We bought certain raw material under advance licence for the manufacture and export of final goods, but due to cancellation of the order, we have to use the raw material for domestic sales. We will not be able to close these Advance Licences. So, can we pay the amount of duty through Status Holder Incentive Scrip (SHIS) issued to us?
For regularisation of bonafide default, you have to follow the provisions of Para 4.28 of the Handbook of Procedures, Vol. 1 (HB-1). It says that for shortfall in quantity, you should pay to customs authorities, customs duty on the unutilised value of imported/indigenously procured material along with interest as notified. It also says that for the customs duty component, the authorisation holder has the option to furnish valid duty credit scrips issued under Chapter 3 of FTP and DEPB. Para 3.17.11 of the Foreign Trade Policy (FTP) says that "Duty Credit Scrip can also be utilised/debited for payment of Custom Duties in case of EO defaults for Authorisations issued under Chapters 4 and 5 of this Policy. However, penalty/interest shall be required to be paid in cash". Therefore, you can utilise SHIS issued to you for regularisation of default under advance authorisation scheme.
Can you throw some insight on the definition of 'managed hotels'? An illustration will help me understand the same better.
As per Para 9.35 of FTP, a "managed hotel" means hotels managed by a three star or above hotel/ hotel chain under an operating management contract for a duration of at least three years between the operating hotel/ hotel chain and the hotel being managed. The management contract must necessarily cover the entire gamut of operations/management of managed hotel. For example, if Taj Hotels takes over a hotel in some city and runs it under a contract for three years under the name, say, 'Taj Gateway', in that case 'Taj Gateway' becomes a 'managed hotel' of Taj Hotels. Many hotel chains manage hotels under their brand names rather than own them.
As manufacturer-exporters, we are claiming benefit under chapter 3 incentive scheme for the last two years. Our EDI shipping bill has been added to the Repository. Though we have a hard copy of e-BRC, we are unable to attach it online to the particular EDI Shipping bill or to feed it manually. Can you give us a solution?
Please see the FAQ on e-BRC at the website of the DGFT. You may log on to dgft.gov.in and then take the link at left hand top to 'read me first'. From there you can get the link to FAQ. S.Nos. 22, 23, 28 and 35 of FAQ deal with queries similar to yours. If you still have problems, you may take up the matter with the DGFT.
As merchant exporters, are we required to be registered with the excise authorities for getting CT-1?
No. But, if you are registered with the concerned export promotion council, you can give a B-1 bond without a bank guarantee and obtain CT-1.
Business Standard invites readers' SME queries related to excise, VAT and exim policy. You can write to us at smechat@bsmail.in
For regularisation of bonafide default, you have to follow the provisions of Para 4.28 of the Handbook of Procedures, Vol. 1 (HB-1). It says that for shortfall in quantity, you should pay to customs authorities, customs duty on the unutilised value of imported/indigenously procured material along with interest as notified. It also says that for the customs duty component, the authorisation holder has the option to furnish valid duty credit scrips issued under Chapter 3 of FTP and DEPB. Para 3.17.11 of the Foreign Trade Policy (FTP) says that "Duty Credit Scrip can also be utilised/debited for payment of Custom Duties in case of EO defaults for Authorisations issued under Chapters 4 and 5 of this Policy. However, penalty/interest shall be required to be paid in cash". Therefore, you can utilise SHIS issued to you for regularisation of default under advance authorisation scheme.
Can you throw some insight on the definition of 'managed hotels'? An illustration will help me understand the same better.
As per Para 9.35 of FTP, a "managed hotel" means hotels managed by a three star or above hotel/ hotel chain under an operating management contract for a duration of at least three years between the operating hotel/ hotel chain and the hotel being managed. The management contract must necessarily cover the entire gamut of operations/management of managed hotel. For example, if Taj Hotels takes over a hotel in some city and runs it under a contract for three years under the name, say, 'Taj Gateway', in that case 'Taj Gateway' becomes a 'managed hotel' of Taj Hotels. Many hotel chains manage hotels under their brand names rather than own them.
As manufacturer-exporters, we are claiming benefit under chapter 3 incentive scheme for the last two years. Our EDI shipping bill has been added to the Repository. Though we have a hard copy of e-BRC, we are unable to attach it online to the particular EDI Shipping bill or to feed it manually. Can you give us a solution?
Please see the FAQ on e-BRC at the website of the DGFT. You may log on to dgft.gov.in and then take the link at left hand top to 'read me first'. From there you can get the link to FAQ. S.Nos. 22, 23, 28 and 35 of FAQ deal with queries similar to yours. If you still have problems, you may take up the matter with the DGFT.
As merchant exporters, are we required to be registered with the excise authorities for getting CT-1?
No. But, if you are registered with the concerned export promotion council, you can give a B-1 bond without a bank guarantee and obtain CT-1.
Business Standard invites readers' SME queries related to excise, VAT and exim policy. You can write to us at smechat@bsmail.in