16th june, 2008 - eepc · pdf fileindustry seeks information about the latest technology and...

For information about India Engineering Center, Chicagovisit : www.indiaengineeringchicago.com

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For information about EEPC Exhibitionsvisit : www.eepcindee.com

ISSN 0971-9776

WEEKLY NEWSLETTER VOL. 10 ISSUE NO. 24 JUNE 16, 2008

H i g h l i g h t s

C o n t e n t s

From Chairman’s Pen 2

OVERSEAS SECTION

• Overseas Market Information

– Council’s Activities

- India Pavilion at PAACE Automechanika 2008,

Mexico 3

- Catalogue Show at Automechanika 2008,

Frankfurt, Germany 6

– Information on Saudi Arabia 7

• Global Business Opportunities

– Tender Information 9

– Trade Enquiries 15

DOMESTIC SECTION

•Public Notice 16

•Export Finance 49

Seminar on Export Finance held on 9th June, 2008 in Chennai.

P3India Pavilion at

PAACEAutomechanika 2008,

Mexico

EEPC is organising an IndiaPavilion in PAACE Automechanika2008, Mexico to be held on July9 - 11, 2008. Members arerequested to enlist theirparticipation within 20th June,2008.

P16Govt. Notices/Notifications/

Circulars/

Public Notice No. 28 (RE-2008)/2004-2009 dated 9th June, 2008– Amendments in AayaatNiryaat Form (ANF-8).Notification No. 30/2008-Central Excise dated 4th June,2008 – Excise Duty changes forpetrol and diesel (271011 &27101930).

P6India Pavilion at

Automechanika 2008,Frankfurt,Germany

EEPC is organising an IndiaPavilion in Automechanika 2008,Frankfurt, Germany to be heldon September 16 - 21, 2008.Members may avail theopportunity by displaying theircompany catalogues throughEEPC Information Booth.

2 Engineering Export Info-Bulletin, Vol. 10, Issue No. 24, JUNE 16, 2008

Chairman’s Pen

Engineering Export Promotion Council

My dear fellow exporters,

On June 13, 2008, Government carried out certain changes in the rates of Export Duty and CentralExcise Duties that have considerable implication for the engineering industry and exporters. Flat-rolled products of iron and steel, including galvanized products, and pipes and tubes that attractedexport duty ranging from 5% to 15% ad valorem, have been fully exempted from export duty.The rate of export duty on long products such as bars and rods; angles, shapes and sectionsand wire has been increased from 10% to 15%, to improve their availability in the domestic market.

Further, Export Duty on iron ore was so far being levied at specific rates. Lumps, and fines havingiron content exceeding 62% were charged to duty of Rs. 300 per MT, while the duty leviable onfines with iron content up to 62% was Rs. 50 per MT. In order to further strengthen a policy regimethat enables conservation of good quality ore and ensures its availability to domestic industry ata reasonable price, the effective rate of duty on iron ore has been enhanced to a uniform rateof 15% ad valorem, irrespective of iron content.

With regard to Central Excise, the Government has increased the Central Excise Duty on largecars, multi utility vehicles (MUVs) and sports utility vehicles (SUVs), of engine capacity exceeding1500 cc. These would now be chargeable to a specific rate of duty in addition to the existing advalorem rate of 24%. For cars, MUVs and SUVs of engine capacity ranging from 1500 cc to 1999 cc,a specific duty of Rs. 15,000 per unit has been imposed while for those having an engine capacityof 2000 cc and above, the specific duty is Rs. 20,000 per unit. There is no change in the dutyapplicable to cars of engine capacity up to 1500 cc.

The Council has also taken up the problem of sharp escalation of pig iron prices in recent timeswith the Government and has pointed out that one of the factors between this escalation is thatthe actual production of pig iron is lower than the planned production target of the public sectorsteel giants. Accordingly, the Council has requested the Government to initiate steps to expandproduction of pig iron in the country.

Yours sincerely,

(RAKESH SHAH)

Engineering Export Info-Bulletin, Vol. 10, Issue No. 24, JUNE 16, 2008 3

Overseas Information

Council’s Activities

India Pavilion at PAACE Automechanika 2008, Mexico(July 9 - 11, 2008)

PAACE Automechanika, Mexico is the Latin America�s International Trade Show for the Automotive Aftermarket, OEManufacturing and Service Industry. PAACE Automechanika has become a growing platform for automotive business inthe Mexican and Latin American markets. This fair is the international meeting point for the automobile industry, automotiveparts, components and systems, supply and maintenance equipment. This is the show where the global automotiveindustry seeks information about the latest technology and concepts for success in the competitive environment of thefuture. PAACE Automechanika�s international significance - all in almost 40% of exhibitors and 10% of visitors originatefrom other countries - provides interesting opportunities for the global industry. Nowadays, PAACE Automechanika isincreasingly becoming a platform for original equipment fitters in the automobile industry, distinguished by innovations andnew functions, systems and new technologies.

Engineering Export Promotion Council (EEPC) is organizing an India Pavilion at PAACE Automechanika 2008, Mexicowhich would provide an excellent opportunity for establishing business relationships with customers from all over the world.

Focus Products

� Automobile supplies and care products� Automobile replacement parts� Original equipment parts� On-road support and rescue� Organization, storage, construction� Automotive parts� Accessories, turning parts, specialty gear, performance lines� High-line add-on components for personalization� Services for the automotive trade� Environmental protection, recycling, waste disposal� Workshop and service equipment� Equipment and systems for automotive painting, corrosion protection and body repair� Full line of remanufactured parts, cores and components

Venue

Centro Banamex en el Hipodromo de las AmericasMexico City, Mexico

Date

July 9 - 11, 2008 (3 days)

Participation Charges

- Reimbursement of cost of one side open : US$ 322 per sq. mtr. or equivalent Indian Rupees.

built-up booths (minimum 9 sq. mtrs.) 20% extra for corner stall (subject to availability).

- Service charges : Rs. 7,500/- per sq. mtr. + Rs. 927/- per sq. mtr. being

12.36% as deposit against Service Tax.



For Catalogue Show

Display your company catalogue through EEPC Information Booth. Charges are given below :

Rs. 10,000/- (Maximum 25 copies, not exceeding 5 kgs.) + Rs. 1,236/- (12.36%) deposit against Service Tax.

Note : In case Service Tax is not chargeable, the deposit would be returned to the participants.

Mode of Payment

Full payment is to be made by Demand Draft/at par Cheque favouring �Engineering Export Promotion Council� along withthe filled-up Application Form.

Date of Payment

Full payment is to be made along with the Application Form latest by 20th June, 2008.

Cancellation of Participation

Request for cancellation of participation will be accepted if Council receives the same in writing on or before 20th June, 2008.Council shall not entertain any cancellation afterwards. Any cancellation after the due date shall result in forfeiture of theamount already paid on this account.

Selection Criteria

Since limited space is available, selection of participation will be done strictly on first-come-first-served basis.

MDA Entitlements

All eligible participants will be entitled to MDA grant under Focus LAC Programme of Ministry of Commerce, Governmentof India as per the MDA Guidelines effective from April 01, 2006.

Assistance would be permissible on travel expenses by Air in Economy Excursion Class fare and/or charges of built upfurnished stall subject to an upper ceiling of Rs. 1,80,000/- (Rupees One Lakh Eighty Thousand only).

Further, eligibility for MDA grant is subject to exporting companies having FOB value of exports up to Rs. 15 crores in thepreceding year, having complete 12 months membership with EEPC with regular filing of returns and fulfilling otherconditions, details of which can be obtained from respective Regional Offices of EEPC.

Interested firms may please send the Application Form, duly filled in and signed, along with full Payment latest by 20thJune, 2008 to the respective Regional Offices or to :

R. MaitraExecutive DirectorEngineering Export Promotion CouncilVandhna (4th Floor)11, Tolstoy MargNew Delhi - 110 001Tel. : 91-11-23353353, 23711124/25Fax : 91-11-23310920E-mail : [email protected] : www.eepcindia.org

B. SarkarAddl. Executive Director & SecretaryEngineering Export Promotion CouncilVanijya Bhavan (1st Floor), ITFC1/1 Wood StreetKolkata - 700 016Tel. : 91-33-22890651/52Fax : 91-33-22890654E-mail : [email protected] : www.eepcindia.org



India Pavilion at PAACE Automechanika 2008, Mexico(09 - 11 July, 2008)

Application Form

Name of the Company :

Postal Address :

Phone (with area code) :

Fax (with area code) :

E-mail :

Website :

Total Space required :

Amount with DD/Cheque No. & date :

Name & Designation of the Chief Executive :

Mobile No. of the Chief Executive :

Name & Designation of the Participant :

Type of Units (please tick mark) : � SSI � Non-SSI

Status : � Manufacturer/Exporter � Merchant Exporter � Export House

Total Annual Export (in Million US$) : 2004-2005 2005-2006 2006-2007

Total Export to LAC countries : 2004-2005 2005-2006 2006-2007(in Million US$)

Foreign Collaboration, if any :

Products Manufactured/Exported :

Countries of Export :

Accreditation to International Standards :(like ISO, QS, etc.)

1. Please use separate sheet to furnish details of your company (within 80 words) for the Exhibitors� Profile.

2. Please send us this Form duly completed and signed along with your participation fees by Demand Draft and 2 (two)copies of passport size colour photographs of the Participant.

Signature :

Date : Office Seal :



Catalogue Show at AutomechanikaFrankfurt, Germany

(September 16 - 21, 2008)

Engineering Export Promotion Council (EEPC) is organizing an India Pavilion at Automechanika 2008, Frankfurt

which would provide an excellent opportunity for establishing business relationships with customers from all over

the world.

All booths booked.

May still have presence in the Exhibition

Display your company Catalogues through EEPC Information Booth.

EEPC will do the rest.

What you need to do?

Send your catalogues (Maximum 25 Nos., not exceeding 5 Kgs.) at the following address with a payment of

Rs. 10,000/- by way of Cheque/Demand Draft drawn in favour of Engineering Export Promotion Council.

Rajat SrivastavaRegional Director

Engineering Export Promotion Council

Centre 1, 12th Floor

World Trade Centre, Cuffe Parade

Mumbai � 400 005

Tel. : 91-22-22186655/56/60

Fax : 91-22-22180119

E-mail : [email protected]

[email protected]

The cheque along with 25 catalogues must reach EEPC Office at above mentioned address immediately.



Overseas Market Information

Saudi Arabia

Medical Equipment & Supplies Import Market

The medical equipment and supplies market in Saudi Arabia is predominately import oriented, estimated at SR 1.9 billion

in 2006 which is more than double the size of the market in 1999 of SR 883 million, representing an annual growth rate

of 11.3%. As per the chart below, demand for medical equipment is the market�s main growth segment, opposed to medical

supplies. It is worth noting that these are nominal values and hence do not reflect real volumetric change in the market.

