Important FTP provisions in the context of the implementation of the GST regime applicable w.e.f. 01.07.2017
Trade Notice No 11/2018 Dated:- 30-6-2017 Trade Notice
DGFT
Government of India
Ministry of Commerce & Industry
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi
Date 30/06/2017
Trade Notice No 11/2018
To,
1. All RA's of DGFT
2. Members of Trade and Industry
3. All EPCs/Commodity Boards
Subject: Important FTP provisions in the context of the implementation of the GST regime applicable w.e.f. 01.07.2017
The chapter wise provisions of the FTP 2015-20:
General Provision:
* With effect from July 1, 2017, the term "Central Excise Authority" used in Foreign Trade Policy 2015-20 and Foreign Trade procedures 2015-20 should be read as "Jurisdictional Customs Authority".
Chapter 2:
* Changes in IEC notified through Trade Notice No.09/2018 dated 12.06.2017
Chapter 3 :
* The Duty Credit Scrips (issued under Chapter 3 of the FT
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as per GST rules.
* Advance Release Order facility shall not be available for procurement of inputs under Advance Authorization scheme except for inputs listed in Schedule 4 of Central Excise Act, 1944 read with The Taxation Laws (Amendment) Act 2017 No 18 of 2017, with effect from July 1, 2017. RAs are directed not to issue ARO except for Schedule-4 items as stated above.
* Imports/exports under the replenishment schemes for the Gems and Jewellery sector covered under chapter 4 of FTP and HBP shall be subject to Customs Notification issued/ to be issued in this regard.
Chapter 5:
* Importers would need to pay IGST and take input tax credit as applicable under GST rules.
* ARO facility shall not be available for sourcing of Capital Goods manufactured Indigenously
Chapter 6:
* Imports by EOU/ EHTP/STP/BTP:
EOU are allowed duty free Imports of goods for their authorised operations. In GST regime, the import of goods covered under GST would be exempted from the whole of the
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l continue to get ab-initio exemptions from central excise duty.
* DTA clearances of finished goods covered under GST:
EOUs would be required to pay only CGST & SGST or IGST, as the case may be, besides paying back of whole of the duty of customs specified under the First Schedule to the Customs Tariff Act, 1975 (BCD) exemptions, if availed, on inputs used in manufacture of such finished goods.
The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act, 1944, the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act, the effective rate of such duties being covered by Notification no. 23/2003 – CE.
* Inter unit transfer/supply for EOU to other EOUs:
Applicable GST would be payable on the transfer/supply of goods from one unit of EOU / EHTP / STP / BTP to another.
Chapter 7:
Supplies made prior to the date of operationalization of GST:
The suppl
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