ELECTRONIC HARDWARE TECHNOLOGY
PARK (EHTP) SCHEME
[SO 387(E), DATED 30-4-1995]
1. Attention is invited to Ministry of Commerce Notification No. 42/N-83/92-97, dated 14th September, 1992, notifying the above Scheme.
2. In pursuance of the powers vested in sub-section (1) of section 3 of the Foreign Trade (Development and Regulation) Act, 1992, the Central Government hereby notifies the following amended Electronic Hardware Technology Park (EHTP) Scheme.
3. An Electronic Hardware Technology Park (EHTP) may be set up by the Central Government, State Governments, public or private sector undertakings or any combination thereof. An EHTP may be an individual unit by itself or a unit located in an area designated as an EHTP.
4. The Scheme will be administered by the Department of Electronics, Government of India, New Delhi. All applications for establishing an area to be designated as an EHTP or for setting up an individual unit as an EHTP may be made to the Department of Electronics. Such applications will be considered by an Inter-Ministerial Standing Committee (IMSC) constituted under the chairmanship of the Secretary, Department of Electronics.
5. An EHTP unit may in terms of the customs notification issued for the purpose, import free of duty all types of goods, including capital goods required by it for its production, provided they are not prohibited items in the negative list of imports of the Export and Import Policy (1992-97). Second-hand capital goods may also be imported by EHTP units in accordance with the policy.
6. An EHTP will be a duty-free and bonded area and the manufacturing operations in the EHTP unit would be carried out in customs bond.
7. The entire production of an EHTP unit shall be exported except the sales in the Domestic Tariff Area (DTA) according to the following norms :-
|
Value addition
achieved by the EHTP |
Permissible sale in the Domestic Tariff Area (DTA) |
|
(a) Less than 15 per cent |
Nil |
|
(b) 15 per cent - 25 per cent |
Up to 30 per cent of the production in value terms of electronic items including components manufactured by the EHTP unit. |
|
(c) More than 25 per cent |
Up to 40 per cent of the production in value terms of electronic items including components manufactured by the EHTP unit. |
Note :- 1. An EHTP unit may bunch the products manufactured by it for sale in the DTA within its entitlement.
8. The following supplies shall be counted towards fulfilment of the export obligation of EHTP units :-
(a) Supplies specified in para 121 of the EXIM policy ;
(b) Supplies effected in DTA against payment in foreign exchange.
9. The EHTP unit will be eligible for the following benefits :-
(i) Tax holiday - The EHTP will be exempted from payment of corporate income-tax for a block of five years in the first eight years of its operation.
(ii) Clubbing of Net Foreign Exchange (NFE) - The NFE earned by an ERTP unit can be clubbed with the NFE of its parent/associate company in the DTA for the purpose of according Export House/Trading House/Star Trading House status for the latter. NFE for this purpose will be calculated according to the formula given in para 138 of Chapter XII of the Export and Import Policy ( 1992-97).
(iii) 100 per cent foreign equity- Foreign equity up to 100 per cent permissible in the case of EHTP units.
10. Supplies made from the DTA to an EHTP unit will be regarded as deemed exports and will be eligible for the benefits specified in paragraphs 106 and 122 of the Export and Import Policy (1992-97). Such benefits shall be available provided the goods supplied to the EHTP unit are manufactured in the country and the supplies are made against a letter of authority issued by an officer designated in this behalf by the Department of Electronics, Government of India.
11. The provisions of paragraphs 96,104,105,109,110 and 111 to 117, Chapter IX of the Export and Import Policy (1992-97) applicable to Export Oriented Units (EOUs) and units in Export Processing Zones (EPZs) shall also apply to the EHTP units subject to the following modifications :
(a) The word EHTP shall be substituted for the words EOU/EPZ or EOUs or EPZs, wherever they occur, in these paragraphs.
(b) The words Development Commissioner, wherever they occur, shall be substituted by the words the officer designated by the Department of Electronics, Government of India.
(c) The word BOA, wherever it occurs, shall be substituted by the word IMSC.
12. Value addition for the purpose of this scheme shall be expressed as a percentage and shall be calculated for a period of five years according to the following formula :
Value addition = (A - B)/A X 100
Where A is the FOB value of exports realised by the EHTP unit and B is the sum total of the CIF value of all imported inputs, the CIF value of all imported capital goods and the value of all payments made in foreign exchange by way of commission, royalty, fees or any other charges. Inputs means raw materials, intermediates, components, consumables, parts and packaging materials.
If any input is obtained from another EHTP unit, the value of such input shall be included under B.
If any capital goods imported duty free are leased from a domestic leasing company, the CIF value of the capital goods shall be included under B.
13. An EHTP unit may be set up for both software and hardware in an integrated manner subject to the condition that the minimum value addition for the software components will be 60 per cent and the DTA sale of software shall be restricted to 25 per cent of the production of software in value terms.
14. In respect of an electronic unit established in an EPZ or as an EOU under Chapter IX of that policy, the provisions of that Chapter will apply.
15. This notification is issued in public interest.
|
