Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject – Software imported through Data Communication and Telecommunication Link / Internet by Software Development Units in EPZ/EHTP/STP and the EOUs engaged in Development and Export of Software
References have been received from trade that the EOUs engaged in development and export of software and software developing units in EPZ/EHTP/STP should be allowed to import software through data communication/tele-communication link and internet. It has been stated that the Reserve Bank of India has permitted authorized dealers to allow remittances towards import of software through data-communication channel/telecommunication link or internet.
2. The matter has been considered. In view of the RBI”s decision to allow remittances of money for such imports, it has been decide that EOUs engaged in development and export of software and software developing units operating under EPZ/EHTP/STP scheme will be allowed to import software through data-communication/telecommunication link and internet. Considering that such imports would not be available for physical verification, proper accountal of such imports in the records maintained by the unit and regular verification of such records by Customs are considered necessary. Accordingly, the following procedure is required to be followed by the units importing software through data communication/telecommunication link or internet-
(i) the units intending to import software through data communication/telecommunication link or internet shall furnish their annual requirements of such software intended to be imported and estimated foreign exchange outflow against such import to the Development Commissioner or Director, STPI (in case of the STP/EHTP) units and the same shall be required to be approved by the Development Commissioner or the Director of the STPI as the case may be.
(ii) immediately after the import of software through tele-communication link/data communication link or internet, the unit shall inform in writing to the Director, STPI or Development Commissioner in case of EOUs and shall get a certificate certifying the import of software and its value.
(iii) the unit shall produce a certificate from the Director of the STPI/Development Commissioner to the jurisdictional Assistant Commissioner of Customs or Deputy Commissioner of Customs in charge of EOU/EPZ/STP/EHTP as a proof of import indicating value etc within 48 hours of such import.
(iv) the unit shall file Bill of Entry alongwith certificate from Director STPI/Development Commissioner and Bank attested invoice alongwith other relevant documents within 48 hours of import to the jurisdictional Assistant Commissioner or Deputy Commissioner of Customs or Central Excise for obtaining notional “out of charge.”
(v) the documents such as invoice etc, shall be routed through Bank.
(vi) the unit shall account for such import in their records and the same would be taken into consideration for determining the export obligation and for calculation of NFEP.
3. In addition to the above instructions issued by the RBI or any other government agencies, if any shall be required to be followed.
4. Wide publicity may be given by issue of a Public Notice in this regard. Difficulties, if any, faced in the implementation of the above procedure, may be brought to the notice of the Board at an early date.