In total medical imports in the country, medical equipment accounted for nearly 69% or SR 1.28 billion with the balance

falling under medical supplies.

Electro-medical equipment, which mainly include MRIs, ultrasound and dental hardware are the major medical equipments,

imported in the country, with imports exceeding SR 830 million, followed by medial X-Ray A, B, C Ray equipment, and

Orthopedic & Prosthetic Appliances at SR 129 million and SR 116 million respectively as per following chart.



Supplies of syringes, needles and intravenous catheter which constituted 37.3% or SR 215 million of total imports, reachedSR 577 million in 2006, followed by basic surgical and dental supplies at SR 168 million as per the chart below.

Investment Potentiality

The Saudi market for production of medical equipments and supplies are limited to disposable medical items such assyringes and surgical gloves, furniture and some X-ray supplies.

The exporters or private investors can explore their business in this significant potential sector for annual market growthof 4.6% through 2015, which will bring the total market size of medical equipment and supplies to SR 3.0 billion.

(Source : Embassy of India, Riyadh)


Tender Information


Albania(EEPC Ref. No. DB-1899)

Project : Water Resource Management Project

Credit No. 3914 ALB; Project ID No. P082128

Credit from IDA

Notice No. : WB2244-729/08

Issued by : Water Resource Management ProjectMinistry of Agriculture, Food and Consumer ProtectionSheshi �Skenderbej� No. 2Tirana, AlbaniaAttn. : Mr. Hairi Ismaili

Project DirectorTel/Fax : (355-4) 222-3825E-mail : [email protected]

For : Supply of 3 (three) excavators.

Tender cost : Non-refundable fee of US$ 150 or equivalent.

Bid security : Not less than US$ 7,000 or equivalent amount in a freely convertible currency.

Bid deadline : 14.07.2008

Eritrea(EEPC Ref. No. DB-1900)

Project : HIV/AIDS/STI, TB, Malaria And Reproductive Health Project (Hamset II Project)Grant No. H175-0 ER; Project ID No. P094694Grand from IDA

Notice No. : WB2303-729/08

Issued by : ERITREA HAMSET II PROJECTPMU, Ministry of Health, Denden Street No. 82Asmara, EritreaAttn. : Dr. Eyob Tekle Project ManagerTel. : (291-1) 122-978Fax : (291-1) 124-357E-mail : [email protected]

For : Ambulances 4WD Station wagon, Motor cycle Ambulances & Bicycles.

Tender cost : Non-refundable fee US$ 50.00 or equivalent.

Bid security : Not less than 2% of the bid amount in a freely convertible currency.

Bid deadline : 22.07.2008

(Source : UN Development Business Website)



Algeria(EEPC Ref. No. MEED-20)

Tender for : Power Station Rehabilitation

Tender No. : 03/KDM/2008

Tender details : Rehabilitation of a thermal power station at Skikda.Details on payment of AD 5,000.

Closing date : 07.07.2008

Issued by : SonelgazDirection-Generale de l�EngineeringDirection de l�Engineering des Moyens de ProductionImmeuble 700, Route Nationale 38Gue de Constantine, KoubaAlgeriaTel. : (21321) 838400Fax : (21321) 838944

Iran(EEPC Ref. No. MEED-21)

Tender for : Metal Sleepers

Tender No. : 18-86-11

Tender details : Supply of 50,000 type U-33 metal sleepers, to be delivered to Bandar Abbas.Details on payment of IR 100,000.


Issued by : Iranian Islamic Republic RailwaysGeneral Procurement DepartmentRoom 438, 4th FloorShahid Kalantari BuildingRah Ahan SquareTehran, IranFax : (9821) 55650532/55647086/55124602/55124603E-mail : [email protected] : www.rai.ir

Kuwait(EEPC Ref. No. MEED-22, MEED-23, MEED-24 & MEED-25)

Tender for : Overhead Power Lines

Tender No. : MEW/10/2008-2009

Tender details : Supply and installation of high-tension overhead power lines for the Electricity & Water Ministry.

Details on payment of KD 4,000.

Bid bond : KD 1.5 million




Tender for : Power Transformer Station (S)

Tender No. : MEW/13/2008-2009

Tender details : Supply and installation of a main 300/400-kV power transformer station at Sulaibiya Z for the Electricity &Water Ministry.Details on payment of KD 3,000.

Bid bond : KD 1 million


Tender for : Power Transformer Station (F)

Tender No. : MEW/14/2008-2009

Tender details : Supply and installation of a main 300/400-kV power transformer station at Fintas Z for the Electricity& Water Ministry.Details on payment of KD 3,000.



Tender for : Power Transformer Station (J)

Tender No. : MEW/15/2008-2009

Tender details : Supply and installation of a main 300/400-kV power transformer station at Jabriya Z for the Electricity& Water Ministry.Details on payment of KD 3,000.



Issued by : Central Tenders CommitteePO Box 1070, Safat 13011, KuwaitTel. : (965) 2401200Fax : (965) 2416574

Morocco(EEPC Ref. No. MEED-26)

Tender for : Power Lines

Tender No. : RX437164

Tender details : Provision of a study for and construction of 400-kV overhead power lines from Agadir to Guelmin.Details on payment of MD 2,000.

Bid bond : MD 3 million


Issued by : Nationale de l�ElectriciteDirection des Approvisionnements et Marches65 Rue Othman Ben Affane, BP 1349820000 Casablanca, MoroccoTel. : (21222) 668755Fax : (21222) 433145



Morocco(EEPC Ref. No. MEED-27)

Tender for : Water Intake Processing Systems

Tender No. : 18/DAM/SP/2008

Tender details : Implementation of drinking water intake automatic and remote processing systems.Details on payment of MD 2,800.

Bid bond : MD 1.5 million


Issued by : National de l�Eau PotableDirection Approvisionnement et MarchesBureau des Marches, 6 Patrice LumumbaRabat, MoroccoTel. : (21237) 721281-4Fax : (21237) 721030Website : www.onep.ma

Oman(EEPC Ref. No. MEED-28, MEED-29, MEED-30)

Tender for : High-pressure Agricultural Sprayers

Tender No. : 142/2008

Tender details : Supply and distribution of 1,000 high-pressure sprayers for farmers for the Agriculture Ministry.Details on payment of RO 150.


Tender for : Heavy Lifting and Transportation Equipment

Tender No. : 154/2008

Tender details : Supply of heavy lifting and transportation equipment for Oman Drydock Company.

Details on payment of RO 1,500.


Tender for : Power Network Interconnection Feeders

Tender No. : 155/2008

Tender details : Supply of new 33-kV feeders interconnecting an existing power network with the new 132/33-kV Liwagrid substation in the north Batinah region for Majan Electricity Company.

Details on payment of RO 575.


Issued by : Tender Board

PO Box 787, Al-Khuwair 133

Oman

Tel. : (96824) 602073/602556Fax : (96824) 602063



Qatar(EEPC Ref. No. MEED-31)

Tender for : Aircraft Warning Lights and Overhead Lines

Tender No. : GTC/230/2008

Tender details : Supply of aircraft warning lights and sphere overhead lines.Details available on payment of QR 800.

Bid bond : QR 110,000


Issued by : Qatar General Electricity & Water Corporation (Kahramaa)Materials Department, Dafna, QatarTel. : (974) 4383576Website : www.kahramaa.com

UAE(EEPC Ref. No. MEED-32 & MEED-33)

Tender for : Power and Desalination Plant (Rebid)

Tender No. : CNE/600/2007(R)

Tender details : Construction of the Hassyan power and desalination plant P1 (station P, phase 1) with capacity of 1,500 MWof power and 120 million gallons a day of water. The scope of works is divided into two packages :(1) power plant package P, consisting of gas turbines associated with heat recovery steam generators,auxiliary boilers, back pressure steam turbines and all associated works; and (2) desalination package D,consisting of multi-stage flash desalination units, seawater pumps, drinking water pipes and all associated works.Details on payment of AED 5,000.

Bid bond : 5% of tender price.


Tender for : Substations and Cable Laying Works

Tender No. : CE/320/2008

Tender details : Supply, installation, testing and commissioning of 33/11-kV substations and carrying out associatedcable laying works including marine cables as part of a project to supply power to Qaffay island.Details on payment of AED 5,000.

Bid bond : 5% of tender price.


Issued by : Dubai Electricity & Water AuthorityOffice of the Contracts ManagerZabeel East, PO Box 564Dubai, UAETel. : (9714) 3244444Fax : (9714) 3248111E-mail : [email protected] : www.dewa.gov.ae

(Source : MEED.com website)



MauritiusIssued by : Road Development Authority

2nd Floor, Jhugroo BuildingSt Paul AvenueVacoas, MauritiusAttn. : Mr. Saruddin Dilijore

Project OfficerTel. : +230 686 6630Fax : +230 686 7552E-mail : [email protected], [email protected] : http://rda.gov.mu

Tender No. : CPB/55/2008

For : Proposals for provision of transaction advisory services to the Road Development Authority for the design,construction, financing, operation and maintenance of the Port Louis Ring Road Project and the HarbourBridge Project, Mauritius.

For further details, please contact :

Mr. Kartik PandeSecond Secretary (Political & Economic)High Commission of IndiaPort LouisMauritiusTel. : +230-2083775/76Fax : +230-2086859

(Source : High Commission of India, Port Louis)


Trade Enquiries


USA(Source : EEPC Chicago Office)

Name of the Company Addresses Contact Person/Tel./Fax/E-mail Items interested

Illinois Industrial Tool, 8811 S 77th Avenue Attn. : Mr. Scott Underwood Wrenches (adjustable & pipe),

Inc. (Jmk-lit) Bridgeview, IL 60455 V. P. - Purchasing pliers, hammers, sockets, lock

USA Tel. : 708 597-6000 back knife, jacks (scissors &

Fax : 708 23309380 bottle), engine stand, engine

E-mail : [email protected] cradle, castor wheels.


