Import Duty Concessions.

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anckoora (Querist)
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02 July 2011 Dear Sir,

Ours is a partnership concern based in Gujarat. We import Solar Glass Tubes from China. Product code is 85439000 & pay 10% Basic Duty & 4 % Addl. Duty. No excise duty. We sell this to Solar Water Heater manufacturers in India. This solar water heaters are used by individuals and also by hospitals, schools etc. Basically this is a Product for Non Conventional Energy Source. Now I would like your guidance on following points :
(1) Is there any concession / exemption in duty available - since this is a part of product which manufactures non-conventional energy ? If yes, provide notification / circular etc.
(2) India has signed Free Trade Agreements (FTA) with Singapore, ASEAN Countries etc. Under this, both countries allow their importers / exporters to import / export their product with no duties levied on it. Is there any General Exemption available in Custom Duty for my product ? If yes, how much and under which noti./circular ?
(3) Actual name of my product is "Vaccume Tube Solar Collectors". You can search & find suitableHS Code under which I can import from now onwards to avail the benefit.

thanks in advance.
anckoora.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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02 July 2011 AFTER CHECKING THE CUSTOM TARIFF DUTY IS 7.5%,

you can issuance the advance licence for import this item duty will nil.

An advance licence is granted for the import of inputs without payment of basic customs duty. Such licences shall be issued in accordance with the policy and procedure in force on the date of issue of the licence and shall be subject to the fulfillment of a time-bound export obligation, and value addition as maybe specified. Advance licences maybe either value based or quantity based.
As per the latest amendments to the EXIM Policy, the facility of Back to Back Inland Letter of Credit has been introduced, to enable an Advance Licence holder to source his inputs from domestic suppliers.

Value Based Advance LicenseUnder a value based advance licence, any of the inputs specified in the licence maybe imported within the total CIF value indicated for those inputs, except inputs specified as sensitive items.
Under a value based advance licence, both the quantity and the FOB value of the exports to be achieved shall be specified. It shall be obligatory on the part of the licence holder to achieve both the quantity and FOB value of the exports specified in the licence.

Amendments to the Advance License Scheme The Advance License Scheme has been expanded and liberalized with the amendments made to the EXIM Policy, announced on 31st March 1995.

FOR MORE INFO:-

https://dgftcom.nic.in/exim/2000/policy/chap-04.htm

anckoora

anckoora (Querist)
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02 July 2011 but sir, I neither manufacture or export the Solar Water Heaters for which I sell solar glass tubes. I just trade in this item. So question of taking benefit of advance licence does not arise. Am I right ? Further, pl. give me information for benefit of import duty if i import from countries with whom we have FTA.
thanks
anckoora

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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02 July 2011 yes you are right.hence u can not avail SAD.

for info read FTP 2009-2014

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