Clearance of goods from Custom Bonded warehouses utilizing duty credit scrips of SFIS, VKGUY, FMS, FPS, SHIS -Reg.
Nov. 11, 2011
Members of the Council.
Subject : Clearance of goods from Custom Bonded warehouses utilizing duty credit scrips of SFIS, VKGUY, FMS, FPS, SHIS -Reg.
As members are aware, various export promotional measures are implemented under Chapter 3 of the Foreign Trade Policy 2009-14. The schemes which are availed by the leather sector under the Chapter 3 include Focus Product Scheme (FPS) under which 4% duty credit scrip is provided for notified leather products and footwear, Focus Market Scheme (FMS) under which 3% duty credit scrip is provided for export to notified countries, 2% credit scrip for finished leather under Focus Product Scheme and 1% duty credit scrip for Status Holders (except finished leather) under Status Holders Incentive Scrip (SHIS) scheme. These duty credit scrips can be utilized for payment of duty for import of goods/inputs.
The Department of Revenue, Ministry of Finance has issued a Customs Circular No. 50/2011 dated 9th November 2011 which states that the duty credit scrips issued under schemes like FPS, FMS and SHIS can also be used for payment of duty for clearance of goods from Custom Bonded Warehouses as per the procedure prescribed for DEPB scrips vide Customs Circular No. 68/2000 dated 18.8.2000 and 72/3003 dated 11.8.2003.
Copies of the aforementioned Customs Circular No. 50/2011 dated 9th November 2011, No. 68/2000 dated 18.8.2000 and No. 72/3003 dated 11.8.2003 are enclosed herewith for your reference.
Members may kindly note the above and avail the benefits.
Ali Ahmed Khan