Public Notice

Domestic Information

Government of IndiaMinistry of Finance

Department of RevenueCentral Board of Excise & Customs

New Delhi

Notification No.77/2008-CustomsDated 13th June, 2008

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962),the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the followingamendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 66/2008-Customs, dated the 10th May, 2008 which was published in the Gazette of India, Extraordinary, vide number G.S.R.359(E)of the same date, namely :

In the said notification, in the Table,-

(i) Against S. No. 7, for the entry in column (4), the entry �nil� shall be substituted;(ii) Against S. No. 8, for the entry in column (4), the entry �nil� shall be substituted;(iii) Against S. No.9, for the entry in column (4), the entry �nil� shall be substituted;(iv) Against S. No. 10, for the entry in column (4), the entry �15%� shall be substituted;(v) Against S. No. 11, for the entry in column (4), the entry �15%� shall be substituted;(vi) Against S. No. 12, for the entry in column (4), the entry �15%� shall be substituted;(vii) Against S. No. 13, for the entry in column (4), the entry �15%� shall be substituted;(viii) Against S. No. 14, for the entry in column (4), the entry �15%� shall be substituted;(ix) Against S. No. 15, for the entry in column (4), the entry �nil�� shall be substituted.

Sd/-(Unmesh Wagh)

Under Secretary to the Government of India

[F. No. 334/5/2008-TRU]



Government of IndiaMinistry of Commerce & Industry

Department of CommerceDirectorate General of Foreign Trade

New Delhi

Public Notice No. 25 (RE-2008)/2004-2009Dated 3rd June, 2008

In exercise of power conferred under paragraph 2.4 of the Foreign Trade Policy 2004-2009, the Director General of Foreign

Trade hereby makes the following amendments in the existing entries at Sr. No. 21 and 27 in Appendix-I (List of Regional

Authorities and their jurisdiction) of the Handbook of Procedure Vol. I :-

21 The Joint Director General of Foreign Trade Telephone : 0671-2343034 Orissa

OSIC Building, 5th Floor (with Fax) 0671-2342596

Khapuria Industrial Estate E-mail : [email protected]

Cuttack - 753 010

27 The Joint Director General of Foreign Trade Telephone : 2427397, 2426378 (i) Kerala except the districts

5th Floor,A Block, Kendriya Bhawan Fax No. : 0484-2427069 of Trivandrum, Quilon and

Kakkanad, Cochin - 682 037 E-mail : [email protected] Quilon and Pathanamthitta

(ii) Lakshadweep.

Sd/-

(R. S. GUJRAL)

Director General of Foreign Trade

[File No. 01/93/180/16/AM09/PC-I (B)]



Government of IndiaMinistry of Commerce & Industry

Department of CommerceDirectorate General of Foreign Trade

New Delhi

Public Notice No. 28(RE-2008)/2004-2009Dated 9th June, 2008

In exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy 2004-09, Director General of Foreign Trade

hereby makes the following amendments in the Handbook of Procedures (Vol. I) :

1. Sl. No. 23 of Aayaat Niryaat Form (ANF-8) shall be substituted by the following :-

�23 Central excise attested invoices with corresponding ER-1/ER-3 showing amount of Terminal Excise Duty paid.�

2. Further, sub paras 2.a, 2.e and 3.d in the Guidelines for Applicants in Aayaat Niryaat Form (ANF-8), shall be substituted

by the following :-

�2.a Supply invoices certified by Central excise. In case of 100% EOUs/STP/EHTP units, complete ARE-3/supply

invoice certified by the bond officer is to be furnished.

2.e Original input stage invoices with corresponding ER-1/ER-3 duly certified by Central excise authorities showing

the Terminal excise duty paid.

3.d Original input invoices with corresponding ER-1/ER-3 duly certified by Central excise authorities showing payments

of excise duty in support of the details shown in DBK-III and DBK-IIIA in the format given in Appendix 35.�

Sd/-

(R. S. GUJRAL)

Director General of Foreign Trade

(File No. 01/92/180/041/AM09/PC-VI)





New Delhi

Notification No. 30/2008-Central ExciseDated 4th June, 2008

G.S.R.(E).- In exercise of the powers conferred by Sub-Section (1) of Section 5A of the Central Excise Act, 1944 (1 of 1944),the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the followingfurther amendments in the Notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 4/2006-Central Excise, dated the 1st March, 2006 which was published in the Gazette of India, Extraordinary vide numberG.S.R. 94(E) of the same date, namely :-

In the said Notification, in the Table,-

(i) for S. No. 17 and the entries relating thereto, the following S. No. and entries shall be substituted, namely :-

(1) (2) (3) (4) (5)

�17. 2710 11 Motor spirit commonly known as petrol,-

(i) intended for sale without a brand name; Rs. 5.35 per litre -

(ii) other than those specified at (i) above. 6% plus Rs. 5.00 per litre -�;

(ii) for S. No. 19 and the entries relating thereto, the following S. No. and entries shall be substituted, namely :-

(1) (2) (3) (4) (5)

�19. 2710 19 30 High Speed Diesel (HSD),-

(i) intended for sale without a brand name; Rs. 1.60 per litre -

(ii) other than those specified at (i) above. 6% plus Rs. 1.25 per litre -�.

Sd/-(G. G. PAI)

[F. No. 354/95/2008-TRU] Under Secretary to the Government of India

Note : The principal Notification No. 4/2006-Central Excise, dated the 1st March, 2006 was published in the Gazette of India,Extraordinary, vide number G.S.R. 94(E), dated the 1st March, 2006, and was last amended by Notification No. 27/2008-Central Excise, dated the 10th May, 2008 published vide number G.S.R. 361(E), dated the 10th May, 2008.

Member-exporters can avail the Notification No. 4/2006-Central Excise, dated the 1st March, 2006; Notification No. 27/2008-CentralExcise, dated the 10th May, 2008 from the following Website :

http://www.cbec.gov.in/excise/cx-act/notfns-2k6/cex0406.pdfhttp://www.cbec.gov.in/excise/cx-act/notfns-2k8/ce27-2k8.htm





New Delhi


G.S.R.(E).- In exercise of the powers conferred by Sub-Section (1) of Section 5A of the Central Excise Act, 1944 (1 of 1944),read with Sub-Section (3) of Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) andSub-Section (3) of Section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978), the CentralGovernment, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendmentsin the Notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 32/99-Central Excise, datedthe 8th July, 1999 which was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i) vide numberG.S.R. 508 (E), dated the 8th July, 1999, namely :-

In the said Notification,-

(i) in paragraph 2A,-

(a) after the words, brackets and figure �corresponding entry in column (2) of the said Table,�, the words, brackets andfigure �when manufactured starting from inputs specified in the corresponding entry in column (5) of the said Table inthe same factory,� shall be inserted;

(b) for the Table, the following Table shall be substituted, namely :-

S. No. Chapter of the Description of goods Rate Description of inputs for

First Schedule manufacture of goods in

column (3)

(1) (2) (3) (4) (5)

1. 29 All goods 29 Any goods






7. 40 Tyres, tubes and flaps 41 Any goods

8. 72 or 73 All goods 39 Any goods, other than iron ore



11. 85 Electric motors and generators, 31 Any goods

electric generating sets and

parts thereof

12. 25 Cement or cement clinker 75 Limestone and gypsum

13. 17 or 35 Modified starch/glucose 75 Maize



S. No. Chapter of the Description of goods Rate Description of inputs forFirst Schedule manufacture of goods in

column (3)

(1) (2) (3) (4) (5)

14. 18 Cocoa butter or powder 75 Cocoa beans

15. 72 or 73 Iron and steel products 75 Iron ore

16. Any chapter Goods other than those 36 Any goodsmentioned above in S. Nos. 1 to 15

(ii) In paragraph 2.1, -

(a) for sub-paragraph (1),the following shall be substituted, namely :-

�(1) Notwithstanding anything contained in paragraph 2A, the manufacturer shall have the option not to avail therates specified in the said Table and apply to the Commissioner of Central Excise or the Commissioner of Customsand Central Excise, as the case may be, having jurisdiction over the manufacturing unit of the manufacturer forfixation of a special rate representing the actual value addition in respect of any goods manufactured and clearedunder this Notification, if the manufacturer finds that the actual value addition in the production or manufacture ofthe said goods is at least 115 per cent of the rate specified in the said Table and for the said purpose, themanufacturer may make an application in writing to the Commissioner of Central Excise or the Commissioner ofCustoms and Central Excise, as the case may be, not later than the 30th day of September in a financial year fordetermination of such special rate, stating all relevant facts including the proportion in which the material orcomponents are used in the production or manufacture of goods :

Provided that the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as thecase may be, may, if he is satisfied that the manufacturer was prevented by sufficient cause from making theapplication within the aforesaid time, allow such manufacturer to make the application within a further period ofthirty days :

Provided further that the manufacturer supports his claim for a special rate with a certificate from his statutoryAuditor containing a calculation of value addition in the case of goods for which a claim is made, based on theaudited balance sheet of the unit for the preceding financial year :

Provided also that a manufacturer that commences commercial production on or after the 1st day of April, 2008may file an application in writing to the Commissioner of Central Excise or the Commissioner of Customs andCentral Excise, as the case may be, for the fixation of a special rate not later than the 30th day of September ofthe financial year subsequent to the year in which it commences production.

(1A) Nothing contained in sub-paragraph (1) shall apply to a unit manufacturing goods falling under Serial Nos. 12, 13, 14 or 15of the Table.�

(b) in sub-paragraph (2), for the words �six months�, the words �three months� shall be substituted;

(c) or sub-paragraph (5), the following sub- paragraph shall be substituted, namely :-

�(5) The manufacturer shall be entitled to refund at the special rate fixed under sub-paragraph (2) in respect of allclearances of excisable goods manufactured and cleared under this Notification with effect from the 1st day ofApril of the year in which the application referred to at sub-paragraph (1) was filed with the Commissioner of CentralExcise or Commissioner of Central Excise and Customs, as the case may be :

Provided that in cases where the application referred to in sub-paragraph (1) had already been filed prior to the 10thday of June, 2008, the manufacturer shall be entitled to refund at the special rate fixed under sub-paragraph (2) inrespect of all clearances of excisable goods manufactured and cleared under this Notification with effect from the1st day of April, 2008.��



(d) after sub-paragraph (5), the following shall be inserted, namely :-

�(5A) A manufacturer who commences commercial production on or after the 1st day of April, 2008, shall beentitled to refund at the special rate fixed under sub-paragraph (2) against his first application in respect of allclearances of excisable goods manufactured and cleared under this Notification with effect from the date ofcommencement of such commercial production and the difference between the refund payable at such special rateand the actual refund paid to him from the date of commencement of commercial production till the date of fixationof special rate, during the period shall be refunded to him.�

(iii) after paragraph 2.1, the following shall be inserted, namely :-

�2.2 (1) In case the total amount of refund paid or payable to a manufacturer in respect of goods cleared from a unitduring a financial year is less than the total duty paid by him on the said goods, other than the amount paidby utilization of CENVAT credit, for the year, the differential amount, if any, shall be refunded to him subjectto the condition that the total refund made to him during the year, including the aforesaid differential amount,does not exceed the total duty payable on value addition whether at the rate specified in the Table or at thespecial rate fixed under paragraph 2.1.

