This is regarding your observations in the article titled ‘Amendment to DFIA a step towards saving transaction cost’ that we read in the online page of Business Standard under the date line 23.02.2009. We request you to kindly elaborate on the fact stated in the custom circular No. 11/2009 dated 25.02.2009 wherein in part (d) of serial No. 9 it is said that “As regards the authorization issued prior to 01.04.2007 the Department of Commerce in Para 4.4.46 of the FTP (2008) has provided that, exemption from payment of additional duty of customs / excise duty shall continue to be available, even after endorsement of transferability. In view of this, no action need be taken to recover revenue in such cases”. Can you explain this aspect?.
The Foreign Trade Policy 2006-07 had no provision to recover Additional Duty of Customs (CVD), at the time of grant of transferability endorsement on the Duty Free Import Authorisation.
The related Customs Notification no. 40/2006-Cus. dated 1.5.2006 also did not have any provision for CVD payment. The provision was made only in the FTP 2007-08.
Therefore, the CBEC Circular says that in respect of DFIA issued during 2006-07, where imports have already been made before the amendments made through notification no.17/2009-Cus. dated 19.02.2009 and transferability endorsement has been granted, no action need be taken. For those who have not yet utilized the DFIA issued during 2006-07, the CVD payment will become necessary at the time of imports, due to the notification no. 17/2009-Cus. dated 19.2.2009, if the DFIA bears transferability endorsement.
As regards, excise duty exemption that FTP talks about, I have not come across any provision specific to DFIA in the excise law to give effect to that.
We want to export wheat flour to middle-east. Is it allowed?
Commerce Ministry Notification no. 33/2007 dated 8th October 2007, prohibits export of wheat flour. Some relaxations have been made for export to Maldives, Bangladesh, Nepal, Myanmar etc. but I can find no relaxation for export to middle-east.
For Special Economic Zone (SEZ)projects, is there any waiver of service tax on services of design and management consultancy?
The latest notification no. 09/2009-ST dated 3rd March 2009 exempts all taxable services, which are provided in relation to the authorised operations in a SEZ and received by a SEZ developer/unit, whether or not the said taxable services are provided inside the SEZ. The exemption is not available by way of a waiver of service tax.
The SEZ developer/unit has to pay the service tax and then claim refund. The procedures require obtaining service tax code number, submitting list of authorised operations approved, evidence of payment of service tax, declaration regarding receipt of service etc.
Are we required to submit CAS-4 Certificate for stock transfer to another unit?
As the value has to be 110% of Cost of Production, as per Rule 8 and 9 of Excise valuation Rules, it would be necessary.
