STPI and CT3 Approval Process for Procuring Assets

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Last updated: Apr 23, 2024 by Mayuresh Balaji Kamble (Unlicensed)Version comment
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What is STPI?

The Software Technology Parks of India (STPI) is a society under the Ministry of Information Technology, Govt. of India that has formulated the Software Technology Park (STP) scheme to promote and facilitate software exports from India.

Role of STPI While Procuring Assets

The STP/EHTP units can procure the Capital Goods (CGs) to build the infrastructure of their Organization. During the Procurement process, the STP/EHTP units can apply to STPI for an Import Certificate. After the Import Certificate is issued by the STPI, the STP/EHTP units can apply to the Central Customs and Excise department for the exemption of Excise duty that is applicable to the imported CGs.

Prerequisites to Apply for Import Certificate

Before applying for the Import Certificate, the STP/EHTP units should meet the following criteria:

  • The status of the STP/ EHTP should be valid.
  • The legal agreement of the STP/ EHTP should be valid.
  • The Private Bonded Warehouse License (PBWHL) should be valid.
  • The CG balance should be sufficient to import the proposed CG.
  • The CG should meet the criteria of the FT policy and within the purview of customs notification 52/2003.

Procedure to Apply for Import Certificate

To apply for the Import Certificate, the STP/EHTP units have to perform the following actions:

  • Open the URL: https://www.stpi.in and download the Annexure-IX form.
  • Fill in the CG details in the Annexure-IX form and along with the Pro Forma Invoice, apply for the Import Certificate. The application is sent to the regional STPI centers.

If all the requirements are satisfied by the STP/EHTP unit, the regional STPI center issues the import certificate along with the duly attested Pro forma Invoice. The Cost, Insurance and Freight (CIF) value of the CG that is imported, is deducted by STPI from the balance CG value specified for the STP/EHTP unit.

Note:

The STP/EHTP units should ensure that the CG value is under the Indigenous CG limit that is specified in the Import Certificate/CG Enhancement certificate.

The Import Certificate is valid of 6 months.

Procedure to Clear Shipped CG from Central Customs and Excise Authorities

The STP/EHTP units apply for the Procurement Certificate to the Central Excise authorities for clearance of the CG. The Central Customs and Excise department issues a Procurement Certificate that is valid for 72 hours. The STP/EHTP units can clear the CG after showing the Import Certificate, Procurement Certificate, Invoice and the Airway Bills.

Procedure for Bonding of Imported CG

After the CG is transported to the STP/EHTP unit, a Bond Register is maintained by the STP/EHTP unit with the CG details that are exempted from the Excise duty imposed by the Central Customs and Excise department. If there are multiple STP/EHTP unit locations, each location maintains a separate Bond Register. The STP/EHTP unit requests the STPI to do an inspection of the CG in a duly filled Annexure-XIII form. STPI bonding officer inspects the CG according to the Import Certificate issued by the STPI and makes the required entry in the Bond Register.

Applying for Import Certificate and Excise Duty Exemption Certificat

To apply for the Import Certificate and the Excise Duty Exemption Certificate, see Applying for the Import Certificate and Applying for the Excise Duty Exemption Certificate, respectively.