SUBJECT :

(1) DGFT Notification No. 24 (RE-2005)/2004-2009 dated 31-8-2005 regarding sale of marble from EOU to DTA

(2) DGFT Notification No. 25 (RE-2005)/2004-2009 dated 31-8-2005 regarding establishment of EOUs with a lower investment criteria

1) DGFT Notification No. 24 (RE-2005)/2004-2009 dated 31-8-2005 regarding sale of marble from EOU to DTA

DGFT has issued Notification No. 24 (RE-2005)/2004-2009 dated 31-8-2005, copy enclosed, wherein it has amended Paragraph 6.8(a) and Paragraph 6.8(h) of the Foreign Trade Policy. Paragraph 6.8(a) of the FTP provides the facility to EOUs to affect sale in the DTA on concessional duty i.e. 50% of the applicable duty. This paragraph, however, denies this facility to certain products specified in this paragraph. As per notification No. 24 (RE-2005)/2004-2009 dated 31-8-2005 DGFT has now incorporated “Marble” in this paragraph. Accordingly EOUs can not affect sale of marble in DTA at concessional duty under paragraph 6.8(a). Simultaneously DGFT has also amended paragraph 6.8(h) of the FTP. The amended Paragraph 6.8(h) read as follows:-

“EOU/EHTP/STP/BTP units may sell finished products except Pepper & Pepper products and Marble, which are freely importable under he Policy in the DTA under intimation to the Development Commissioner against payment of full duties provided they have achieved the positive NFE”.

Now with the amendment in paragraph 6.8(a) and paragraph 6.8(h) of the FTP, no sale of marble can be affected in DTA by the EOUs. In this context it is also brought to the notice that DGFT has also issued Notification No. 23(RE-2005)/2004-2009 dated 31-8-05 wherein it has affected certain changes in the import of marble, tiles and marble monumental blocks in general. Import of marble under Chapter 25 is now restricted and subject to the condition as given in Policy Circular No. 24 dated 30-8-05, which also lays down floor value for import of marble alongwith other conditions as given in the Policy. A copy of Policy Circular No. 24 dated 30-8-05 is enclosed.

(2) DGFT Notification No. 25(RE-2005)/2004-2009 dated 31-8-05

DGFT has issued Notification No. 25(RE-2005)/2004-2009 dated 31-8-05 wherein it has amended paragraph 6.6(d) of the FTP. The amended paragraph reads as follows:-

“Only projects having a minimum investment of Rs.1 crore in plant and machinery shall be considered for establishment as EOUs under the Scheme. This shall, however, not apply to existing units in EHTP/STP/BTP, Handicrafts/Agriculture/ Floriculture/Aquaculture/Animal Husbandry/ Information Technology, Services, Brass Hardware and Handmade jewellery sectors. The Board of Approval (BOA) may allow establishment of EOUs with a lower investment criteria.”

Accordingly now any new proposal for setting up as an EOU, which involves an investment in plant and machinery of less then Rs. 1 crore can be permitted to be set up by the Board of Approvals. Certain sectors as stated in paragraph 6.6(d) above are exempted from this minimum investment criteria of Rs. 1 crore. A copy of Notification No. 25 dated 31-8-2005 is enclosed.

This is for your information please.

______________________

TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY PART-II,
SECTION-3, SUB SECTION (ii)
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE

NOTIFICATION No. 24 (RE-2005)/2004-2009 NEW DELHI, DATED 31stAugust’2005

S.O.(E) In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 read with paragraph 1.3 of the Foreign Trade Policy, 2004-2009, as amended from time to time, the Central government hereby makes the following amendments:-

1. In sub-paragraph 6.8(a) as amended vide Notification No. 10 dated 24th June’ 2005, the third sentence viz “No DTA sale at concessional duty shall be permissible in respect of motor cars, alcoholic liquors, books, tea (except instant tea), pepper & pepper products and such other items as may be notified from time to time. Such DTA sale shall also not be permissible to units engaged in the activities of packaging / labeling / segregation / refrigeration /compacting/ micronisation/ pulverization/ granulation/ conversion of monohydrate form of chemical to anhydrous form or vice-versa shall be amended to read as “No DTA sale at concessional duty shall be permissible in respect of motor cars, alcoholic liquors, tea (except instant tea), pepper & pepper products, marble and such other items as may be notified from time to time. Such DTA sale shall also not be permissible to units engaged in the activities of packaging / labeling / segregation / refrigeration /compacting/ micronisation/ pulverization/ granulation/ conversion of monohydrate form of chemical to anhydrous form or vice-versa.”

2. Sub-Paragraph 6.8(h) as amended vide Notification No. 2 dated 13.6.2005 shall be amended as under:-

“EOU/EHTP/STP/BTP units may sell finished products except Pepper & Pepper products and Marble, which are freely importable under he Policy in the DTA under intimation to the Development Commissioner against payment of full duties provided they have achieved the positive NFE”.

This issues in Public interest.

