26th March 2012
All Members of the Council.
Sub : Implementation of Duty Free Import Scheme (DFIS) â€“ Comprehensive guidelines - 2012-2013 â€“ reg.
Members are kindly aware that the regulations governing implementation of DFIS were notified through a new Customs Notification (Tariff) No. 17/2012 dated 17th March 2012 in the Union Budget 2012-13, by rescinding the earlier Customs Notification (Tariff) No. 21/2002 dated 1.3.2002. Accordingly, the DFIS guidelines and formats of applications for issue of Export Performance Certificate (EPC) and Import Certificate (IC) have been modified as per the amended regulation notified vide Customs Notification (Tariff) No.12/2012 dated 17th March 2012 and Corrigendum Notification dated.19th March 2012.
In this regard, the Council has prepared a comprehensive circular incorporating the new regulations and revised fee structure of the certification fee, as stated above. The comprehensive circular is enclosed herewith. This circular has the following details.
Members may please note all the above guidelines with regard to implementation of DFIS scheme during 2012-13.
1) Service charges:
As per decision of the Committee of Administration (COA) of the Council, the following "Service charges" will be applicable for issuance of Export Performance Certificates (EPCs) and Import Certificates (I/Cs) for the year 2012-13.
One time payment option: The Service Charges for issuance of Export Performance Certificate (EPC) will be @ 0.04% of FOB value , subject to a minimum of Rs. 4,000/- for members opting one- time payment for issue of Export Performance Certificate. Service Tax will be levied as applicable
Every time payment Option: The Service charges for issuance of Import Certificate (I/C) will be @ 2% of CIF value , subject to minimum charges of Rs.200/- payable per IC . Service Tax will be levied as applicable.
2) Service Tax
The Service Tax rate has been enhanced in the Union Budget 2012-13 from 10% to 12%. Hence, the Service Tax payable on the aforesaid fee for issue of EPC and IC would be 12.36% (which is inclusive of Education Cess of 3% payable on the service tax)
Members may kindly note the procedures/guidelines mentioned in the aforesaid Comprehensive Circular and accordingly avail the benefits of DFIS, with effect from April 1, 2012.
D. Saalai Maraan
COUNCIL FOR LEATHER EXPORTS