No 14/005/176 /2004
Sept 15, 2004
Members of the Council
Dear Members,
This is in continuation to our earlier circular of even number dated Sept 1, 2004 giving the highlights of the new Foreign Trade Policy announced by the Hon'ble Union Minister for Commerce & Industry. In the said policy, certain special focus initiative were announced for leather sector which were incorporated under Para 1(v) of the Chapter 1B of the Policy.
In order to give effect to the notified focus initiatives, the Department of Revenue, Ministry of Finance has now issued Customs Notification No.89/2004-cus dated 10.09.2004, amending the base Notification No.21/2002 dated 1.3.2002.
A copy of the said Notification is attached herewith for your reference. The amendments made therein pertain to the following:
- Duty free import entitlement increased from 1% to 3% of previous year's FOB export value, for all leather products exclusive of leather garments. The facility is now extended to synthetic footwear also.
- Duty free import entitlement increased from 3% to 5% of previous year's FOB export value, for leather garments. However, the condition of limiting the import of lining & interlining materials to a maximum of 2% is maintained.
- The import of lining & interlining materials under the duty free import scheme, which were hitherto subjected to 16% CVD, has now been exempted from CVD levy
- Machinery & equipments required for Effluent Treatment Plants has been exempted from Basic Custom Duty.
(The Council shall be representing to the Department of Commerce as well as DGFT for suitable amendment to make eligible the manufacturers of leathers having ETPs, and also CETPs to avail this exemption benefit)
The member-exporters may kindly take note of the above fiscal measures and avail the same.
A Note giving guidelines / procedures to be followed in availing revised duty free import schemes is attached herewith for necessary guidance of member-exporters.
With best wishes,
Yours sincerely,
S Audiseshiah
Executive Director
Notification No.89/2004-cus dated 10.09.2004
Note on guidelines / procedures to be followed in availing duty free import
entitlement at 3% and 5% level
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