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February 2009

Some of the  Important Announcements of the Government during the month of February, 2009




1.       M/s Intertek Deutschland GmbH, Germany is delisted from the List of Inspection and Certification Agencies (Appendix 5) videPublic Notice No.141(RE-2008)/2004-09 dated 4th February, 2009.


2.        All Frozen Fish, products covered under specified ITC HS codes are included in the list of Flower, Fruit, Vegetables & Other Products -Appendix 37A, Table 13 (VKGUY Product Codes 13.18 to 13.20) for benefit under VKGUY videPublic Notice No.142(RE-2008)/2004-09 dated 4th February,2009.


3.        Public Notice No.143(RE-2008)/2004-09 dated 19th February 2009 amends ANF 3E for Focus Product Scheme.


4.        The Export Promotion Council for Handicraft (EPCH) shall certify that the exported products is a Handicraft products- Appendix 37A, Table 15 for benefits under VKGUY videPublic Notice No.144(RE-2008)/2004-09 dated 13th February, 2009.


5.        Export Obligation for advance authorization for sugarstands automatically extended upto 31.12.2009 without payment of composition fee vide Public Notice No.145(RE-2008)/2004-09 dated 17th February,2009.


6.        Raw Cotton (Cotton, not carded or combed) covered by ITC HS Code 520100, except ITC HS Code 52010020 isincluded in the list of New VKGUY products Appendix 37A, Table 14 (VKGUY Product Codes 14.4) for benefit under VKGUY videPublic Notice No.146(RE-2008)/2004-09 dated 17thFebruary,2009.


7.        Re-import of samples by EOUs/EHTP/BTP/STP units for statutory requirement of stability& retention, under intimation to the customs authorities, and FOB value of such samples shall not be counted for NFE purpose and other export benefits by addition in Para 6.29.3 vide Public Notice No.147(RE-2008)/2004-09 dated 17th February, 2009.

8.        Public Notice No.148(RE-2008)/2004-09 dated 17th February, 2009 make amendments in the Appendix 37D, Table 2 for Sports Goods, Fire Works and Stationery items.


9.       Public Notice No.149(RE-2008)/2004-09 dated 23rdFebruary, 2009 makes the changes in list of Nodel Officers nominated to assist exporters (Appendix 17).


10.      Following facilitation measures are notified vide Public Notice No.151 dated 26.2.2009


-          Grant of Duty credit scrips under Chapter 3 and under DEPB scheme shall now be issued without BRC.



-           Rupees 325 Crores Assistance under Promotional Schemes for Leather, Textile etc. for exports made with effect from 1.4.09.


-           Benefit of 5% under FPSnotified for export of Handmade carpets, in lieu of 3.5% benefit allowed earlier under VKGUY Scheme.


-          Technical textiles and stapling machine have been added under Focus Product Scheme.


-          An additional benefit of 2.5% is notified for export of dried vegetables under VKGUY


-           Import restrictions on worked corals have been removed to address the grievance of gem and jewellery exporters.


-          Authorised person of Gem & Jewellery units in EOU shall be allowed personal carriage of gold in primary form upto 10 kgs in a financial year subject to RBI and customs guidelines.


-         Export obligation period against advance authorizations has been extended upto 36 months in view of the present global economic slowdown.


-           Supply of an Intermediate product by the domestic supplier directly from their factory to the Port against Advance Intermediate Authorisation, for export by ultimate exporter, has been allowed.


-         For Advance Licenses issued prior to 1.4.2002, the requirement of MODVAT/CENVAT certificate dispensed with in cases where the Customs Notification itself prescribed for payment of CVD. This will help in closure of a number of pending advance licences.


-           In case of Advance Authorisation for Annual Requirement where Standard Input-Output Norms are not fixed, the provisions in Customs Notification have been amended in line with Foreign Trade Policy.


-          DEPB/Duty Credit Scrip can now also be used for payment of duty only on items which are under free category. The utilization is now extended for payment of duty for import of restricted items also.


-        Value cap applicable under DEPB have been revised upwards for 2 products.


-          Provision of relief on average export obligation under Para 5.11.3 is extended for the year 2009-10, for exports during 2008-09.



-         EPCG Authorisation / Redemption Form i.e ANF 5A and 5B are being simplified and new forms would be issued shortly.


