Chatroom: Individuals can get up to $250,000 forex for their foreign trips
We refer to Section 6.17(d) of the FTP, which states that an EOU/EHTP/STP/BTP unit may also obtain permission from DC to exit the scheme at any time, upon payment of applicable duties and taxes and compensation tax on capital goods. under the prevailing EPCG scheme for DTA units. Please clarify how we can be asked to pay the BCD, IGST etc. when the EPCG scheme allows zero duty imports.
In the above paragraph, the words ‘applicable law’ mean ‘the law applicable under the relevant EPCG authorization’. Currently, imports under the EPCG scheme (notification 26/2003-Cus dated April 1, 2023) are exempt from BCD, IGST and Cess. All other duties, such as anti-dumping duties, safeguard duties and any countervailing duties against subsidies, are payable. So, when you settle the capital goods CG from EOU under the EPCG license, the applicable BCD, IGST and Cess will be ‘zero’.
We refer to the guidelines for sale/pre-sale of goods in DTA by EOUs in Annexure-6G of HBP. We are a DTA technical unit that converts to EOU. Are these guidelines relevant to us?
Section 6.07(a) allows sales in DTA without any limits for EOUs in sectors other than gems and jewelry and services, as long as you achieve a positive NFE. So in your case these guidelines are not relevant unless you want to pre-sell DTA (i.e. before reaching a positive NFE) due to a new production flow due to a technological change or due to its expanded export capacity, as mentioned in Paragraph I(f) of Annexure-6G.
We had re-imported certain goods for repair and re-export and cleared the goods under notification 158/95-Cus dated 14 November 1995. We could not re-export the goods within the period of 6+6 months. Can we now pay the import duty and then re-export the same goods to another party and claim a refund of the tax paid under Section 74 of the Customs Act, 1962?
Yes. CBEC Circular No. 72/2002-Cus dated November 1, 2002 makes it clear that as long as the conditions specified in Section 74 of the Customs Act, Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995 and relevant notifications issued under If to section 74 is satisfied, return u/s 74 should be allowed on merits without insisting on re-export of goods to the same supplier or that the re-export should be from the same port.
How much foreign currency can I get for my visit abroad?
For private visits abroad, other than Nepal/Bhutan, any resident individual can receive foreign exchange up to an aggregate amount of $250,000 from an AD/FFMC, in a given financial year, irrespective of the number of visits undertaken during the year. Further, all travel related expenses including the cost of rail/road/water transportation, cost of Eurail passes/tickets etc. outside India and overseas hotel/lodging expenses are included in this limit. The tour operator can collect this amount
either in INR/FC of the resident traveler.