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Dear Members,
Sub: Inclusion of additional inputs for duty free import under 1% duty free
import entitlement scheme
As members are aware, 1% duty free entitlement scheme is available to manufacturer-exporters of leather footwear, footwear components, leather gloves, travel goods, handbags and similar containers all made of leather including wallets & purses as well as leather harness & saddlery.
Since the list of permitted inputs under the scheme did not include essential inputs like lining & inter-lining, synthetic and polymeric foam, soles, mid-soles, toe-caps, puffs etc. as well as packaging materials, the Council had been constantly pursuing with the Union Government to notify these essential inputs under the scheme. This issues was specifically highlighted in a meeting held with Shri Arun Shourie, Union Minister of Commerce & Industry and Chairmen of all EPCs on Dec 11, in connection with Export Strategies for various products.
After constant follow-up of the matter with senior officials in the Department of Commerce as well as Department of Revenue, the Union Government has favourably considered the Council’s representation and included additional inputs including packaging materials in the list of permitted items for import under 1% duty free scheme. A copy of Customs Notification No.15/2003-Customs dated Jan 21, 2003 issued in this regard is appended below for your information, reference and guidance.
Member-exporters concerned are requested to avail of the duty free benefit to meet the requirement of essential inputs as well as packaging boxes for export production. The formalities & procedures for availing the duty free import entitlement scheme will remain the same as specified in the Council’s Circular No.14/005/176/2002 dated August 27, 2002, which was issued for operationalization of the scheme.
With best wishes,
Yours sincerely,
S. Audiseshiah
Executive Director
Jan 23, 2003
NOTIFICATION
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