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Notification No. 33 /2015-2020 New Delhi, Dated: 13 October, 2017 Subject: Amendments in  Foreign Trade Policy 2015-20 -reg S.O. (E):  In  exercise  of powers  conferred  by Section  5 of FT (D&R)  Act,  1992,  read with  paragraph  1.02  of the Foreign Trade Policy,  2015-2020,  as amended from time to time,  the Central  Government  hereby  makes following  amendments  in  Foreign Trade Policy 2015-20. 1. Para 4.14 is amended to read as under: "4.14:  Details of Duties exempted Imports  under Advance  Authorisation  are exempted  from  payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing  Duty,  Safeguard  Duty,  Transition  Product Specific Safeguard Duty,  wherever applicable.  Import  against supplies  covered under  paragraph 7.02  (c),  (d)  and (g)  of FTP will  not  be exempted from payment of applicable Anti-dumping   Duty,   Countervailing   Duty,   Safeguard   Duty   and  Transition Product  Specific  Safeguard  Duty,  if any.  However,  imports  under Advance Authorization  for   physical  exports  are   also  exempt   from  whole  of  the integrated  tax  and  Compensation  Cess  leviable  under sub-section  (7)  and sub-section  (9)  respectively,  of section  3  of the Customs Tariff Act,  1975  (51 of  1975),  as  may  be  provided   in  the  notification  issued  by  Department  of Revenue, and such imports shall be subject to pre-import condition."   2.  Para 5.01  (a) is amended to read as under: "5.01  (a)  EPCG  Scheme  allows  import of capital goods for  pre-production, production and post-production at Zero customs duty. Capital goods imported under EPCG scheme for physical exports are also exempt from whole of the Integrated Tax and Compensation Cess leviable thereon under the sub• section(?)  and subsection  (9)  respectively,  of section  3 of the Customs Tariff Act,  1975(  51  of  1975),  as  may be  provided  in  the notification  issued  under Department  of  Revenue.  Alternatively,  the  Authorisation  holder  may  also procure  Capital  Goods from indigenous sources  in  accordance  with  provisions of paragraph 5.07 of FTP. Capital goods for the purpose of the EPCG scheme shall include: i.  Capital  Goods  as defined  in  Chapter 9 including  in  CKD/SKD  condition thereof; ii. Computer  software  systems; iii.Spares,  moulds,  dies, jigs, fixtures,  tools  & refractories  for initial  lin_ing and spare refractories;  and iv. Catalysts for initial  charge plus one subsequent  charge."  3.      Para  5.01(c) is amended to read as under: "5.01 (c)     Import under EPCG Scheme shall be subject to an export obligation equivalent to 6 times of duties, taxes and cess saved  on capital goods, to be fulfilled  in 6 years reckoned from date of issue of Authorisation." 4.         Para 5.01(e) stands deleted. 5.          Para 5.07 is amended to read as under: "5.07     Indigenous  Sourcing  of Capital Goods and benefits to Domestic Supplier A  person  holding  an  EPCG  authorisation  may  source  capital  goods  from  a domestic  manufacturer.  Such  domestic  manufacturer  shall   be  eligible  for deemed  export  benefit under paragraph 7.03 of FTP and as may be provided under  GST  Rules  under  the  category  of  Deemed  Exports.  Such  domestic sourcing  shall  also  be  permitted  from  EOUs  and  these  supplies   shall  be counted  for purpose  of fulfilment of positive  NFE  by said EOU as provided  in Para 6.09 (a)  of FTP."  6.   Para 6.01(d) is amended to read as under:  "6.01 (d)  (i)  An  EOU I EHTP I STP I BTP  unit  may  import  and I or procure, from  OTA  or  bonded  warehouses   in  OTA  I  international  exhibition  held  in India,  all  types  of goods,  including  capital  goods,  required  for  its  activities, provided  they  are  not  prohibited  items  of import  in  the  ITC  (HS)  subject  to conditions given  at para (ii) & (iii) below.  Any  permission   required for  import under  any  other  law  shall  be  applicable.  