stp i ex im policies and procedures

8/20/2019 Stp i Ex Im Policies and Procedures

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STP/EHTP SchemeSTP/EHTP Scheme

nn To promote exports from the country, Govt. of India, Ministry of To promote exports from the country, Govt. of India, Ministry of Commerce & Industry promulgated EXIM Policy (EXIM Import Policy)Commerce & Industry promulgated EXIM Policy (EXIM Import Policy) //Foreign Trade Policy (1/9/2004).Foreign Trade Policy (1/9/2004).

nn To promote software and electronic hardware exports STPI was setTo promote software and electronic hardware exports STPI was setup inup in1991, having HQs in New Delhi.1991, having HQs in New Delhi.

nn STPI is a NonSTPI is a Non--Profit Organization.Profit Organization.

nn The STP/EHTP Scheme in the EXIM / FTP Policy is deployed by STPThe STP/EHTP Scheme in the EXIM / FTP Policy is deployed by STPcenters set up across India.centers set up across India.

nn To facilitate High Speed Data Transfer from the exporters/100%To facilitate High Speed Data Transfer from the exporters/100% EoUsEoUs,,Satellite Earth Station were set up under Data Communication Ser Satellite Earth Station were set up under Data Communication Ser vices.vices.


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STP/EHTP Scheme offersSTP/EHTP Scheme offers

nn Duty free Capital Goods (Import & Indigenous)Duty free Capital Goods (Import & Indigenous)

nn 100% Foreign Equity permitted.100% Foreign Equity permitted.

nn 100% Corporate Tax Holiday till 2009100% Corporate Tax Holiday till 2009

nn CST ReCST Re--imbursementimbursement

nn DTA SalesDTA Sales uptoupto 50% of Exports made50% of Exports made

nn May retain 100% of its export earnings in the EEFC accountMay retain 100% of its export earnings in the EEFC account

nn Export proceeds may be realizedExport proceeds may be realized uptoupto 12 months12 months

nn Simplified export obligationSimplified export obligation – – ‘Positive Net Foreign Exchange earnings’‘Positive Net Foreign Exchange earnings’

To avail the benefits any software, electronic hardware unit whoTo avail the benefits any software, electronic hardware unit who propose to propose to

export 100% of their production has to register withexport 100% of their production has to register withSTPI/SEZ/MEPZ/CSEZ etc., who are calledSTPI/SEZ/MEPZ/CSEZ etc., who are called EoUsEoUs..

Refer Foreign TradePolicy(FTP) 2004-09 &

FTP Handbook ofProcedures – Chapter 6


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After obtaining Letter of Permission (After obtaining Letter of Permission (LoPLoP),),

nn The approved STP unit is required to executeThe approved STP unit is required to execute

Legal Agreement (LA) / Legal UndertakingLegal Agreement (LA) / Legal Undertaking

((LuTLuT) with STPI on an Rs. 100/) with STPI on an Rs. 100/-- stamp paperstamp paper

(Indian Non(Indian Non--Judicial Paper)Judicial Paper)

To obtain:To obtain:

nn List AttestationList Attestation w.r.tw.r.t proposed CG procurement (Import & Indigenous) proposed CG procurement (Import & Indigenous)

nn Registration Cum Membership Certificate (RCMC)Registration Cum Membership Certificate (RCMC)

nn Green Card (proof / identity card as 100%Green Card (proof / identity card as 100% EoUEoU status)status)

With the LOP, LUT, List Attestation, Green Card and other aWith the LOP, LUT, List Attestation, Green Card and other a pprovals pprovalsaccorded by STPI, STP/EHTP units are required to approach customaccorded by STPI, STP/EHTP units are required to approach customssauthorities forauthorities for bonding of the premise & execution of Bank Guarantee.bonding of the premise & execution of Bank Guarantee.

Post approval processesPost approval processes……..


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ImportsImports

STP/ EHTP units are free to import all capital goods those requiSTP/ EHTP units are free to import all capital goods those requiredred

for creating STP infrastructure unless otherwise the same are infor creating STP infrastructure unless otherwise the same are in thethe

prohibited list. prohibited list.

