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TOPIC : Filing claims for reimbursement of CST
The government has made some significant changes to the Foreign Trade Policy (FTP) and Procedures (HB-1). With a view to incentivising exports of high technology products in free foreign exchange, the FTP allows duty credit of 1.25 per cent of the free on board (FOB) value of exports or 5 per cent of incremental growth, subject to a ceiling of Rs 15 crore.
The benefit will now be available for export of public call office using wireless (GSM/ satellite) technology, covered under ITC HS Code 84702100, and at the point of sale terminals/ transaction terminals (ePOS) using GSM/ CDMA/ Ethernet/ WiFi/ Serial/ PSTN technology, covered under ITC HS Code 84713000.
The recognition of status, such as export house, trading house etc., now will not expire at the end of the current five year FTP. The recognitions will be valid for 5 years from April 1 of the relevant year in which the status is granted, provided the next FTP (2009-14) continues to recognise the status. The status will also continue during the grace period of six months within which renewal applications can be made.
The export-oriented units (EOU) can now file supplementary claims for reimbursement of the central sales tax (CST), and such claims and delayed claims will be considered with cuts in entitlements, as applicable for other claims of other exporters.
Under the Focus Market Scheme (FMS), the exports made from April 1, 2006, through non-EDI enabled customs stations, will also be granted the entitlement.
As a proof of landing of export consignment in specified markets, the exporters can submit a self-attested copy of the import bill of entry filed by the importer in specified market or delivery order, issued by port authorities or arrival notice issued by goods carrier or tracking report from the goods carrier, evidencing arrival of export cargo to destination focus market.
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TRADE INDIA MAIL
