Chatroom: Individuals can get up to $250,000 forex for their foreign trips

We refer to Para 6.17(d) of the FTP which says that an EOU/ EHTP/STP/BTP unit may also be permitted by DC to exit from the scheme at any time on payment of applicable duties and taxes and compe­nsation cess on capital goods under the prevailing EPCG Scheme for DTA Units. Please clarify as to how we can be asked to pay the BCD, IGST etc. when the EPCG scheme allows imports at zero duty.
 

In the above Para, the words ‘applicable duty’ means ‘the duty applicable under the relev­ant EPCG authorisation’. At present, the imports under the EPCG scheme (notification 26/2003-Cus dated 1st April 2023) are exempted from BCD, IGST and Cess. Any other dut­ies such as anti-dumping duty, safeguard duty, anti-subsidy countervailing duty, if applicable, will be payable. So, the app­licable BCD, IGST and Ce­ss, when you clear the capital goods CG from EOU under the EPCG authorisation will be ‘nil’. 
 

 

We refer to the guidelines for sale/advance sale of goods in DTA by EOUs at Appendix-6G of HBP. We are an engin­eering DTA unit converting to EOU. Are these guidelines relevant for us?
 

Para 6.07(a) allows sale in DTA without any limit for EOUs in sectors other than gem and jewellery and services, so long as you achieve positive NFE. So, in your case, these guidelines have no relevance except when you want advance DTA sale (i.e. before achieving positive NFE) due to new production stream as a result of change of technology or on account of its expanded capacity for export, as mentioned at Para I(f) of the Appendix-6G.
 

We had re-imported certain goods for repairs and re-export and cleared the goods under the notification 158/95-Cus dated 14th November 1995. We could not re-export the goods within the time limit of 6+6 months. Now, can we pay the duties and then re-export the same goods to some other party and claim drawback of the duty paid under Section 74 of the Customs Act, 1962?
 

Yes. CBEC Circular no.72/2002-Cus dated 1st November 2002 makes it clear that so long as the conditions specified in Section 74 of Customs Act, Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995 and relevant notifications issued under Section 74 are fulfilled, drawback u/s 74 should be allowed on merits without insisting on re-export of goods to the same supplier or that the re-export should take place from the same port.
 

How much foreign exchange can I get for my visit abroad?
 

For private visits abroad, other than to Nepal/Bhutan, any resident individual can get foreign exchange up to an aggregate amount of $250,000 from any AD/FFMC, in any one financial year, irrespective of the number of visits undertaken during the year. Further, all tour related expenses including cost of rail/road/water transportation, cost of Eurail passes/ tickets etc. outside India and overseas hotel/lodging expe­nses shall be subsumed under this limit. The tour operator can collect this amount 

either in INR/FC from the resident traveller.