LMPC Registration in India at Lowest Price

BORN IN INDIA I SERVED FROM INDIA I TO THE GLOBE

Dated: 14.10.2020

Importer’s Registration under LMPC in India at Lowest Price

All pre-packaged commodities imported into India shall confirm to the requirements of the Legal Metrology Act, 2009 and Legal Metrology (Packaged Commodities) Rules, 2011.

Under the Legal Metrology (Packaged Commodities) Rules, 2011, the importer of pre-packaged commodity should be registered under Rule 27. The registration will be done by the Director or controller of Legal Metrology of the State and the registration Fees is INR 500 only however the other incidental expenses are additional.

Whoever manufactures or packs or imports or causes to be manufactured or packed or imported, any pre-packaged commodity, with error in pet quantity as may be prescribed shall be punished with fine which shall not be less than ten thousand rupees but which may extend to fifty thousand rupees and for the second and subsequent offence, with fine which may extend to One Lakh Rupees or with imprisonment for a term which may extend to one year or with both.

Obtain your LMPC regn at a lowest possible price of INR 17500 Plus GST only for PAN India location. The local inspection shall be notified to you appropriately in the due course of the application process.

We assist you in obtaining the said LMPC registration for PAN India. Kindly download & fill the LMPC Registration Request Form, at the end of this publication, with the relevant company, owner & product detail and send it back to us via email only given at the end.

Documents Checklist in PDF Format (Size should not exceed 2 MB each File)

  1. Company GSTN Regn- Self attested by the Proprietor/Authorized Signatory (in case of Pvt Ltd & Ltd Company)
  2. Company PAN Card- Self attested by the Proprietor/Authorized Signatory (in case of Pvt Ltd & Ltd Company)
  3. Company IEC Regn- Self attested by the Proprietor/Authorized Signatory (in case of Pvt Ltd & Ltd Company)
  4. Board Resolution/Authorization Letter in the name of the Authorized Signatory signed by all the Director/Partners in case of Pvt. Ltd/Ltd/Partnership/LLP firms only
  5. Copy of Certificate of Incorporation (Pvt. Ltd/Ltd Companies)- Signed by the Authorized Signatory with Company Seal
  6. Copy of the Partnership Deed
  7. Self-attested copy of Adhaar card of the Proprietor/Director/Partners/Auth Signatory
  8. Self-attested copy of the Pan Card of  the Proprietor/Director/Partners/Auth Signatory
  9. Packaging Slips for all the products/model no wise as per the attached format only
  10. Duly completed & filled Request Form in word Format onlyscanned or pdf is not required only in this case

Documents Checklist in JPG Format (Size should not exceed 2 MB each File)

  1. 1 No. of Passport Size Photo of the Proprietor/Partners/Directors/Auth Signatory
  2. Product Images- Model Number wise
  3. Product Packing Photos-Model Number wise

Note: The High Resolution Photos of the Product & its packing should be a merged JPG file not exceeding 2 MB per product or Model number wise

Download the Application Request Form below:

Connect for Business Facilitation

@ Team S.J. EXIM SERVICES I Team Q-FREIGHT

Connect or Call us @ +91-9999005379 only for any issues related to payment or application processing or updates on the application

Web: www.sjeximtech.com  I www.Q-freight.com

For Inquiry Pls send your email @  intelconsul@gmail.com

Facebook: www.facebook.com/sjeximservices I www.facebook.com/CCQFreight

“We Design & Create Solutions for Government, Corporates, MSME & Individuals across Industry Verticals”

NOTE: All Inquiries are solicited via email only. The Services are paid without any prejudice

Disclaimer: Please refer to the official Source before effecting any decision. We are not responsible for the data or notification published at the source; we are only reproducing the same for your “Ease of Doing Business”.

Write up on Import of Old & Used Tyres with One or Two Cuts in India

BORN IN INDIA I SERVED FROM INDIA I TO THE GLOBE

Dated:  27.08.2020

Write up on Import of Old & Used Tyres with One or Two Cuts in India

The Background

  • Every day India discards about 275,000 tyres but there is currently no comprehensive plan to deal with them. In addition, India imports waste tyres from other countries which get used in the pyrolysis industry.
  • The National Green Tribunal has expressed concern over the growing waste problem and asked the Central Pollution Control Board to devise a comprehensive plan to address the issue.
  • The NGT also asked the CPCB for looking at restricting the import of waste tyres to ensure that India does not become a dump yard for global waste.

With India producing over six percent of the global waste tyres every year, the National Green Tribunal (NGT) has expressed concern over the absence of effective management of these waste tyres and their subsequent use in polluting industries. Following a plea by an NGO, the green court has asked the Central Pollution Control Board (CPCB) for a comprehensive plan addressing the subject of waste tyre management. 

Currently, the issue of waste tyres is dealt under Environment (Protection) Rules 1986, Hazardous and Other Wastes (Management and Trans boundary Movement) Rules, 2016, Central Pollution Control Board’s guidelines for Environmentally Sound Management of End of Life Vehicles, 2016 and Standard Operating Procedure (SOP) issued by the Union Ministry of Environment, Forest and Climate Change (MoEFCC).

Additionally, the green tribunal asked the CPCB for guidelines to restrict the import of waste tyres into the country that are being used in the pyrolysis industry which adds to the pollution and impacts health of workers.

It is estimated that about 300,000 tonnes of tyres are imported into the country each year from across the world for recycling and disposal, which, however, are not always done through environmentally safe procedures. One of the reasons for importing these waste tyres is that it is a steady source of supply as domestically, collection of waste tyres is not organised. Every day, it is estimated that India produces 650,000 tyres and discards 275,000 tyres. 

The NGT noted that the CPCB guidelines on restricting the import of waste tyres are needed “so as to ensure that India does not become a dump yard for highly polluting hazardous waste material from other countries and also to ensure that health of the workers involved in the process is duly safeguarded.”

The NGT’s direction came on September 19, 2019, in a case related to the absence of proper management of End-of-Life Tyres/Waste Tyres (ELTs). 

“There is a lack of data about the total number of tyres discarded in India and waste tyres imported which makes their management difficult. We are ending up like a dump yard for other countries. These pyrolysis plants need to be regularised as even though some of these plants have permissions to operate, they do not comply with safeguards. We need to adopt environment-friendly methods to address this waste in accordance with global standards,” Tongad, who is also the founder of SAFE which was the appellant in the case at the NGT.

The Compliance Perspective

  1. The import of used rubber tyres with one cut bead wire is free under ITC (HS) Code 4004 00 00- No Prior Permit is required from DGFT in this case.
  • Imports of retreaded or used tyres are allowed subject to compliance of the provisions of the Foreign Trade Policy by DGFT, and the requirement of consent / permission Import of Pneumatic Tyres from the Ministry of Environment and Forest as stipulated in the Hazardous Wastes (Management, Handling and Trans-boundary Movement) Rules 2008.- In case of Used & Scrap Tyres with one or two cuts the PIC is mandate from the HSMD Division of MoEF as there is always a “Trans boundary”  perspective associated with any such imports coming to India.- Pls refer to the writ petition no 1452 of 2011 between M/s Royal Carbon Black (P) Limited Vs Chief Commissioner of Customs, Mumbai. The extract of the portion from this writ is reproduced below

Extract: However, the procedure prescribed in Rule 16 for the import of hazardous wastes has to be followed. Rule 16 makes it abundantly clear that the permission of the Union Ministry of Environment and Forests is necessary in respect of the import or transit for trans boundary movement of hazardous wastes specified in Schedule III. The expression “trans boundary movement” is defined by clause (za) of Rule 2 as follows:

“(za) “trans boundary movement” means any movement of hazardous wastes from an area under the jurisdiction of one country to or through an area under the jurisdiction of another country or through an area not under the jurisdiction of any country, provided at least two countries are involved in the movement.”

  • Import of Used Tyre and Shredded Tyre scrap is a restricted item and require NOC from Department of Industrial Policy & Promotion; and Ministry of Environment & Forest. Proposal for import or export of restricted items is considered periodically by EXIM Facilitation Committee of the Directorate General of Foreign Trade and decisions to allow or otherwise are taken with the approval of the concerned Ministry- This Practice is adopted for Used & Scrap Tyres with one or two cuts also- Source is NACEN Kanpur Document on the Import of Pneumatic Tyres dtd. 29.06.2015.
  • The HSMD under MoEF had issued an Office Memorandum (OM) by the subject “issuing a clarification to the use of test report for tyres as required by Customs”. The cited File No is F.No. 5-36/2014-HSMD dtd. 02nd July 2015which states very clearly that “The matter was considered during the 36 Meeting of Technical Review Committee held on 21st May 2015. The Committee agreed that in case of scrap tyres and tubes, visual inspection is adequate and no lab testing is required In case if record is to be maintained a photograph of the consignment can be taken- This is issued with the approval of the Competent Authority”

The conclusion

Import of Old & used Tyres with one or two cuts under ITC (HS) 4004 00 00 is still regulated. Though it is abundantly clear from the chapter notes & the conditions of Chapter-40 of Schedule-I Import Policy that there is no requirement of Prior Import Authorization (PIA) by DGFT, however a PIC (Prior Informed Consent) is mandatory from MoEF for any such Imports in India. There is also a need to obtain NOC from the DIPP on the cited matter as evident from the NACEN Kanpur document.