These goods may be imported as per clause 6.2(a) of ForeignThese goods may be imported as per clause 6.2(a) of Foreign TradeTrade

Policy and 6.6.1 & 6.6.7 of the Foreign Trade Policy Hand BookPolicy and 6.6.1 & 6.6.7 of the Foreign Trade Policy Hand Book ofofProcedures and customs notification 52/2003 dated 31/3/2003.Procedures and customs notification 52/2003 dated 31/3/2003.

Benefit:Benefit:

Customs duty exemptionCustoms duty exemption


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Types of ImportTypes of Import

Ø Outright Purchase

Ø Loan basis from client / supplier / parent company

Loan period to be indicated

Ø Free of cost from client / supplier / parent company

Ø Lease basis (clause 6.4 of FTP & clause 6.9 of HoP of FTP)

Lease agreement to be filed


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Types of ImportTypes of Import ((contdcontd……))

Ø Bond – Bond sale

Proof of EoU to be filed

Ø High Sea Sale

High sea sale agreement to be filed

Ø Second Hand Capital goods (clause 6.3 of FTP & 6.6.1(b) of HoP ofFTP )

Chartered Engineers certificate to be filed

Procedure:

A request letter accompanied with Annexure IX and the

Proforma Invoice to STPI.

Import approval issued by STPI

Approach customs for necessary clearance of Goods


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Bonding of Imported capital GoodsBonding of Imported capital Goods

nn Obtain Import Approval from STPIObtain Import Approval from STPI

nn Clear imported capital goods from customs, obtainClear imported capital goods from customs, obtain BoEBoE

nn Enter the details of the capital goods procured in the bond regiEnter the details of the capital goods procured in the bond register, dulyster, duly

maintained.maintained.

nn Separate bond register to be maintained in case of STP /EHTP uniSeparate bond register to be maintained in case of STP /EHTP unitsts

operating from multiple locations.operating from multiple locations.

nn Request mail to STPI bonding officer for inspectionRequest mail to STPI bonding officer for inspection

nn STPI Bonding officer will inspect the imported capital goods agaSTPI Bonding officer will inspect the imported capital goods against theinst the

import approval issuedimport approval issued by STPI, by STPI, BoEBoE, Packing list etc.,, Packing list etc.,

nn The Bonding Officer will endorse the Bond Register and will issuThe Bonding Officer will endorse the Bond Register and will issue ree re--

warehousing certificatewarehousing certificate

nn Submit ReSubmit Re--warehousing Certificate (RWC) to customs authorities within 7warehousing Certificate (RWC) to customs authorities within 7

daysdays


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CT3 ExemptionCT3 Exemption

Ø STP/ EHTP units are free to procure capital goods indigenously those

required for creating STP infrastructure unless otherwise the same are in

the prohibited list.

These goods may be procured in DTA as per FTP Para No.6.2(b).

Benefit:Benefit:

Excise duty exemptionExcise duty exemption

Procedure:

A request letter accompanied with Annexure IX-A and the original

Proforma Invoice to STPI.

Central Excise Exemption approval issued by STPI

Approach central excise & customs for issue of CT3 approval

For inspection & re-warehousing of locally procured goods,

necessary intimation to be filed with concerned EoU range.


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ReRe--ExportExport

ØØ STP units are allowed to ReSTP units are allowed to Re--Export the capital goods which are imported,Export the capital goods which are imported,

as per clause 6.17.of Foreign Trade Policy and 6.28.1 6.28.2 ofas per clause 6.17.of Foreign Trade Policy and 6.28.1 6.28.2 of Hand bookHand bookof procedures, with the permission of the STPI & Customs.of procedures, with the permission of the STPI & Customs.


