Please let us know whether we can avail of Focus Product Scheme (FPS) and Duty Drawback on Export to Nepal when payments are received against letter of credit in Indian rupees?
As per para 3.15.2 of the Foreign Trade Policy, realisation of foreign exchange in free foreign exchange is necessary for getting FPS benefits. Notification 208-Cus dated October 1, 1977 bars drawback on exports to Nepal in Indian rupees, except for export of capital goods against global tenders of the Nepalese government and export of petroleum products by Indian Oil Corporation to Nepal Oil Corporation through specified land customs stations.
We manufacture goods that are exempted from payment of excise duty. We do not take Cenvat Credit or any other benefits under excise laws. Are we required to export under ARE-1 for making drawback claim under brand rate?
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It is not necessary for you to remove the goods from your factory for export under ARE-1 form. Indeed, you cannot do so, as per condition No. (iv) of the notification 42/2001-CE (NT) dated June 26, 2001.
Can we claim duty credit scrips against indenting commission received from abroad in free foreign exchange under Served from India Scheme (SFIS)? We are covered under the head 'distribution services' at S.No.4 of Appendix-10 of handbook of Procedures, Vol 1 (HB-1)?
As per Para 4.12.2 of the FTP, SFIS benefit is available for services listed in Appendix-41 of HB-1. The service you mention is not listed there.
We have lost raw material, work in process (WIP) stocks, finished goods and waste in a fire. What is the process of remission of duty? What happens to the duty paid on the raw materials used to make the WIP stocks and finished goods?
For detailed instructions on the procedure for remission of duty, I refer you to Part-I of Chapter 18 of CBEC manual of supplementary instructions. As per Rule 3(5C) of Cenvat Credit rules, 2004, 'where on any goods manufactured or produced by an assessee, the payment of duty is ordered to be remitted under Rule 21 of the Central Excise Rules, 2002, the Cenvat credit taken on the inputs used in the manufacture or production of said goods and the Cenvat credit taken on input services used in or in relation to the manufacture or production of said goods shall be reversed.' There is no provision to refund the duty paid on the inputs used in the manufacture of goods in respect of which, duty has been remitted.
We have an advance authorisation and want to use it for procurement of our inputs. Are we required to get it invalidated for direct import and get an invalidation letter or Advance Release Order?
No. After execution of bond at the port of registration, you my produce the advance authorisation before the custom/excise officer in-charge of EOU for debit and clearance of the goods duty free, as per Para 4.11.1 of FTP and S.No.22 read with condition no.11 of notification 23/2003-CE dated March 31, 2003.