(2) The Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the casemay be, shall refund the differential amount, if any, to the manufacturer not later than the 15th day of May inthe subsequent financial year.�

Sd/-(UNMESH WAGH)


[F. No. 334/1/2008-TRU]

Note : The principal Notification No. 32/99-Central Excise, dated the 8th July, 1999 was published in the Gazette of India,Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 508(E), dated the 8th July, 1999 and was lastamended vide Notification No. 17/2008-Central Excise, dated the 27th March, 2008 vide number G.S.R. 222(E),dated the 27th March, 2008.

Member-exporters can avail the Notification No. 17/2008-Central Excise, dated the 27th March, 2008 from the followingWebsite :

http://www.cbec.gov.in/excise/cx-act/notfns-2k8/ce17-2k8.htm





New Delhi


G.S.R.(E).- In exercise of the powers conferred by Sub-Section (1) of Section 5A of the Central Excise Act, 1944 (1 of 1944),

read with Sub-Section (3) of Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and

Sub-Section (3) of Section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978), the Central

Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the

Notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 33/99-Central Excise, dated

the 8th July, 1999 which was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i) vide number

G.S.R. 509(E), dated the 8th July, 1999, namely :-



(a) after the words, brackets and figure �corresponding entry in column (2) of the said Table,�, the words, brackets and

figure �when manufactured starting from inputs specified in the corresponding entry in column (5) of the said Table in

the same factory,� shall be inserted;



column (3)

(1) (2) (3) (4) (5)












electric generating sets and parts

thereof






column (3)

(1) (2) (3) (4) (5)



16. Any chapter Goods other than those mentioned 36 Any goodsabove in S. Nos.1 to 15









(c) for sub-paragraph (5), the following sub-paragraph shall be substituted, namely :-


Provided that in cases where the application referred to in sub-paragraph (1) had already been filed prior to the 10thday of June, 2008, the manufacturer shall be entitled to refund at the special rate fixed under sub-paragraph (2) inrespect of all clearances of excisable goods manufactured and cleared under this Notification with effect from the1st day of April, 2008.�








Sd/-(UNMESH WAGH)


[F. No. 334/1/2008-TRU]

Note : The principal Notification No. 33/99-Central Excise, dated the 8th July, 1999 was published in the Gazette of India,Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 509(E), dated the 8th July, 1999 and was lastamended vide Notification No. 18/2008-Central Excise, dated the 27th March, 2008 vide number G.S.R. 223(E),dated the 27th March, 2008.

Member-exporters can avail the Notification No. 18/2008-Central Excise, dated the 27th March, 2008 from the followingWebsite :






New Delhi


G.S.R.(E).- In exercise of the powers conferred by Sub-Section (1) of Section 5A of the Central Excise Act, 1944 (1 of 1944), read

with Sub-Section (3) of Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and

Sub-Section (3) of Section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978), the Central

Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments

in the Notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 39/2001-Central Excise,

dated the 31st July, 2001 which was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i) vide

number G.S.R. 565 (E), dated the 31st July, 2001 namely :-


(i) in paragraph 2,-






column (3)

(1) (2) (3) (4) (5)













thereof






column (3)

(1) (2) (3) (4) (5)



16. Any chapter Goods other than those 36 Any goodsmentioned above in S. Nos. 1 to 15



�(1) Notwithstanding anything contained in paragraph 2, the manufacturer shall have the option not to avail the ratesspecified in the said Table and apply to the Commissioner of Central Excise or the Commissioner of Customs andCentral Excise, as the case may be, having jurisdiction over the manufacturing unit of the manufacturer for fixationof a special rate representing the actual value addition in respect of any goods manufactured and cleared under thisNotification, if the manufacturer finds that the actual value addition in the production or manufacture of the saidgoods is at least 115 per cent of the rate specified in the said Table and for the said purpose, the manufacturer maymake an application in writing to the Commissioner of Central Excise or the Commissioner of Customs and CentralExcise, as the case may be, not later than the 30th day of September in a financial year for determination of suchspecial rate, stating all relevant facts including the proportion in which the material or components are used in theproduction or manufacture of goods :






(c) for sub-paragraph (5), the following sub- paragraph shall be substituted, namely :-


Provided that in cases where the application referred to in sub-paragraph (1) had already been filed prior to the 10thday of June, 2008, the manufacturer shall be entitled to refund at the special rate fixed under sub-paragraph (2) inrespect of all clearances of excisable goods manufactured and cleared under this Notification with effect from the1st day of April, 2008�.




�(5A) A manufacturer who commences commercial production on or after the 1st day of April, 2008, shall beentitled to refund at the special rate fixed under sub-paragraph (2) against his first application in respect of allclearances of excisable goods manufactured and cleared under this Notification with effect from the date ofcommencement of such commercial production and the difference between the refund payable at such special rateand the actual refund paid to him from the date of commencement of commercial production till the date of fixationof special rate, shall be refunded to him.�




Sd/-(UNMESH WAGH)


[F. No. 334/1/2008-TRU]

Note : The principal Notification No. 39/2001-Central Excise, dated the 31st July, 2001 was published in the Gazette of India,Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 565(E), dated the 31st July, 2001 and was lastamended vide Notification No. 16/2008-Central Excise, dated the 27th March, 2008 vide number G.S.R. 221(E),dated the 27th March, 2008.

Member-exporters can avail the Notification No. 39/2001-Central Excise, dated the 31st July, 2001 and Notification No. 16/2008-Central Excise, dated the 27th March, 2008 from the following Website :






New Delhi



with Sub-Section (3) of Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and Sub-

Section (3) of Section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978), the Central Government,

being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the Notification

of the Government of India in the Ministry of Finance (Department of Revenue), No. 56/2002-Central Excise, dated the 14th November,

2002 which was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 764 (E),

dated the 14th November, 2002, namely :-








column (3)

(1) (2) (3) (4) (5)













thereof






column (3)

(1) (2) (3) (4) (5)



16. Any chapter Goods other than those mentioned 36 Any goodsabove in S.Nos.1 to 15







(1A) Nothing contained in sub-paragraph (1) shall apply to a unit manufacturing goods falling under Serial Nos. 12, 13, 14 or 15 ofthe Table.�












Sd/-(UNMESH WAGH)


[F. No. 334/1/2008-TRU]

Note : The principal Notification No. 56/2002-Central Excise, dated the 14th November, 2002 was published in the Gazette ofIndia, Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 764 (E), dated the 14th November, 2002 and waslast amended vide Notification No. 19/2008-Central Excise, dated the 27th March, 2008 vide number G.S.R. 224(E),dated the 27th March, 2008.

Member-exporters can avail the Notification No. 56/2002-Central Excise, dated the 14th November, 2002 and Notification No.19/2008-Central Excise, dated the 27th March, 2008 from the following Website :

http://www.cbec.gov.in/excise/cx-act/notfns-2k2/ce56-2k2.htmhttp://www.cbec.gov.in/excise/cx-act/notfns-2k8/ce19-2k8.htm





New Delhi






of the Government of India in the Ministry of Finance (Department of Revenue), No. 57/2002-Central Excise, dated the 14th November,


dated the 14th November, 2002, namely :-








column (3)

(1) (2) (3) (4) (5)













thereof






column (3)

(1) (2) (3) (4) (5)



16. Any chapter Goods other than those mentioned 36 Any goodsabove in S. Nos. 1 to 15






Provided also that a manufacturer that commences commercial production on or after the 1st day of April, 2008may file an application in writing to the Commissioner of Central Excise or the Commissioner of Customs andCentral Excise, as the case may be, for the fixation of a special rate not later than the 30th day of September of thefinancial year subsequent to the year in which it commences production.













Sd/-(UNMESH WAGH)


[F. No. 334/1/2008-TRU]

Note : The principal Notification No. 57/2002-Central Excise, dated the 14th November, 2002 was published in the Gazette ofIndia, Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 765 (E), dated the 14th November, 2002 andwas last amended vide Notification No. 22/2008-Central Excise, dated the 27th March, 2008 vide number G.S.R. 227(E),dated the 27th March, 2008.

Member-exporters can avail the Notification No. 57/2002-Central Excise, dated the 14th November, 2002 and NotificationNo. 22/2008-Central Excise, dated the 27th March, 2008 from the following Website :






New Delhi






of the Government of India in the Ministry of Finance (Department of Revenue), No. 56/2003-Central Excise, dated the 25th June,


dated the 25th June, 2003, namely :-








column (3)

(1) (2) (3) (4) (5)













thereof






column (3)

(1) (2) (3) (4) (5)


















�(5A) A manufacturer who commences commercial production on or after the 1st day of April, 2008, shall beentitled to refund at the special rate fixed under sub-paragraph (2) against his first application in respect of allclearances of excisable goods manufactured and cleared under this Notification with effect from the date ofcommencement of such commercial production and the difference between the refund payable at the special rateand the actual refund paid to him from the date of commencement of commercial production till the date of fixationof special rate, shall be refunded to him.�




Sd/-(UNMESH WAGH)


[F. No. 334/1/2008-TRU]

Note : The principal Notification No. 56/2003-Central Excise, dated the 25th June, 2003 was published in the Gazette of India,Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 513(E), dated the 25th June, 2003 and was last amendedvide Notification No. 21/2008-Central Excise, dated the 27th March, 2008 vide number G.S.R. 226(E), dated the 27thMarch, 2008.

Member-exporters can avail the Notification No. 56/2003-Central Excise, dated the 25th June, 2003 and NotificationNo. 21/2008-Central Excise, dated the 27th March, 2008 from the following Website :






New Delhi






of the Government of India in the Ministry of Finance (Department of Revenue), No. 71/2003-Central Excise, dated the 9th September,


dated the 9th September, 2003 namely :-








column (3)

(1) (2) (3) (4) (5)













thereof






column (3)

(1) (2) (3) (4) (5)




(ii) In paragraph 3, -















(iii) after paragraph 3, the following shall be inserted, namely :-

�4 (1) In case the total amount of refund paid or payable to a manufacturer in respect of goods cleared from a unitduring a financial year is less than the total duty paid by him on the said goods, other than the amount paidby utilization of CENVAT credit, for the year, the differential amount, if any, shall be refunded to him subjectto the condition that the total refund made to him during the year, including the aforesaid differential amount,does not exceed the total duty payable on value addition whether at the rate specified in the Table or at thespecial rate fixed under paragraph 3.


Sd/-(UNMESH WAGH)


[F. No. 334/1/2008-TRU]

Note : The principal Notification No. 71/2003-Central Excise, dated the 9th September, 2003 was published in the Gazette ofIndia, Extraordinary, Part II, Section 3, Su-Section (i) vide number G.S.R. 717 (E), dated the 9th September, 2003 andwas last amended vide Notification No. 23/2008-Central Excise, dated the 27th March, 2008 vide number G.S.R. 228(E),dated the 27th March, 2008.

