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Regarding Exemption under Focus Market Scheme (FMS)
July, 12th 2012

[PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

 

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

 

 

Notification No. 30/ 2012 - Central Excise

New Delhi, dated the 9th July, 2012

Ashadha 18,  1934 SAKA

 

 

            G.S.R. 542 (E). In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and sub-section (3) of section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), when cleared against a Focus Market Scheme duty credit scrip issued to an exporter by the Regional Authority in accordance with paragraph 3.14 of the Foreign Trade Policy (hereinafter referred to as the said scrip) from,-

(i)   the whole of the duty of excise leviable thereon under the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);

(ii)   the whole of the additional duty of excise leviable thereon under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957); and

(iii)  the whole of the additional duty of excise leviable thereon under section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978).

 

2.   The exemption shall be subject to the following conditions, namely:-

 

(a)     that said scrip is issued against exports to the countries notified in Appendix 37C of the Handbook of Procedures, Volume I:

 

         Provided that the following categories of exports specified in paragraph 3.17.2 and 3.14.3 of the Foreign Trade Policy shall not be counted for calculation of export performance or for computation of entitlement under the Focus Market Scheme, namely:-

 

(i)             Export Oriented Units or Electronic Hardware Technology Parks or Biotechnology Parks which are availing direct tax benefits or exemption;

(ii)           Export of imported goods covered under Para 2.35 of the Foreign Trade Policy;

(iii)          Exports through transshipment, meaning thereby that exports originating in third  country but transshipped through India;

(iv)         Deemed Exports;

(v)           Exports made by Special Economic Zone units or Special Economic Zone   products exported through Domestic Tariff Area units;

(vi)         Items, which are restricted or prohibited for export under Schedule-2 of Export    Policy in ITC (HS);

(vii)        Supplies made to Special Economic Zone units;

(viii)      Service Exports;  

(ix)         Diamonds and other precious, semi precious stones;

(x)           Gold, silver, platinum and other precious metals in any form, including plain and studded jewellery;

(xi)         Ores and Concentrates, of all types and in all forms;

(xii)        Cereals, of all types;

(xiii)      Sugar, of all types and in all forms;

(xiv)      Crude or Petroleum oil and Crude or Petroleum based products covered under ITC HS codes 2709 to 2715, of all types and in all forms; and

(xv)       Export of milk and milk products covered under ITC HS Codes 0401 to 0406, 19011001, 19011010, 2105 and 3501;

 

(b)     that the benefits under this notification shall not be available to clear the items listed   in   Appendix 37B of the Handbook of Procedures, Volume I;

(c)     that the benefits under this notification shall not be available to goods or items, the imports of which are not permitted against the said scrip;

(d)     that the said scrip is registered with the Customs authority at the port of registration (hereinafter referred as the said Customs authority);

(e)     that the holder of the scrip, who may either be the person to whom the scrip was originally issued or a transferee-holder, presents the said scrip to the said Customs authority along with a letter or proforma invoice from the supplier or manufacturer indicating details of its jurisdictional Central Excise Officer (hereinafter referred as the said Officer) and the description, quantity, value of the goods to be cleared and the duties leviable thereon, but for this exemption;

(f)      that the said Customs authority, taking into account the debits already made towards imports under Notification No. 93/2009-Customs, dated the 11th September, 2009 and this exemption, shall debit the duties leviable, but for this exemption in or on the reverse of the said scrip and also mentions the necessary details thereon, updates its own records and sends written advice of these actions to the said Officer;

(g)     that at the time of clearance, the holder of the scrip presents the said scrip debited by the said Customs authority to the said Officer along with an undertaking addressed to the said Officer that in case of any amount short debited in the said scrip he shall pay on demand an amount equal to the short debit, along with applicable interest;

(h)     that based on the said written advice and undertaking, the said Officer endorses the clearance particulars and validates, on the reverse of the said scrip, the details of the duties leviable, but for this exemption, which were debited by the said Customs authority, and keeps a record of such clearances;          

(i)            that the manufacturer retains a copy of the said scrip, debited by the said Customs authority and endorsed by the said Officer and duly attested by the holder of the scrip, in support of the clearance under this notification; and 

(j)          that the said holder of the scrip, to whom the goods were cleared, shall be entitled to avail the drawback or CENVAT credit of the duties of excise leviable under the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), against the amount debited in the said scrip and validated at the time of clearance.

 

Explanation - For the purposes of this notification,-

 

(A)   Foreign Trade Policy means the Foreign Trade Policy, 2009-14, published by the Government of India in the Ministry of Commerce and Industry, vide notification No.01 (RE 2012)/2009-2014, dated the 5th June, 2012.

 

(B) Handbook of Procedures Volume 1 means the Handbook of Procedures Volume 1, 2009-14, published by the Government of India in the Ministry of Commerce and Industry, vide Public Notice No.01 (RE 2012)/2009-2014, dated the 5th June, 2012.

 

(C)  Regional Authority means the authority competent to grant a duty credit scrip under the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992).

 

[F. No. 605/12/2012-DBK]

 

(Rajesh Kumar Agarwal)

Under Secretary to the Government of India

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