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APPENDIX-
14-I-H
GUIDELINES
FOR SALE OF GOODS IN THE DOMESTIC TARIFF AREA (DTA)
BY
EOU/SEZ/EHTP/STP/BTP
UNITS:
NOTE:
Please see Paragraphs 6.8 and 6.9 of the Chapter
6 of the Exim Policy.
I.
DTA SALE ENTITLEMENT FOR EOU UNITS:
Paragraph
6.8 of the Chapter 6 of the Exim Policy provide for sale
in DTA by EOU/EHTP/STP units. Such sales in
the DTA
will be governed by the following guidelines:
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a)
The sale of goods in DTA will be subject to the
payment of licable duties as notified from time to time
by the Department of Revenue, Ministry of Finance,
Government of India. DTA sale
includes clearance to any other unit within India under
para 6.8.
b)
DTA sale entitlement will be applicable only to
those goods and services, which are permissible as per
EOU Scheme. No DTA sale will be permissible if such sale
is specifically prohibited in the EOU Scheme or the
Letter of Permission/Letter of Intent.
c)
Units may opt for DTA sales on a quarterly,
half-yearly or annual basis by intimation to the
concerned Development Commissioner of the SEZ.
d)
The DTA sales entitlement shall be availed of
within three years of the accrual of entitlement.
e)
An application for sale of goods in DTA as per
EOU Scheme by the EOUs shall be submitted to the
Development commissioner concerned in the form given at
Annexure-A.
The application shall be certified by an
independent Cost/Chartered /Cost and Works Accountant
and endorsed by the Bond Officer of Customs/Central
Excise having jurisdiction over the unit. The
Development Commissioner concerned will determine the
extent of the DTA sale admissible and issue
authorization in terms of value. However, EOUs. having
status holder certificate can sell finished goods into
DTA under para 6.8(a) of Foreign Trade Policy under
intimation to concerned Development Commissioner and
Jurisdictional Central Excise Authority in terms of Para
6.39.9 of Handbook . DTA sale in terms of Para 6.8(a) of
Policy shall be allowed only after adjustment of Advance
DTA sale permission is granted.
f)
Advance DTA sale permission not exceeding the
entitlement accruable on the exports envisaged in the
first year shall be permitted and such sale shall be
adjusted against the subsequent entitlements in a
maximum period of two years. However,
drugs and pharmaceuticals units can make advance DTA
sale of the production on the exports envisaged in the
first two years adjustable against subsequent
entitlements within a maximum period of three years from
the date of commencement of production by the unit. The
Unit shall be required to execute a bond with the
Assistant Commissioner Customs/Central Excise concerned
to cover the difference between the amount of duties
paid on the advance DTA sale and the full duties
applicable on such goods.
g)
Advance DTA
sales permission would also be admissible in cases of
capacity expansion/product diversification. In such cases,
the unit would be entitled to advance DTA sales linked
to the exports envisaged from the expansion or new
production streams or through product
diversification.
However, no advance DTA sale would be admissible
to a DTA unit converted into an EOU except in respect of
new production stream as a result of change of
technology or on account of its expanded
capacity for export.
h)
“The DTA sale entitlement would accrue only if
the unit has achieved positive NFE on
cumulative basis.
In case, a unit has not achieved positive NFE in
a
particular year and thus becomes ineligible for
DTA sale permission, the NFE and DTA entitlement in the
subsequent year(s) within a block of 5 years is to be
seen with reference to cumulative value of imports and
exports of earlier year(s). This will however not alter
the period allowed for adjustment of Advance DTA
Sale.”
i)
EOUs engaged in the manufacture of perishable
items like floriculture, horticulture, pisiculture can
also avail the facility of simultaneous sale in DTA of
such perishable items on quarterly basis, while earning
DTA entitlement on exports made during the said
quarter.
Such permission can be granted in advance by the
DC concerned subject to the condition that the unit has
achieved positive NFE cumulatively up to the previous
quarter.
j)
Units in the service sector can also avail DTA
sale as per procedure mentioned above.
k)
DTA sale of instant tea will be allowed up to 20%
of FOB value of exports in the form of tea bags or
bulk.
II.