Member-exporters can avail the Notification No. 71/2003-Central Excise, dated the 9th September, 2003 and NotificationNo. 23/2008-Central Excise, dated the 27th March, 2008 from the following Website :






New Delhi


G.S.R.(E).- In exercise of the powers conferred by Sub-Section (1) of Section 5A of the Central Excise Act, 1944 (1 of 1944), theCentral Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendmentsin the Notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 20/2007-Central Excise, datedthe 25th April, 2007 which was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i) vide numberG.S.R.307(E), dated the 25th April, 2007, namely :-



(a) after the words, brackets and figure �corresponding entry in column (2) of the said Table,�, the words, brackets andfigure �when manufactured starting from inputs specified in the corresponding entry in column (5) of the said Table inthe same factory,� shall be inserted;



column (3)

(1) (2) (3) (4) (5)











11. 85 Electric motors and generators, 31 Any goodselectric generating sets and partsthereof








(ii) In paragraph 3, -

(a) for sub-para (1),the following shall be substituted, namely :-





(1A) Nothing contained in sub-para (1) shall apply to a unit manufacturing goods falling under Serial Nos. 12, 13, 14 or 15 ofthe Table.�

(b) in sub-para (2), for the words �six months�, the words �three months� shall be substituted;

(c) for sub-para (5), the following sub para shall be substituted, namely :-



(d) after sub-para (5), the following shall be inserted, namely :-




(iii) after paragraph 3, the following shall be inserted, namely :-

�4. (1) In case the total amount of refund paid or payable to a manufacturer in respect of goods cleared from a unitduring a financial year is less than the total duty paid by him on the said goods, other than the amount paidby utilization of CENVAT credit, for the year, the differential amount, if any, shall be refunded to him subjectto the condition that the total refund made to him during the year, including the aforesaid differential amount,does not exceed the total duty payable on value addition whether at the rate specified in the Table or at thespecial rate fixed under paragraph 3.


Sd/-(UNMESH WAGH)


[F. No. 334/1/2008-TRU]

Note : The principal Notification No. 20/2007-Central Excise, dated the 25th April, 2007 was published in the Gazette of India,Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R.307(E), dated the 25th April, 2007 and was lastamended vide Notification No. 20/2008-Central Excise, dated the 27th March, 2008 vide number G.S.R. 225(E), dated the27th March, 2008.

Member-exporters can avail the Notification No. 20/2007-Central Excise, dated the 25th April, 2007 and NotificationNo. 20/2008-Central Excise, dated the 27th March, 2008 from the following Website :






New Delhi

Notification No. 27/2008-Central Excise (N.T.)Dated 2nd June, 2008

G.S.R. (E) - In pursuance of the provisions of sub-rule (ea) of rule 2 of the Central Excise Rules, 2002, made under CentralExcise Act, 1944 (1 of 1944), and sub-rule (cccc) of rule 2 of the Service Tax Rules, 1994, made under Finance Act, 1994(32 of 1994), the Central Government hereby makes the following further amendment in the Notification of the Ministry of Finance(Department of Revenue), No.20/2006-Central Excise (N.T), published in the Gazette of India vide number G.S.R. 609(E),dated the 30th September, 2006, namely;-

In the said notification, in paragraph 2, after item (iii), after the words and bracket, �Director of Income Tax (InternationalTaxation), Mumbai,� the words, �Chief Commissioner of Income Tax Delhi - Delhi I, II, III, IV, V, VI, VIII, IX, XI, XII, XIII,Central and Director of Income tax (International Taxation), Delhi,� shall be inserted.

[F. No. 201/24/2006-CX. 6]

Sd/-(RAHUL NANGARE)


Note : The principal Notification No. 20/2006-Central Excise (N.T) dated the 30th September, 2006 was published in theGazette of India vide number G.S.R. 609(E), dated the 30th September, 2006 and was last amended by NotificationNo. 19/2008-Central Excise (N.T) dated the 27th March, 2008 was published in the Gazette of India vide numberG.S.R. 213(E), dated the 27th March, 2008.

Member-exporters can avail the Notification No. 20/2006-Central Excise, (N.T.) dated the 30th September, 2006; NotificationNo. 19/2008-Central Excise (N.T.), dated the 27th March, 2008 from the following Website :

http://www.cbec.gov.in/excise/cx-act/notfns-2k6/cent20-2k6.htmhttp://www.cbec.gov.in/excise/cx-act/notfns-2k8/cent19-2k8.htm



F. No. 137/96/2008-CX. 4Government of IndiaMinistry of Finance


New Delhi

Circular No. 102 /5/2008-STDated 4th June, 2008

Subject : Guidelines in respect of the Dispute Resolution Scheme, 2008-reg.

The Dispute Resolution Scheme, 2008 has been notified vide Chapter VI of the Finance Act, 1994. This compounding schemehas been notified as a one time measure for quick resolution of disputes (a) involving small Service Tax amounts up to Rs. 25000;and (b) involving non-recovery of penalty or interest. However, cases involving non-payment of Service Tax after havingcollected the same from client/customer are not included in the Scheme.

2. Salient feature of the Scheme : The salient features of this Scheme are as follows :

(i) The Scheme covers all such cases where Tax arrears, including interest and penalty, were payable or leviable underthe Finance Act, 1994, but not paid prior to 1.3.2008 and where a Show Cause Notice/order has been issued on orbefore 1.3.2008.

(ii) This Scheme would be in operation from 1.7.2008 to 30.9.2008. The benefit, concession or immunity under theScheme would only be available in respect of the case in respect of which declaration is made under the Schemewithin this period;

(iii) The Scheme shall not apply to (a) any show cause notice or order issued under Section 73A of the Finance Act,1994, i.e., cases involving non-payment of Service Tax after having collected the same from client/customer;and(b) any case where Tax arrears includes Service Tax amount of more than Rs. 25,000;

(iv) The order passed under the Scheme would be conclusive and would not be subjected to any appeal. Any pendingappeal in the matter shall stand withdrawn. In such cases where the declarant has pursued a petition in a court oflaw, he shall withdraw such petition for availing benefit of this Scheme in respect of such matter;

(v) The amount paid under the Scheme would not be refundable under any circumstances;

(vi) The Central Government shall have power to make rules to implement this Scheme as well as for removal ofdifficulties for implementation of this Scheme.

3. Procedure to be followed : The Dispute Resolution Scheme Rules, 2008 have been issued vide Notification No. 28/2008-ST, dated 4.6.2008. These rules prescribe the manner of declaration to be made under the Scheme by the person(declarant) opting for it. These rules read with the provisions of Chapter VI of the Finance Act, 2008, provide theprocedure to be followed for operating the Scheme, which is as follows :

(1) The Commissioner of Central Excise shall, for the purposes of this Scheme notify, by way of an officer order, anofficer not below the rank of Assistant Commissioner of Central Excise as the designated officer.

(2) The declarant, opting for the Scheme, shall make a declaration before the designated officer in Form 1 (as prescribedunder rule 3 of the aforesaid Rules).

(3) The designated officer shall get the declaration verified. Upon verification of declaration, the designated officer shall,within fifteen days, issue an order (as prescribed under Section 96 (1) of Chapter VI of the Finance Act, 2008),indicating the amount to be paid by the declarant for resolution of dispute under the Scheme. The manner ofcalculation of Tax arrears and the amount payable under the Scheme has been discussed in the subsequent



paragraph along with illustrations. The format for issuance of order under section 96 (1) is annexed herewith toensure uniform practice. Accordingly, the designated officer shall issue the order in the specified format.

(4) The declarant shall, within thirty days pay the sum determined by the designated authority, vide order as mentionedabove, and intimate the fact of such payment along with an evidence of payment of amount. In addition, thedeclarant shall also produce the evidence of withdrawal of case pending, if any, in a High Court or the SupremeCourt, in the matter being resolved under the Scheme.

(5) On receipt of information regarding payment of sum determined by the designated authority and evidence of withdrawalof case pending in the matter, if any, before a High Court or the Supreme Court, the designated authority shall issuea certificate in Form 2 (as prescribed under rule 5 of the aforesaid Rules), certifying full and final settlement of Taxarrears in the case in respect of which declarant had opted for this Scheme.

4. Compounding amount : The compounding amount under the Scheme is as follows :

(i) In a case where a pending SCN involves a Service Tax amount upto Rs. 25000/-, with penalty or interest relatingthere to, amnesty under the Scheme would be available on payment of an amount equal to 50% of the Service Taxamount involved in the SCN. The penalty and interest would stand waived.

(ii) Similarly, in the case of a confirmed demand, where Service Tax arrears amount as on 1.3.2008 is upto Rs. 25,000,with unpaid interest or penalty relating there to, amnesty under the Scheme would be available on payment of anamount equal to 50% of the Service Tax arrears. The penalty and interest would stand waived.

(iii) In a case where an SCN is pending only for imposition of both, penalty and interest, amnesty under the Schemewould be available on payment of 25 % of the interest payable plus 25% of the �maximum� prescribed penaltyleviable. If maximum penalty leviable exceeds the Service Tax amount, the penalty amount would be taken as equalto Service Tax amount for computation of compounding amount under the Scheme. Thus, in such case thecompounding amount would be 25% of interest payable plus 25% of the penalty involved (taken as equal to ServiceTax amount, if penalty exceeds Service Tax amount) in the offence.

(iv) In a case where a confirmed demand involving only interest or penalty, amnesty would be available on payment of25% of the unpaid amounts towards interest or penalty. In such cases too, if the penalty imposed is more than theService Tax involved, for the purposes of the scheme, the penalty would be taken to be equal to Tax amount.

4.1.Illustrations as regards manner of computation of amount payable : A few illustrations showing the manner ofcomputation of amount payable under the Scheme are given below :

A. Cases where Show Cause Notice has been issued but not adjudicated :

Illustration 1 :

The show cause notice involves (i) a demand of Service Tax of Rs. 20,000; (ii) interest at the applicable rate; and(iii) penalty as applicable under various Sections of the Finance Act. The Service Tax amount has not been paid onthe date of declaration under the Scheme :

The Tax arrears as per Section 94 (b) of the Finance Act, 1994 :

(i) Service Tax : Rs. 20,000/-

(ii) Education cess : as applicable (as mentioned in the show cause notice)

(iii) Interest : as applicable (as mentioned in the show cause notice) = I

(iv) Penalty : not decided

The compounding amount shall be @ 50% of Service Tax amount plus education cess payable thereon = Rs. 10,000plus education cess on Rs. 10,000.

