APPENDIX-14 L

NORMS OF SCRAP/WASTE MATERIAL FOR AN EXPORT PRODUCT UNDER

EXPORT ORIENTED UNITS AND UNITS IN EXPORT PROCESSING ZONES

-----------------------------------------------------------
Note : Please see Para 6.8 of the Policy and Para 6.8 of
this Handbook.
-----------------------------------------------------------
------------
S.No Goods Goods used Percent
. Manufactured ages of
scrap
or
waste
on
importe
d goods
1. 2. 3. 4.

1. Stainless steel Stainless steel sheets 25%

utensils and circles

2. Spectacle frames, Cellulose nitrate

if produced- sheets and cellulose
acetate sheets 65%
(i) by
fabrication out
of cellulose
nitrate sheets 20%
and cellulose
acetate sheets

(ii) by moulding
from cellulose
acetate powder

3. Pharmaceuticals. Chloramphenicoloral 2.8%

anspenium 4.28%
chloramphenicol 6.67%
capsules celatia
capsules
4. Adelphane Granulated tablets 1.5%
Esiderex tablets. mass.
5. Remactane a) Rifampicin, USP 0.83%
Capsules b) Lactose Crystalline 0.83%
c) Empty Gelatine 6.00%
6. Embroidery on Imported nylex fabrics 4.23%
fabrics and other embroidery
materials like straw
yarn, metallic yarn and
sequences

7. Salted peanuts Imported tin sheets 8.9%

and cashewnuts
8. Hand Knitting Imported components 0.40%
Machines such as selectors,
carries, needles, beds
and brushes
9. Imitation a) PVC Plastic 8.0%
Jewellery b) Metal Parts for hand 1.3%
bags 3.5%
c) Metal Parts for 2.7%
Jewellery
d) Glass Chatons and App-173
Beads

10. Polythene Bags PVC Granules 5%

11. Ivory Carvings Raw Ivory 30%

12. Plain ivory Raw ivory 10%

bangles
13. Industrial chains

(I)1/2” pitch Cold rolled steel 40%

chain -do- 35%
(ii) 3/4” pitch
chain
14. Soap Fatty Acid, Oils and 5%
perfumes
15 PVC pipes PVC resin, PVC 5%
Stabilizer PVC
lubricants, filter
processing acids,
pigments and
plasticisers
16. Lead Glass tubing Glass Tubes 20%

17. Lead in Wire Wire 15%

18. Fluorescent a) Lead Glass tubings. 14.96%

 starter b) Bimetal 24.70%
c) Lead in wire(small) 25.00%
d) Lead in wire(big) 23.50%
e)Glow lamps 6.5%
f) Capacitors 7.5%
g) Revetting 5.5%
h) Aluminium alloy 25%
rods 35%
I) Bakelite sheets
19. Builders hardware Brass rods, profiles 34.00%
sections of brass etc.

20. Combs and brushes Cellulose nitrate and 50.00%

acetate sheets
21 Jeens 100% cotton denim 16.00%

22. Bed Linen sets 100% cotton printed 5.37%

sheeting
23. Jacket Knitted fabrics 23.00%

24. Shirts Plain fabrics 19.16%

Check (printed)fabrics 20.00%

25. PVC reinforced PVC Resin 5.00%

hoses,extruded PVC Stabiliser
moulded plastic PVC Lubricants
products Filter processing aids,
Pigments and
plasticisers.

App-174

26. Corrugated sheets Kraft paper & flutting 10.00%

and boxes. media
27. Baraglin tablets. Lactose 5.00%
Analgin 3.00%

28. Skirts Fabrics 20.00%

29. Embroidered 65% polyester/35% 22.00%

Kaftan cotton fabrics.
30. Air compressors M.S.Plates 4.20%

31. Detergent Powder Alkyl benezene, soda 5.00%

ash, caustic soda,
 sodium tripry
phosphate, carbonyl
methyl cellulose
perfumes.
32. Neocidol 60 Ex. Diazionon stablised 3.00%
Neocidol bulk
33. Stainless steel Stainless steel sheets. 35.00%
Cutlery
34. Domestic Mixers i)Copper enamelled 1.5%
ii)Insulating paper 23%

35. AAC/ACSR Overhead Aluminium Rod and Steel 1.75%

Conductors Wire
36. Injection/blow HDFE,PP, LDPE, & PVC 5%
moulded plastic
articles.
37. Flexivial L.D.P.E. Granules 10%

