Chatroom: Ecotems define 16 terms for circular economy in global trade

Rajagopalan answers readers' SME queries related to GST, export and import matters

We refer to Para 5.04 (c) of the FTP, which stipulates that EO under the EPCG  scheme shall be, over and above, the average level of exports achieved by the applicant in the preceding three licensing years for the same and similar products within the overall EO period including extended period, if any; except for categories mentioned in paragraph 5.12(a). We request you to clarify whether the average level of exports of the same and similar product to be achieved by us in the preceding three licensing years is to be determined taking into account the licensing year in which the EPCG application is filed or the licensing year on which the EPCG licence was issued.

 

DGFT Policy Circular no.33 dated 20th August 1998 clarifies that the average of preceding three licensing years should be taken after taking into account the licensing year in which the EPCG application is filed.

 

We are holding an EPCG authorisation for import of spares. In accordance with Para 5.06 (b) of the HBP, the authorisation does not specify the list of spares. We want to import certain instruments falling under Chapter 90 of the ITC (HS) under this EPCG authorisation. We are wondering whether we can do so, because our consultant has raised a doubt saying that instruments falling under Chapter 90 are capital goods, as given in the definition at Para 11.08 of the FTP. Please guide us.

 

An instrument can be used as capital goods, component, accessory or spares depending on how you use it. If the instrument you intend to import is for substitution, that is ready to replace an identical instrument in a machine, then you can import it as spares. In this connection, please refer to the definition of ‘spares’ at Para 11.55 of the FTP.

 

We are a SEZ unit. We had imported certain goods duty free. Now we want to dispose of the same in DTA.  Rule 34 (iv) of the SEZ Rule, 2006 allows us to do so on payment of applicable duties. Please clarify whether we should take the present duty rates or the duty rates applicable at the time of imports?

 

Section 30(b) of the SEZ Act, 2005 says that the rate of duty and tariff valuation, if any, applicable to goods removed from a SEZ shall be at the rate and tariff valuation in force as on the date of such removal, and where such date is not ascertainable, on the date of payment of duty.

 

What is meant by ICC Ecoterms?

  Ecoterms is a business-to-business resource developed by the International Chamber of Commerce (ICC) that provides common definitions for 16 of the most widely used circular economy terms in global trade. It supports consistent interpretation of regulatory requirements, clearer communication on sustainability terms, and the scaling of circular economy models across global value chains. Such terms are increasingly used in international contracts to describe the environmental attributes of goods and services traded across the borders.

 

Business Standard invites readers’ SME queries related to GST, export and import matters. 

 

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