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Types of ReTypes of Re--ExportExport

ØØ Case 1 : ReCase 1 : Re--Export of Capital Goods for ReplacementExport of Capital Goods for Replacement

ØØ Case 2 : ReCase 2 : Re--Export of Capital Goods imported on Loan basisExport of Capital Goods imported on Loan basis

ØØ Case 3 : ReCase 3 : Re--Export of Capital for Repair & ReturnExport of Capital for Repair & Return

ØØ Case 4 : ReCase 4 : Re--Export of surplus or obsolete Capital Goods to the supplierExport of surplus or obsolete Capital Goods to the supplier

/ client / parent company. (as per clause 6.15(a) and 6.15(b) of / client / parent company. (as per clause 6.15(a) and 6.15(b) of FTPFTP

Procedure:

A request letter accompanied with Annexure VIA request letter accompanied with Annexure VI-- the Rethe Re--exportexport

invoice & Annexure VIinvoice & Annexure VI--A to STPI with necessary enclosuresA to STPI with necessary enclosures

ReRe--Export approval issued by STPIExport approval issued by STPI

Approach customs for necessary clearance of GoodsApproach customs for necessary clearance of Goods


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Shifting of Imported/CT3 Goods

ØØ STP Units are permitted to Shift Imported Capital Goods as per cSTP Units are permitted to Shift Imported Capital Goods as per clause 6.13lause 6.13

of the Foreign Trade Policy.of the Foreign Trade Policy.

nn Shifting / Transfer of EquipmentsShifting / Transfer of Equipments -- Permanent or TemporaryPermanent or Temporary

nn One location to other location of the same STP/EHTP unitOne location to other location of the same STP/EHTP unit

nn One STP/EHTP/One STP/EHTP/EoUEoU unit to other STP/EHTP/unit to other STP/EHTP/EoUEoU unit in the sameunit in the same

jurisdiction ( jurisdiction (vizviz Bangalore)Bangalore)

nn One STP/EHTP/One STP/EHTP/EoUEoU unit to other STP/EHTP/unit to other STP/EHTP/EoUEoU unit in the differentunit in the different jurisdiction ( jurisdiction (vizviz Bangalore & Mumbai)Bangalore & Mumbai)


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Types /Reasons of Shifting / Inter Unit Transfer

Ø Shifting for Repair

Ø Shifting for Demonstration/Execution of Project/Training / testing /

calibration

Ø Shifting for Sub-Contracting

Ø Shifting in case of Change/Expansion of Location of STP Operations –

within the unit’s additional premise / change in premise.

Ø Inter Unit transfer (100% to 100% EoU) Permanently.


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Procedure for Shifting of Imported/CT3 Goods

ØØ A request letter giving reasons for shifting.A request letter giving reasons for shifting.

ØØ The request letter should be supported by Shifting Invoice signeThe request letter should be supported by Shifting Invoice signed by thed by the

authorized signatory as per Annexure XVIII and VIIIauthorized signatory as per Annexure XVIII and VIII--A ( in case ofA ( in case ofimported CG being shifted) / Annexure XVIIIimported CG being shifted) / Annexure XVIII--B (in case of CT3 CGB (in case of CT3 CG being shifted) being shifted)

In case of inter In case of inter --state transfer, obtainstate transfer, obtain NoC NoC from concerned jurisdictionalfrom concerned jurisdictionalSTPI officeSTPI office

ØØ Shifting approval shall be issued by STPIShifting approval shall be issued by STPI

ØØ Approach customs for necessary clearance of GoodsApproach customs for necessary clearance of Goods


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Debonding of Capital and Indigenous GoodsDebonding of Capital and Indigenous Goods

ØØ STP /EHTP units are allowed to DeSTP /EHTP units are allowed to De-- bond the unused capital goods which bond the unused capital goods whichare imported or procured duty free on payment of applicable custare imported or procured duty free on payment of applicable customs /oms /

central excise duties with the permission of STPI & Customscentral excise duties with the permission of STPI & Customs

Authorities.Authorities.