38. Woollen Pullovers Woollen and other yarn 10.02%

and other Knitted
Garments.
39. Agarbatti

(a) Packing MIS Sheets/Tin Plates 5%

Tubes for
Agarbatti

(b) Packing
Cartons for
Agarbatti Foil Board Sheet(Paper 22.5%
Board-Gold) 32.7%
(i) 15” -do- 37.5%
agarbatti Unit -do-
Carton
(ii) 10” 21.78%
Agarbatti Unit Bamboo Sticks
Carton
(iii) 5 Tola 55
Series Unit
Carton

(c) Bamboo
Sticks Waste
 App-175

40. HRC Fuses (a) Resistance Wire 10%

(b) Indicator 10%
(c) Contact Knives 1%
(d) Exconal (Aluminium 13%
Profiles) 15%
(e) Shrinkage Plastic 2%
(f) Pull Lugs 1%
(g) Hexagonal-1 Nut 1.05%
(h) Cylinder Head 5.25%
Screw 1%
(I) Spring Washer 2%
(j) Name Plates 1%
(k) Silicon Rubber 1%
(l) Striker Plat 1%
(m) Striker Hose 3%
(n) Striker Pin 5%
(o) Extractor Rivets 3%
(p) Compression Spring 10%
(q) Support Card 5%
Boards 8 to
(r) Soldering Wire 10%
(s) Phenol Chalk
Mineral
(t) Copper Strips
41. Carry Strappings Polypropylene,Colour 7.5%
and pigments
42. Polypropylene Polypropylene 5.5%
Bags
43. Fire Hoses Aluminium Coupling(nut 1%
& tail piece)
44. Processed (a) Oil Blend 0.62%
Vegetable Oil (b) Tins/Jars 5%
(c) Outer Cartons 5%
(d) Cellophane 3%
Sheets/Bopp Rolls 1%
(e) Gum Tape/Cello 1%
Tape
(f) Carry Stripping
Rolls
45. Lipsticks (a) Base 5%
Mechanisms/Case 5%
(b) Inner Cartons 5%
 (c) Outer Cartons 1%
(d) Labels/Stickers 1%
(e) Gum/Cello Tapes 1%
(f) Carry Stripping
Rolls
46. Powder Compacts (a) Raw Bulk Powder 5%
(b) Holding Cases -
(c) Godets 5%
(d) Pressing Cloth 5%
(e) Acetate Sheets 5%
(f) -
Applicators/Brushes 1%
(g) Labels/Stickers 5%
(h) Innner Cartons 5%
(I) Outer Cartons 1%
(j) Gum/Cello Tapes 1%
(k) Carry Stripping
Rolls

App-176

47. Eyebrow /Eye (a) Raw Pencils 5%

Shadow Pencils (b) Foils 5%
(c) Caps -
(d) Trays -
(e) Inner Cartons 5%
(f) Plastic Cover for -
Trays 5%
(g) Outer Cartons 1%
(h) Gum/Cello
Tapes/Carrystrap Rolls
48. Perfumary (a) Bottles/cans 5%
Products (b) Caps 5%
(c) Valves 2%
(d) Actuators 5%
(e) Lables/Stickers 1%
(f) Inner/Outer 5%
Cartons 1%
(g) Gum/Cello Tapes 1%
(h) Carrystrap Rolls
49. Shampoo/Condition (a) Bottles 5%
er (b) Inner 5%
Cartons/Polybags 5%
(c) Outer Cartons 3%
(d) Cellophane 1%
Sheets/Bopp Rolls 1%
 (e) Gum Tape 1%
(f) Cello Tape
(g) Carry Stripping
Roll

50. Hand Bags (a) Gobelin 27.15%

Tapestry/Fabric(Basic
Fabric) 35.75%
(b) Nylon Lining 7.40%
Fabric 6.30%
(c) Frames
(d) Chains
51. Ladies Nighties 65% Polyester/35% 11.27%
Cotton and all types of
Fabrics
52. Aluminium Claded Aluminium Sheets 30.83%
Stainless Steel
Utensils
53. Artificial Polyester Pongee cloth 30%
Flowers
54. Marine Freight Steel 4.6%
Containers
55 Disposable Food Plastic Shets 4%
Containers
56. Overalls(Industri Polyester/Cotton 19.48%
al & Fabrics
Institutional
Garments)
57. Bags Printed Fabrics 17.04%

58. Pareos -do- 06.12%

59. Shorts Fabrics 22.82%

60 Polycarbonate Polycarbonate granules 06.00%

Cans

App-177

61. Polyester Film I) Aluminium Foils 02.00%

Capacitors ii) Polyester Foils 01.50%
iii)Coply wire 02.50%
iv)Resin 05.00%
v) Adhesive Tapes 100%
vi) Capacitors 04%
62. Domestic sewing High Carbon Steel wire 44.86%
machine needles
63. Silver Lithographic 105.23
Films(different sizes) %