( K.T. CHACKO)
DIRECTOR GENERAL OF FOREIGN TRADE
Ex. Officio Additional Secretary to the Government of India

(Issued from F. No. 01/53/8/75/AM02/K-7/ILS)

GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
NOTIFICATION No. 25 (RE-2005)/2004-2009
NEW DELHI, DATED THE 31st August, 2005

S.O.(E) In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 read with paragraph 1.3 of the Foreign Trade Policy, 2004-2009, as amended from time to time, the Central Government hereby makes the following amendments in the Foreign Trade Policy, 2004-09:-

1. Sub-para 6.6(d) shall be amended as under:

“Only projects having a minimum investment of Rs.1 crore in plant and machinery shall be considered for establishment as EOUs under the Scheme. This shall, however, not apply to existing units in EHTP/STP/BTP, Handicrafts/Agriculture/ Floriculture/ Aquaculture/ Animal Husbandry/ Information Technology, Services, Brass Hardware and Handmade jewellery sectors. The Board of Approval (BOA) may allow establishment of EOUs with a lower investment criteria.”

This issues in Public interest.

( K.T. CHACKO )
Director General of Foreign Trade and
Ex Officio Additional Secretary to the Government of India

(Issued from F .No. 01/92/180/207/AM’05/PC-II)

___________

Government of India
Ministry of Commerce
Directorate General of Foreign Trade
Udyog Bhavan, New Delhi – 110 011.
Policy Circular No. 24 (RE-05)/2004-2009 dated 30.8.2005

To
All Licensing Authorities;
All Commissioners of Customs;

Sub : Guidelines for import of Rough Marble Blocks/Slabs.

A number of representations have been received from the various associations of marble manufacturers/processors for review of the regime governing import of marble. The matter has been considered in detail in consultation with the Trade and Industry. The following provisions will henceforth be applicable for import of rough marble blocks/slabs in supersession of the provisions contained in Policy Circular No. 29(RE-01)/1997-2002 dated 14.3.2002 and Policy Circular No.44(RE-2004) dated 24.8.2004.

1. Attention is invited to EXIM Code Nos. 25151100, 25151210, 25151220, 25151290 indicated in Schedule-1 (imports) of ITC(HS) Classifications of Export and Import Items, 2004-2009 . As per the provisions contained therein, import of Marble and Travertine - Crude or Roughly trimmed, Merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape & other Calcareous Stone is restricted and subject to import licensing procedures. Applications for such licences are considered by the EXIM Facilitation Committee (EFC) (an Inter-Ministerial Committee comprising of representatives from various Ministries/Departments), in the DGFT, New Delhi.

2. The EXIM Facilitation Committee (EFC) will consider applications for import under the above mentioned Exim Codes in the following manner: -

I. Eligibility-

Entitlement would be restricted to those applicants who have set up manufacturing / processing units in the country and have made imports of these items in the preceding years when these items were under SIL list.

II. Floor Price-

It is further clarified that these licences shall be subject to the following floor price which shall be endorsed on all licences.

i) For crude or roughly trimmed marble – US$300 per Metric Tonne (MT);

ii) For rough marble blocks – US$300 per Metric Tonne (MT); and

iii) For Slabs – US$ 450 per Metric Tonne (MT)

III. Entitlement:

The total import of rough marble blocks under Exim Code Nos.25151100, 25151210, 25151220, will be subject to a ceiling of 1.30 lakh MT per licensing year. The entitlement of individual firm will be worked out on the basis of the turnover of the preceding year. The applicant will be required to furnish a Chartered Accountant certificate certifying his turnover.

IV. The last date for receiving applications will be 1st October of each Licensing Year. No applications will be entertained after this date.

V. All licences shall be subject to actual user condition.

VI. In this regard Licence holders shall file monthly returns regarding imports made by them to the concerned Regional Licensing Authority.

VII. The eligible applicants may file an application in the form given in ‘Aayaat Niryaat Form’ together with all relevant documents. All applications will be forwarded through the Chemicals and Allied Products Export Promotion Council (CAPEXIL) who will certify the turnover of the applicant before sending it to DGFT (HQrs).

3. This issues with the approval of DGFT.

(PRATIMA DIKSHIT)
Joint Director General of Foreign Trade

(Issued from File No. 01/53/8/75/AM02/K-7/ILS)

GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT OF COMMERCE

NOTIFICATION No. 23 (RE-2005)/2004-09 NEW DELHI: Dated: 31st August, 2005

S.O. (E) In exercise of powers conferred under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with paragraph 2.1 of the Foreign Trade Policy, 2004-09, the Central Government hereby makes the following amendments in Schedule-I (Imports) to the ITC (HS) Classifications of Export and Import Items, 2004-09:

1. The Policy conditions of the following Exim Codes will be amended:

2. Import Licensing Note no, (2) will be inserted at the end of Chapter 25 and will read as follows:

“Import of marble will be subject to the conditions laid down in Policy Circular 24 (RE-05)/2004-2009 dated 30.08.2005.”

3. This issues in pubic interest.

(K.T. CHACKO)
Director General of Foreign Trade and
Ex-officio Additional Secretary to the Government of India

(Issued from File No. 01/53/8/75/AM02/K-7/ILS)