-                     In view of the prevailing global slowdown, the threshold limit for recognition as Premier Trading House has now been reduced to Rs.7500 crores.


-           Bhilwara in Rajasthan and Surat in Gujarat have been recognized as Towns of Export Excellence, for textiles and diamonds respectively.


-          Re-imbursement of additional duty of excise levied on fuel under the Finance Acts would also be admissible in respect of EOUs.


-                  Re-credit of 4% SAD, in case of payment of duty by incentive scheme scrips such as VKGUY, FPS and FMS, has now been allowed.


-                   Export of blood samples is now permitted without license after obtaining ‘no objection certificate' from Director General of Health Services (DGHS).


-           Simplified export procedure for issue of Free Sale Certificate.


-         Krishnapatnam seaport included for the purpose of Export Promotion Scheme.


-           Electronic Message Transfer facility for Advance Authorisation and EPCG Scheme established for shipments from EDI ports w.e.f. 1.4.2009. Requirement of hard copy of Shipping Bills dispensed with for Export Obligation discharge.


11.      Public Notice No.152(RE-2008)/2004-2009 dated 26th February, 2009 notifies the upward revision inValue CapforHigh Voltage Solid Core porcelain Insulators and High Voltage Tubular Porcelain Insulators(Sl. No. 688 & 689 of Product Group Chemicals Products (Product Code 62) in DEPB Schedule.


12.      Prohibition on export of wheat flour shall not be applicable to export of 29,177 MT to Maldives through M/s PEC Limited as per Notification No.85 (RE-2008)/2004-2009 dated 13th February, 2009.


13.       Notification No.86(RE-2008)/2004-2009 dated 17th February, 2009 allow import of raw sugar against advance authorisation.ThisNotification also provide that actual user condition shall not be applicable in case of import of raw sugar from 17.2.2009 till 30.9.2009 under advance authorisation.

14.       Prohibited items of export mentioned in ITC (HS) Book shall not be entitled for DEPB credit except for the exports effected under transitional facility as per Notification No.87(RE-2008)/2004-2009 dated 17th February, 2009.


15.       Following facilitation measures are notified vide Notification No.88(RE-2008)/2004-09 dated 26th February, 2009:



-        STCL Limited, Diamond India Limited, MSTC Limited, Gem & JewelleryExport Promotion Council and Star Trading Houses (for gem and jewellery sector) have been added under the list of nominated agencies notified under Para 4A.4 of Foreign Trade Policy for the purpose of import of precious metals.


-                   Notification of DFIA scheme aligned with FTP provisions.


16.    Notification No.89(RE-2008)/2004-2009 dated 26thFebruary, 2009 amend the Import Policyof rough / unprocessed blocks and slabs of agglomerated / artificial stones.


17.     Policy Circular No.59(RE-08)/2004-09 dated 10th February 2009 clarifies the importability of items where import restrictions have been removed vide Notification No.81 dated 16.1.2009.


18.    Policy Circular No.60(RE-08)/2004-09 dated 12th February, 2009 issue clarification relating toacceptance of Tracking Report, duly certified by accredited agent of goods carrier, under FMS and Market Linked Focus Product Scheme.


19.     Policy Circular No.61(RE-08)/2004-09 dated 13th February, 2009 clarify that import of construction equipment is not allowed only for construction activities for building factory/project by EPCG authorization applicant.The import of construction equipment shall only be permitted to Service Providers subject to the conditions specified in the above Policy Circular.


20.     Policy Circular No.62(RE-08)/2004-09 dated 13th February, 2009 issues clarification on grant of SFIS benefits to Service providers under EPCG scheme for the period 1.4.2007 – 31.3.2008.


21.    Policy Circular No.64(RE-08)/2004-09 dated 26th February, 2009 issue clarification relating to issuing of Free Sale and Commerce Certificate.


22.     Policy Circular No.65(RE-08)/2004-09 dated 26th February, 2009 issue guidelines for import for Rough Marble Blocks and Slabs for the year 2008-09.


23.     Policy Circular No.66(RE-08)/2004-2009 dated 26th February 2009 issued guidelines for import for Rough Blocks and Slabs of agglomerated/artificial stones for the year 2008-09.

February 2009