64. Carved Limestones Unifinished Limestones 33.33%

65. Carved marbles Unfinished Marbles 22.75%

66. Bone China a) Bone Ash 7.8%

Tablewares b) Ball Clay
c) China Clay
d) Feldapar
e) Quartz
f) Vir.Body
g) CER.GLAZE

67. Printed cartons Duplex Board 31.18%

68. Leaflets (Folder) Maplitho paper 15.06%

69. Shirts Band Art paper 20.00%

70. Sticker Presumed paper 27.00%

71. Jackets Quilted 100% polyester 21.42%

Filler Taffata 100%
Nylon
72. Night shirts 100% polyester Satin 15.00%
fabrics
73. Dressing Gown 100% polyester 18.98%
Terry Fleece Fabrics

74. Quilted House a) 100% Polyester

Coats/Dressing Fabrics
Gown b) 100% Polyester 22.42%
Wadding
c) Nylon Fabrics:
 App-178

75. Stainless Steel Stainless Steel Coil 39.00

Utencils

a) Colander in 4 size
b) Colander stand in 3
size
c) Colander handle in
2 size
d) Multi Cookerware
set- a set of 4 pcs
e) Cocktail Shaker
f) Thala
g) Stainless steel
Boerner Ring
h) Zara in 5 size
I) Thavetha in 5 size
j) Laddle 4 size
k) Bhaji spoon pan in
4 size
l) Champage Bucket
m) Charni
n) Vegetable Steamer
o) Supreme Bowl
p) Cannister in 8 size
q) Pickle Tray
r) Double body cup and
saucer
s) Tiffin 28 swg
Dabba, Frame, Lock
clip
t) Pasta Cannister
u) Tea Kettles
v) Q Tip Container
w) Charge Plate
x) cotton Container
y) Kettle Covers
z) Pressure Cooker
aa)Stock pot
bb)Butter Warmer
cc)Mixing Bowl,
Serving Bowl
 dd)Cookware set
Sandwich Bottom-
Casserol in 6 size
saucepan in 2 size and
Frypan in 3 size.
76. Hings with Ball I) Brass Sections 39.00
Bearings
77. Syringes with or Plastic film medical 11%
without needles disposable film
422mx100micron

App-179

78 Synethic yarn/blended Input material for 2%

. yarn synthetic/blended yarn

79 Plastic granules & LDPE, HDPE, LLDPE, 5%

plastic articles EPPS, ABS & HIPs etc.

80 Hot water bottles Rubber 5%

of rubber

81 Denim fabrics Waste in the form of 14%

cotton(from cotton to
yarn
4%
Waste in the form of
hard waste(from yarn to
fabric) 9.23%

Waste in the form of

fabrics(fents,
rags/chindies during the
process of finishing and
packing
82 Surimi(minced Surimi fish paste 60%
fish paste) fresh
and frozen fish
etc.
83 Bicycle Frames Steel sheets
and forks
 Bicycle ERW Steel tubes 7.69%
i) frames(wt.3000
gms) Model genius
Bicycle ESW Steel tubes 6.25%
ii) frames(wt.3000
gms)
Regular model MTB
Fork MTB (wt.1061 ERW steel pipes 12.53%
Iii) gms)

84 Halogen Lamps Input material for 5%

Halogen Lamps

App-180

85 Barium Ferrite Input powder 30%

Powder/Strontum
Ferrite Powder

86. Terry Towels

i) Terry Towel Input thread 5.66%

without border

ii) Terry Towel with Import thread 10.80%

border

87. Embroidered Base 15%

fabrics cloth(Blended/100%polyes
ter)
9%
Yarn waste(Embroidered
 yarn)
88. Rice Waste of out put allowed
Bran 8%
Broken Rice 20%
Sortex(Rejects) 15%
Impurities(Organic/Inorg 2%
anic

App-181

89. Wire wheels HR sheet for Rim 21%

HR sheet for shell 41%
Billets for shell 69%
Spoke wire 13%
 Nipple wire 39%

90. Servo Control Stator Housing G4x2 32.7%

Mechanism and
components Stator Housing G4x3 29.5%

Stator Housing G4x4 26%

Front Flage G4x4 11.9%

Resolver Housing G4x2 19.56%

Resolver Housing G4x3 15.6%

Resolver Housing G4x4 15.6%

Nozzie Block as per 18.46%

drgB65804
6.25%
G4x2 Stator Complete
copper wire
1%
Radex cable
4%
Stator Core scrap
4.3%
G4x3 Stator Complete
copper wire
1%
Radex cable
4%
Stator core scrap
5%
G4x4 Stator Complete
copper wire
1%
Radex cable
2.4%
Stator Core Scrap

