GOVERNMENT
OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT OF COMMERCE
DIRECTORATE GENERAL OF FOREIGN TRADE
Policy Circular No.19 (RE-2006)/2004-2009 Date:
11-9-06
To
1.
All
Licensing Authorities
2.
Development
Commissioners of SEZs
3.
EPZ
Division of Deptt. of Commerce
Subject: DTA sale on third party exports by EOUs – Clarification thereon.
In terms of para 6.10 of Foreign Trade Policy, an EOU Unit may export
goods manufactured by it through another exporter or any other EOU unit subject
to the conditions mentioned in para 6.19 of
Handbook. In terms of sub-para 6.19(e) of Handbook, all export entitlements,
including recognition as status holder would accrue to the exporter in whose
name foreign exchange earnings are realized.
However, such export shall be counted towards fulfillment of obligation
under EOU scheme only. In terms of para 6.19(d), fulfillment of NFE by EOU unit in regard to
such export shall be reckoned on the basis of the price at which the goods are
supplied by EOUs to other exporter or other EOU unit.
A clarification has been sought whether exports effected by EOUs
through third party are eligible for DTA sale entitlements under para 6.8 of FTP.
2. The
facility of DTA sale to EOUs is available against
physical export of goods manufactured in EOU and earning positive net foreign
exchange. Exports effected through third
party and foreign exchange realized in the name of the third party for those
goods which have been manufactured in the EOU and are directly transferred from
the unit to the port of shipment are eligible exports and this export is also counted for the purpose of fulfillment
of export obligation of EOU. The EOU is,
therefore, eligible to get DTA sale benefits on exports effected
through third party. The Shipping Bills must indicate the names of both the
manufacturer and the third party.
While indicating the name of the manufacturer in such cases, the status
of the unit i.e.
Export Orient Unit must be clearly indicated.
The entitlement of DTA sale will, however, be calculated on the basis of
the price at which the goods are supplied by EOUs to
third party exporter.
3. This
issues with the approval of Competent Authority.
(P.K.Santra)
Dy. Director General of Foreign Trade
For Director General of Foreign Trade
(Issued from F.No.01/92/180/99/AM07/PC-II)