Amendment in paras 2.16, 2.20, 2.51, 2.74, 2.79 and 2.80 of the Handbook of Procedures (HBP) of Foreign Trade Policy (FTP) 2015- 20 - regarc ing.

(To be Published in the Gazette of India Extraordinary Part I S:ction I)

Government of India Ministry of Commerce & Industry Department of Commerce Directorate General of Foreign Trade Udyog Bhawan

Public Notice No. | | /2015-20 New Delhi, Dated the 246 July, 2017

Subject: Amendment in paras 2.16, 2.20, 2.51, 2.74, 2.79 and 2.80 of the Handbook of Procedures (HBP) of Foreign Trade Policy (FTP) 2015- 20 - regarc ing.

In exercise of the powers conferred under Paragraph 1.03 of the Foreign "rade Policy (FTP), 2015-20, the Director General of Foreign Trade, hereby makes amendments in paras 2.16, 2.20, 2.51, 2.74, 2.79 and 2.80 of the Handbook of Procedures (HBP) of FTP 2015-20, with immediate effect (changes made are in bold letters).

2. The revised paras 2.16, 2.20, 2.51, 2.74, 2.79 and 2.80 of the HBP of FTI’ 2015-20 would be substituted to read as under [including addition of sub para 2.51(c) and 2.74([X)] :

“2.16 Validity period of Authorisation/ Licence/ Certificate/ Authorisation’ Permissions/ CCPs

• a) Validity period of Import / Export Authorizations from the date 0° issue shall be as follows, unless specified otherwise:

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issions/ CCPs

• a) Validity period of Import / Export Authorizations from the date 0° issue shall be as follows, unless specified otherwise:

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----- Start of picture text -----<br> Type of Authorisation Validity Perioc<br>No<br>(i) Export Authorisation for restricted (Non 12 months<br>SCOMET) goods<br>Export Authorisation for SCOMET items 24 months.<br>(iii) | Import Authorisation for restricted items 18 months.<br>and CCP<br>EPCG Authorisation 18 months.<br>(v) Advance Authorisation (AA) for Deemed Coterminous with contracted<br>Export duration of project execution or 12<br>months, which 2ver is more.<br>(vi) | AA {except (v) above}, DFIA, 12 months frora issue date.<br>Replenishment Authorisation for Gems &<br>Jewellery as per Chapter 4 of FTP.<br>----- End of picture text -----<br>

b) However, EXIM Facilitation Committee (EFC) (for non-SCOMET items) and Inter Ministerial Working Group (IMWG) (for SCOMET items) may approve the grant of Export Authorisation for a shorter / longer duration in specific cases to meet contractual obligations/delivery schedule or on specific recommendation of the concerned Technical / Administrative Ministry / Department / or any other agency.

2.20 Revalidation of Import/ Export Licence Certificate/Authorisation/ Fermissions for Non-SCOMET and SCOMET items

• a) RA concerned may revalidate import authorisation on merits for six months from date of expiry of validity.

port Licence Certificate/Authorisation/ Fermissions for Non-SCOMET and SCOMET items

• a) RA concerned may revalidate import authorisation on merits for six months from date of expiry of validity.

• b) Export Authorisation, including for SCOMET items, may he revalidated, on merits, for a period of six months at a time and maximum upto 12 months by the RA concerned. However, any extension / revalidation shall te allowed only by DGFT in cases where shorter / longer duration of export authorisation has been permitted under Paragraph 2.16(b) of Handbook of Procedures.

• c) However, revalidation of freely transferable authorization / duty credit scrips and stock and sale authorization shall not be permitted unless validity has expired while in custody of Customs Authority / RA / or any other Government Authority.

2.51 EXIM Facilitation Committee

• (a) Restricted item Authorisation may be granted by DGFTor any other RA authorised by him in this behalf. DGFT/RA may take assistance and advice of a Facilitation Committee while granting authorization. The Assistance of technical authorities may also be taken by seeking their comments in writing. Facilitation Coinmittee will consist of representatives of Technical Authorities and Departments /Ministries concerned.

• (b) Import authorizations for a restricted item, if so directed by the competent authority, shall be issued for import through one of the sea ports or air ports or ICDs or LCS, as per the option indicated, in writing, by the applicant. Authorization aolder shall register the import authorisation at the port specified in the Authorizatior and thereafter all imports against said authorization shall be made only through that port, unless the authorization holder obtains permission from customs authority concerned to import through any other specified port.

