STP, additions/ amendments in SEZ and other minor amendments

 

In exercise of powers conferred under paragraph 2.4 of the Export and Import Policy, 2002-07, the Director General of Foreign Trade hereby makes the following amendment/correction in the Handbook of Procedures (Vol.1):

 

 

1)       Paragraph 3.6 pertaining to the “Export Promotion Council” is amended as under:

“ The general policy relating to the Export Promotion Councils is given in Chapter – 2 of the Policy. A list of Export Promotion Councils/ Commodity Boards is given in Appendix 27.”

 

2)       Paragraph 6.15 (a) to (f) pertaining to the provision of “Sub Contracting”  is corrected. The corrected paras would read as under:

 

(a)     EOU/ EPZ/ EHTP units may be permitted to remove moulds, jigs, tools, fixtures, tackles, instruments, hangers and patterns and drawings to the premises of the sub contractors subject to the conditions that these shall be brought back to the bonded premises of EOU/ EPZ/ EHTP unit on completion of the job work within a stipulated period.

 

(b)    Export of finished good directly from the job worker’s premises may be permitted provided the job worker’s premises is registered with the Central Excise authorities. However, export of such products from the job worker’s premises shall not be allowed through third parties as provided under paragraph 6.10 of the Policy.

 

Accordingly para 6.15 (g) pertaining to “ Contract farming”  is renumbered as 6.15 (c).

 

 

3)       Paragraph 7.12 pertaining to the provision of “ Sub Contracting” for SEZ units is corrected. The corrected para would read as under:

(a)     Export of finished goods directly from the job worker’s premises may be permitted provided the job worker’s premises are registered with the Central Excise authorities. Export of such products from the job worker’s premises shall not be allowed through third parties as provided for under paragraph 7.10 of the Policy.

 

(b)    In case of SEZ units undertaking job work for export on behalf of DTA unit in  terms of paragraph 7.12 of the Policy, the finished goods shall be exported directly from the SEZ unit and export documents shall be in the name of DTA unit.

 

(c)     SEZ units may be permitted to remove moulds, jigs, tools, fixtures, tackles, instruments, hangers and patterns and drawings to the premises of sub contractors subject to the conditions that these shall be brought back to the bonded premises of SEZ units on completion of the job work within a stipulated period.

 

4)       The last sub- para of paragraph 8.6.1 is deleted without making any alterations in the first two sub paras. Hence para 8.6.1 is amended as under:-

 

8.6.1            In respect of supplies under paragraph 8.2 (b) of the Policy, the DTA unit shall claim the Advance Licence for deemed export from the concerned licencing authorities. Alternatively, the DTA unit may claim deemed export drawback from the concerned Development Commissioner. However, for supplies to EHTP/ STP , the DTA unit shall claim deemed export benefits from the licencing authorities concerned.

 

Such supplies shall be certified by the receiving agencies.

 

5)       S.No 2 of the documents to be enclosed with the application form in Appendix 10 B pertaining to the “Application Form for Grant of Advance Licence under Duty Exemption Scheme” is amended as under:

 

2. Project Authority Certificate in case of application for Advance Licence for deemed export (except in the case of supplies to an EPCG licence holder wherein the invalidation letter would suffice) or a copy of invalidation letter in case of application for Advance Licence for intermediate supply.

 

6)       Four new Agri Export Zones are added at S. Nos 25, 26, 27 & 28 in Appendix 15 pertaining to “Agri Export Zone”. Similarly the Agri export zone at S.No 6 which was restricted to 13 mandals of Chitoor district of Andhra Pradesh has been expanded to cover the entire Chitoor district. All these amendments/ additions are tabulated as under:

 

S.No

Product

State

Districts covered

6

Mango Pulp & Fresh Vegetables

Andhra Pradesh

Chitoor

25

Flowers (Orchids) & Cherry Pepper

Sikkim

East Sikkim

26

Ginger

Sikkim

North, East, South & West Sikkim

27

Rose Onion

Karnataka

Bangalore (Urban), Bangalore (Rural), Kolar

28

Flowers

Karnataka

Bangalore (Urban), Bangalore (Rural), Kolar, Tumkur, Kodagu and Belgaum

 

 This issues in public interest.

 

 

(N.L.Lakhanpal)

Director General of Foreign Trade