Procedure:

A request letter accompanied withA request letter accompanied with necessary enclosuresnecessary enclosures

NoC NoC for Defor De-- bonding of CG issued by STPI bonding of CG issued by STPI

Approach customs for necessary clearance of GoodsApproach customs for necessary clearance of Goods


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Space Expansion or Additional PremisesSpace Expansion or Additional Premises

STP / EHTP units may expand their operations in their existiSTP / EHTP units may expand their operations in their existing licenseng license by obtaining Space Expansion / additional location approval wi by obtaining Space Expansion / additional location approval within thethin the

same premise or any where within the same STPI jurisdiction as psame premise or any where within the same STPI jurisdiction as per clauseer clause

6.34 of Foreign Trade Policy6.34 of Foreign Trade Policy --Hand Book of Procedures.Hand Book of Procedures.

Procedure:

••A request letter accompanied withA request letter accompanied with necessary enclosuresnecessary enclosures

••Floor plan with dimension details (SqFloor plan with dimension details (Sq mtsmts))

••Lease Agreement copyLease Agreement copy

••Copy of municipal tax paidCopy of municipal tax paid challanchallan

••Existing customs licenseExisting customs license

Space expansion approval issued by STPISpace expansion approval issued by STPI

Approach customs for necessary clearance andApproach customs for necessary clearance and updationupdation in thein the

PBWHLPBWHL


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Debonding of PremisesDebonding of Premises

STP / EHTP units may DeSTP / EHTP units may De-- bond their premise either partially or fully. bond their premise either partially or fully.

Procedure:Procedure:

ØØ A request letter stating the reason and necessary enclosuresA request letter stating the reason and necessary enclosures

ØØ Dimension details of the area being deDimension details of the area being de-- bonded bonded

ØØ Declaration stating that there are no bonded items (either Impor Declaration stating that there are no bonded items (either Impor ts orts or

CT3 goods)CT3 goods)

DeDe-- bonding of premise approval will be issued by STPI bonding of premise approval will be issued by STPI

Approach customs for necessary clearance andApproach customs for necessary clearance and updationupdation in the PBWHLin the PBWHL


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DeDe-- bonding of Capital Goods bonding of Capital Goods

STP / EHTP units are allowed to deSTP / EHTP units are allowed to de-- bond Imported/CT3 Capital Goods by bond Imported/CT3 Capital Goods by

payment of applicable customs duty as per Foreign Trade Po payment of applicable customs duty as per Foreign Trade Policy Handlicy Hand

Book of Procedures with permission of STPI & Customs authoritiesBook of Procedures with permission of STPI & Customs authorities


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Destruction or Scrapping of GoodsDestruction or Scrapping of Goods

ØØ STP / EHTP units are allowed to destroy or Scrap the obsoleteSTP / EHTP units are allowed to destroy or Scrap the obsolete ImportedImported

/CT3 Capital Goods without payment of customs duty as per clause/CT3 Capital Goods without payment of customs duty as per clause 6.34 of6.34 of

Foreign Trade Policy Hand Book of Procedures with permission ofForeign Trade Policy Hand Book of Procedures with permission of STPI &STPI &

Customs authoritiesCustoms authorities


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SubcontractingSubcontracting

STP / EHTP units are allowed to subSTP / EHTP units are allowed to sub--contract part of their export job tocontract part of their export job to

other STP / DTA unit for better utilization of resources as perother STP / DTA unit for better utilization of resources as per clause 6.14clause 6.14

of Foreign Trade Policy and clause 6.21.1 of Foreign Trade Polof Foreign Trade Policy and clause 6.21.1 of Foreign Trade Policyicy – – HandHand

Book of Procedures.Book of Procedures.

Procedure:Procedure:

ØØ A request letter for SubA request letter for Sub--contracting approval with Annexure XX andcontracting approval with Annexure XX and

necessary enclosuresnecessary enclosures

ØØ Purchase Order copies / Agreement copy for the subPurchase Order copies / Agreement copy for the sub--contract.contract.

ØØ Percentage of the subPercentage of the sub--contract.contract.