However from the inspection point of view it is clarified by HSMD division of MoEF vide OM No F.No. 5-36/2014-HSMD dtd. 02nd July 2015 to adhere to only Physical inspection & photography but not to draw 3 random samples as was the earlier practice by the customs field formations.

This is to be highlighted here that MoEF shall look evaluate the application on the basis of ‘justification for Import’ & the ‘end use application’ as cited by the Merchant Importer in their application before granting any sort of PIC approval. Therefore it is advised to Merchant Importers to have a strong written agreement or collaboration with Actual users or registered Recyclers of these Tyres in India. In case the Merchant Importer is not in collaboration with any of the Actual users or registered Recyclers of these Tyres in India, then getting the PIC from MoEF becomes tough but not impossible.

Inputs by our Legal Team

Sources: NACEN Kanpur, DGFT, HSMD, DIPP

Connect for Business Facilitation

@ Team S.J. EXIM SERVICES I Team Q-FREIGHT

CP: Mr. Ravi Jha

Web: www.sjeximtech.com  I  www.Q-freight.com

EMAIL: intelconsul@gmail.com I info@sjeximtech.com

Facebook: www.facebook.com/sjeximservices I www.facebook.com/CCQFreight

“We Design & Create Solutions for Government, Corporates, MSME & Individuals across Industry Verticals”

NOTE: All Inquiries are solicited via email only. The Services are paid without any prejudice

Disclaimer: Please refer to the official Source before effecting any decision. We are not responsible for the data or notification published at the source; we are only reproducing the same for your “Ease of Doing Business”.

Project Import Guidelines in India

Project Imports Regulations in India

by

 

S.J. EXIM Services

Think EXIM Think Innovation

BORN IN INDIA I SERVED FROM INDIA I TO THE GLOBE

 

 

Dated: 28.08.2020

What is Project Imports:

Project Imports Scheme is a concept, unique to Indian Customs, wherein all the goods imported for the purpose of setting up of Industrial Project or substantial expansion of existing industrial projects is subjected to single classification under heading 98.01 of Custom Tariff Act, 1975 and subjected to single rate of duty instead of merit assessment of imported goods.

Why Project Imports:

Normally, imported goods are classified separately under different tariff headings and assessed to applicable Customs duty, but as a variety of goods are imported for setting up an industrial project their separate classification and valuation for assessment to duty becomes cumbersome. Further, the suppliers of a contracted project, do not value each and every item or parts of machinery which are supplied in stages. Hence, ascertaining values for different items delays assessment leading to demurrage and time and cost overruns for the project.

Therefore, to facilitate smooth and quick assessment by a simplified process of classification and valuation, the goods imported under Project Import Scheme are placed under a single Tariff in the Customs Tariff Act, 1975. This facilitates assessment and ensures faster clearances of goods.

Classification of Goods under Project Imports

Under Project Imports, the goods are classified under Custom Tariff Heading No. 98.01.

Goods allowed under Project Imports

Under Projects Imports, the goods allowed to be imported at concessional rate of duty include:

All items of machinery including,-

(i) prime movers,

(ii) instruments,

(iii) apparatus and appliances,

(iv) control gear and transmission equipment,

(v) auxiliary equipment (including those required for research and development purposes, testing and quality control), as well as

(vi) all components (whether finished or not) or raw materials for the manufacture of the aforesaid items and their components, required for the initial setting up of a unit, or the substantial expansion of an existing unit.

It also includes spare parts, other raw materials. (including semi-finished material) or consumable stores not exceeding 10% of the value of the goods specified above provided that such spare parts, raw materials or consumable stores are essential for the maintenance of the plant or project.

The ‘unit’ is any self-contained portion of the project having an independent function in the project. A project would fall under the category of ‘substantial expansion’ if the installed capacity of the unit is increased by not less than 25%, as per the Project Import Regulations.

Projects Eligible under Project Imports

Under the Scheme of Project Import, the following projects are covered:-

(1) Industrial Plant,

(2) Irrigation Project,

(3) Power Project,

(4) Mining Project,

(5) Project for the exploration for oil or other minerals, and

(6) Such other projects as the central government may, having regard to the economic development of the country notify in the Official Gazette.

Thus, a number of notifications have been issued notifying a large number of projects for assessment under Tariff Heading 9801.

Projects/goods not eligible for benefit under Project Imports

Benefit under the Scheme is not available to hotels, hospitals, photographic studios, photographic film processing laboratories, photocopying studios, laundries, garages and workshops. This benefit is also not available to a single or composite machine.

Meaning of Term “Industrial Plant” under Project Import.

The term “Industrial Plant” has been defined in the Project Import Regulations, 1986 (Ref: Regulation 3(a) of PIR, 86] For sake of convenience, it is reproduced below:-

“industrial plant” means an industrial system designed to be employed directly in the performance of any process or series of processes necessary for manufacture, production or extraction of a commodity, but does not include –

(i) establishments designed to offer services of any description such as hotels, hospitals, photographic studios, photographic film processing laboratories, photocopying studios, laundries, garages and workshops; or

(ii) a single machine or a composite machine, within the meaning assigned to it, in Notes 3 and 4 to Section XVI of the said First Schedule;

Explanation: For the purposes of sub-clause (i) the expression “establishments designed to offer services of any description” shall not include video recording or editing units, cinematographic studios, cinematographic film processing laboratories, and sound recording, processing, mixing or editing studios;

Import of Construction Equipment under Project Imports

The Hon’ble Supreme Court in the case of Commissioner of Customs, Mumbai vs. M/s. Toyo Engineering India Ltd., 2006(201) ELT 513 SC held that the scope of the items eligible for import under the Project Import Regulations 1986, shall cover construction equipment as auxiliary equipment; if essentially required for initial setting up or substantial expansion of registered projects. The construction equipment may be permitted to be transferred to other registered project under CTH 9801, after completion of its intended use, on recommendations of sponsoring authority.

The ‘Plant Site Verification Certificate’ (PSVC) required to be submitted for finalization of project as per Circular No. 14/2006-Cus dated 17.04.2006 shall also incorporate the details of construction equipment imported and used for the project, to ensure proper utilization of goods imported.

Legal Provisions:-

The Scheme of Project imports is governed by the following Chapter Heading No. /Chapter Notes of CTA, 1975 /exemption notification/ regulation/ Circulars:

A. Customs Tariff Heading CTH 98.01: For Details Pls see the attached Schedule-I Import Policy of Chapter 98 at the end of this write up.

B. Chapter Note to Chapter 98 of the Customs Tariff Act, 1975

The Chapter notes 1 and 2 to the Chapter 98 of CTA, 1975 relate to project imports and the same reads as under:

  1. This Chapter is to be taken to apply to all goods which satisfy the conditions prescribed therein, even though they may be covered by a more specific heading elsewhere in this Schedule.
  • Heading 9801 is to be taken to apply to all goods which are imported in accordance with the regulations made under section 157 of the Customs Act, 1962 (52 of 1962) and expressions used in this heading shall have the meaning assigned to them in the said regulations.

C. Project Import Regulations, 1986 [PIR, 86]

The Project Import Regulations, 1986 has been notified vide notification No. 230/86-Customs (NT), dated 03.04.1986] effective from 3.4.1986 and has been amended vide notification No. 17/1992 – Customs, dated 07.01.1992; 142/1992 – Customs, dated 10.03.1992; 153/1995-Customs, dated 27.10.1995; 54/1997– Customs, dated 05.06.1997; 92/2002– Customs, dated 06.09.2002; 37/2003- Customs, dated 01.03.2003; 16/2004-Cus., dated 08.01.2004, 17/2006-Customs, dated 01.03.2006; 30/2007- Customs, dated 01.03.2007; 15/2010 – Customs, dated 27.02.2010; 18/2012- Customs, dated 17.03.2012 and was last amended vide notification No. 25/2014-Customs, dated 11.7.2014.]

D. (a) General Exemption Notification No. 12/2012-Customs, dated 01-05-2012

Vide exemption notification No. 12/2012-Customs, dated 01-05-2012, the basic customs duty / Additional duty of Customs (CVD) on imports has been fully/ partially exempted (subject to with/without conditions as specified against each entry) on the goods falling under CTH 98.01. The effective rate of duty applicable to such projects is BCD: Nil / 2.5% / 5% ad valorem and CVD at rate of 12% / Nil ad valorem, as the case may be. This exemption has been given at Entries at Sr. Nos. 506 to 515 of the said notification.