Units  shall  also  be  permitted  to import  goods  including  capital  goods  required  for approved   activity,   free  of cost  or on  loan  I lease  from clients.  Import of capital  goods will  be on a self- certification   basis.   Goods   imported   by   a  unit  shall   be  with   actual   user condition  and shall be utilized  for export production.  (ii) The imports and/ or procurement from bonded warehouse in OTA or from international  exhibition  held  in  India  shall be without payment of customs  duty as  provided   under  First  Schedule   to  the  Customs   Tariff  Act,   1975  and additional  duty  of  Customs  leviable  under  Section  3(1 ),  3(3)  and  3(5)  and without  payment  of  Integrated  Tax  and  GST  Compensation  Cess  leviable under section 3(7) and 3(9) of the Customs  Tariff Act,  1975 as per notification issued  by the Department  of Revenue  (iii)    The  procurement  of  GST  goods  from  OTA  would  be  on  payment  of applicable   GST  taxes.  The  EOUs  can  procure  excisable  goods,  falling  in Fourth   Schedule   of  Central   Excise  Act,   from   OTA  without  payment   of applicable  excise duty.  The refund  of GST taxes for supply from OTA to EOU would  be available  to supplier  as  provided under GST  rules  subject  to such conditions  and documentations as specified there in  under GST rules."  7.    Para 6.01(f)  is amended to read as under:  "6.01 (f)    EOU  I  EHTP  I  STP  I  BTP  units   may  import  without  payment  of customs  duty  as  provided  under  First  Schedule  to  the  Customs  Tariff  Act, 1975  and  additional  duty  of  Customs  leviable  under  Section  3(1 ),  3(3)  and 3(5)  and  without payment  of Integrated  Tax  and  GST  Compensation  Cess leviable  under section 3(7)  and 3(9) of the  Customs  Tariff Act,  1975 as per notification  issued  by the  Department  of  Revenue  and I  or   procure  from OTA,  with  payment  of  applicable  taxes  under  GST  and/  or Cenvat,  as the case   may   be,   certain   specified   goods    for    creating    a   central   facility. Software   EOU  I OTA units may use such facility for export of software."   8.   Para 6.01(k) is amended to read as under: "6.01 (k)  BOA may allow,  on a case to case basis,  requests  of EOU I EHTP I STP/  BTP units in sectors  other than  Gems  & Jewellery, for consolidation of goods   related   to   manufactured   articles   and   export   thereof  along   with manufactured  article.  Such goods  may be allowed  to be imported  I procured from  OTA  by EOU with  or without  payment  of duty  as provided  at Para 6.01 (d)  (ii)  and (iii)  above,  as the case may be, to the extent  of 5% FOB  value of such  manufactured  articles exported  by the  unit in  preceding  financial year. Details  of  procured  I imported  goods  and articles  manufactured  by the EOU will  be  listed  separately  in  the  export  documents.  In  such  cases,  value  of procured  I imported  goods  will  not  be taken  into  account  for  calculation  of NFE and OTA sale entitlement. Such procured I imported goods  shall not be allowed to be sold in  OTA.   BOA may also specify any other conditions."  9.   Para 6.02 is amended to read as under: "6.02 Second  hand capital goods, without any age limit, may also be imported without  payment  of customs  duty  as  provided  under  First  Schedule  to  the Customs   Tariff  Act,   1975  and  additional  duty  of  Customs   leviable  under Section 3(1),  3(3) and 3(5) and without payment  of Integrated Tax  and GST Compensation  Cess  leviable  under  section  3(7)  and  3(9)  of  the  Customs Tariff Act,  1975 as per notification  issued  by the Department  of Revenue." Effect of this Notification:   Various  provisions  of  Foreign  Trade  Policy  2015-20  is amended  to  enable  certain   additional   duties/taxes/cess   exemptions  for  Advance authorisations,   EPCG  Authorisations  and  units  under  EI  EHTP  I  STP/  BTP Scheme.