Page 68 - Chemexcil NEWS August - September 2017 for web

Status should be sufficient.

j. Applicability of circulars on Bond/LUTs:

The instructions issued vide earlier circulars dated 07/07/2017 and this circular are applicable to any
export made on or after the 1st July 2017.

Members are requested to take note of this circular and for full text, may use following link to
download the same:

http://cbec.gov.in/resources//htdocs-cbec/gst/circularno-5-gst.pdf

In our view, above clarifications should resolve the existing issues related to Bond, LUT, BG etc.
However, if any difficulty is still faced by the members, they may revert to us on deepak.gupta@
chemexcil.gov.in and info@chemexcil.gov.in

Thanking you.

NOTICE 6

EPC/LIC/DGFT 28th August 2017

To
ALLTHE MEMBERS OFTHE COUNCIL

SUBJECT:-Revision in Entitlement to export freely exportable items on free of cost (FOC) basis by
Status Holders

Dear Members,

The O/o DGFT New Delhi has issued Notification No: 23/2015-2020 dated 23rd August, 2017 regarding
revision of Entitlement to export freely exportable on free of cost basis by Status Holders.

As you are aware, as per Existing Para 3.24 (j) of Chapter-3 of FTP 2015-2020, status holders are entitled
to export freely exportable items on free of cost basis for export promotion subject to an annual limit of
`10 lakh or 2% of average annual export realisation during preceding three licensing years, whichever
is lower-.

However, in line with changing requirements of International Trade, the entitlement to export freely
exportable on free of cost basis by Status Holders has been revised as follows:

“Status holders shall be entitled to export freely exportable items (excluding Gems and Jewellery,
Articles of Gold and precious metals) on free of cost basis for export promotion subject to an annual
limit of Rupees One Crore or 2% of average annual export realization during preceding three licensing
years, whichever is lower. Such free of cost supplies shall not be entitled to Duty Drawback or any other
export incentive under any export promotion scheme."'

Members are requested to kindly take of this revision.You may also refer to the Notification No: 23/2015-
2020 dated 23 August, 2017 available on below link:

http://dgft.gov.in/Exim/2000/NOT/NOT17/Signed%20Notification%2023%20dated%2023%20August%20
2017%20English%20Scanned.pdf

Thanking You,

August-September-2017 66