(b) Conditions Specified for the above-mentioned Exemption: can be found in the same notification No. 12/2012-Customs, dated 01-05-2012.

(c) Exemption from Payment of SAD for Certain specified Project Imports:

Under notification No. 21/2012-Customs, dated 17/3/2012, the following imports made under projects imports have been exempted from payment of Special Additional Duty of Customs (SAD) also.

E. Project notified by Government to be eligible for benefit under the Scheme by issuing specific notifications

Table 1

 Sr. No. Notification No. and date Project notified
1. Notification No. 42/96-Customs, dated 23.7.1996 as amended from time to time and was last amended vide notification No. 17/2012-Customs, dated 17/3/2012 Projects notified for Assessment under Heading 98.01 of CTA, 75 in terms of entry against CTH 98.01 which provides that the central government may, having regard to the economic development of the country notify projects eligible for assessment under CTH 98.01 by issuing a notification in this behalf. In exercise of this power, the Government has notified large number of projects vide notification No. 42/96-Customs, dated 23.7.1996 as amended from time to time.
2. Notification No. 14/04-Customs, dated 08.01.2004 Vide this notification, the government has fully exempted water supply project including a plant for desalination, demineralization, or purification of water or for carrying out similar process or processes intended to make the water fit for agricultural or industrial use, from payment of BCD and CVD.

F. Board’s Circular Issued from time to time.

Table 2

Sr. No. Board’s Circular No. Remarks
1. Board’s Circular No. 89/95-Customs, dated 9/8/1995 Provide for cash security equivalent to 2% of the CIF value of goods imported under project import (subject to a maximum of 50 lakhs) would only be taken in place of 5% earlier. The government department and PSUs exempted from furnishing cash security. In case of fertilizer projects, which are liable to zero rate of duty, only a nominal cash security not exceeding 0.5% was prescribed
2. Circular No. 14/2006-Cus dated 17.04.2006 Specific requirement to be fulfilled by the importer to submit a statement indicating the details of goods imported together with necessary documents of proof for checking on value, quantity, installation or any other document required by proper officer for finalization of contract. Requirement for plant site verification for actual installation of goods under project import can be fulfilled by means of a certification from the head of the PSU/ Government undertaking in the rank of Chairman/ Executive Director
3. Board’s Circular No. 12/2011-Customs, dated 01/03/2011 Requirement of Cash security was replaced with bank guarantee, equivalent to 2% of the CIF value goods sought to be imported subject to a maximum of Rs. 1 Crore. It is to be taken at the time of registration of the project contract under Project Import Regulations, 1986.
4. Circular No. 22/2011-Customs, dated 04/05/2011 Board directed that finalization of assessments under project import should be completed within 60 days from date of submission of required documents by the importer. Further, directed that jurisdictional Central Excise Commissionerate should ensure that Plant Site Verification, wherever applicable, is completed within 15 days of submission of relevant documents by the importers.
5. Instructions TRU F. No. 354/94/2011-TRU, dated 29/12/2011 Clarification regarding eligibility of Ash Handling System and Seamless pipes as parts/ components of Ash Handling System under Project Import (CTH 98.01).
6. Circular No. 49/2011-Cusoms, dated 4/11/2011 Clarified that the scope of items eligible for import under Project Import Regulations 1986, shall cover construction equipment as auxiliary equipment; if essentially required for setting up or substantial expansion of registered projects.
7. Circular No. 33/2013-Customs dated 23/08/2013 Clarified availability of duty exemption to the import of Ash Handling Systems, Water Treatment Plant and Coal Transportation facilities etc. required for Ultra-Mega/ Mega Power Projects under Heading 9801.

Concept of Sponsoring Authority under Project Imports

The primary requirement for being eligible for concessional rate of duty under Project Import Scheme is that Chapter Tariff Heading 9801 of the First Schedule to the Customs Tariff Act, applies only to specified projects sponsored by specified sponsoring authorities with a detailed itemized list of goods to be imported duly attested by the sponsoring authority and imported under specific contracts registered prior to the import of the goods.

The concept of Sponsoring Authority has been mentioned under Project Import Regulation, 1986 and depending upon the nature of the project, different Ministry/ Department have been specified as sponsoring authority. The list of projects and sponsoring authorities specified under PIR, 86 are as under:-

Table 3

Sr. No. Name of the Plant or Project Sponsoring Authority
1. All plants and projects under SSI Units Director of Industries of the Concerned State
2. All Power Plants and Transmission projects under :-
(a) National Thermal Power Corporation Ltd. National Thermal Power Corporation Ltd., NTPC Bhawan, SCOPE Complex, 7, Lodi Road, Institutional Area, New Delhi -110 003
(b) Tehri Hydro Development Corporation Ltd. Tehri Hydro Development Corporation Limited Bhagirathi Bhawan (Top Terrace), Bhagirathipuram, Tehri Tehri (Garhwal) 249 001(UP).  
(c) Nathpa Jhakri Power Corporation Ltd. Nathpa Jhakri Power Corporation Limited Himfed Building Khalini, Shimla (HP).  
d) North Eastern Electric Power Corporation Ltd. North Eastern Electric Power Corporation Limited Brookland Compound Lower New Colony Shillong – 793 001.  
(e) National Hydroelectric Power Corporation Ltd. National Hydroelectric Power Corporation Limited NHPC Office Complex Sector-33, Faridabad Faridabad (Haryana).  
(f) Bhakra Beas Management Board. Bhakra Beas Management Board Madhya Marg, Sector-19/B Chandigarh – 160 019.  
(g) Central Power Research Institute. Central Power Research Institute, Prof. C.V. Raman Road, Raj Mahal VilasExtn. II, Stage P.O., P.B. No. 9401, Bangalore – 560 094.  
(h) National Power Training Institute. National Power Training Institute Sector 33, Faridabad Haryana – 121 003.  
(i) Power Grid Corporation of India Ltd. Power Grid Corporation of India Ltd. Hemkunt Chambers, 6th Floor, 87, Nehru Place, New Delhi – 110 019.  
3. Power Plants & Transmission Projects other than those mentioned at Sl. No. 2 above. Secretary to the State Government or Union Territory concerned dealing with the subject of power or electricity.  
3A. Drinking Water Supply Projects for supply of water for human or animal consumption Collector/District Magistrate/Deputy Commissioner of the District in which the project is located.  
3B. Aerial Passenger Ropeway Project Joint Secretary to the Government of India in the Ministry of Tourism or the Secretary to a State Government dealing with subject of tourism  
3C. Water Supply Projects Collector/District Magistrate/ Deputy Commissioner of the District in which the project is located.  
3D. Pipeline projects for the transportation of crude oil, petroleum products or natural gas Ministry of Petroleum and Natural Gas.  
3E. (a) Digital cinema development projects (b) Digital head end project Ministry of Information and Broadcasting.  
3F Metro Rail or Monorail projects for urban public transport Concerned State Government  
3G Project for installation of mechanized handling systems and pallet racking systems in mandis and warehouses for food grains, sugar and horticulture produce Ministry of Agriculture  
3H Cold storage, cold room (including farm level pre-cooling) or industrial projects for preservation, storage or processing of agricultural, apiary, horticultural, dairy, poultry, aquatic and marine produce and meat Ministry of Food Processing Industries  
3-I Green house set up for protected cultivation of horticulture and floriculture produce Ministry of Agriculture  
4. Any other Plant and Project. Concerned Administrative Ministry or Department.  
               

Goods Eligible for Assessment under CTH 98.01 [Ref: Regulation 4 of PIR, 86]:

The Project Import regulations apply only for assessment and clearance of the goods falling under heading No. 98.01 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).

The assessment under the said heading No. 98.01 is available only to those goods which are imported (whether in one or more than one consignment) against one or more specific contracts, which have been registered with the appropriate Custom House in the manner specified in regulation 5 and such contracts or contracts has or have been so registered,

i. Before any order is made by the proper officer of customs permitting the clearance of the goods for home consumption;

ii. In the case of goods cleared for home consumption without payment of duty subject to re-export in respect of fairs, exhibitions, demonstrations, seminars, congresses and conferences, duly sponsored or approved by the Government of India or Trade Fair Authority of India, as the case may be, before the – Customs payment of duty.

Registration of Contracts [Ref: Regulation 5 of PIR, 86] :

(i) In terms of Regulation 4 of the Project Import Regulations, 1986 (PIR) the basic requirement for availing the benefit of assessment under Tariff Heading No. 98.01 is that the importer should have entered into one or more contracts with the suppliers of the goods for setting up a project. Such contracts should be registered prior to clearance in the Custom House through which the goods are expected to be imported. The importer is required to apply for such registration in writing to the proper officer of Customs.