ØØ Disclaimer certificate as to who will be availing the export benDisclaimer certificate as to who will be availing the export benefitsefits

NOC for sub NOC for sub--contracting will be issued by STPIcontracting will be issued by STPI

Approach customs for necessary clearancesApproach customs for necessary clearances


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Donation of ComputersDonation of Computers

The STP /EHTP units are eligible to donate the computer to any recognizedcharitable institution, Government Educational Institutions, Government

Hospitals etc.. without payment of duty as per clause 6.30 of the Foreign

Trade Policy-Hand Book of Procedures.

Procedure:

Ø Request letter with necessary enclosures

Ø Donee's Name and Address

Ø Declaration from the Donee’s stating that donated computers

would neither be sold nor used for commercial purpose.

Ø Certificate of Registration of the Donee institution.


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n The STP/ EHTP units are eligible for CST re-imbursement as perthe clause 6.11 ( c) of Foreign trade Policy.

n Local purchase of CG within the country, against C-Form shall bereimbursed

n The STP/ EHTP units are required to obtain Sales TaxRegistration from Sales Tax dept.

n To apply as per the procedure prescribed in Appendix - 14 –I –Iof FTP handbook of procedures

CST ReimbursementCST Reimbursement


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Merger/Amalgamation / Take Over / Transfer of LicenseMerger/Amalgamation / Take Over / Transfer of License

/Conversion/Conversion

STP / EHTP units, as per the clause 6.34 of Foreign Trade Policy

Hand book of procedures –2006-07 may

Merge / Amalgamate with/to other STP / DTA unit

Take Over of license

Transfer of License

Convert from STP Scheme to EoU scheme.

Prescribed procedure to be followed


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STP/ EHTP unit may apply for CG enhancement approval, once the CG balance reaches 80% of the limit or when it is exhausted.

Procedure :

n Request Letter

n Annexure 21( CA certified CG details)

n Annexure 23A (CA certified performance details)n Annexure 23 B (Projections)

CG enhanced approval shall be issued by STPI

Enhanced CG will be added to the Initial approved CG value.

CG enhancementCG enhancement


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nn Types of ExportsTypes of Exports

nn OffshoreOffshore

nn OnsiteOnsite

nn PhysicalPhysical

Export CertificationExport Certification

The valuation of Software Export declared on SOFTEX Form will bThe valuation of Software Export declared on SOFTEX Form will bee

done by the designated official of STPI at the Softwaredone by the designated official of STPI at the Software TechnologyTechnology

Parks of India (STPI) as per clause 6.34 of the Foreign Trade PoParks of India (STPI) as per clause 6.34 of the Foreign Trade Policylicy – –

hand Book of Procedureshand Book of Procedures


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Export Certification (Contd..)Export Certification (Contd..)

nn Offshore Mode:Offshore Mode:nn Software Development activity takes place in the 100%Software Development activity takes place in the 100% EoUEoU premise premise

(STP/EHTP unit) in India(STP/EHTP unit) in India

nn The data/the software developed is transferred to the client thr The data/the software developed is transferred to the client thr ough dataough datacommunication link.communication link.

Statutory norms to be followed:Statutory norms to be followed:

nn File RBI controlledFile RBI controlled SoftexSoftex forms in triplicate ( within 1 month from theforms in triplicate ( within 1 month from the

date of Invoice)date of Invoice)nn Export Agreement /Export Agreement /MoUMoU/Contracts/Contracts

nn Export InvoicesExport Invoices

nn Other supporting documentsOther supporting documents

nn STPI certifySTPI certify SoftexSoftex forms & invoicesforms & invoices

nn STP unit approach Authorized Dealers / Bankers for Export realiSTP unit approach Authorized Dealers / Bankers for Export realizationzation


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Export Certification (Contd..)Export Certification (Contd..)

n Onsite Mode:

n Engineers go onsite and execute the job

n System Study

n Installation & Implementation

n Entire development activity

n Training

n Physical Mode:

n The software development takes place in 100% EoU premise, the datais transferred physically to the client in the form of CD/ cartridge/Floppy etc.,

n Export after obtaining permission from Custom formalities

n Approach Authorized dealers / bankers for realization


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Reporting & MonitoringReporting & Monitoring

