Customs Notifications re Implementation of the various schemes announced / being continued in the new FTP 2009-14
Sub: Customs Notifications re Implementation of the various schemes announced / being continued in the new FTP 2009-14
Subsequent to the announcement of the new Foreign Trade Policy 2009-14, the Department of Revenue, Ministry of Finance has issued the following implementation Notifications
- No: 92/2009 dtd 11.9.1009 regarding utilization of the 2% Focus Product Scheme(FPS) Duty Credit Scrip and No: 93/2009 dtd 11.9.2009 regarding utilization of the3% Focus Market Scheme (FMS) Duty Credit Scrip, for claiming Customs Duty and Additional Duty exemption. It may be noted that vide FTP 2009-14 the Duty Credit Scrip under Focus Product Scheme (FPS) enhanced from 1.25% to 2% of FOB Duty Credit Scrip under Focus Market Scheme (FMS) enhanced from 2.5% to 3% of FOB.
- Customs Notification No: 96/2009 re Implementation of the Advance Authorization Scheme & Notification No: 99/2009 of 11.9.09 regarding implementation of the Advance Authorization Scheme for Annual Requirement which only status holders and exporters with past export performance (preceding 2 years) are entitled to,
- Customs Notifications No:s, 101/2009 & 102/2009 dtd 11.9.09 re Implementation of the EPCG Scheme announced in FTP 2009-14 as per which zero percent customs duty was allowed for imports of goods under EPCG for certain sectors including Leather & Footwear. Notification No: 101/2009 give the details of the EPCG Scheme to Common Service Providers under zero customs duty while Notification No:s 102/2009 give the details of the EPCG Scheme to manufacturer-exporters of goods eligible for zero customs duty. The Export Obligation on the ECPG Authorization Holder would be, on Free On Board (FOB) basis equivalent to six times the duty saved on capital goods imported under the scheme to be fulfilled in 6 years from date of authorization. In the first block of 1st to 4th year 50% of the Export Obligation is to be fulfilled and in the next block of 5th to 6th year the balance 50% obligation is to be fulfilled.
The Notification also states that spares (including refurbished/reconditioned spares), moulds, dies, jigs, fixtures, tools, refractory for initial lining and catalyst for initial charge, for the existing plant and machinery (imported earlier, under EPCG or otherwise), shall be allowed to be imported under the EPCG scheme subject to an export obligation equivalent to 50% of the normal export obligation prescribed above.
All the above Notifications are attached herewith for ready reference. Members may kindly take note of the same.
Ali Ahmed Khan