Implementation of Target Plus and Duty Free Credit Entitlement scheme for status holders

In exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy, 2004-09, the Director General of Foreign Trade hereby makes the following amendments in the Handbook of Procedures (Vol.1 2004-09):

1. Appendix 17 D as contained in Annexure A to this Public Notice replaces the Appendix 17 D as contained in Annexure A to Public Notice 70 dated 07.04.2005 for Target Plus Scheme 2004-05.

2. Appendix 17E as notified in Annexure A to Public Notice 70 dated 07.04.2005 for Target Plus Scheme 2004-05 is deleted and Para 3.2.5 (VIII) of Handbook of Procedures (Vol.1 2004-09) is deleted.

3. Para 3.2.5 (IX) is added as under: “Applicants shall file the applications in Appendix 17D to the jurisdictional Zonal Office (Mumbai, Kolkata, Chennai, Delhi CLA) depending upon the location of Registered Office / head Office of the applicant. The respective Zonal offices shall consider the applications and issue the license or otherwise.”

This issues in Public interest.

Sd/-

(K. T. Chacko)
Director General of Foreign Trade

(Issued from F. No. 1/94/180/Public Notice/AM04/PC.IV)

Application Form for Target Plus Entitlement for Exports Effected During 2004-05 (Please see paragraph 3.7.1 to 3.7.8 of the Foreign Trade Policy and 3.2.5 of the Handbook (Vol. 1)).

File No._________________________________ Date:____________

9. Port of Registration (for import purpose): …………………………

Goods allowed to be imported under this scheme shall have a broad nexus with the product exported and a declaration in this regard shall be made by the applicant in Appendix 17D. For the purpose of import entitlements under this scheme, ‘broad nexus’ would mean goods imported with reference to any of the product groups of the exported goods within the overall value of the entitlement certificate.

11. DECLARATION CUM UNDERTAKING

I. I/We hereby declare that this application is based on exports made (in free foreign exchange) during the licensing year 2003-04 and 2004-05 and benefit is being claimed in respect of export proceeds realized in conformity with requirement prescribed in Para 3.2.5 (I) of Handbook of Procedures (Vol. 1) 2004-09.

II. I/We further certify that I/We am/are authorized to verify and sign the statement on behalf of the applicant.

III. I/We fully understand that any information furnished in the above statement, if proved incorrect or false, will render me/us liable to face any penal action or other consequences as may be prescribed in law or otherwise warranted.

IV. I/We further declare that I/We has/have not applied nor obtained another Target Plus DFCE Entitlement Certificate issued under paragraph 3.7.1 of the Policy based on the exports made (in free foreign exchange) during 2004-05.

V. I/We further declare that I/We shall comply with the provisions of the Foreign Trade Policy/Handbook of Procedure (Vol.1) and the relevant Customs notification while importing the goods under the scheme and subsequent use of the same under actual user condition.

VI. I/We further declare that for calculating the value of exports, the following exports have not been taken into account, namely:

VII. I/We further declare that export documents are in conformity with requirement prescribed in Para 3.2.5 (I) of Handbook.

VIII. I/We undertake that the export performance has not been transferred to or transferred from any other exporter.

IX. I/We have not applied for/ taken the benefit of Vishesh Krishi Upaj Yojana for the exports for which I am taking benefit under the Target Plus scheme except for calculation of percentage incremental growth.

X. I/We further declare that in respect of capital goods and/or office equipments, a certificate from jurisdictional Deputy Commissioner Central Excise/Assistant Commissioner of Central Excise or an independent Chartered Accountant, as the case may be, shall be produced confirming installation and use of capital goods and/or office equipments in the importer’s factory or premises, within six months from the date of imports or within such extended period as the said Deputy Commissioner of Customs or Assistant Commissioner of Customs may allow.”

 

Official Stamp/Seal	Signature:	:.....................
	Name in Block Letters:	:.....................
	Designation:	:.....................
	Place:	:.....................
	Full Official Address:	:.....................
	Residential Address:	:.....................
	E-Mail address:	:.....................

NOTES

Note 1: If the applicant is part of a Group Company as defined in Chapter 9 of Foreign Trade Policy, Entitlement will be adjusted in terms of Para 3.7.4 of Foreign Trade Policy. If any of the Star Group Companies show negative growth, necessary adjustment would be made by RLA to retain the last years’ export performance of each individual star export house, out of the export performance of the applicant company of the group. The balance after adjustment would be counted for the export performance of the applicant company for grant of Target Plus Scheme benefits. Illustrative example is given in the following table to clarify the above.