91. Knitted cotton Nylon and lycra yarn 10%

sports and dress
socks
92. Upto 24s carded Cotton 14%
yarn Cotton 13%
 24s to 60s carded
yarn

App-182

93. Bulk Acetone 30%

drugs/intemediate Methanol 6%
s Isoprophy Alcohol 65%
Acetic Acid 90%

94. Paper Cone for Input material 40%

Yarn
95. Bicycle and Aluminum alloy rims
bicycle profiles 7.75%
components(Rims) 26” 6.34%
24” 7.24%
20”
96. Watch screw and Watch screws 82.66%
parts Watch pinions 92.72%
Watch reverts 78.24%

97. Charge Chrome Charge Chrome 50%(of

granulate
d slag.)

98. Acrylic Acrylic yarn 17%

Blankets(one ply
and two ply)
99. Printed books and Paper 11.9%
related products Graphic films 4.6%
Pre-sensitized 2.6%
Aluminimum plates

100 (a) Combed cotton Cotton 30%

yarn

101 Disposable Gas CRC Sheets 31%

Cylinders

102 Oil Seal plates Steel bar 50%

Stainless steel SS bar 43%
Journal Bearing (i) Phosphor bronze 40%
tube 50%
(ii) Phosphor bronze
bar
 103 Engg &Textile i)Iron castings, Steel 10%
machinery Bars non ferrous
components metals and non-Metals
and aluminum 15%
ii) CR/HR Sheets

App-183

104 Double throttle Casting 0.974/Kg

Check valve Steel bar 0.036/Kg

Double check Casting 0.594/kg

Valve Steel bar 0.663/kg

Gear Pump Aluminum Extrusion 0.830/kg

105 Guar Gum refined Guar Seeds 1.3%

splits

106 100% Cotton gauze Cotton yarn 11%

Swabs 11%
Cotton yarn
Cotton bandage &
Length wise
elastic cloth

107 Silk fabrics Mulberry raw 35%

silk/Douppion yarn
108 Silk Garments
i)Ladies skirt 100% silk fabric 10%
-do-
ii)Ladies blouse -do-
-do-
iii) Ladies dress -do-
-do-
iv) Ladies Jacket -do-

v) Ladies
 trousers

vi) Men's shirt

vii)Ladies shirt

109 100% silk fabric 100% silk 2%

110 Plain Jewellery (i) Gold/ Platinum 3.5%

and articles and (by weight)
ornaments like
Mangalsutra
containing gold (ii) Silver 4.5%
and black (by weight)
beeds/imitation
stones, cubic
zirconia etc.
but excluding
diamonds,
precious, semi-
precious stones.

App-184

111 Studded jewellery i) Gold/ Platinum 9%

other then those (by weight)
covered by
S.No.110 above
and articles (ii) Silver
thereof (by weight) 10%
112 Mountings and i) Gold/ Platinum 3.5%
findings (by weight)
manufactured
indigenously (ii) Silver
(by weight) 4.5%

113 Chains/Bangles i) Gold/ Platinum 1.25%

manufactured by a (by weight)
fully mechanised
process and
 unstudded. (ii) Silver 1.25%
(by weight)

113 Mountings whether i) Gold/ Platinum 2.5%

imported or (by weight)
indigenously
procured/manufact
ured, used in the (ii) Silver 2.5%
studded jewellery (by weight)
114 Gold/silver/plati i) Gold/ Platinum 0.25%
num medallions (by weight)
and coins
(excluding the
coins of the (ii) Silver 0.25%
nature of legal (by weight)
tender)
115. Repair/remaking Gold /silver/ platinum 2%
of plain /studded jewellery
gold/silver/plati
num jewellery

116 Garbare bass Ethylene(HMHDPE) 5%

Carry bars Ethylene(LD/LLDPE) 12%
with handle

App-185

117 Semi woolen yarn Woolen 7.13%

Fibres/sliver/roving
etc

118 Decorative glass Glass 20%

window panels
119 Bulk drugs and Acetone, Methanol 40%
bulk drugs Isoprophy, Alcohol,
intermediates Acetic Acid

120 Timing Gears Gear Lubricant Oil RH, 24.56%

Gear Water Pump RH,
Gear Crank RH, Gear
Idler LH, Gear
Accessory RH, Gear
Idler RH, Gear Hyd.
Pump LH, Gear Cam
Shaft(Hobbed)

