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Sfis license (Custom)

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This query is : Resolved

Author : Anonymous

( Author )
23 August 2012


Hello All,

We have a manufacturing plant & registered office.Both premises are different.We are the manufacturer and exporter of auto components. Also we have a service export from our registered office. Our IEC code for plant & office is same. From the service export we got SFIS license from DGFT. License registered at Bombay Air Cargo.

We use said license to pay import duty against the import shipment of our office (only those material which required for service departments i.e. Design, Testing, Electronics etc.)

Can we use said license to pay import duty of our plant shipment (those material which required for manufacturing purpose)Plant shipments are by sea mode and arrive at Nhava Sheva port.

Please clarify.

Thanks for co-opeation.



RAMESH KUMAR VERMA

( Expert )
24 August 2012

Objective of SFIS scheme is is to accelerate growth in export of services so as to create a powerful and unique "SFIS"objective of this scheme is brand , instantly recognized and respected world over.

Indian Service Providers of services listed in Appendix-41 of HBPL -1 who have free foreign exchange earnings of at least Rs. 10 Lakhs in current financial year will be eligible for duty credit scrip 10%(OF FOREIGN EXCHANGE EARNS-DURING CURRENT FINANCIAL YEAR)

For individual Indian service providers minimum free foreign foreign exchange earnings would be Rs. 5 lakhs (AS PER PARA 3.12.2 & 3.12.4 OF FOREIGN TRADE POLICY 2009-2014.

Ineligible Services and
Service Providers Para 3.12.3Services and Service Providers as listed in Para 3 .6.1 of HBPv1 shall not be entitled for benefits under the SFIS
scheme.

Entitlement para 3.12.4 :
All Service Providers shall be entitled to Duty Credit Scrip equivalent to 1 0% of free foreign
for rendering of service shall also be taken into account for computation of Duty Credit Scrip.

Imports Allowed 3.12.6 Duty Credit scrip may be used for import of any capital goods including spares, office equipment and professional
equipment, office furniture and consumables; that are otherwise freely importable and / or restricted under ITC

(HS). Imports shall relate to any service sector business of applicant. Utilization of Duty Credit scrip earned shall not be permitted for payment of duty in case of import of vehicles, even if such vehicles are freely importable under
ITC (HS).

In case of hotels, clubs having residential facility of minimum 3 0 rooms, golf resorts and stand-alone
restaurants having catering facilities, Duty Credit scrip may also be used for import of consumables including

food items and alcoholic beverages.
Non Transferability para 3.12.7
Entitlement / goods (imported / procured) shall be non transferable (except within group company and managed hotels) and be subject to Actual User condition.

Procurement from Domestic Sources para 3.12.8 Utilization of Duty Credit Scrip shall be permitted for payment of excise duty in terms of DoR notification issued

in this behalf for procurement from domestic sources, of items permitted for imports under SFIS Duty Credit
Scrip.


Author : Anonymous

( Author )
26 August 2012


Thank you sir for this valuable information.

Please provide the DoR notification under which we can use said credit to pay excise duty against procurement from demestic sources.

Also please confirm that can we sell SFIS license to any other service industry like hotels who have a regular imports.


RAMESH KUMAR VERMA

( Expert )
27 August 2012

it is clear mentioned in FOREIGN TRADE POLICY 2009-2014.

Regards,


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