Penalty and interest shall be waived off.



Illustration 2 :

The assessee has already paid the Service Tax amount of Rs. 20,000/- along with education cess. However, a showcause notice has been issued demanding

(i) interest at the applicable rate; and (ii) penalty as applicable under various sections of the Finance Act, 1994.


(i) Service Tax : Nil

(ii) Education cess : Nil

(iii) Interest : as applicable (as mentioned in the show cause notice) = say Rs. 5000

(iv) Penalty : not decided. However, for the purposes of this Scheme, the maximum penalty that is leviable as perthe show cause notice will be taken as Tax arrear subject to the condition that in case the penalty leviableexceeds the Service Tax amount involved, the maximum penalty leviable shall be taken as equal to ServiceTax. Therefore,

(a) suppose the maximum penalty leviable is twice the Service Tax amount i.e., Rs 40,000. The penaltyamount shall be taken as Rs. 20,000.

The compounding amount shall be @ 25% of Interest + 25% of penalty= 0.25 x 5000 +0.25 x 20000 = 1250 + 5000 = Rs. 6,250.

(b) Suppose the maximum penalty leviable is Rs 5000 (which is less than the Service Tax amount). The penaltyamount shall be taken as Rs. 5000.

The compounding amount shall be @ 25% of Interest +25% of penalty= 0.25 x 5000 + 0.25 x 5000 = 1250 + 1250 = Rs. 5,000.

B. Cases where an order has been passed, including the cases where orders have been passed in appeal :

Illustration 3 :

The order confirms (i) a demand of Service Tax of Rs 25,000; (ii) interest at the applicable rate; and (iii) penalties ofRs. 10000. The Service Tax amount, interest and penalties have not been paid on the date of declaration under theScheme :


(i) Service Tax : Rs. 25,000

(ii) Education cess : as applicable

(iii) Interest : as applicable = say Rs. 2000

(iv) Penalty : Rs. 10000

The compounding amount shall be @ 50% of Service Tax amount plus education cess payable thereon= Rs. 12,500 plus education cess on Rs. 12,500.Penalty and interest shall be waived off.

Illustration 4 :

In the above illustration (illustration 3), the assessee has paid the Service Tax amount of Rs. 25,000 along witheducation cess. However, (i) interest at the applicable rate; and (ii) penalties have not been paid.




(iii) Interest : as applicable (as mentioned in the show cause notice)= say Rs. 5,000

(iv) Penalty : Rs. 10,000.



Illustration 5 :

The assessee has paid the Service Tax of Rs. 25,000 along with education cess. However, interest and penalties as

imposed by an order has not been paid. As per the order interest liability is Rs. 10,000 and the penalties imposed are

Rs. 30,000. The order confirms (i) a demand of Service Tax of Rs. 25,000; (ii) interest at the applicable rate; and (iii)

penalties of Rs. 30,000. The interest and penalties have not been paid on the date of declaration under the Scheme :




(iii) Interest = Rs. 10,000

(iv) Penalty : Rs. 25,000 (Note : as the penalty imposed is more than the Service Tax amount involved in the case,

the penalty amount shall be taken as equal to the Service Tax amount)

The compounding amount shall be @ 25% of Interest + 25% of penalty

= 0.25 x 10,000 + 0.25 x 25000 = 2500 + 6250 = Rs. 8750

Illustration 6 :

The order only involves only a demand of interest of say Rs 100,000; and (iii) penalties of Rs 50,000. Service Tax

and cesses have already been paid.




(iii) Interest = Rs. 10,000

(iv) Penalty : Rs. 50,000

The compounding amount shall be @ 25% of Interest + 25% of penalty

= 0.25 x 10,000 + 0.25 x 50000 = Rs. 25,000 + Rs. 12,500 = Rs. 37,500

5. As stated above, the Dispute Resolution Scheme Rules, 2008 have been issued vide Notification No. 28/2008-ST,

dated 4.6.2008.

6. The Commissioner of Central Excise and Service shall notify well in advance, by way of an office order, the designated

officer in respect of their jurisdiction.

7. This Scheme envisages culmination of pending litigation by quick resolution of pending disputes which fall within the

specified Wide publicity may be given, in the form of trade notices, advertisements, seminars and interaction with the

trade associations to make the stakeholders aware of the Scheme. Any difficulty faced in implementing the above

provisions may be immediately brought to the notice of the undersigned.

8. Receipt of the Circular may be acknowledged.

Sd/-

(GAUTAM BHATTACHARYA)

Commissioner (ST)



Annexure (Circular No. 102/5/2008-ST)

ORDER

Issued under Section 96(1) of the Finance Act, 2008, in respect of theDispute Resolution Scheme, 2008

Whereas Mr./Mrs./M/s. ___________________________________ (hereinafter referred to as the declarant) has filed adeclaration under section 94 of the Finance Act, 2008;

And whereas the said declaration has been received on ___________________ in the office of the designated authority.

Now, therefore, in exercise of the powers conferred by Sub-Section (1) of Section 96 of the Finance Act, 2008, the designatedauthority after considering relevant material, hereby determines the following amount payable by the declarant towards thefull and final settlement of his/her/their Tax arrears covered by the said declaration under the Scheme.

Tax arrears Amount of Tax arrears declared Amount determined as Remarksin Form 1 (as prescribed vide payable under Section 96(1)the Dispute Resolution Scheme of the Finance Act, 2008Rules, 2008) (in Rs.) (in Rs.)

(a) Taxes

(b) Education cess (Primary)

(c) Secondary and highereducation cess

(d) Interest

(e) Penalty

The declarant is hereby directed to make payment of the sum payable within thirty days from the date of this certificate.

Place :

Date : Name, signature and seal of the Designated Authority



Export Finance


Reserve Bank of IndiaForeign Exchange Department

Central Office, Mumbai 400 001

RBI/2007-2008/342

A. P. (DIR Series) Circular No. 44Dated 30th May, 2008

Reporting under FDI Scheme - Revised procedure

Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to provisions of the Foreign Exchange Management

(Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000, notified vide Notification No. FEMA

20/2000-RB dated May 3, 2000, as amended from time to time and A. P. (DIR Series) Circular No. 40 dated April 20, 2007.

2. In terms of para 9 (1) A of Schedule I to the Notification, Indian companies are required to report the details of the amount

of consideration received for issuing shares and convertible debentures under the Foreign Direct Investment (FDI) scheme

to the Regional Office of the Reserve Bank in whose jurisdiction the Registered Office of the company operates, within 30

days of receipt of the amount of consideration. Further, in terms of Para 9 (1) B of Schedule ibid, the companies are

required to report the details of the issue of shares/convertible debentures in form FC-GPR, to the Regional Office concerned,

within 30 days of issue of shares/convertible debentures.

3. In order to capture the details of FDI in a more comprehensive manner, form FC-GPR was revised vide A.P. (DIR Series)

Circular No. 40 dated April 20, 2007. The reporting framework was again reviewed and further revisions were proposed and

the revised draft of form FC-GPR was placed in public domain on March 14, 2008 inviting feedback from the public. Based

on the feedback received, form FC-GPR has been revised. The revised form is enclosed at Annex I. Further, a standard

format for reporting of the receipt of the amount of consideration for issue of shares/convertible debentures has been

prescribed as Annex II. A format for the KYC report on the non-resident investor from the overseas bank remitting the

amount required to be submitted along with the form FC-GPR has also been introduced (Annex III). The KYC report should,

henceforth, be submitted at the time of reporting the receipt of the amount of consideration from the non-resident investor.

4. Accordingly, Indian companies are required to report the details of the receipt of the amount of consideration for issue of

shares/convertible debentures in Annex II, together with a copy/ies of the FIRC/s evidencing the receipt of the remittance

along with the KYC report on the non-resident investor in Annex III, through an AD Category � I bank, not later than 30 days

from the date of receipt of the amount of consideration. The report would be acknowledged by the Regional Office concerned,

which would allot a Unique Identification Number (UIN) for the amount reported.

5. The details of the issue of shares/convertible debentures should, henceforth, be reported in the revised form FC-GPR

(Annex I). While forwarding form FC-GPR to the Regional Office concerned, the AD Category � I bank should ensure that

the UIN is correctly indicated in the form. It is also clarified that the annual report of all investments which is to be filed in

Part B of the revised form FC-GPR, which is hitherto to be submitted by June 30 every year, would now have to be

submitted by July 31 every year.



6. Necessary amendments to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident

outside India) Regulations, 2000 notified vide Notification No. FEMA 20/2000-RB dated May 3, 2000 will be issued separately.

7. AD Category - I banks may bring the contents of this Circular to the notice of their constituents and customers concerned.

8. The directions contained in this Circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange

Management Act, 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law.

Sd/-

(SALIM GANGADHARAN)

Chief General Manager-in-Charge

Member-exporters can download RBI/2007-2008/342, A. P. (DIR Series) Circular No. 44, Dated 30th May, 2008 - Reportingunder FDI Scheme � Revised procedure Form Annex-I and Annex-II from the following website :

� Annex-I : http://rbidocs.rbi.org.in/rdocs/content/pdfs/84728.pdf

� Annex-II : http://rbidocs.rbi.org.in/rdocs/content/pdfs/84729.pdf

Annex-III

[Annex to A. P. (DIR Series) Circular No. 44 dated May 30, 2008]

Know Your Customer (KYC) Form in respect of the non-resident investor

Registered Name of the Remitter/Investor(Name, if the investor is an Individual) :

Registration Number (Unique IdentificationNumber* in case remitter is an Individual) :

Registered Address(Permanent Address if remitter Individual) :

Name of the Remitter�s Bank :

Remitter�s Bank Account No. :

Period of banking relationship with theremitter :

*Passport No., Social Security No, or any Unique No. certifying the bonafides of the remitter as prevalent in theremitter�s country

We confirm that all the information furnished above is true and accurate as provided by the overseas remitting bankof the non-resident investor.

(Signature of the Authorised Official ofthe AD bank receiving the remittance)

Date :

Place :

Stamp :




RBI/2007-2008/343

A. P. (DIR Series) Circular No. 45

Dated 30th May, 2008

Foreign Exchange Management (Deposit) Regulations, 2000 �Credit to Non Resident (External) Rupee Accounts

Attention of Authorised Dealer Category - I (AD Category � I) banks is invited to paragraph 3 of Schedule I to the ForeignExchange Management (Deposit) Regulations, 2000 [Notification No. FEMA 5/2000-RB dated May 3, 2000], as amendedfrom time to time, giving the permissible credits to the Non-Resident (External) Rupee (NRE) account. Further, in terms ofAnti-Money Laundering guidelines [cf A. P. (DIR Series) Circular No. 14 dated October 17, 2007], FFMCs are permitted toencash foreign currency and make cash payment only up to USD 3000 or its equivalent. Amount exceeding USD 3000 orits equivalent has to be paid by way of demand draft or bankers' cheque.