121 Items not covered As applicable Upto 5%

above
(excluding Gem &
Jewellery)

App-186
TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY
(PART-I, SECTION-1)

GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
PUBLIC NOTICE No 21 /2002-07
NEW DELHI: the 1st July, 2002
In exercise of powers conferred under paragraph 2.4 of the Export and Import Policy,
2002-07, the Director General of Foreign Trade hereby makes the following
amendment/correction in the Handbook of Procedures (Vol.1):
1) Paragraph 3.6 pertaining to the “Export Promotion Council” is amended as under:
“ The general policy relating to the Export Promotion Councils is given in Chapter – 2 of
the Policy. A list of Export Promotion Councils/ Commodity Boards is given in
Appendix 27.”
2) Paragraph 6.15 (a) to (f) pertaining to the provision of “Sub Contracting” is corrected.
The corrected paras would read as under:
(a) EOU/ EPZ/ EHTP units may be permitted to remove moulds, jigs, tools, fixtures,
tackles, instruments, hangers and patterns and drawings to the premises of the sub
contractors subject to the conditions that these shall be brought back to the bonded
premises of EOU/ EPZ/ EHTP unit on completion of the job work within a stipulated
period.
(b) Export of finished good directly from the job worker’s premises may be permitted
provided the job worker’s premises is registered with the Central Excise authorities.
However, export of such products from the job worker’s premises shall not be allowed
through third parties as provided under paragraph 6.10 of the Policy.
Accordingly para 6.15 (g) pertaining to “ Contract farming” is renumbered as 6.15 (c).
3) Paragraph 7.12 pertaining to the provision of “ Sub Contracting” for SEZ units is
corrected. The corrected para would read as under:
(a) Export of finished goods directly from the job worker’s premises may be permitted
provided the job worker’s premises are registered with the Central Excise authorities.
Export of such products from the job worker’s premises shall not be allowed through
third parties as provided for under paragraph 7.10 of the Policy.
(b) In case of SEZ units undertaking job work for export on behalf of DTA unit in terms
of paragraph 7.12 of the Policy, the finished goods shall be exported directly from the
SEZ unit and export documents shall be in the name of DTA unit.
(c) SEZ units may be permitted to remove moulds, jigs, tools, fixtures, tackles,
instruments, hangers and patterns and drawings to the premises of sub contractors subject
to the conditions that these shall be brought back to the bonded premises of SEZ units on
completion of the job work within a stipulated period.
4) The last sub- para of paragraph 8.6.1 is deleted without making any alterations in the
first two sub paras. Hence para 8.6.1 is amended as under:-
8.6.1 In respect of supplies under paragraph 8.2 (b) of the Policy, the DTA unit shall
claim the Advance Licence for deemed export from the concerned licencing authorities.
Alternatively, the DTA unit may claim deemed export drawback from the concerned
Development Commissioner. However, for supplies to EHTP/ STP , the DTA unit shall
claim deemed export benefits from the licencing authorities concerned.
Such supplies shall be certified by the receiving agencies.
5) S.No 2 of the documents to be enclosed with the application form in Appendix 10 B
pertaining to the “Application Form for Grant of Advance Licence under Duty
Exemption Scheme” is amended as under:
2. Project Authority Certificate in case of application for Advance Licence for deemed
export (except in the case of supplies to an EPCG licence holder wherein the invalidation
letter would suffice) or a copy of invalidation letter in case of application for Advance
Licence for intermediate supply.
6) Four new Agri Export Zones are added at S. Nos 25, 26, 27 & 28 in Appendix 15
pertaining to “Agri Export Zone”. Similarly the Agri export zone at S.No 6 which was
restricted to 13 mandals of Chitoor district of Andhra Pradesh has been expanded to
cover the entire Chitoor district. All these amendments/ additions are tabulated as under:
S.No Product State Districts covered
6 Mango Pulp & Fresh Andhra Pradesh Chitoor
Vegetables
25 Flowers (Orchids) & Cherry Sikkim East Sikkim
Pepper
26 Ginger Sikkim North, East, South & West
Sikkim
27 Rose Onion Karnataka Bangalore (Urban), Bangalore
(Rural), Kolar
28 Flowers Karnataka Bangalore (Urban), Bangalore
(Rural), Kolar, Tumkur,
Kodagu and Belgaum
This issues in public interest.
(N.L.Lakhanpal)
Director General of Foreign Trade
(A.B.Menon)

Dy.Director General of Foreign Trade

(F.NO. 01/94/180/26/AM03/PC-IV)
(TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY (PART-I,
SECTION-1)
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY

PUBLIC NOTICE No. 16/2002-07

NEW DELHI: the 5th June, 2002
In exercise of powers conferred under paragraph 2.4 of the Export and Import Policy,
2002-07, the Director General of Foreign Trade hereby makes the following amendment
in the Handbook of Procedures (Vol.1):-
1. Para 6.2 (j) is corrected as under:
“(j) The unit shall be able to account for the entire quantity of goods imported/procured
duty free, by way of exports and sales in DTA or transfer to other EOU/EPZ/ EHTP/
STP/ SEZ units, and balance in stock. However, at no point of time the units shall be
required to co-relate every import consignment with each category of homogenous goods
exported, transferred to other EOU/ EPZ/EHTP/STP/SEZ units, sales in DTA and
balance in stock. In case of doubt the matter shall be referred to BOA for decision.”
2. Note (i) of paragraph 6.5 is corrected as under:-
(i) If any goods are obtained from another EOU/EPZ/EHTP/STP unit, or procured
from an international exhibitions held in India and precious metals procured from
nominated agencies, the value of such goods shall be included under B.
3. Paragraph 6.8 (c) is corrected as under:-
“ DTA sale shall be admissible only to similar goods as that of the goods
manufactured and exported from the unit. In case of doubt in regard to similar
nature of goods, the matter shall be referred to the BOA for decision”.
4. In paragraphs 6.8(e) and 6.8 (f), the words and expression “Appendix 14-M” is
corrected to read as “Appendix 14-L”.
5. A new paragraph 6.9 (d) is added as under:
“ ITA –I items to be cleared in the DTA shall undergo tariff change at four digit level.
Only the value added products, which have undergone the process of manufacture would
be allowed to be clear in the DTA.
6. Paragraph 6.20 (d) is corrected as under:
“The depreciation norms for capital goods of units, including electronics, would be
subject to an overall limit of 90% as notified by the Department of Revenue.
(i) Depreciation for computers and computer peripherals for all types of electronic units
would be as follows:
10% for every quarter in the first year;
8% for every quarter in the second year;
7% for every quarter in the third year;
(ii) For capital goods, other than the above, the depreciation rate would be as follows:
4 % for every quarter in the first year;
3 % for every quarter in the second and third year; and
2.5 % for every quarter in the fourth year and thereafter.
7. Paragraph 6.22 (a) is corrected as under :
“ (a) NFEP and EP shall be monitored in terms of paragraph 6.22 of the Policy as per the
guidelines given in Appendix 14-E of the Handbook (Vol.1).”
8. The sub- paras of Paragraph 6.27 b) (v), are re-numbered as (a), (b),(c),(d),(e) & (f).
9. Paragraph 6.29 is corrected as under:
“A fast track procedure will be separately notified for EOU/EPZ units with actual
investment in plant and machinery, both imported and indigenous imported of Rs.5 crores
and above.”
10. A) The Note at S.No 1. of Appendix 14-A pertaining to the “Application for setting
up EOUs or Units in Export Processing Zone / SEZ” is corrected as under:
“1. Please see Paras 6.7 and 7.7 of EXIM Policy & Paras 6.7 and 7.7 of this Handbook.”
B) In Annexure to Appendix 14 A pertaining to “Proforma to be filled in by the existing
DTA units seeking conversion into the EOU/ EPZ/ SEZ Scheme” , clause “(h)” is deleted
and the existing entry “(i)” is renumbered as “(h)”
11. A) The Note at the beginning of Appendix 14-D pertaining to “Form of Legal
Agreement for Export Oriented Units and EPZ/ SEZ Units” is corrected as under:
“Please see paras 6.6 & 7.6 of EXIM Policy and Paras 6.6 & 7.6 of the Handbook of
Procedure.”
B) The words and expression “Central Excise and Salt Act 1944” at S.No 7 of Appendix
14 D, is substituted by the words and expression “Central Excise Act, 1944”.
12. Appendix 14-E pertaining to the “Guidelines for monitoring the performance of
EOU/ EPZ/ SEZ/ STP/ EHTP units” is corrected as per the Annexure to this Public
Notice.
13. Appendix 14-F pertaining to the “Guidelines for sale of goods in the Domestic Tariff
Area (DTA) by EOU/ EPZ/ SEZ/ STP/ EHTP units” is corrected as per the Annexure to
this Public Notice.
14. A) The note at the beginning of Appendix 14-G pertaining to “Procedure
to be followed for reimbursement of Central Sales Tax (CST) on
supplies made to Export Oriented Units (EOU’s) and units in Export
Processing Zones (EPZ), Electronic Hardware Technology Park
(EHTP), Software Technology Park (STP) and Special Economic
Zones (SEZ) from Domestic Tariff Area (DTA)” is corrected as under :
“ Please see Paras 6.12 & 7.9 of EXIM policy and paras 6.12 & 7.9 of
this Handbook.”
B) Clause (c) in the Undertaking and Declaration to Annexure 1 of
Appendix 14 G, is deleted and the exiting clause (d) is renumbered as
(c).
15. The note at the beginning of Appendix 14-K pertaining to “ Guidelines on revival/
debonding of sick EOU/ EPZ units” is corrected as under:
(Please see Para 6.28 of EXIM Policy & Para 6.28 of this Handbook)
16. A) The note at the beginning of Appendix 14-L pertaining to the “Norms of Scrap/
Waste Material for an export product under export oriented units and units in export
processing zones” is corrected as under:
“Please see Para 6.8 of Policy and 6.8 of this Handbook.”
B) S.No 107 of Appendix 14 L is amended as under:
S.No Goods Manufactured Goods Used Percentage of scrap or
waste on imported goods
107 Silk fabrics Mulberry raw silk/ 35%
Douppion yarn
17. The email ID of Development Commissioner, Cochin at S.No 36 of Appendix 24
pertaining to “List of Licensing Authorities and their Jurisdiction”, is corrected as under :
“dc@csez.com”
18. The following corrections are made in Appendix 35 pertaining to the List of Agencies
Authorised to issue GSP Certification”

