Executive Summary:
This Public Notice addresses an error in the Foreign Trade Policy (FTP) 2009-2014 regarding the ITCHS code for "Other Brakes and Servo Brakes and Part thereof" under the Focus Product Scheme (FPS). It corrects the previously mentioned HS code 87082900 to 87083000. The notice clarifies FPS benefit eligibility for exports made before and after Public Notice No. 52 dated February 25, 2014.
Key Points / Main Content:
Error Correction and Amendment:
* Corrects the ITCHS code for "Other Brakes and Servo Brakes and Part thereof" in Appendix 37D of the Handbook of Procedure Vol. I 2009-2014.
* Revises the HS code at Sl. No. 608 from 87082900 to 87083000, as per Public Notice No. 52 dated February 25, 2014.
FPS Benefit Clarification:
* FPS benefits can be granted for exports of "Other Brakes and Servo Brakes and Part thereof" under either ITCHS code 87083000 or 87082900 if exported before the issuance of Public Notice No. 52 dated February 25, 2014.
* For exports from February 25, 2014, onwards, both the product description and ITCHS code must match for FPS incentive eligibility.
Effect of the Notice:
* Incentivizes "Other Brakes and Servo Brakes and Part thereof" exported between June 5, 2012, and February 24, 2014, regardless of the ITCHS codes 87082900 or 87083000.
* Clarifies that items incentivized under ITCHS code 87082900 not meeting the specified description are ineligible for benefits.
Impact Analysis:
Regional Authorities (RA):
* Impact: RAs need to review cases where FPS benefits were granted solely based on ITCHS code 87082900, with descriptions differing from "Other Brakes and Servo Brakes and Part thereof".
* Action Required: If benefits were wrongly granted, RAs must initiate recovery procedures.
Exporters:
* Impact: Exporters of "Other Brakes and Servo Brakes and Part thereof" may be affected by the corrected ITCHS code and the clarification on FPS benefit eligibility.
* Action Required: Exporters should verify their past and future exports' compliance with the revised guidelines to ensure continued eligibility for FPS benefits. They should also ensure correct ITCHS code to avoid any recovery.
Key Entities Referenced
Directorate General of Foreign Trade: An organization responsible for implementing the Foreign Trade Policy in India.
Foreign Trade Policy 2009-2014: A policy document outlining guidelines and regulations related to import and export activities in India for the period of 2009-2014.
Focus Product Scheme: A scheme under the Foreign Trade Policy of India that provides incentives for the export of certain products.
Appendix 37D of Handbook of Procedure Vol. I 2009-14: A specific appendix within the Handbook of Procedure, a document related to the Foreign Trade Policy, providing details on export-related procedures.
Public Notice No. 3 RE2012-200914 dated 05.06.2012: A formal notification issued by the Directorate General of Foreign Trade, providing information or updates related to trade policies.
Public Notice No. 52 dated 25 February 2014: A formal notification issued by the Directorate General of Foreign Trade, providing information or updates related to trade policies.
ITC HS code 87082900: A specific code within the Indian Trade Classification (Harmonized System) used to classify "Other Brakes and Servo Brakes and Part thereof" for trade purposes.
ITC HS code 87083000: A specific code within the Indian Trade Classification (Harmonized System) used to classify Brakes and Servo Brakes and Part thereof for trade purposes.