PUBLIC NOTICE No. 17/2002-07, Dt. 05/06/2002

Amendment in Hand Book of Procedure

In exercise of powers conferred under paragraph 2.4 of the Export and Import Policy, 2002-07, the Director General of Foreign Trade hereby makes the following amendment in the Handbook of Procedures (Vol.1):

1) The first sentence of paragraph 2.33 is corrected to read as under:

“Import of second hand capital goods, which are not more than 10 years old, shall be allowed freely to an actual user.”

2) The words and expression “ Service Export House/ International Service Export House/ International Star Service Export House/ International Super Star Service Export House” shall be substituted by the words and expression “ Export House/ Trading House/ Star Trading House/ Super Star Trading House for service providers” in paragraphs 3.2, 3.2.1 and Appendix 17A.

3) A sentence is added at the end of para 4.31 as under:

“ However in the case of exports of gold/ silver/ platinum jewellery and articles thereof, the wastage norms as per para 4.56 of the Handbook may be indicated on the EP copy of the shipping bill.”

4) A sentence is added at the end of para 4.33 as under:

“ However in case of exports of gold/ silver/ platinum jewellery and articles thereof, the CIF value would be computed from the FOB value as per the value addition given in paragraph 4.56.1 of the Handbook.”

5. Paragraph 6.20(c) shall be amended to read as under:-

Debonding of capital goods imported as second hand shall not be allowed under EPCG Scheme. In respect of second hand capital goods which are less than 10 years old on date of import, debonding may be allowed, on payment of applicable duties, after 2 years from the date of import. In addition, where the second hand capital goods are more than 10 years old, debonding may be allowed only against an import licence and payment of applicable duties.

6. Note (i) of paragraph 7.4 is corrected as under:

“If any goods are obtained from another SEZ/ EOU/ EPZ/ EHTP/ STP unit, or procured from international exhibitions held in India or precious metals are procured from nominated agencies, the value of such goods shall be included under ‘B’ ”.

7. Paragraph 7.8 is amended as under:

DTA Sale

7.8

(a) SEZ units may sell goods including by products and services in the DTA on payment of applicable duties

(b) ITA-I items to be cleared in the DTA shall undergo tariff change at four digit level. Only the value added products, which have undergone the process of manufacture would be allowed to be cleared in the DTA.

8. Paragraph 7.13(d) and (e) are corrected as under:

d) Depreciation norms for capital goods of units, including electronics, would be subject to an overall limit of 90% as notified by the Department of Revenue.

(i) Depreciation for computers and computer peripherals for all types of electronic units would be as follows:

10% for every quarter in the first year
8% for every quarter in the second year
7% for every quarter in the third year

(ii) For capital goods , other than the above, the depreciation rate would be as follows:

4% for every quarter in the first year
3% for every quarter in the second and third year; and
2.5% for every quarter in the fourth year and thereafter.

e) Debonding of capital goods imported as second hand shall not be allowed under EPCG Scheme. In respect of second hand capital goods which are less than 10 years old on date of import, debonding may be allowed, on payment of applicable duties, after 2 years from the date of import . In addition, where the second hand capital goods are more than 10 years old, debonding may be allowed only against an import licence and payment of applicable duties.

9. The word “abilities” in paragraph 7.19 (c) (i) is corrected to read as the word “liabilities”.

10. S.No 4 of Appendix 10 D pertaining to the “Application Form for Grant of Duty Free Replenishment Certificate” is amended as under:

4. S.No(s) of Standard Input Output Norms or wastage norms as per para 4.56 of Handbook for exports of gold/ silver/ platinum jewellery and articles thereof:

11. The following amendments/ additions are made in the table in Appendix 15 pertaining to “Agri Export Zones” as under

S.No	Product	State	Districts covered
1	Pineapple	West Bengal	Darjeeling, Jalpaiguri, Uttar Dinajpur, Cooch Behar and Howrah
21	Mango & Grapes	Andhra Pradesh	Ranga Reddy, Medak , Mehboobnagar
22	Mango & Vegetables	Gujarat	Ahmedabad, Khaida, Anand, Vadodara, Surat, Navsari, Valsad, Bharuch and Narmada
23	Potatoes	West Bengal	Hooghly, Budhwan, Midnapore (W), Uday Narayanpur and Howrah
24	Flowers	Uttranchal	Dehradun, Pantnagar

12. The address and contact nos of Powerloom Development & Export Promotion Council (PDEXCIL) at S.No 29 of Appendix 27 pertaining to the “List of Export Promotion Councils/ Commodity Board is amended as under:

S.No	Name of Export Promotion Council	Address of the Regd Office of the council	Address of the Regional office(s) of the council
29	The Powerloom Development & Export Promotion Council (PDEXCIL)	16, 1st Floor, Mittal Chambers, Nariman Point, Mumbai 400 021 Tel: 022-2846518/ 19, Fax 022- 2846517 Email: pdexcil.pdepc@gems.vsnl.net.in Website: www.pdexcil.org

This issues in public interest.

(N.L.Lakhanpal)
Director General of Foreign Trade

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