STP / EHTP units are monitored as perSTP / EHTP units are monitored as perguidelines prescribed in Appendixguidelines prescribed in Appendix – – 1414--II--GG

of Foreign Trade Policyof Foreign Trade Policy


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Reporting & Monitoring (contd..)Reporting & Monitoring (contd..)

n Monitoring of EO is done by STPI by obtaining various reports such asn Monthly (Annexure 29)

n Quarterly (Annexure 30)

n Audited Annual Performance Reports (Annexure -32)

Encl. CA certified -Annexure 21 –CG details & Annexure-23A

Performance details

Annexure - A – Data Communication detailsAnnexure - B – Manpower details

n STP/EHTP units EO status will be computed

n Units not meeting EO - initiating action as per the FT policy


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Renewal & Revalidation of Letter of Permission & PBWHLRenewal & Revalidation of Letter of Permission & PBWHL

STP / EHTP units are eligible to renew their Letter of PermissioSTP / EHTP units are eligible to renew their Letter of Permission for next fiven for next five

years or allowed to opt out of the scheme.years or allowed to opt out of the scheme.

nn Renewal of LOP is as per clause 6.6 of FTP and 6.3.9 of FTP HaRenewal of LOP is as per clause 6.6 of FTP and 6.3.9 of FTP Hand Booknd Bookof Proceduresof Procedures

Documents to file:Documents to file:

nn Application FormApplication Form

nn Annexure 21(CA certified CG details)Annexure 21(CA certified CG details)nn Annexure 23A (CA certified performance details)Annexure 23A (CA certified performance details)

nn Annexure 23 B (Projections)Annexure 23 B (Projections)

nn Project ReportProject Report

nn Other necessary enclosuresOther necessary enclosures

If EO met and proposal found feasibleIf EO met and proposal found feasible -- LOP will be extended for nextLOP will be extended for next

five yearsfive years

Approach customs for extension of PBWHL, extension of bond pApproach customs for extension of PBWHL, extension of bond period oferiod ofCapital Goods & Bank GuaranteeCapital Goods & Bank Guarantee


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Closure / EXIT from STP/EHTP SchemeClosure / EXIT from STP/EHTP Scheme

STP / EHTP units are eligible to exit from the STP / EHTP schemeas per

the clause 6.18 of Foreign Trade Policy.

Procedure:

n Surrender all original approvals

n Submit Performance Report

n No bonded goods should exist in the premise

n Payment of applicable customs duty & service charges

n De-bonding of premisen Meeting Export obligation


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Service Charges to STPIService Charges to STPI

Each STP unit is required to pay service charges to STPI as follEach STP unit is required to pay service charges to STPI as follows:ows:

Service Charges

in Rs.

Export Turnover

Rs. 5,00,000/-Exports above Rs 100 Crores and above per

annum

Rs. 3,00,000/-Exports between Rs 50-100 Cr. per annum

Rs. 2,00,000/-Exports between Rs 10-50 Cr. per annum

Rs 1,00,000/-Exports between Rs 3-10 Cr. per annum

Rs. 50,000/-Exports between Rs.50-300 lakhs per annum

Rs. 15,000/-Exports between Rs.25-50 lakhs per annum

Rs.. 7,500/-Exports upto Rs.25 lakhs per annum

Rs, 22,500 /- to be paid as Advance service chargesat the time of executing Legal Undertaking.


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All procedures and formats / All procedures and formats / Annexures Annexures areareavailable in the STPIB website:available in the STPIB website:

www.blr.stpi.inwww.blr.stpi.in /services/ /services/

statutorystatutory services/Policy andservices/Policy andProceduresProcedures


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List of Circulars and Notification List of Circulars and Notification

http://listofcirculars%26notifications.pdf/http://listofcirculars%26notifications.pdf/http://listofcirculars%26notifications.pdf/


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Contact @Contact @email: [email protected]: [email protected]