S.No. Agencies Authorised to issue GSP Authorized for

Certification
8. Madras Export Processing Zone, All products manufactured by Units
Administrative Office Building, National in Madras EPZ and EOUs. Located
Highway 45, Tambaram, Chennai within the respective jurisdiction of
600045 Development Commissioner
9. Kandla Special Economic Zone, All products manufactured by Units
Gandhidham, Kutch, in Kandla & Surat SEZs. and EOUs.
Gujarat, 370230 located within the respective
jurisdiction of Development
Commissioner
10. SEEPZ Special Economic Zone Andheri All products manufactured by Units
(East), Mumbai, 400096 in SEEPZ SEZ and EOUs. located
within the respective jurisdiction of
Development Commissioner
11. Cochin Special Economic Zone All products manufactured by Units
Kakkanad Cochin 682037 in Cochin SEZ and EOUs. located
within the respective jurisdiction of
Development Commissioner
12. Noida Export Processing Zone Noida All products manufactured by Units
Dadri Road, Noida 201305 in Noida EPZ and EOUs. located
within the respective jurisdiction of
Development Commissioner
*14. Visakhapatnam Export Processing Zone, All products manufactured by Units
Administrative Building, Duvvada in Visakhapatnam EPZ and EOUs.
Visakhapatnam 530046 located within the respective
jurisdiction of Development
Commissioner
15 Falta Export Processing Zone 2nd MSQ All products manufactured by Units
Building 4th Floor Nizam Palace, in Falta EPZ and EOUs. located
Kolkata 700020 within the respective jurisdiction of
Development Commissioner
* At present Visakhapatnam and Falta EPZs. are combined at S.No. 14. 19. The
following corrections are made in Appendix 35 A pertaining to the “List of agencies to
issue Certificates of Origin for SAPTA and Bangkok Agreement”

29. SEEPZ Special Economic Zone

Andheri (East),
 Mumbai, 400096
30 Kandla Special Economic Zone,
Gandhidham, Kutch,
Gujarat, 370230
32. Cochin Special Economic Zone
Kakkanad
Cochin 682037
This issues in public interest.
(N.L.Lakhanpal)
Director General of Foreign Trade
Annexure to Public Notice No dated
Appendics E & F
 AMENDMENTS IN HOP

1. Para 6.2 (j) is corrected as under:

“(j) The unit shall be able to account for the entire quantity of goods imported/procured
duty free, by way of exports and sales in DTA or transfer to other EOU/EPZ/ EHTP/
STP/ SEZ units, and balance in stock. However, at no point of time the units shall be
required to co-relate every import consignment with each category of homogenous goods
exported, transferred to other EOU/ EPZ/EHTP/STP/SEZ units, sales in DTA and
balance in stock. In case of doubt the matter shall be referred to BOA for decision.”

2. Note (i) of paragraph 6.5 is corrected as under:-

(i) If any goods are obtained from another EOU/EPZ/EHTP/STP unit, or procured from
an international exhibitions held in India and precious metals procured from nominated
agencies, the value of such goods shall be included under B.