2. As a measure of liberalization and also to meet the genuine needs of the NRE account holders, it has been decided thatAD Category � I banks and authorized banks may credit proceeds of demand drafts/bankers' cheques issued againstencashment of foreign currency to the NRE account of the NRI account holder where the instruments issued to the NREaccount holder are supported by encashment certificate issued by AD Category � I/Category � II.

3. AD Category � I banks and authorized banks may bring the contents of the circular to the notice of their constituentsconcerned.

4. The directions contained in this Circular have been issued under Sections 10(4) and 11(1) of the Foreign ExchangeManagement Act, 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law.

Sd/-(SALIM GANGADHARAN)






RBI/2007-2008/346


Dated 2nd June, 2008

External Commercial Borrowings (ECB) by Services Sector - Liberalization

Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to the A. P. (DIR Series) Circular No. 5 datedAugust 1, 2005 relating to External Commercial Borrowings (ECB) and Notification No. FEMA 3/2000-RB dated May 3,2000, as amended from time to time.

2. Under the extant ECB guidelines, borrowers in the services sector are not eligible to avail ECB under the AutomaticRoute. It has been decided, in consultation with the Government of India, to allow entities in the service sector viz. hotels,hospitals and software companies to avail ECB up to USD 100 million, per financial year, for the purpose of import ofcapital goods under the Approval Route. All other aspects of ECB policy shall remain unchanged.

3. It is also clarified that the existing guidelines on trade credit, allowing companies including those in the services sector,to avail trade credit up to USD 20 million per import transaction, for a period less than 3 years, for import of capital goods,shall continue [cf A. P. (DIR Series) Circular No. 87 dated April 17, 2004].

4. This amendment to ECB guidelines will come into force with immediate effect.

5. Necessary amendments to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations,2000 dated May 3, 2000 are being issued separately.


7. The directions contained in this Circular have been issued under Sections 10(4) and 11 (1) of the Foreign ExchangeManagement Act, 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law.







RBI/2007-2008/351


Dated 3rd June, 2008

Risk Management and Inter-Bank Dealings - Commodity HedgingExposures of domestic oil refining and marketing companies

Attention of Authorised Dealer Category � I (AD Category � I) banks is invited to Regulation 6 of Notification No. FEMA.25/

RB-2000 dated May 3, 2000, as amended from time to time, in terms of which residents in India are permitted to enter into

a contract in a commodity exchange or market outside India to hedge price risk in a commodity, subject to terms and

conditions. Further, in terms of A.P. (DIR Series) Circular No. 03 dated July 23, 2005, select commercial bank ADs havebeen delegated the authority to grant permission to companies listed on a recognized stock exchange to hedge commodity

price risk in the international commodity exchanges/markets. Also, in terms of A. P. (DIR Series) Circular No.17, dated

November 6, 2007 domestic oil refining and marketing companies were permitted to hedge commodity price risk based on

the inventory volumes, subject to conditions.

2. Companies engaged in crude oil refining and marketing have been representing to the Reserve Bank for further liberalization

of hedging facilities for petroleum and petro products in view of the volatile prices in the market. With a view to facilitatingdomestic crude oil refining companies to hedge their commodity price risk exposure dynamically, as announced in the

Annual Policy Statement for the Year 2008-09 (para 129), it has been decided to extend the following facilities:

A. Hedging of domestic purchases of crude oil and sales of petro-products :

As per the prevailing trade practices, indigenously produced crude oil is purchased at international prices by the refineries.

However, hedging of price risk on domestic purchases of crude oil is not permitted. In order to enable domestic crude oil

refining companies to hedge their risk exposures, it has been decided to permit them to hedge their commodity price risk

on domestic purchase of crude oil and sale of petroleum products on the basis of underlying contracts linked to internationalprices on overseas exchanges/markets. The hedging will be allowed strictly on the basis of underlying contracts.

B. Hedging of anticipated imports of crude oil :

In order to provide greater flexibility, it has been decided to permit domestic crude oil refining companies to hedge their

commodity price risk on crude oil imports in overseas exchanges/markets, on the basis of their past performance up to 50

per cent of the volume of actual imports during the previous year or 50 per cent of the average volume of imports during the

previous three financial years, whichever is higher. Contracts booked under this facility will have to be regularized by

production of supporting import orders during the currency of hedge. An undertaking may be obtained from the companies tothis effect.

3. The hedging has to be undertaken only through AD Category � I banks, who have been specifically authorised by

Reserve Bank in terms of A. P. (DIR Series) Circular No. 03 dated July 23, 2005, subject to the conditions and guidelines

annexed thereto.

4. While extending the above hedging facilities, AD Category � I banks should ensure that the domestic crude oil refining

companies hedging their exposures should comply with the following :

i. to have Board approved policies which define the overall framework within which derivatives activities are undertakenand the risks contained;



ii. sanction of the company's Board has been obtained for the specific activity and also for dealing in OTC markets;

iii. the Board approval must include explicitly the mark-to-market policy, the counterparties permitted for OTC derivatives,etc.; and

iv. domestic crude oil companies should have put up the list of OTC transactions to the Board on a half yearly basis,which must be evidenced by the AD Category � I bank before permitting continuation of hedging facilities under thisscheme.

5. The AD Category � I banks should also ensure �user appropriateness� and �suitability� of the hedging products used bythe customer as laid down in Para 8.3 of 'Comprehensive Guidelines on Derivatives' issued vide our Circular DBOD No.BP.BC. 86/21.04.157/2006-07 dated April 20, 2007.

6. Applications from domestic crude oil companies to undertake hedge transactions not covered under the delegatedauthority may continue to be forwarded to Reserve Bank by the AD Category � I banks, for approval, as hitherto.

7. Necessary amendments to Notification No. FEMA. 25/RB-2000 dated May 3, 2000 [Foreign exchange Management(Foreign Exchange Derivatives Contracts) Regulations, 2000] are being notified separately.

8. AD Category - I banks may bring the contents of the Circular to the notice of their constituents and customers concerned.

9. The directions contained in this Circular have been issued under Sections 10(4) and 11(1) of the Foreign ExchangeManagement Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.







RBI/2007-2008/352



Overseas Investments - Liberalisation/Rationalisation

Attention of Authorised Dealer Category � I (AD Category � I) banks is invited to A. P. (DIR Series) Circular No. 59 dated

May 18, 2007, A. P. (DIR Series) Circular No. 68 dated June 01, 2007, A. P. (Dir Series) Circular No. 11 dated September

26, 2007 and Notification No. FEMA 120/RB-2004 dated July 7, 2004, as amended from time to time, on Overseas DirectInvestments. As announced in the Annual Policy Statement for the Year 2008-09 (paras 131 and 132), the Regulations

governing overseas investments have been further liberalised as under :

2. Overseas Investment in Energy and Natural Resources Sectors

In terms of A. P. (Dir Series) Circular No. 11 dated September 26, 2007, an Indian Party is allowed to make direct

investment in Joint Ventures and/or Wholly Owned Subsidiaries outside India up to 400 per cent of the net worth as on the

date of the last audited balance sheet, under the Automatic Route. With a view to provide greater flexibility to Indian parties

for investment abroad, it has been decided, in consultation with the Government of India, to allow Indian companies toinvest in excess of 400 per cent of their net worth, as on the date of the last audited balance sheet, in the energy and

natural resources sectors such as oil, gas, coal and mineral ores. The investments in excess of 400 per cent of the net

worth shall be made only with the prior approval of the Reserve Bank. AD Category - I banks may, therefore, refer such

cases to the Reserve Bank in terms of the procedures laid down in A. P. (Dir Series) Circular No. 68 dated June 1, 2007.

3.Investment in Overseas Unincorporated Entities in Oil Sector

(i) In terms of A. P. (DIR Series) Circular No. 59 dated May 18, 2007, Navaratna Public Sector Undertakings (PSUs) are

allowed to invest in overseas unincorporated entities in oil sector (i.e. for exploration and drilling for oil and naturalgas, etc.), which are duly approved by the Government of India, without any limits, under the automatic route. This

facility is now extended to ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL).

(ii) With a view to further liberalise the procedure, it has now been decided, in consultation with the Government of India,

to allow a similar facility to other Indian entities to invest in overseas unincorporated entities in oil sector.

AD Category � I banks may allow remittance up to 400 per cent of the net worth of the Indian company after ensuring

that the proposal has been approved by the competent authority and is duly supported by a certified copy of the BoardResolution approving such investment. Applications by Indian companies, other than by Navaratna PSUs, ONGC

Videsh Ltd (OVL) and Oil India Ltd (OIL), for investment in excess of 400 per cent of the net worth of the company as

on the date of the last audited balance sheet, in overseas unincorporated entities, where such investments are

approved by the Competent authority, should be referred by AD Category - I banks to the Reserve Bank for prior

approval, as per the procedure laid down in A. P. (DIR Series) Circular No. 68 dated June 1, 2007.

(iii) All investments in unincorporated entities overseas would be required to comply with the reporting requirements as

prescribed in Regulation 15 (iii) of Notification No. FEMA 120/RB-2004 dated July 7, 2004 [Foreign ExchangeManagement (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2004], as amended from time to

time. Further, all such investments in unincorporated entities overseas by both Navaratna PSUs and other entities will be

required to be reported in form ODI, including Annual Performance Report (APR) [cf A. P. (Dir Series) Circular

No. 68 dated June 1, 2007].



4. Capitalisation of Exports

In terms of Regulation 11(1) of Notification No. FEMA 120/RB-2004 dated July 7, 2004 [Foreign Exchange Management(Transfer or Issue of any Foreign Security) Regulations, 2004], as amended from time to time, an Indian Party makingdirect investment outside India in accordance with the Regulations, by way of capitalization, in full or part of the amountdue to the Indian Party from the foreign entity on account of payment for export of plant, machinery, equipment and othergoods/software to the foreign entity, has to obtain the prior approval of the Reserve Bank where such export proceeds haveremained unrealized beyond a period of six months from the date of exports. In order to align this provision with the ForeignTrade Policy, Indian parties may, henceforth, approach the Reserve Bank for capitalization of export proceeds only incases where the exports remain outstanding beyond the prescribed period of realisation.

5. Necessary amendments to Notification No. FEMA 120/RB-2004 dated July 7, 2004 [Foreign Exchange Management(Transfer or Issue of any Foreign Security), Regulations, 2004] are being issued separately.


7. The directions contained in this Circular have been issued under Section 10 (4) and 11 (1) of the Foreign ExchangeManagement Act, 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law.







