Export-Import of Energy

Products
Ravi Raj Ranjan (09020243020)
Sachin Kothawade (09020243021)
SatyaVenkatraman (09020243022)
Sushil Rajguru (09020243023)
Suvidha Raina (09020243024)
Uday Chakrapani(09020243025)
Import and Export of Energy Products
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 nearly
100% in Libya and the Seychelles
Denatured Ethyl Alcohol :It is an important renewable
feedstock for the chemical industry and several chemicals are
manufactured using Denatured Ethyl Alcohol as a raw material. The
current Import Duty on Denatured Ethyl Alcohol is 7.5% which is
the lowest in the world .The Fuel can be currently used for
BIODIESEL Production

Import Duty on Naphtha, Ethane and Propane is zero % for

fertilizer and power sector. Import duty of 5% on Naphtha and
Propane (the basic feedstock for petrochemical industry) results in
zero duty differential between these items and their downstream
products like polymers. Petrochemical production involves huge
investments and most of the countries have reasonable duty
differential (between 6.5-15%) to make such investments financially
viable
• 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

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 Allowed
 7 years tax holiday
Trade of Energy Services
Trade in energy services takes place through all the four modes of
trade 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)
Incentives,Benefits and various
schemes for Power Equipment &
Services Import and export’    
Export benefits

• DUTY EXEMPTION SCHEMES

• Duty Free Import Authorization (DFIA)
• EPCG SCHEME
• Focus Market Scheme
• Focus Product Scheme
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 as
epoxy resin, adhesive resin, vinyl ester adhesives etc used for the
manufacture of rotor blades is now extended to polyester based
infusion resin and hand lay up resin (both covered under HSN 3907
9190) and gel coat and hardener (both falling under HSN 3208
1090) used with such polyester based resins
• Policy initiative by central Government:
Concessional Custom duty/duty free import
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 required for 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
INCENTIVES FOR SOLAR PHOTOVOLTAIC

Basic duty
Items
rate
Solar cells whether or not assembled in modules or
Free
panels
Solar lantern or lamp 10%

Equipment gadgets based on solar energy 7.5%

Specified raw materials for manufacture of solar cells &

Nil
modules
Undiffused silicon wafers, for The manufacture of solar
Nil
cells or Solar cell modules
Specified Non-Conventional Energy devices/systems (see
Excise Nil
Annexure I)
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 the
basis of such bidding, subject to specified conditions
• Additionally, CENVAT credit on inputs used in the manufacture of
such goods is allowed

RE Projects:-

• Customs duty for RE projects under 50 MW fixed at 20% ad

valorem.
Others…
• Electricity supplied from SEZ to DTA or non processing
areas of SEZ
>>Basic customs duty of 16 percent ad valorem with retroactive effect from
June 26, 2009; Exemption from Special CVD.
>> Exemption to supplies or imports (other than above) continues

• Additional Power generation related items namely,

Pipes Tubes, Electric Generating Sets etc shall now be
entitled for benefit @ 2% under FPS.
Thank you