Export-Import of Energy Products

8/8/2019 Export-Import of Energy Products

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Export-Import of EnergyProducts

Ravi Raj Ranjan (09020243020)Sachin Kothawade (09020243021)SatyaVenkatraman (09020243022)Sushil Rajguru (09020243023)Suvidha Raina (09020243024)Uday Chakrapani(09020243025)


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Import and Export of Energy Products


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Charcoal Import-Export

The below 4 regions are major consumers of charcoal

60 % is consumed Locally whereas 40% is traded internationally

Some of the Major Exporters are China ,Argentina, Malaysia , South Africa and

India

Tariff rates are highly varied 0% for OECD ,20% in African Countries and nearly100% in Libya and the Seychelles


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Denatured Ethyl Alcohol :It is an important renewablefeedstock for the chemical industry and several chemicals aremanufactured using Denatured Ethyl Alcohol as a raw material. Thecurrent Import Duty on Denatured Ethyl Alcohol is 7.5% which isthe lowest in the world .The Fuel can be currently used for

BIODIESEL Production

Import Duty on Naphtha, Ethane and Propane is zero % forfertilizer and power sector. Import duty of 5% on Naphtha andPropane (the basic feedstock for petrochemical industry) results in

zero duty differential between these items and their downstreamproducts like polymers. Petrochemical production involves hugeinvestments and most of the countries have reasonable duty differential (between 6.5-15%) to make such investments financiallyviable


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Coal Imports 100% FDI Allowed

Custom Duty : 10% plan submitted to move towards 0 %

Coaking Coal of Ash less than 12% has 3 % custom duty

Coal and Petro Products

14873.29

23916.96

73.65 71.24

April-May 2009 April-May 2010

Exports (Rs in Crores)

Petroleum, Crude and Products Coal, Coke and Briquettes

49478.36

81298.34

7930.12 8383.21

April-May 2009 April-May 2010

Imports (Rs in Crores)

Petroleum, Crude and Products Coal, Coke and Briquettes


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Oil Sector

100 % FDI Allowed

Zero Excise duty for refining of Products

excise duty from an ad-valorem levy to a specific levy

No custom duty on imports required for petroleum operations.

Seven years tax holidays from the commencement of production.No cess on crude oil production

Gas Sector Incentives :

100 % FDI Allowed7 years tax holiday


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Trade of Energy Services

Trade in energy services takes place through all the four modes oftrade as specified under the GATS,namely,

Mode 1 (cross-border trade),Mode 2 (consumption abroad),

Mode 3 (commercial presence) and

Mode 4 (movement of natural persons)


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Incentives,Benefits and various

schemes for Power Equipment &Services Import and export


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Wind power

Concessions on customs and excise duties.

Liberalized foreign investment procedures. Wind operated energy generators:

Existing exemption from excise duty on specified goods such asepoxy resin, adhesive resin, vinyl ester adhesives etc used for themanufacture of rotor blades is now extended to polyester based

infusion resin and hand lay up resin (both covered under HSN 39079190) and gel coat and hardener (both falling under HSN 32081090) used with such polyester based resins

Policy initiative by central Government:

Concessional Custom duty/duty free import


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INCENTIVES FOR SOLAR PHOTOVOLTAIC

Seeks to provide concessional customs duty of 5% on all equipments, instruments etc. required for initial setting up of Solar Power Project

or facility.

exempts all items of machinery, including prime

movers, instruments, apparatus and appliances, control gear and

transmission equipment and auxiliary equipment (including those requiredfor testing and quality control) and components, required for the initial

setting up of a solar power generation project or facility, when imported into

India, from so much of the duty of customs leviable thereon which is

specified in the First Schedule to the Customs Tariff Act, 1975 (51 of

1975), as is in excess of 5% AD VALOREM,

Geo-thermal energy:Ground Source Heat Pumps exempt from BCD and additional CVD


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INCENTIVES FOR SOLAR PHOTOVOLTAIC

ItemsBasic duty

rate

Solar cells whether or not assembled in modules or

panels Free

Solar lantern or lamp 10%

Equipment gadgets based on solar energy 7.5%

Specified raw materials for manufacture of solar cells &

modules

Nil

Undiffused silicon wafers, for The manufacture of solar

cells or Solar cell modulesNil

Specified Non-Conventional Energy devices/systems (see

Annexure I)Excise Nil


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Incentives for Power Projects

MEGA Power Projects:-Exemption from excise duty on goods supplied to mega

power projects supply of power has been tied up through tariff based competitive

bidding or a mega power project awarded to a developer on thebasis of such bidding, subject to specified conditions

Additionally, CENVAT credit on inputs used in the manufacture ofsuch goods is allowed

RE Projects:-

Customs duty for RE projects under 50 MWfixed at 20% advalorem.


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Others

Electricity supplied from SEZ to DTA or non processing

areas of SEZ

>>Basic customs duty of 16 percent ad valorem with retroactive effect fromJune 26, 2009; Exemption from Special CVD.

>> Exemption to supplies or imports (other than above) continues

Additional Power generation related itemsnamely, Pipes Tubes, Electric Generating Sets etc shall

now be entitled for benefit @ 2% under FPS.


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Thank you

Documents

Export-Import of Energy Products