Feasibility of availing concessions on duty for operations.

Background Assumptions & Legal.

Options available as per FTP. Implementations / formalities.

Clearance / formalities.
Conclusion.

BACKGROUND ASSUMPTIONS& LEGAL.

K shall be engaged in movement of Containers carrying export cargo up to final port of loading in India, envisaging providing a range of services which may be termed as Port handling Services in view of clarification as defined in sl. No. 82 of Service Tax Act". which clarifies that "port service means any service rendered by a port or any person authorized by the port, in any manner, in relation to a vessel or goods Furthermore, Container handling services are specifically included in the terms Port Services vide Service Tax Notification No. 4/2001-ST dt.09.07.2001. The services offered are duly covered for EXIM benefits underAPPENDIX-10 of Foreign Trade Policy (FTP), vide Sl. No. 11 E of the Appendix-10. Moreover Para 5.5 (iv) of FTP allows Port Handling Services as deemed export with option to realize proceeds in India Rupees. The amount for Port Handling services could be realized in Forex, as well as Indian Rupees, which is deemed to have been realized in Forex as clarified to

OPTIONS AVAILABLE AS PER FOREIGN TRADE POLICY (FTP)

Based on the background and assumptions and based on relevant FTP measures available therein, EPCG scheme is applicable for the current requirement. The scheme entitles to import containers at a reduced Duty rate of 3% exempting Customs Duty to the tune of ` 60,00,000/-, and imposing approximate EO to the tune of ` 4.80 Crores to be earned within 8 years from the date of issue of scrip.
Forex earnings remitted as / received as advance/&/or periodically or in any other manner other than through EEFC account of clients namely Foreign Shipping Lines etc. is eligible against the scheme.

IMPLEMENTATION/FORMALITIES
REQUIREMENT OF STATUTORY DOCUMENTS 1) IE Code, duly updated reflecting all addresses. 2) RCMC to be obtained through F.I.E.O. as per format of application attached, The Registration is subject to payment of one time fees of ` 7500/- with ` 5000/- as annual renewal charges. 3) Digital Signature as per NCode format attached., The process envisages payment of ` 5410 or ` 6310 for 1 or 2 years fees in favor of M/s KSC ASSOCIATES. 4)Fees of ` 6,000/- is payable through EFT towards 1% of duty saved amount. Fees may also be remitted through CONCOR on behalf of CONYK.

CLEARANCE/FORMALITIES
1) Post Issue, the Scrip will have to be registered as Customs Port. being a new company will be subjected to furnishing 100% BG for the Duty Saved amount. However possibilities of Corporate Guarantee may be allowed by Customs based on JV status with PSU. Detailed Customs notifications, issued in this regards are attached herein for pursuing the matter.
2) The License scrip will have to be redeemed after realization of stipulated earnings or within 8 years whichever is earlier.