'Sub-agents of travel agents who don't earn forex are not entitled to SFIS'

In case the Served from India Scrip (SFIS) is issued to a trust/society/foundation which runs a hospital/education institute, can the trust transfer the Duty Credit Scrip in favour of the company, under which the trust is formed?
As per Para 3.12.7 of the Foreign Trade Policy (FTP), "Entitlement /goods (imported / procured) shall be non-transferable (except within group company and managed hotels) and be subject to Actual User condition." The definition of Group Company is given in Para 9.28 of the FTP. From the details you have given, I do not think the trust can transfer the scrip to the company which formed the trust, as the requirements mentioned in the definition of 'Group Company' are not met. You may, however, try your luck with the Policy Relaxation Committee.

Our hotel company imported capital goods under EPCG Scheme Chapter 5 FTP 2004-09 in February 2008, subject to export obligation (EO) of eight times duty saved over a period of eight years. For such export obligation, we want to claim following as export:
1. Payment by foreigners in foreign currency through their credit cards for staying in the hotel though invoice was generated in the rupee.
2. Foreign currency received during money change with guest.
3. Money received through travel agents in INR for direct booking of foreign guest. Invoices are generated in INR but receipt of the same by travelling agent is in foreign currency.
Can all the above items be claimed as export for redemption of EPCG authorisation and if, even after including all of the above, if the company is unable to fulfil the export obligation, what will be the consequences of the same?
As per Para 3.12.5 of the FTP, "Free foreign exchange earned through International Credit Cards and through any instrument as permitted by RBI for rendering of services shall also be taken into account for computation of Duty Credit Scrip." Services of a money changer are not covered under Appendix-41 of the handbook of Procedures, Vol. 1 (HB-1) and hence not eligible for SFIS, as per Para 3.12.4 of FTP. Your services as sub-agent of a travel agent will not entitle you to SFIS, where you do not earn any foreign currency. You may regularise the default by paying customs duty (saved in proportion to the shortfall in export obligation) and interest as per Para 5.4 of HB-1.

We understand that in the absence of Importer Exporter Code (IEC), the customs do not allow import of goods for "personal use" if the value of goods exceeds Rs 25,000. Is this correct?
Para 2.8 (iii) of HB-1 exempts IEC requirement for import of goods for personal use not connected with trade or manufacture or agriculture. Permanent IEC number 0100000053 has been allotted for such cases. The limit of Rs 25,000 for a single consignment is for import/export of goods from/to Nepal, Myanmar through Indo/Myanmar border areas and China (through Gunji and Nangya Shipkila ports).

Business Standard invites readers’ SME queries related to excise, VAT and exim policy. You can write to us at smechat@bsmail.in