(ii) Regulation 5 provides in the manner of registering contracts, as follows:

(a) Before any order is made by the proper officer of Customs permitting the clearance of the goods for home consumption;

(b) In the case of goods cleared for home consumption without payment of duty subject to re-export in respect of fairs, exhibitions, demonstrations, seminars, congresses and conferences, duly sponsored or approved by the Government Of India or Trade fair Authority of India , as the case may be, before the date of payment of duty.

(iii) To expedite registration, the importers are advised to submit the following documents along with the application for registration:

(a) Original deed of contract together with true copy thereof.

(b) Industrial Licence and letter of intent, SSI Certificate granted by the appropriate authority with a copy thereof.

(c) Original Import licence, if any, with a list of items showing the dimensions, specifications, quantity, quality, value of each item duly attested by the Licensing Authority and a copy thereof.

(d) Recommendatory letter for duty concession from the concerned Sponsoring Authority, showing the description, quantity, specification, quality, dimension of each item and indicating whether the recommendatory letter is for initial set-up or substantial expansion, giving the installed capacity and proposed addition thereto.

(e) Continuity Bond with specified security. The said continuity Bond should be made out for an amount equal to the CIF value of the contract sought to be registered.

(f) Process flow chart, plant layout, drawings showing the arrangement of imported machines along with an attested copy of the Project Report submitted to the Sponsoring authorities, Financial Institution, etc.

(g) Write up, drawings, catalogues and literature of the items under import.

(h) Two attested copies of foreign collaboration agreement, technical agreement, know-how, basic/detailed engineering agreement, equipment supply agreement, service agreement, or any other agreement with foreign collaborators/suppliers/ persons including the details of payment actually made or to be made.

(i) Such other particulars, as may be considered necessary by proper officer for the purpose of assessment under Heading No. 9801.

(iv) After satisfying that goods are eligible for project imports benefit and importer has submitted all the required documents, the contract is registered by the Custom House and as a token of registration, the provisional duty bond is accepted by the Assistant/ Deputy Commissioner of Customs, Project Import Group. The details of the contracts are entered in the register kept for the purpose and a Project Contract Registration Number is assigned and communicated to the importer. The importer is required to refer to this number in all subsequent correspondence.

Note: The Government has prescribed that a security in the form of bank guarantee, equivalent to 2% of the CIF value goods sought to be imported subject to a maximum of Rs. 1 Crore has to be given at the time of registration of Contract under PI. The Government department and PSUs are exempted from furnishing security. Further, in case of fertilizer projects, which are liable to zero rate of duty, only a nominal security not exceeding 0.5% of the CIF value has been prescribed. For details, the Circular mentioned in the Table 6 may be referred.

(b) Amendment of Contract [Ref: Regulation 6 of PIR, 86] :

(i) If any contract, whether before or after registration is amended, then the importer is required to make an application for registration of the amendments to the said contract to the proper officer.

(ii) The application is required to be accompanied by the original deed of contract relating to the amendments together with a true copy thereof. Further, the documents such as consequential amendments to the import trade control license, wherever required or clearance from the concerned sponsoring authority, and duty attested list of articles to be imported are also required to be submitted.

(iii) On being satisfied that the application is in order, the proper office is required to make a note of the amendments in the register.

(c) Clearance of Goods after Registration:

On every Bill of Entry filed for clearance of goods under the Project Import Scheme, the importer/CHA is required to indicate the Project Contract Registration Number allotted to it. After noting, the Bill of Entry is sent to the Project import Group, which is required to check the description, value and quantity of the goods imported vis-a-vis the description, value and quantity registered. In case these particulars are found in order, the Bill of Entry is assessed provisionally and handed over to the importer or his agent for payment of duty. The Project Import Group keeps a note of the description of the goods and their value in the Project Contract Register and in the file maintained in the group for each project.

(d) Finalisation of Contract [Ref: Regulation 7 of PIR, 86]:

(1) Under Regulation 7 of the PIR, 1986, the importer is required to submit, within three months from the date of clearance of the last consignment or within such extended time as the proper officer may allow, the following documents for the purpose of finalization of the assessment:

(i) A reconciliation statement i.e. a statement showing the description, quantity and value of goods imported along with a certificate from a registered Chartered Engineer certifying the installation of each of the imported items of machinery;

(ii) Copies of the Bills of Entry, invoices, and the final payment certificate are insisted upon only in cases where the contract provides that the amount of the transaction will be finally settled after completion of the supplies.

(e) Plant Site Verification

To ensure that the imported goods have actually been used for the projects for which these were imported, plant site verification may be done in cases where value of the project contract exceeds Rs.1 crore. In other cases, plant site verification is normally done selectively.

(f) Finalisation of Provisional Assessment and Recovery of differential duty, if any- In the normal course, after submission of the reconciliation statement and other documents by the importers, the provisional assessments are finalized within a period of three months where plant site verification is not required and within six months where plant site verification is required. In cases where a demand has been issued and confirmed on such finalization and importer has not paid the duty demanded, steps are taken as per law to realise the amount.

Important Case Laws relating to Scheme of Project Imports

The essential requirements to be fulfilled for being eligible for concessional rate of duty under project import scheme are as under:-

(1) Goods should have been imported against a specified contract registered with the appropriate Customs House;

(2) Such registration should have been made in the manner prescribed by the regulations;

(3) Registration of the contract should have been obtained before the order (granting permission for clearance of the goods) was passed.

 laid down by Hon’ble Supreme Court in the case of Mihir Textile Limited Vs Collector of Customs]

 Assessment under 98.01 cannot be forced on importer-[Citation: Commissioner v. Maxxon (I) Ltd.-2001(137) ELT 590 (Tri.-Del.)]

 Auxiliary Equipment- Any equipment which helps or aids in setting up of an industrial plant would be covered Under CTH 98.01-[ Citation: Commissioner v. Toyo Engineering India Limited- 2006 (201) ELT 513(SC)];

 Exemption under different Tariff heading not claimable when imported under Project Import – [Citation: Tamil Nadu Newsprint& Papers Ltd v. Appraiser- 2000(116)ELT3(SC)]

 Initial setting up of a unit is includes setting up a unit in stages for the first time. This phrase is not inconsistent with phased implementation.-[Citation: Asiatic Oxygen Ltd. v. Assistant Collector-1992(57) ELT563 (Cal.)

Download Chapter-98 Import Policy Here:

Chapter 98-Import Policy

Connect for Business Facilitation

@ Team S.J. EXIM SERVICES I Team Q-FREIGHT

CP: Mr. Ravi Jha

Web:  www.sjeximtech.com  I  www.q-freight.com

EMAIL: intelconsul@gmail.com I info@sjeximtech.com

Facebook: www.facebook.com/sjeximservices I www.facebook.com/CCQFreight

IG: @CCQFreight

Twitter: Freight_Q

“We Design & Create Solutions for Government, Corporates, MSME & Individuals across Industry Verticals”

NOTE: All Inquiries are solicited via email only. The Services are paid without any prejudice

Disclaimer: Please refer to the official Source before effecting any decision. We are not responsible for the data or notification or any relevant information being published at the source; we are only reproducing the same for your “Ease of Doing Business”.

Import of Old & Used Tyres with One or Two Cuts in India

BORN IN INDIA I SERVED FROM INDIA I TO THE GLOBE

Dated:  27.08.2020

Write up on Import of Old & Used Tyres with One or Two Cuts in India

The Background

  • Every day India discards about 275,000 tyres but there is currently no comprehensive plan to deal with them. In addition, India imports waste tyres from other countries which get used in the pyrolysis industry.
  • The National Green Tribunal has expressed concern over the growing waste problem and asked the Central Pollution Control Board to devise a comprehensive plan to address the issue.
  • The NGT also asked the CPCB for looking at restricting the import of waste tyres to ensure that India does not become a dump yard for global waste.

With India producing over six percent of the global waste tyres every year, the National Green Tribunal (NGT) has expressed concern over the absence of effective management of these waste tyres and their subsequent use in polluting industries. Following a plea by an NGO, the green court has asked the Central Pollution Control Board (CPCB) for a comprehensive plan addressing the subject of waste tyre management. 

Currently, the issue of waste tyres is dealt under Environment (Protection) Rules 1986, Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016, Central Pollution Control Board’s guidelines for Environmentally Sound Management of End of Life Vehicles, 2016 and Standard Operating Procedure (SOP) issued by the Union Ministry of Environment, Forest and Climate Change (MoEFCC).

Additionally, the green tribunal asked the CPCB for guidelines to restrict the import of waste tyres into the country that are being used in the pyrolysis industry which adds to the pollution and impacts health of workers.

