Policy Circular No. 26/ 2009-14 Dated 17.3.2009
Import of Ships (Vessels) & other moveable capital goods etc. if imported under
SFIS Scheme of FTP and their installation, clarification thereof.
Attention is invited to SFIS Scheme under the FTP 2004-09 & current FTP 2009-14.
Trade and Industry has represented that some Customs Authorities are seeking
‘Installation Certificate’ from the ship owners, and since the import item is a
Ship (a moveable capital asset/good), there appears to be some confusion in the
minds of Customs Authority (Particularly at Mumbai Sea Ports & Kakinada Sea
Port) in this regard, on account of which Customs has stopped allowing use of
SFIS for payment of duties on import of ships by the service providers.
2. The matter has been examined in detail. It is clarified that:
a) The provision relating to disallowing import of ‘Vehicle’ was introduced in
FTP RE2006 (Updated as on 7.4.2006) and applies to SFIS duty credits scrips
issued on Foreign Exchange earned during 2005-06 and thereafter, implying that
there is no such stipulation for SFIS duty credits scrips issued for Foreign
Exchange earned prior to 2005-06 period under the FTP. The intention of this
provision is to protect the domestic sector industry of ‘motor cars, sports
utility vehicles and the likes’ and thereby disallows such imports only under
SFIS Scheme.
b) Ships cannot be treated as ‘vehicle’. Hence, it is clarified that the import
of Ships, a capital good for Shipping Sector, is permitted under the scheme.
c) Upon imports, Ships are registered with the Director General of Shipping (or
Mercantile Marine Board, as the case may be) and only then these vessels are
treated as ‘Indian Flag vessels’. Ships are moveable capital assets; hence these
cannot be installed at one particular location. Thus, the requirement of
‘installation certificate’ cannot be insisted upon, for such moveable capital
assets /goods. Customs Authorities are accordingly not to insist on the
‘installation certificate’ for moveable capital assets /goods, if imported under
the SFIS scheme.
3. This clarification regarding non-requirement of installation certificate
shall also apply to EPCG for Service Providers wherein import of moveable
capital goods is permitted.
This issues with the approval of the DGFT. Sd/-
(A. K. Singh)
Joint Director General of Foreign Trade
(Issued from File No: 01/91/180/1659/AM10/PC-3)
ieport.com - India's Premier portal on DGFT, Customs and Central Excise
matters