SALE OF GEM & JEWELLERY PRODUCTS:
DTA
sale of Gem & Jewellery items will be permitted on
annual basis by the Development Commissioners up to 10%
of FOB value of exports during the preceding year
subject to following conditions:
a)
The application by an EOU will be submitted to DC
concerned on yearly basis (licensing-year) giving the
details of production and exports made during the
preceding licensing year duly certified by a Chartered
Accountant and endorsed by the jurisdictional Custom
Authority.
b)
The DTA sale of plain jewellery shall be
permitted on payment of concessional rate of duty in
Indian Rupees as applicable to sale from nominated
agencies. In respect of studded jewellery, duty shall be
payable in Indian Rupees as notified by Customs.
c)
Advance DTA sale permission not exceeding the
entitlement accruable on the exports envisaged in the
first year shall be permitted and such sale shall be
adjusted against the subsequent entitlements in a
maximum period of two years. The Unit
shall be required to execute a bond with the Assistant
Commissioner Customs/Central Excise concerned to cover
the difference between the amount of duties paid on the
advance DTA sale and the full duties applicable on such
goods.
III
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OTHER
SUPPLIES IN DTA:
(i)
Sale under para 6.9 of the Chapter 6 of the Exim
Policy
The
following guidelines shall apply to the sale of
goods in the DTA in respect of supplies specified
in paragraph 6.9 of the EOU Scheme:
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The
unit shall, at the time of application, indicate
the quantity and value of goods sought to be
supplied in the DTA. If the
sale is effected against an import license held by
the DTA purchaser, the Customs/Central Excise
Officer concerned will allow such sales after
making a suitable entry on the license of the
quantity and value of such sales. The
Import license shall cease to be valid for further
imports to the extent of such supplies effected
by
units.
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b)
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If,
the goods proposed to be sold by the units do not
require an import license, the Customs/Central
Excise Officer concerned will allow such supplies
from the unit to the DTA.
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c)
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Goods
supplied under (a) and (b) above will be taken
into account for the purposes of achievement of
NFE.
The unit will file a quarterly statement to
the Development Commissioner giving details of the
goods cleared in the DTA category-wise.
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IV.
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SALE
OF REJECTS
Sale
of rejects is also permitted in the DTA, as
provided for in para 6.8 (d) of the Chapter 6 of
the Exim Policy
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V.
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SALE
OF BY-PRODUCTS:
The
sale of by-products in the DTA is also permitted
as per provision of para 6.8 (g) of the Chapter 6
of the Exim Policy after inclusion of the item in
LOP/LOI.
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ANNEXURE
- A
APPLICATION
FOR DTA SALE PERMISSION
UNDER
PARA 6.8(a) of the Chapter 6 of the Exim Policy -- FOR
THE PERIOD
(QUARTERLY/HALF
YEARLY/ANNUAL)
I.
PROJECT DETAILS:
1. Details of the
unit
(i)
Name & Address of the unit:
(ii)
IEC No.
2. LOI/LOP/IL No. &
Date:
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3.
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Details
of the products approved for manufacture and
export in the LOP/LOI/IL |
Item(s)
of Manufacture/ Service |
Present
installed capacity |
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1.
2.
3.
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4.
Date of commencement of production:
II
DETAILS OF ADVANCE DTA SALE
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5.
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Details
of advance DTA sale permitted, if any
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Approval
No. and Date
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Particulars
of products/ service permitted
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Value
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1.
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2.
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3.
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Total
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DETAILS
OF DISPATCH UNDER PARA 6.8(a),(d),(e)& (g) of the
Chapter 6 of the Exim Policy
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6.
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Details
of DTA sale effected (Please indicate the
period)
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Description
of goods/service sold in DTA as DTA sale
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Value
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1.
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2.
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3.
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Total
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III.
PRODUCTION DETAILS FOR THE APPLICATION PERIOD
Gross
production
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I.
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Description
of goods
produced/manufactured
/service
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Total
Production including rejects and waste/scrap
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Quantity
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Ex-factory
value
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1.
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2.
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Total
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IV
DETAILS OF PHYSICAL EXPORTS FOR THE APPLICATION
PERIOD
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FOB
value of Physical Exports
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Value
of rejected
consignment, if any
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Net
FOB value of Physical
Exports
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1.
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2
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3.
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Total
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V
NET FOREIGN EXCHANGE EARNINGS
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NFE
achieved on exports in the last five years or less
as applicable
(Calculation
Chart enclosed)
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VI
PARTICULARS OF PROPOSED DTA SALE
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Description
of the items proposed to be sold in DTA
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Value
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1.
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2.
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3.
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Total
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DECLARATION
I/We
hereby declare that the information given above is true
and correct
Signature
of the applicant
Name
Designation
Seal
of the Company
CHARTERED
ACCOUNTANTS CERTIFICATE
We
have checked and verified the figures mentioned above
from the records and books of account of company and
found
them true and correct
Signature
Name
Membership
No
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