It is estimated that about 300,000 tonnes of tyres are imported into the country each year from across the world for recycling and disposal, which, however, are not always done through environmentally safe procedures. One of the reasons for importing these waste tyres is that it is a steady source of supply as domestically, collection of waste tyres is not organised. Every day, it is estimated that India produces 650,000 tyres and discards 275,000 tyres. 

The NGT noted that the CPCB guidelines on restricting the import of waste tyres are needed “so as to ensure that India does not become a dump yard for highly polluting hazardous waste material from other countries and also to ensure that health of the workers involved in the process is duly safeguarded.”

The NGT’s direction came on September 19, 2019, in a case related to the absence of proper management of End-of-Life Tyres/Waste Tyres (ELTs). 

“There is a lack of data about the total number of tyres discarded in India and waste tyres imported which makes their management difficult. We are ending up like a dump yard for other countries. These pyrolysis plants need to be regularised as even though some of these plants have permissions to operate, they do not comply with safeguards. We need to adopt environment-friendly methods to address this waste in accordance with global standards,” Tongad, who is also the founder of SAFE which was the appellant in the case at the NGT.

Old Tyre Bead Cutting
One Cut Old Tyre
Old Tyre One Cut
Bead Cut Old Tyres

The Compliance Perspective

  1. The import of used rubber tyres with one cut bead wire is free under ITC (HS) Code 4004 00 00- No Prior Permit is required from DGFT in this case.
  1. Imports of retreaded or used tyres are allowed subject to compliance of the provisions of the Foreign Trade Policy by DGFT, and the requirement of consent / permission Import of Pneumatic Tyres from the Ministry of Environment and Forest as stipulated in the Hazardous Wastes (Management, Handling and Trans-boundary Movement) Rules 2008.- In case of Used & Scrap Tyres with one or two cuts the PIC is mandate from the HSMD Division of MoEF as there is always a “Trans boundary”  perspective associated with any such imports coming to India.- Pls refer to the writ petition no 1452 of 2011 between M/s Royal Carbon Black (P) Limited Vs Chief Commissioner of Customs, Mumbai. The extract of the portion from this writ is reproduced below

However, the procedure prescribed in Rule 16 for the import of hazardous wastes has to be followed. Rule 16 makes it abundantly clear that the permission of the Union Ministry of Environment and Forests is necessary in respect of the import or transit for transboundary movement of hazardous wastes specified in Schedule III. The expression “transboundary movement” is defined by clause (za) of Rule 2 as follows:

“(za) “transboundary movement” means any movement of hazardous wastes from an area under the jurisdiction of one country to or through an area under the jurisdiction of another PNP 10 WP1452-17.10.sxw country or through an area not under the jurisdiction of any country, provided at least two countries are involved in the movement.”

  1. Import of Used Tyre and Shredded Tyre scrap is a restricted item and require NOC from Department of Industrial Policy & Promotion; and Ministry of Environment & Forest. Proposal for import or export of restricted items is considered periodically by EXIM Facilitation Committee of the Directorate General of Foreign Trade and decisions to allow or otherwise are taken with the approval of the concerned Ministry- This Practice is adopted for Used & Scrap Tyres with one or two cuts also- Source is NACEN Kanpur Document on the Import of Pneumatic Tyres dtd. 29.06.2015.
  1. The HSMD under MoEF had issued an Office Memorandum (OM) by the subject “issuing a clarification to the use of test report for tyres as required by Customs”. The cited File No is F.No. 5-36/2014-HSMD dtd. 02nd July 2015which states very clearly that “The matter was considered during the 36 Meeting of Technical Review Committee held on 21st May 2015. The Committee agreed that in case of scrap tyres and tubes, visual inspection is adequate and no lab testing is required In case if record is to be maintained a photograph of the consignment can be taken- This is issued with the approval of the Competent Authority”

The conclusion

Import of Old & used Tyres with one or two cuts under ITC (HS) 4004 00 00 is still regulated. Though It is abundantly clear that there is no requirement of Prior Import Authorization (PIA) by DGFT, however a PIC (Prior Informed Consent) is mandatory from MoEF for any such Imports in India. There is also a need to obtain NOC from the DIPP on the cited matter as evident from the NACEN Kanpur document.

However from the inspection point of view it is clarified by HSMD division of MoEF vide OM No F.No. 5-36/2014-HSMD dtd. 02nd July 2015 to adhere to only Physical inspection & photography but not to draw 3 random samples as was the earlier practice by the customs field formations.

This is to be highlighted here that MoEF shall look into the possible ‘justification for Import’ & the ‘end use application’ point of view in the application before granting the PIC approval. Therefore it is advised to Merchant Importers that have a strong written agreement or collaboration with Actual users or registered Recyclers of these Tyres in India.

Sources: NACEN Kanpur, DGFT, HSMD, DIPP

Inputs by our Legal Team

Connect for Business Facilitation

@ Team S.J. EXIM SERVICES I Team Q-FREIGHT

  • CP: Mr. Ravi Jha

“We Design & Create Solutions for Government, Corporates, MSME & Individuals across Industry Verticals”

Disclaimer: Please refer to the official Source before effecting any decision. We are not responsible for the data or notification published at the source; we are only reproducing the same for your “Ease of Doing Business”.

NOTE: All Inquiries are solicited via email only. The Services are paid without any prejudice

Our Client Requires Aluminium Scrap

BORN IN INDIA I SERVED FROM INDIA I TO THE GLOBE

This slideshow requires JavaScript.

Dated:  11.08.2020

 

Require Aluminium Scrap for our client

 

We are a Management Consulting company facilitating our clients in the domain of Foreign Trade Policy (FTP), all sorts of Licensing requirements, Advisory on the Regulatory Compliance, Management Consulting, Sourcing & Due Diligence in the sourcing & procurement supported with Global Logistics support. We have been assisting our clients since Aug 2015 depending on their specific needs & business.

Recently one of our client has a requirement of Aluminium scraps. The details of which is given below for you to revert back with an appropriate formal detailed offer on your official letter heads signed & stamped by the CEO/ Head of Sales/Marketing/Authorized Person.

The Detailed Requirement is as given below:

  1. Item Description: Aluminium Scrap
  2. Grade: Tense & Mixed Aluminium Shredded (Both should be cleaned)
  3. Quantity: 50 MT each grade
  4. Payment Instrument: 100% LC (Requested by our client)

Al Mixed ShreddedAl Tense

Offer should include:

  1. Seller company Profile
  2. Seller Co Type: Recycler/Yard Owner/Trader
  3. Price Quote: Nearest Port on FOB basis in USD/MT
  4. Delivery Schedule or Plan
  5. Payment Terms & schedule
  6. Photographs of the actual stocks
  7. Dispatch Readiness details
  8. Packaging style
  9. Min & Max Load that you can do in a 40ft HC container
  10. PSIC-Pre-Shipment Inspection certificate from the port of origin for the most recent shipment delivered
  11. List of personnel of your company with their email IDs & direct contact nos
  12. 3rd party lab/survey report apart from the PSIC if available
  13. Current Location of the actual stock
  14. Other grades of scrap that you can supply with monthly Min. & Max. quantity details e.g. Other Grades in Aluminium, HMS 1&2, Copper Plates, Copper rods, copper wires (without plastic covers)

 

 

Connect for Business Facilitation

@ Team S.J. EXIM SERVICES I Team Q-FREIGHT

CP: Mr. Ravi Jha

Web:  www.q-freight.com I  www.sjeximtech.com

EMAIL: intelconsul@gmail.com I info@sjeximtech.com

Facebook: www.facebook.com/sjeximservices I www.facebook.com/CCQFreight

We Design & Create Solutions for Government, Corporates, MSME & Individuals across Industry Verticals

NOTE: All Inquiries are solicited via email only. The Services are paid without any prejudice
Disclaimer: Please refer to the official Source before effecting any decision. We are not responsible for the data or notification published at the source; we are only reproducing the same for your Ease of Doing Business.

 

Easy way of obtaining the LMPC Registration in India

BORN IN INDIA I SERVED FROM INDIA I TO THE GLOBE

This slideshow requires JavaScript.

Dated:  02.08.2020

 

Easy way of obtaining the LMPC Registration in India

All pre-packaged commodities imported into India shall confirm to the requirements of the Legal Metrology Act, 2009 and Legal Metrology (Packaged Commodities) Rules, 2011.

Under the Legal Metrology (Packaged Commodities) Rules, 2011, the importer of pre-packaged commodity should be registered under Rule 27. The registration will be done by the Director or controller of Legal Metrology of the State and the registration Fees is INR 500 only however the other incidental expenses are additional.

Wherever the requirements of labelling are given in FSSA (Food Safety & standards Act 2006) in respect of food items, the labelling requirements under FSSA shall prevail over labelling requirements of Legal Metrology. Important sections of legal metrology Act 2009. Every unit of weight or measure shall be in accordance with the metric system based on the international system of units.

