SUBJECT :

Admissibility of Vishesh Krishi Upaj Yojana to EOUs

Many EOUs had sought a clarification whether the benefits of Vishesh Krishi Upaj Yojana (VKUY) is available to EOUs as well. I had made a reference to DGFT and DGFT had clarified, vide letter No. 01/94/180/HB/AM05/PC I/733 dated 1-7-05, that benefit of VKUY is available to EOUs as well. This was informed to the members vide EPCES Circular No. 55 dated 12-7-05.

Now DGFT has issued Policy Circular No. 25(RE-2005)/2004-09 dated 31-8-2005 clarifying that the VKUY is available to EOUs as well and has also clarified that EOUs shall file their applications for claiming benefits under VKUY with the jurisdictional Regional Licensing Authority concerned. This circular is also clarifying the procedure for making the application. A copy of this Circular is enclosed alongwith.

DGFT vide its letter dated 13-7-05 has further clarified that this benefit is not available for exports from SEZ Units. As regards availability of benefits this Scheme to SEZ Units, the matter is being taken up with the DGFT again.

This is for your information please.

GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT OF COMMERCE
DIRECTORATE GENERAL OF FOREIGN TRADE
Policy Circular No. 25 (RE-2005)/2004-2009 Date: 31 August 2005

Subject: Clarification on admissibility of Vishesh Krishi Upaj Yojana benefits to Export Oriented Units (EOUs) – regarding.

Attention is invited to Para 3.19.1 of Handbook of Procedures 2004-09 under which a consolidated application for the duty credit entitlement certificate against exports made through one port to be filed with the jurisdictional Regional Licensing Authority by the Registered office in case of a company and Head Office in case of others for claiming benefits under Vishesh Krishi Upaj Yojana.

2. Representations have been received seeking clarification on admissibility of Vishesh Krishi Upaj Yojana benefits to Export Oriented Units (EOUs). It is clarified that EOUs are eligible for benefits under Vishesh Krishi Upaj Yojana for physical exports made by them at par with such exports made by DTA units, in respect of items appearing in Appendix – 37A of Handbook of Procedures 2004-09. It is further clarified that EOUs shall file their applications for claiming benefits under Vishesh Krishi Upaj Yojana with the jurisdictional Regional Licensing Authority concerned as per territorial jurisdiction prescribed at Sl.No.2 to 33 of Appendix – 1 of Handbook of Procedures 2004-09.

3. This issues with the approval of the Director General of Foreign Trade.

Sd/-
( M.K. Parimoo )
Dy. Director General of Foreign Trade

(F.No : 01/94/180/Policy Circular/AM06/ PC-I)