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: -
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 .
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 EOU except in respect of new production
stream as a result of change of technology.
h) The DTA sale entitlement would accrue
only if the unit has achieved positive NFE on cumulative basis.
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 |
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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a) |
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) |
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) |
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. |
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. |
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. |
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. |
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. |
Details
of advance DTA sale permitted, if any |
Approval
No. and Date |
Particulars
of products/ service permitted |
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. |
Details
of DTA sale effected (Please indicate the period) |
Description
of goods/service sold in DTA as DTA sale |
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. |
Description
of goods produced/manufactured /service |
Total Production including rejects
and waste/scrap |
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Quantity |
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 |
Value of rejected consignment, if any |
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 |
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
Seal
CERTIFICATE BY CENTRAL EXCISE AUTHORITY
Verified from the records and found correct by Inspector /
Supdt. Of Central Excise & Customs I/C of the factory
Signature
Name
Seal
Note: Each page may be verified
and signed by the Chartered Accountant
CALCULATION CHART (TO BE CERTIFIED BY A
CHARTERED ACCOUNTANT SHOWING NFE ACHIEVED IN THE LAST FIVE YEARS OR LESS AS
APPLICABLE
1. DETAILS OF EXPORTS:
(Rs. in Lakhs)
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i) |
F.O.B.
value of physical exports made in the last five years or less as applicable |
Rs. |
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ii) |
Value
of supplies made under para 6.9 of the Chapter 6 of the Exim Policy |
Rs. |
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iii) |
Total |
Rs. |
2. DETAILS OF CAPITAL GOODS INCLUDING DG SET AND OTHER
OFFICE EQUIPMENTS IMPORTED IN THE LAST FIVE YEARS OR LESS AS APPLICABLE
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(I) CIF VALUE OF IMPORTED CAPITAL
GOODS (YEAR WISE) IN THE LAST FIVE YEARS OR LESS AS APPLICABLE |
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Ist
year |
IInd
year |
IIIrd
year |
IVth
year |
Vth
year |
Total |
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(II)VALUE OF IMPORTED CG PROCURED
FROM ANOTHER EOU/SEZ UNIT OR FROM A
LEASING COMPANY IN THE LAST FIVE YEARS OR LESS AS APPLICABLE |
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Ist
year |
IInd
year |
IIIrd
year |
IVth
year |
Vth
year |
VIth
year |
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3. |
AMORTISED
VALUE OF CAPITAL GOODS (Please
see Note below for calculation) |
Rs. |
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4. |
DETAILS
OF IMPORTED RAW MATERIAL |
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(i) |
Total
CIF value of imported raw materials, consumables including POL products and
components etc. in the last five years or less applicable |
Rs. |
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(ii) |
Value of purchases made under Para
6.9 (b) & para 6.13(a) &(c) of Chapter 6 of the Exim Policy in the
last five years or less applicable |
Rs. |
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Iii) |
Value
of goods indicated at (i) & (ii) above held in stock or under
process at the end of the relevant
period |
Rs. |
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iv) |
Value
of raw materials etc. used in goods produced and cleared from the unit {[(i)
+ (ii)]-[(iii)} |
Rs. |
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5. Total
value of indigenous raw materials, consumables Rs.________________ components etc, used in goods produced and
cleared from the unit in the last five
years or less as applicable
6. OTHER
OUTFLOW OF FOREIGN EXCHANGE IN THE LAST FIVE YEARS OR LESS AS APPLICABLE
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(i) |
Dividends |
Rs. |
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(ii) |
Profit |
Rs. |
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(iii) |
Technical know how fee |
Rs. |
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(iv) |
Royalty |
Rs. |
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(v) |
Commission |
Rs. |
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(vi) |
Foreign travel |
Rs. |
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(vii) |
Any
other outflow in foreign exchange (Please
indicate details) |
Rs. |
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Total |
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Rs. |
7. NFE achieved
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A - B> 0
Where A = FOB value of exports
B = Sum total
of value of imported inputs used. Proportionate (amortised) value of imported
capital goods, technical know-how fee and other expenses made in foreign
exchange
Note: The proportionate (amortized) value of imported capital goods
and technical know-how fee shall be calculated as per the formula given in note
(iii) of para 6.10.4 of the Chapter 6 of the Handbook of Procedures (Vol. I).