Similarly, if export performance after adjustment falls below 72 (i.e. below 20% required minimum incremental growth rate) then the applicant company is not eligible or if the combined performance of all Star Export House companies of the Group falls below 110 then all Star export houses of this group are not eligible.

Note 2: The FOB Value of Export (in free foreign exchange) in US$ and in Indian Rupees for this application has to be taken from Shipping Bill. For export bills in currencies other than US$, the conversion into US$ may be taken by cross conversion on basis of the conversion rate of US $ to Rupee and the conversion rate of other currency (say Euro) to Rupee as notified by the Customs on the date of let exports order of the shipment.

Note 3: For the applicant to be eligible, the annual export turnover in 2004-05 as in Row 1 of Sr. No. 6 of the application should not show a negative growth over previous year (2003-04).

Note 4: Calculating the eligibility

i) The Value of Eligible Export in 2003-04 (previous year) should be greater than or equal to Rs 10 Crores as in Column A of Row 6 of Sr. No. 6.

ii) Minimum Percentage Incremental growth export as in Row 4 of Sr. No. 6 should be greater than or equal to 20%.

 

The entitlement shall be calculated on the percentage incremental growth in FOB value of exports in the current licensing year over the previous licensing year, as under:

 

Percentage incremental growth	Duty Credit Entitlement (as a % of the incremental growth)
20% and above but below 25%	5%
25% or above but below 100%	10%
100% and above	15% (of 100%)

Note 6: Incremental growth beyond 100% will not qualify for computation of duty credit entitlement.

Note 7: The export product groups shall be the product groups listed in Row 14 of Sr. No. 6. Miscellaneous would cover the residual product group category.

Note 8: Applicant can claim the balance entitlement due as per Row 13 of Sr. No 6 of this application by filing a single consolidated supplementary application within 3 months of receipt of last realization as per RBI guidelines. No Late cut will be imposed in such a case.

Note 9: In case exports made under Sr. No. IV of the declaration appended hereto are covered by more than a single category, the applicant may choose to declare such exports in any one of the said categories as reflected in the Sr. No (vii) of the CA certificate.

Note 10: If an applicant is not satisfied with the calculation of entitlement under the DFCE scheme, he may approach the Grievance Redressal Committee at the Ministry of Commerce & Industry. The details are available at http://commerce.nic.in/grc.htm.

Documents to be enclosed with the application form:

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1. Copy of the status holder certificate valid during 2004-05.

2. Copy of RCMC valid during 2004-05 and valid currently.

3. CA Certificate as per enclosed annexure to Appendix 17D.

4. Statement of Export and Realization (for Eligible Exports) duly certified by the Bankers as per Appendix 22A, consolidated for each Bank.

5. Any other Document that may be specified or called for.

 

I/We hereby confirm that I/We have examined the prescribed registers and also the relevant records of M/s................. for the licensing period(s) ..... and

hereby certify that:

i) M/s............................... (Name and address of the applicant) who is a Star Export House has made exports in his own name during the licensing years, 2003-04 and 2004-05 as per the details supplied in the details of exports at Sr.No.5, 6 and the benefit is being claimed in respect of export proceeds realized in conformity with requirement prescribed in Para 3.2.5 (I) of Handbook.

The following documents/records have been furnished by the applicant for verification of the export details and have been examined and verified by me/us namely: (Tick whichever is applicable and give details)

a) Export Order, Invoice

b) Bank Realization Certificate/ FIRCs and SDF/GR declaration

c) Shipping Bills

d) Any other document (please specify).

ii) The financial information given in the above statement is in agreement with the relevant register and records; the same has been incorporated in the books of accounts maintained by M/s................... and their subsidiaries; and is also true and correct.

I/We further declare that export documents are in conformity with requirement prescribed in Para 3.2.5 (I) of Handbook. Where goods are procured from a manufacturer, the shipping bill contains the name of the exporter as well as the supporting manufacturer and no other party.

iii) It has been ensured that the information furnished is true and correct in all respect; no part of it is false or misleading and no relevant information has been concealed or withheld;

iv) Neither I, nor any of my partners is a partner, director, or an employee of the above-named entity or its associated concerns;

v) I/We fully understand that any statement made in this certificate, if proved incorrect or false, will render me/us liable to face any penal action or other consequences as may be prescribed in law or otherwise warranted.

vi) I/We have verified that the applicant has received the realization in his own name, as per the statement of exports and realization given below.

Tel. No. ............................

Regn. No. and Date of the Corporate Membership:..........