3. Paragraph 6.8 (c) is corrected as under:-

“ DTA sale shall be admissible only to similar goods as that of the goods manufactured
and exported from the unit. In case of doubt in regard to similar nature of goods, the
matter shall be referred to the BOA for decision”.

4. In paragraphs 6.8(e) and 6.8 (f), the words and expression “Appendix 14-M” is
corrected to read as “Appendix 14-L”.

(e) Norms for disposal of Waste/scrap/remnants arising out of production process and in
connection therewith, including wastage or manufacturing loss on gold/silver/ platinum
jewellery and articles thereof, is given in Appendix 14-L of the Handbook (Vol.1).

(f) In respect of items not covered by Appendix- 14-L, Development Commissioner shall
fix the wastage keeping in view the norms notified under Duty Exemption Scheme. For
items not covered by these two, the Development Commissioner shall send proposals to
the Board of Approval for decisionAll cases where wastage norms have not been fixed by
the Development Commissioner within 45 days from the date of receipt of application,
the same shall be referred to the Board of Approval for information alongwith reasons for
delay.

5. A new paragraph 6.9 (d) is added as under:

“ ITA –I items to be cleared in the DTA shall undergo tariff change at four digit level.
Only the value added products, which have undergone the process of manufacture would
be allowed to be clear in the DTA.
6. Paragraph 6.15 is amended as follows:-

(a) EOU/ EPZ/ EHTP units may be permitted to remove moulds, jigs, tools, fixtures,
tackles, instruments, hangers and patterns and drawings to the premises of the sub
contractors subject to the conditions that these shall be brought back to the bonded
premises of EOU/ EPZ/ EHTP unit on completion of the job work within a stipulated
period.
(b) Export of finished good directly from the job worker’s premises may be permitted
provided the job worker’s premises is registered with the Central Excise authorities.
However, export of such products from the job worker’s premises shall not be allowed
through third parties as provided under paragraph 6.10 of the Policy.

c) EOUs in agriculture/horticulture engaged in contract farming may on the basis of

annual permission from the Customs authorities take out inputs and equipments to the
DTA farm subject to the following conditions:
i) Supply of inputs by the EOU to the contract farm(s) shall be subject to the input-output
norms notified by the Directorate General of Foreign Trade.
ii) There shall be contract farming agreement between the EOU and the DTA farmer(s);
iii) The contract farm(s) shall be within the jurisdiction of the same Commissioner of
Customs/Excise under whose jurisdiction the unit is registered.
iv) The unit has been in existence for at least two years and engaged in export of
agriculture/ horticuture products; otherwise it shall furnish bank guarantee equivalent to
the duty foregone on the capital goods/inputs proposed to be taken out to the Assistant
Commissioner of Customs/ Central Excise till the unit completes two years.

7. Paragraph 6.20 (d) is corrected as under:

“The depreciation norms for capital goods of units, including electronics, would be
subject to an overall limit of 90% as notified by the Department of Revenue.
(i) Depreciation for computers and computer peripherals for all types of electronic units
would be as follows:
10% for every quarter in the first year;
8% for every quarter in the second year;
7% for every quarter in the third year;
(ii) For capital goods, other than the above, the depreciation rate would be as follows:
4 % for every quarter in the first year;
3 % for every quarter in the second and third year; and
2.5 % for every quarter in the fourth year and thereafter.

8. Paragraph 6.22 (a) is corrected as under :

“ (a) NFEP and EP shall be monitored in terms of paragraph 6.22 of the Policy as per the
guidelines given in Appendix 14-E of the Handbook (Vol.1).”
9. The sub- paras of Paragraph 6.27 b) (v), are re-numbered as (a), (b),(c),(d),(e) & (f).

(v) Change of location/expansion: To permit change of location from the place mentioned
in the LOP/LOI to another and/or include additional location provided that:
(a) no change in other terms and conditions of the approval is envisaged.
(b) the new location is within the territorial jurisdiction of the DC.
(c) other locational, zoning, land-use or environmental conditions are also complied with;
(d). Extension of validity of LOP/LOI: To extend validity period of LOP/LOI by two
years beyond the initial validity period of the LOP/LOI (except in case where there is a
restriction on initial period of approval, like setting up of oil refinery projects) ;
(e). To recommend extension of LOP/LOI to BOA along with field inspection report of
the unit for the sixth year.
(f). The Development Commissioner may also cancel LOI/LOI/IL wherever warranted.

10. Paragraph 6.29 is corrected as under:

“A fast track procedure will be separately notified for EOU/EPZ units with actual
investment in plant and machinery, both imported and indigenous imported of Rs.5 crores
and above.”