RBI/2007-2008/353



Export of Goods and Services - Payments of Claims by Insurance Companies-Write off

Attention of Authorised Dealer (Category � I) banks is invited to A. P. (DIR Series) Circular No.22 dated September 24,2003, in terms of which AD banks were permitted to write off the export bills and delete them from the XOS statement inrespect of outstanding export bills where claims were settled by ECGC.

2. Reserve Bank has received representations from Exporters/Trade bodies for extending the 'write off' facility applicableto the claims settled by all insurance companies which are registered with Insurance Regulatory and Development Authority(IRDA). In view of the representations received and in order to liberalise further the procedures, it has been announced inthe Annual Policy Statement for the Year 2008-09 (para 133), to permit AD Category � I banks to write off, in addition to theclaims settled by ECGC, the outstanding export bills settled by other insurance companies which are regulated by IRDA.

3. Accordingly, AD Category � I banks shall henceforth, on an application received from the exporter, supported by adocumentary evidence from ECGC/insurance companies registered with IRDA, confirming that the claim in respect of theoutstanding export bills has been settled and that the export incentives, if any, have been surrendered, write-off the relativeexport bills and delete them from the XOS statement. Such write-off will not be restricted to the limit of 10 per centindicated in paragraph C 18(b) of the A. P. (DIR Series) Circular No.12 dated September 9, 2000.

4. It is clarified that the claims settled in Rupees by ECGC/insurance companies should not be construed as exportrealisation in foreign exchange and claim amount should not be allowed to be credited to Exchange Earners' ForeignCurrency Account maintained in terms of Regulation 4 of FEMA Notification No.FEMA 10/2000-RB dated May 3, 2000.


6. The directions contained in this Circular have been issued under Sections 10(4) and 11(1) of the Foreign ExchangeManagement Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.







RBI/2007-2008/354



Export of Goods and Services - Realisation and Repatriation of Export Proceeds-Liberalisation

Attention of Authorised Dealer Category � I (AD Category- I) banks is invited to the provisions of sub-regulation (1) ofRegulation 9 of the Notification No. FEMA. 23 /2000-RB dated May 3, 2000, as amended from time to time, in terms ofwhich the amount representing the full export value of goods or software exported should be realised and repatriated toIndia within six months from the date of export.

2. Reserve Bank has been receiving representations from Exporters/Trade bodies to extend the period of realisation ofexport proceeds in view of the external environment. It has, therefore, been, in consultation with Government of India,announced in the Annual Policy Statement for the Year 2008-09 (para 134) to enhance the present period of realization andrepatriation to India of the amount representing the full export value of goods or software exported, from six months totwelve months from the date of export, subject to review after one year. The provisions in regard to period of realization andrepatriation to India of the full export value of goods or software exported by a unit situated in Special Economic Zone(SEZ) as well as exports made to warehouses established outside India with the permission of Reserve Bank remainunchanged.

3. Necessary amendments to Notification No. FEMA. 23/RB-2000 dated May 3, 2000 [Foreign Exchange Management(Export of Goods and Services) Regulations, 2000] are being notified separately.

4. AD Category - I banks may please bring the contents of this Circular to the notice of their constituents and customersconcerned.

5. The directions contained in Circular have been issued under Section 10(4) and 11(1) of Foreign Exchange ManagementAct, 1999 (42 of 1999) and without prejudice to permissions/approvals, if any, required under any other law.







RBI/2007-2008/355



Deferred Payment Protocols dated April 30, 1981 and December 23, 1985between Government of India and erstwhile USSR

Attention of Authorised Dealer Category � I (AD Category � I) banks is invited to A.P. (DIR Series) Circular No. 38 datedApril 22, 2008 wherein the rupee value of the special currency basket was indicated as Rs.58.6670 effective from April 7, 2008.

2. AD Category � I banks are advised that a further revision has taken place on May 8, 2008 and accordingly, the rupeevalue of the special currency basket has been fixed at Rs.60.5828 with effect from May 13, 2008.

3. AD Category � I banks may bring the contents of this Circular to the notice of their constituents concerned.

4. The directions contained in this Circular have been issued under Sections 10 (4) and 11(1) of the Foreign ExchangeManagement Act, 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law.





Exim Bank Extends US$ 25 MN Line of Credit to Syria

Export-Import Bank of India (Exim Bank) has, at the behest of Government of India, extended a Line of Credit (LOC) of US$25 million to the Government of the Syrian Arab Republic, for financing export of goods and services from India. This is thefirst ever LOC extended by Exim Bank to Syria and the first ever LOC to the Middle East region.

Exim Bank will reimburse 90% of contract value to the Indian exporters, upfront upon the shipment of goods. India's exportto Syria in 2006-07 amounted to US$ 408 mn, registering an increase of 47.5% over the previous year. Main productsexported from India to Syria are manufactures of metals, machinery and instruments, yarn fabrics, staple fibre, pharmaceuticalproducts and non-ferrous metals.

Besides promoting India's exports, Exim Bank's LOCs enable demonstration of Indian expertise and project executioncapabilities in emerging markets. With the signing of this LOC Agreement, Exim Bank has now in place 94 Lines of Credit,covering 90 countries in Africa, Asia, Latin America, Europe and the CIS, with credit commitments over US$ 3 bn, availablefor utilization for financing exports from India. Exim Bank's LOCs afford a risk-free, non-recourse export financing option toIndian exporters.

For further information, please contact :

Mr. Prabhakar DalalChief General ManagerExport-Import Bank of IndiaCentre One Building, Floor 21World Trade Centre ComplexCuffe ParadeMumbai - 400 005Tel. : (022) 22162073/22172310Fax : (022) 22182460E-mail : [email protected]


OFFICE BEARERSOF THE COUNCILCHAIRMAN

Rakesh Shah

Phone: Off : 91-33-22872511/22876640/

22874447/22804929

Res: 91-33-24071637/1638/24689706

Fax : Off : 91-33-22875104/22870780

Res: 91-33-24456925


[email protected]

VICE CHAIRMEN

Mahesh K. Desai

Phone: Off : 91-40-27617098/27615131

Res: 91-40-27765793

Fax : 91-40-27614376


Amanpreet Singh Chadha

Phone: Off : 91-22-66355155/56/57

Res: 91-22-23516865

Fax : 91-22-23854428


REGIONAL CHAIRMEN

Eastern Region

R. P. Sehgal

Phone: Off : 91-33-22803127/22878229/

22902256

Res: 91-33-22407094

Fax : 91-33-22899938


Northern Region

S. C. Ralhan

Phone: Off : 91-161-2673805/806/2670219

Res: 91-161-2670129/2672542

Fax : 91-161-2671049/2676817


Southern Region

B. Chandrasekharan

Phone: Off : 91-80-26570711/12

91-80-26570718 (D)

Res: 91-80-26764665

Fax : 91-80-26570713/14


[email protected]

Western Region

Nayan N. Shah

Phone: Off : 91-22-65702939/26763555

Res: 91-22-26207506

Fax : 91-22-28730291


EEPC OFFICES IN INDIAAND ABROADR. MaitraExecutive DirectorEngineering Export Promotion CouncilVandhna (4th Floor), 11 Tolstoy MargNew Delhi 110 001Tel. : 91-11-23353353, 23711124/25Fax : 91-11-23310920E-mail : [email protected] : www.eepcindia.org

HEAD OFFICEB. SarkarAddl. Executive Director & SecretaryEngineering Export Promotion CouncilVanijya Bhavan (1st Floor)International Trade Facilitation Centre1/1 Wood StreetKolkata 700 016Tel. : 91-33-22890651/52Fax : 91-33-22890654E-mail : [email protected] : www.eepcindia.org

TERRITORIAL DIVISIONVandhna (4th Floor)11 Tolstoy MargNew Delhi 110 001Tel. : 91-11-23353353, 23711124/25Fax : 91-11-23310920E-mail : [email protected]

REGIONAL OFFICESChennaiM. GanesanRegional DirectorGreams Dugar (3rd Floor)149 Greams RoadChennai 600 006Tel. : 91-44-28295501, 28295502Fax : 91-44-28290495E-mail : [email protected]

KolkataMs. Anima PandeyRegional DirectorVanijya Bhavan (2nd Floor)International Trade Facilitation Centre1/1, Wood StreetKolkata 700 016Tel. : 91-33-22890673/74Fax : 91-33-22890687E-mail : [email protected]

MumbaiRajat SrivastavaRegional DirectorCentre 1, 12th FloorWorld Trade CentreCuffe Parade, Mumbai 400 005Tel. : 91-22-22186655/56/60Fax : 91-22-22180119E-mail : [email protected] [email protected]

New DelhiShrikar DoleRegional DirectorSurya Kiran (4th Floor)19 Kasturba Gandhi MargNew Delhi 110 001Tel. : 91-11-23314171/74Fax : 91-11-23317795E-mail : [email protected]

SUB-REGIONAL OFFICESBengaluruC. H. NadigerAsst. DirectorVinayaka Complex (2nd Floor)44/45, Residency Road CrossBengaluru 560 025Tel. : 91-80-25581396/25588669Fax : 91-80-25586914E-mail : [email protected]

HyderabadJ. V. Raja Gopal RaoAsst. Director�Soham Mansion� (1st Floor)No. 5-4-187/3 & 4/4, M. G. RoadSecunderabad 500 003Tel. : 91-40-27536704Telefax : 91-40-27536705E-mail : [email protected]

JalandharOpinder SinghAsst. DirectorPlot Comm. 1, Focal PointJalandhar 144 004Tel. : 91-181-2602264Fax : 91-181-2601124E-mail : [email protected]

[email protected]

FOREIGN OFFICESSingapore

No. 3, Shenton Way#07-02 Shenton HouseSingapore 068805Tel. : 65-62279282/83Fax : 65-62279284E-mail : [email protected]

South AfricaD. D. Roy, Resident DirectorThebe House (1st Floor)166, Jan Smuts, RosebankJohannesburg-2196South AfricaTel. : 27-11-8802973Fax : 27-11-2374000E-mail : [email protected]

U.S.A.Rana Roy, Resident DirectorIndia Engineering Center1601 Feehanville Drive, Suite # 200Kensington Business CenterMount Prospect, IL, 60056, USATel. : 1-847-297-8500 (2 lines)Fax : 1-847-297-8502E-mail : [email protected]

Published by Shri R. Maitra, Executive Director, Engineering Export Promotion CouncilVanijya Bhavan (1st Floor), ITFC, 1/1 Wood Street, Kolkata 700 016

Editor : Shri R. Maitra

16th june, 2008 - eepc · pdf fileindustry seeks information about the latest technology and...

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