 

Application for Registration Of Importers Under Rule 27 of the Legal Metrology (Packaged Commodities) Rules, 2011

 

Key points to be remembered while submitting the application form

  1. The applicant having place of business in Delhi area can only Apply!
  2. Online Fees for Manufacturer Rs. 500/-, Repairer Rs. 100/-, Dealer Rs. 100/-, Importers Rs. 500/-, Packers Rs.500/-
  3. All document should be self-attested and uploaded in pdf file. The size of the pdf file should not be more than 2 MB
  4. If your file is more than 2 MB please reduce pdf file size
  5. Passport size photograph should be uploaded in .jpg format only
  6. If Date of commencement of pre-packing/import is more than 90 days ago which is a violation of 27/32.You have to deposit late fee of Rs. 5000/-(per Director + one company)

Mandatory Documents to be uploaded

  1. Licence for trade / manufacture / Factory / Lal Dora certficate from MCD/NDMC/DDA etc. In case the MCD licence is not available with the applicant, an undertaking in the form of affidavit is to be submitted that the business premises is not located in non-conforming area and / or is not likely to be sealed by the MCD or relocated
  2. Residential Address proof of the proprietors/directors/partners like voter ID card, passport etc
  3. GST/Sales Tax registration
  4. Packing material / Slip /Sticker/ Label which is being pasted on the packages
  5. Memorandum of Association of the Company,Partnership deed in respect of Partnership firms
  6. Import-Export Code
  7. Passport size photograph (all Directors/all Partners/Proprietor)

 

Optional Documents

  1. Proof of commercial area
  2. Receipt of Offences for which challaned and whether it is compounded

Approval Procedure

After submitting the complete application by the applicant along with the requisite fee, the concerned LMO of the concerned Zone visits the premises of the applicant and if the functioning of the firm found as per guidelines of the department, he recommends the application for granting the license / registration to the competent authority through the concerned Zonal officer. Thereafter the competent authority after scrutinizing grants its approval / rejection. On grant of license, automatic SMS alert and e-mail is sent to the applicant on registered mobile number. Applicant can print license / registration certificate digitally signed by the competent authority online.

The Form Fields in General:

  1. Name of the applicant (Firm/Company)
  2. Complete address (including district) with PIN Code
  3. Warehouse Address with PIN Code
  4. Details of the packaged commodities being imported / to be imported
  5. Date of commencement of pre-packing/import
  6. Name & complete address of the registered office of the firm / partnership firm / company
  7. Maximum retail price (inclusive of GST) INR
  8. Date of manufacturing / packing / import
  9. Date of expiry in case of food items
  10. Net contents in terms of weights / volume / length
  11. Generic name of the commodity
  12. Quantities in which packing is made i.e below 5g, 5g, 10g, 20g, etc (Please specify if any)
  13. Whether the packing is made in standard quantities as specified in Rule 5 of Legal Metrology (Packaged Commodities Rules, 2011)
  14. Whether the package is a combination package or group package or multi-piece package. Please specify
  15. Whether the package is a retail package or whole sale package
  16. Whether the package contains perishable commodity or food items
  17. Whether the packed items will also be exported out of country
  18. Whether the items are being packed for specific industry only as raw material. If yes specify
  19. Whether the package contains fast food items
  20. Whether the package contains any schedule / non-scheduled formulations covered under the Drugs (price control) order or any agricultural farm produces of 50 kg and above
  21. Whether the shop / factory / warehouse is located in area declared as residential / non-conforming?
  22. Whether the shop/factory is located in commercial area ? if Yes, attach proof
  23. Whether the shop / factory /premises is owned/rented
  24. Have your premises been last inspected by the inspector of W&M Department?
  25. Whether your firm has been challaned during the last three years for any violation of Weights & Measures laws. If Yes date of challan etc.?
  26. Offences for which challaned and whether it is compounded or not
  27. Mobile No
  28. E-mail Id

 

Documents to be produced at the time of inspection:

Sl. no.

Document Name   if file more than 2MB please reduce PDF file size

1.

Licence for trade / manufacture / Factory / Lal Dora certficate from MCD/NDMC/DDA etc. In case the MCD licence is not available with the applicant, an undertaking in the form of affidavit is to be submitted that the business premises is not located in non-conforming area and / or is not likely to be sealed by the MCD or relocated

2. Residential Address proof of the proprietors/directors/partners like voter ID card, passport etc
3. GST/Sales Tax registration
4. Packing material / Slip /Sticker/ Label which is being pasted on the packages
5. Memorandum of Association of the Company, Partnership deed in respect of Partnership firms
6. Import-Export Code
7.

Upload Photo (all directors/partners) Combine Multiple JPG files into one JPG file

This slideshow requires JavaScript.

 

Major Fee Structure highlighted below:

Fees for testing of model of weight or measure to be deposited. –

(1) The applicant shall, while making an application under rule 5, deposit fees in the form of a demand draft drawn in favour of the laboratory or through online payment towards testing charges of the laboratory in the following manner, namely:-

(i) rupees ten thousand for the testing of mechanical type model of weights or measures or weighing and measuring instruments;

(ii) rupees twenty-five thousand for the testing of digital or electronic type model of weights or measures or weighing and measuring instruments,
that are intended to be manufactured or imported for transaction or protection.

(2) The applicant shall deposit half of the testing fees as specified in sub-rule (1) for testing of the substitute material.”

 

Downloads:

Legal Metrology Approval of Models Amendment Rules 2019

LM National Standards Rules 2019

The LMPC Amendment Rules 2017

 

Connect for Business Facilitation

@ Team S.J. EXIM SERVICES I Team Q-FREIGHT

CP: Mr. Ravi Jha

Web:  www.q-freight.com I  www.sjeximtech.com

EMAIL: intelconsul@gmail.com I info@sjeximtech.com

TEL NO: +91-9999005379

Facebook: www.facebook.com/sjeximservices I www.facebook.com/CCQFreight

“We Design & Create Solutions for Government, Corporates, MSME & Individuals across Industry Verticals”

NOTE: All Inquiries are solicited via email only. The Services are paid without any prejudice
Disclaimer: Please refer to the official Source before effecting any decision. We are not responsible for the data or notification published at the source; we are only reproducing the same for your Ease of Doing Business.

 

Boost for Electronics Manufacturing in India-Production Linked Incentive (PLI) Scheme

BORN IN INDIA I SERVED FROM INDIA I TO THE GLOBE

“We Design & Create Solutions for Government, Corporates, MSME & Individuals across Industry Verticals”

 

This slideshow requires JavaScript.

Dated:  29.07.2020

 

Production Linked Incentive Scheme-Ministry of Electronics & Information Technology(MEITY)

 

Electronics permeate all sectors of the economy and the electronics industry has cross-cutting economic and strategic importance. In India, electronics manufacturing has grown rapidly with a CAGR of around 25% during the last 4 years. However, this pales in comparison to the actual potential for growth which is curtailed by specific constraints such as large capital investments and rapid changes in technology.

India’s share in global electronics manufacturing has grown from 1.3% in 2012 to 3.0% in 2018. The domestic production of electronics hardware has increased substantially from INR 1,90,366 crore (USD 29 billion) in 2014-15 to INR 4,58,006 Crore (USD 70 billion) in 2018-19. With the domestic demand for electronics hardware expected to rise rapidly to approximately INR 26, 00,000 crore (USD 400 billion) by 2025, India cannot afford to bear the rapidly increasing foreign exchange outgo on account of import of electronics.

SS PLI Scheme Overview

National policy on electronics (NPE 2019): The vision of NPE 2019 is to position India as a global hub for Electronics System Design and Manufacturing (ESDM) by encouraging and driving capabilities in the country for developing core components, including chipsets, and creating an enabling environment for the industry to compete globally.

Objective: The Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain including electronic components and semiconductor packaging.

Quantum of Incentive: The Scheme shall extend an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five (5) years subsequent to the base year.

Target Segments: The Scheme shall only be applicable for target segments namely mobile phones and specified electronic components (as detailed in Annexure-B).

Eligibility: Support under the Scheme shall be provided only to companies engaged in manufacturing of target segments in India. This shall include contract manufacturers as defined in the FDI Policy Circular of 2017.

a. Each application shall be limited to one (1) of the target segments

b. Eligibility shall be subject to thresholds of incremental investment and incremental sales of manufactured goods (as distinct from traded goods). An applicant must meet all the threshold conditions to be eligible for disbursement of incentive. Eligibility threshold criteria are detailed in Annexure A

c. Eligibility under Production Linked Incentive scheme shall not affect eligibility under any other Scheme and vice-versa.

