Sub : Public Notice No. 67 dated 2-4-2005 relating to changes regarding export of tea from EOUs/SEZs.

DGFT has issued Public Notice No. 67 dated 2-4-2005. This Public Notice has brought about the following changes:-

(1) Paragraph 6.7(c ) of the Handbook of Procedures has been amended. As per the new provision imported tea has to be utilized by EOUs within a period of 6 months from the date of import. As per the existing provisions the goods are to be utilized within a period of 3 years.

(2) Appendix 14 1C of Handbook of Procedures contains sector specific requirement for EOUs/SEZ Units. In this Appendix, Serial No. 6 has been added as follows:-

“Tea

In case of tea, a minimum value addition of 50% shall be insisted upon”

At present EOUs and SEZ Units are required to achieve positive net foreign exchange earning. As per this stipulation now a minimum value addition of 50% has been prescribed.

(3) DGFT has also amended Paragraph 2.21.2 of Foreign Trade Policy. Accordingly in the case of export of tea all exporters who are required to submit certificate of origin (non-preferential) are required to apply to the Tea Board or any Inspection Agency authorized by the Tea Board and enlisted in Appendix 35-B of the Handbook of Procedures (Vol.I)

A copy of Public Notice No. 67/2004-09 dated 2-4-2005 is enclosed. This is for your information please.

GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
PUBLIC NOTICE No. 67 / 2004-09
NEW DELHI: the 2nd April, 2005

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.I), 2004-09:-

1. The following shall be added at the end of Para 2.21.2:

“In the case of tea, all exporters who are required to submit Certificate of Origin (Non-Preferential) shall apply to the Tea Board or any Inspection Agency authorized by the Tea Board and enlisted in Appendix 35-B of the Handbook of Procedures, (Vol.I) with the documents listed above.”

2. The following shall be added at the end of Para 4.22:

“ In the case of tea, the period of fulfillment of export obligation shall commence from the date of import of the first consignment and should be fulfilled within a period of six months.”

3. The following shall be added at the end of Para 6.7 ( c ):

“However, imported tea shall be utilized within a period of six months from the date of import ”

4. After S. No.5 of Appendix 14-IC, the following shall be added:

“6. Tea

In case of tea, a minimum value addition of 50% shall be insisted upon.”

This issues in Public interest.

( K. T. CHACKO )
DIRECTOR GENERAL OF FOREIGN TRADE