SS Eligibility Highlights

List of Specified Electronic Components eligible under PLI Scheme

 

S No Description of Goods
1 SMT components
2 Discrete semiconductor devices including transistors, diodes, thyristors, etc
3 Passive components including resistors, capacitors, etc. for electronic applications
4 Printed Circuit Boards (PCB), PCB laminates, prepregs, photopolymer films, PCB printing inks
5 Sensors, transducers, actuators, crystals for electronic applications
6 System in Package (SIP)
7 Micro / Nano-electronic components such as Micro Electromechanical Systems (MEMS) and Nano Electromechanical Systems (NEMS)
8 Assembly, Testing, Marking and Packaging (ATMP) units

 

Application Fee: INR 1,00,000 (Rupees One Lakh only) to be paid electronically to the MeitY/PMA.

 

Important Download Links:

GSR Production_linked_incentive_scheme

PLI-Guidelines-Presentation

 

 

 

Source: MeitY, Govt. of India
Connect for Business Facilitation
@ Team S.J. EXIM SERVICES I Team Q-FREIGHT

CP: Mr. Ravi Jha

Web:  www.q-freight.com I  www.sjeximtech.com

EMAIL: intelconsul@gmail.com I info@sjeximtech.com

TEL NO: +91-9999005379

Facebook: www.facebook.com/sjeximservices I www.facebook.com/CCQFreight

 

“We Design & Create Solutions for Government, Corporates, MSME & Individuals across Industry Verticals”

NOTE: All Inquiries are solicited via email only. The Services are paid without any prejudice
Disclaimer: Please refer to the official Source before effecting any decision. We are not responsible for the data or notification published at the source; we are only reproducing the same for your Ease of Doing Business.

 

Benefits of a Bonded Warehouse Manufacturing License in India

BORN IN INDIA I SERVED FROM INDIA I TO THE GLOBE

This slideshow requires JavaScript.

Dated:  14.07.2020

Manufacture and Other Operations in Customs

Warehouse Frequently Asked Questions Central Board of Indirect Taxes and Customs (CBIC) has launched a revamped and streamlined program to attract investments into India and strengthen Make in India. This program is based upon Section 65 of the Customs Act, 1962, which enables conduct of manufacture and other operations in a Customs bonded warehouse. The program has been introduced vide the Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019, (hereinafter referred to as MOOWR, 2019) and explained through Circular-34/2019- Customs dated 01st October, 2019.

Under this program a unit can import goods (both inputs and capital goods) under customs duty deferment with no interest liability. There is no investment threshold or export obligation. The duties are fully remitted if the goods resulting from such operations are exported. Import duty is payable only if the resulting goods or imported goods are cleared in the domestic market (ex-bonding).

The salient features of the program are:

i.                  No geographical limitation on where such units can be set up.

ii.              A single application cum approval form for uniformity of practice with a single point of approval to set up the operations of such units.

iii.           Improved liquidity with deferment of import duty and no interest liability.

iv.            Allows procurement of GST compliant goods from the domestic market for use in manufacture and other operations in a Section 65 unit.

v.               A single digital account for ease of doing business and easy compliance.

vi.            Enables efficient capacity utilization, as there is no limit on quantum of clearances that can be exported or cleared to the domestic market.

CBIC has gathered certain queries through trade consultations which have been consolidated and answered below.

1. Who is eligible for applying for manufacture and other operations in a bonded warehouse?

Response: The following persons are eligible to apply for manufacture and other operations in a bonded warehouse-

(i) A person who has been granted a licence for a warehouse under Section 58 of the Customs Act, in accordance with Private Warehouse Licensing Regulations, 2016.

(ii) A person can also make a combined application for licence for a warehouse under Section 58, along with permission for undertaking manufacturing or other operations in the warehouse under Section 65 of the Act. The persons mentioned have to be a citizen of India or an entity incorporated or registered in India.

2.       Can a factory which is solely into manufacturing goods, which are to be sold in the domestic market, eligible for applying for manufacture and other operations in a bonded warehouse?

Response: The eligibility of a factory for manufacture and other operations in a bonded warehouse does not depend upon whether the final goods will be sold in the domestic market or exported. There is no quantitative restriction on sale of finished goods in the domestic market. Any factory can avail a license under Section 58 of the Customs Act Page 2 of 5 along with permission under Section 65 if they intend to import goods without upfront payment of Customs duty at point of import and deposit them in the warehouse, either as capital goods or as inputs for further processing.

3.       Is an existing factory which solely manufactured goods to be sold in the domestic market, eligible for application for manufacture and other operations in a bonded warehouse? How will the existing capital goods and inputs be accounted?

Response: Yes. Any unit in Domestic Tariff Area (DTA) is eligible for making an application for manufacture and other operations in a bonded warehouse i.e. an old factory in DTA is eligible for applying. The accounting form prescribed for the units undertaking manufacture and other operations in a bonded warehouse provides for accounting of DTA receipts. Thus the existing capital goods and inputs must be accounted in the accounting form prescribed. The form also provides for a remarks column in case certain remarks are to be entered.

4.       Is manufacture and other operations in a bonded warehouse allowed in Public Bonded Warehouse licensed under Section 57 of the Customs Act?

Response: No. At present, manufacture and other operations in a bonded warehouse is allowed only in a Private Bonded Warehouse licensed under Section 58 of the Customs Act.

5.       Will a unit licensed under Section 65 and Section 58 of the Customs Act, 1962, be under the physical control of Customs?

Response: No. There is no physical control of a unit licensed under Section 65 and Section 58 of the Customs Act, 1962, on a day to day basis. The unit will be subject to risk based audits.

6.       Can the license under Section 65 and Section 58 of the Customs Act, 1962, be obtained on bare land with identified boundaries or a built structure is imperative for obtaining the said license?

Response: The regulations do not mandate that a fully enclosed structure is a prerequisite for grant of license. What is important is that the site or building is suitable for secure storage of goods and discharge of compliance, such as proper boundary walls, gate(s) with access control and personnel to safeguard the premises. Moreover, depending on the nature of goods used, the operations and the industry, some units may operate without fully closed structures. The Principal Commissioner/Commissioners of Customs will take into consideration the nature of premises, the facilities, equipment and personnel put in place for secure storage of goods, while considering grant of license.

7.       Do we need to renew license under Section 58 or permission under Section 65?

Response: The license and permission granted is valid unless it is cancelled or surrendered, or the license issued under Section 58 is cancelled or surrendered. Thus no renewal of the license under Section 58 or permission under Section 65 is required.

8.       Can a unit undertaking manufacture and other operations in a bonded warehouse import capital goods without payment of duty? If yes, whether only BCD or both BCD and IGST on imports is covered? For how long is duty deferment available? Is interest payable after some time?

Response: A unit licensed under Sections 58 and 65 can import capital goods and warehouse them without payment of duty. Manufacture and other operations in a bonded warehouse is a duty deferment scheme. Thus both BCD and IGST on imports stand deferred. In the case of capital goods, the import duties (both BCD and IGST) stand deferred till they are cleared from the warehouse for home consumption or are exported. The capital goods can be cleared for home consumption as per Section 68 read with Section 61 of the Customs Act on payment of applicable duty without interest. The capital goods can also be exported after use, without payment of duty as per Section 69 of the Customs Act. The duty deferment is without any time limitation.

9.       Would any customs duty be payable on the goods manufactured in the bonded premises using the imported capital goods (on which duty has been deferred) and sold into the domestic tariff area?

Response: The payment of duty on the finished goods is clarified in Para 8 and 9 of the Circular No. 34/2019. Duty on the capital goods would be payable if the capital goods itself are cleared into the domestic market (home consumption). Thus the duty on the capital goods does not get incorporated on the finished goods. Thus no extra duty on finished goods cleared into DTA is payable on account of imported capital goods (on which duty has been deferred).

10. Can a unit undertaking manufacture and other operations in a bonded warehouse import inputs without payment of duty? If yes, whether only BCD or both BCD and IGST on imports is covered? For how long is duty deferment available? Is interest payable after some time?

Response: Manufacture and other operations in a bonded warehouse is a duty deferment scheme. Thus both BCD and IGST on imports stand deferred. In the case of goods other than capital goods, the import duties (both BCD and IGST) stand deferred till they are cleared from the warehouse for home consumption, and no interest is payable on duty. In case the finished goods are exported, the duty on the imported inputs (both BCD and IGST) stands remitted i.e. they will not be payable. The duty deferment is without any time limitation.

11. Is import of raw material without BCD and IGST allowed? Will there be any interest obligation if IGST is paid when finished goods are sold in domestic markets?

Response: Inputs/raw materials can be imported and deposited in the licensed warehouse without payment of BCD and IGST. No interest liability arises when the duties are paid at the time of ex-bonding the resultant goods. The duties (without any interest) are to be paid only when the resultant goods are being cleared for home consumption.

12. Would it be mandatory to appoint a warehouse keeper in the factory licensed under Section 65 of the Customs Act? Would all goods cleared from the said factory be subject to inspection by the warehouse keeper/ Customs authorities?

Response: A warehouse keeper has to be appointed, for a premise to be licensed as a private warehouse under Section 58 of the Customs Act. The warehouse keeper is expected to discharge duties and responsibilities, maintain accounts and also sign the document’s, on behalf of the licensee. The warehouse keeper is expected to supervise and satisfy himself about the veracity of the declaration/accounts that he is signing. The inspection of goods by customs at the stage of ex-bonding would be done, only if there is indication of risks and not as a matter of routine practice. Approval of the bond officer is not required for clearance of the goods from the warehouse.

13. How frequently is an audit of a unit operating under Section 65 of Customs Act, 1962 expected? Response: The audit of units operating under Section 65 would also be based on risk criteria.

Response: There is no prescribed frequency for such audit.

14. What are the customs document/ form for movement of imported goods on which duty has been deferred to/ from a unit undertaking manufacture and other operations in a bonded warehouse? Are such goods required to be under customs escort during their movement?

Response: Following are the customs document for movement of imported goods on which duty has been deferred to/ from a unit undertaking manufacture and other operations in a bonded warehouse:

(i) Customs Station to Section 65 unit: Bill of entry for warehousing. It is clarified that no separate form is prescribed for movement from Customs station to Section 65 unit as the goods are already accompanied by the Bill of entry for warehousing.

(ii) From another warehouse (non-Section 65) to a Section 65 Unit: Form for transfer of goods from a warehouse as prescribed under the Warehoused Goods (Removal) Regulations, 2016. This is because warehouse which is not a Section 65 unit has to follow the Warehoused Goods (Removal) Regulations, 2016.

(iii) From Section 65 Unit to another warehouse (the other warehouse can be a Section 65 unit or a non-Section 65 warehouse): Form prescribed in Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019. The goods will not be under customs escort during movement.

15. If the imported capital goods are cleared for home consumption after use, is depreciation available?

Response: No. Depreciation is not available if imported capital goods (on which duty has been deferred) are cleared for home consumption after use in a Section 65 unit.

16. If the imported capital goods are cleared for export after use, is depreciation available?

Response: The imported capital goods (on which duty has been deferred) after use in a Section 65 unit can be exported without payment of duty as per Section 69 of the Customs Act. For the purposes of valuation of the export goods, the same will be as per the Section 14 of the Customs Act read with the Customs Valuation (Determination of Value of Export Goods) Rules 2007. 17. Can all export benefits under FTP and Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (IGCR) be taken in Bonded warehouse simultaneously? Response: The eligibility to export benefits under FTP or IGCR would depend upon the respective scheme. If the scheme allows, unit operating under Section 65 has no impact on the eligibility. In other words, a unit operating under Section 65 can avail any other benefit, if the benefit scheme allows.

17. What will be the method of inventory control method in Section 65 units? Whether First in First Out (FIFO) method can be followed?

Response: The Generally Accepted Accounting Principles will be followed for inventory control in a Section 65 unit. Thus FIFO method can be followed.

19. What is the procedure and documentation requirements for re-entry of manufactured goods, returned by the customers for repair, in the premises?

Response: Once the goods are cleared from the warehouse, they will no longer be treated as warehoused goods. Thus if the resultant goods cleared from the warehouse are returned by the customer for repair, they will be entered as DTA receipts (this is provided in the accounting form). After repair, when the same is cleared from the warehouse, the same will be entered in the prescribed accounting form. If the goods were exported and subsequently rejected or sent back for repair by the customer, then the goods upon re-import have to be entered as Imports receipts in the accounting form. The relevant customs notification for re-imports has to be followed while filing the Bill of Entry for re-import of the goods.

20. What is the procedure for surrender of licence for a Section 65 unit?

Response: Since the unit operating under Section 65 is also licensed as a Private Bonded warehouse under Section 58 of the Customs Act, the procedure for surrender of licence will be as per the regulation 8 of the Private Warehouse Licensing Regulations, 2016. A licensee may therefore, surrender the licence granted to him by making a request in writing to the Principal Commissioner of Customs or Commissioner of Customs, as the case may be. On receipt of such request, the licence will be cancelled subject to payment of all dues and clearance of remaining goods in such warehouse.

Connect for B2B & G2G Business Facilitation or Getting the Bonded Warehouse Manufacturing Permits

Team S.J. EXIM SERVICES- TEAM Q-FREIGHT I Team ETON Solutions

CP: Mr. Ravi Jha

Web:  www.q-freight.com I  www.sjeximtech.com

EMAIL: intelconsul@gmail.com I info@sjeximtech.com

TEL NO: +91-9999005379

Facebook: www.facebook.com/sjeximservices I www.facebook.com/CCQFreight

We Design & Create Solutions for Government, Corporates, MSME & Individuals across Industry Verticals.

NOTE: All Inquiries are solicited via email only. The Sourcing Services are paid without any prejudice
Disclaimer: Please refer to the official Source before effecting any decision. We are not responsible for the data or notification published at the source; we are only reproducing the same for your Ease of Doing Business.

List of India’s Trade Agreements

BORN IN INDIA I SERVED FROM INDIA I TO THE GLOBE

This slideshow requires JavaScript.

Dated:  13.07.2020

 

Trade Agreements

India’s Current Engagements in RTAs

 

International Trade

            India & World Trade Organization (WTO)                        

Indian Papers/submissions in WTO

Association of South East Asian Nations (ASEAN) and India Free Trade Agreement (FTA) negotiationss
India-Thailand Comprehensive Economic Cooperation Agreement (CECA) negotiations
Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Free Trade Agreement (FTA) negotiations
India-Gulf Cooperation Council (GCC) Free Trade Agreement (FTA) negotiations
India-SACU Preferential Trade Agreement (PTA) negotiations
Second Review of India-Singapore Comprehensive Economic Cooperation Agreement
Expension of India-Chile Preferential Trade Agreement (PTA)
India-MERCOSUR Preferential Trade Agreenent (PTA) Negotiations
India-EU Broad Based Trade and Investment Agreement (BTIA) negotiations
Brief on India-EFTA Broad based Trade and Investment Agreement (BTIA) negotiations
Global System of Trade Preferences (GSTP)
Asia Pacific Trade Agreement (APTA)
India – New Zealand Free Trade Agreement Comprehensive Economic Cooperation Agreement
India-Canada Comprehensive Economic Partnership Agreement (CEPA)
India-Australia Comprehensive Economic Cooperation Agreement (CECA)
India-Indonesia Comprehensive Economic Cooperation Agreement (CECA)
Joint Study on the India- COMESA (Common Market for East and Southern Africa) Joint Study Group Report to examine the feasibility of a Preferential Trade Agreement (PTA) Free Trade Agreement (FTA) bet
India – Israel Free Trade Agreement FTA Negotiations
Brief on Regional Comprehensive Economic Partnership (RCEP)

Connect for B2B & G2G Business

Team S.J. EXIM SERVICES- TEAM Q-FREIGHT I Team ETON Solutions

CP: Mr. Ravi Jha

Web:  www.q-freight.com I  www.sjeximtech.com

EMAIL: intelconsul@gmail.com I info@sjeximtech.com

TEL NO: +91-9999005379

Facebook: www.facebook.com/sjeximservices I www.facebook.com/CCQFreight

We Design & Create Solutions for Government, Corporates, MSME & Individuals across Industry Verticals.

NOTE: All Inquiries are solicited via email only. The Sourcing Services are paid without any prejudice
Disclaimer: Please refer to the official Source before effecting any decision. We are not responsible for the data or notification published at the source; we are only reproducing the same for your Ease of Doing Business.

 

Changes in the Import Policy of Tyres in India

S J EXIM-Q Freight

BORN IN INDIA I SERVED FROM INDIA I TO THE GLOBE

Dated:  24.06.2020

Latest Change in the Import Policy of Tyres in India

The Govt. of India has recently amended the Import Policy of Pneumatic Tyres to deter the Imports of Tyres in India to support the objective of the Govt. of India to thrust on becoming “Atmanirbhar”. In order to cut down on the reliance on Imported products & to boost the Manufacturing of Tyres in India the Govt. of India has amended the Import Policy of Tyres from “Free” to “Restricted” with immediate effect vide DGFT Notification No 12/2015-20 dtd: 12/06/2020.

The Govt. has restricted the following ITC (HS) chapters under the cited Import Policy 4011 1010, 4011 1090, 4011 2010, 4011 2090, 4011 4010, 4011 4020, 4011 4090, 4011 5010, 4011 5090.

Download the Notification Here:

DGFT Notification 12 dated 12.06.2020

SS DGFT Notfn 12

Connect for B2B & G2G Business

View original post 98 more words