• (c) EXIM Facilitation Committee (EFC) shall normally meet once every month. Where a case has been deferred in EFC for want of comments from the Technical Authorities and Departments /Ministries concerned but subsequently, NOC(s) has / have been received from the concerned agency(ies) with no divergence in views, authorisation shall be issued with the approval of Chairman, EFC and the case shall be brought before EFC in its subsequent meeting for approval on ex-post facto basis.

• 2.74 Inter-Ministerial Working Group:

shall be issued with the approval of Chairman, EFC and the case shall be brought before EFC in its subsequent meeting for approval on ex-post facto basis.

• 2.74 Inter-Ministerial Working Group:

An Inter-Ministerial Working Group IMWG) in DGFT (Hgrs.) shall consider applications for export of SCOMET items as specified in Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items based on following g 1idelines :

• I. Applications for Authorisation to export items or technology on SCOMET List are considered on the basis of following general criteria: a. Credential of end-user, credibility of declaration of end-use of the item or technology, integrity of chain of transmission of item from supplier to end-user, and

on potential of the item or technology, including timing of its export, to contribute to end-uses that are not in conformity with India’s national securi:y or foreign policy goals and objectives, goals and objectives of global non-proliferation, or India’s obligations under International treaties/Agreements to which it is a State party.

b. Assessed risk that exported items will fall into hands of terrorists, terrorist groups, and non-State actors;

c. Export control measures instituted by the recipient State;

d. Capabilities and objectives of programmes of the recipient State relating to weapons and_ their delivery;

e. Assessment of end-use(s) of item(s);

f Applicability of provisions of relevant bilateral or multilateral Agreements and Arrangements, to which India is a party, or adherent, including b st not limited to the guidelines and control lists of the Nuclear Suppliers Group, [Missile Technology Control Regime, Australia Group and Wassenaar Arrangement (aad its Sensitive List and Very Sensitive List) as updated from time to time.

• II. Application shall be accompanied by an end user certificate (EUC_ in the prescribed proforma, as applicable [Appendix 2S(i), 2S(ii) or 2S(iii)], certifying that:

a. The item will be used only for stated purpose and that such use will not be changed, nor items modified or replicated without consent of Gov 2rnment of India;

b. Neither the items nor replicas nor derivatives thereof will be re-transferred without consent of Government of India;

c. End-user shall facilitate such verifications as are required by Government of India.

• III. The end-user certificate will indicate the name of the item to be expor ed, the name of the importer, the specific end-use of the subject goods and details of Purchase Order/Contract.

• IV. Government of India may also require additional formal assurances, as deemed appropriate, including those on end-use and non-retransfer, from the State of the recipient.

ase Order/Contract.

• IV. Government of India may also require additional formal assurances, as deemed appropriate, including those on end-use and non-retransfer, from the State of the recipient.

• V. (a) Licensing authority for items in Category 0 and Note 2 of the ‘Commodity Identification Note' in Appendix 3 to Schedule 2 of ITC (HS: is Department of Atomic Energy. Applicable guidelines are notified by the Department of Atomic Energy under Atomic Energy Act,1962. For certain items in Category 0, formal assurances from the recipient State will include non-use in any nuclear explosive device. Authorisations for export of certain items in Category 0 will not be granted unless transfer is additionally under adequate physical protection and is covered by appropriate International Atomic Energy Agency (IAEA) safeguards, or any other mutually agreed controls on transferred items.

• (b) Licensing authority for items in Category 6 in Appendix 3 to Schedule 2 of ITC (HS) is Department of Defence Production. Export of items in Catego-y 6 is governed by the extant Standard Operating Procedure issued by the Department of Defence Production in the Ministry of Defence. Export of items covered in Note 3 of the ‘Commodity Identification Note’ in Appendix 3 to Schedule 2 of ITC (HS) is prohibited.

• VI. Additional end-use conditions may be stipulated in Authorisations for export of items or technology that bear possibility of diversion to or use in development or manufacture of, or use as, systems capable of delivery of weapons o:’ mass destruction.

thorisations for export of items or technology that bear possibility of diversion to or use in development or manufacture of, or use as, systems capable of delivery of weapons o:’ mass destruction.

VU. Authorisations for export of items in SCOMET List(other than those under Category 0, 1, 2 & 6) solely for purposes of display or exhibition shall not require any enduse or end-user certification. However, no export Authorisation for d splay or exhibition shall be issued for‘Technology’ in any category. IMWG would seek comments from technical agencies as deemed necessary. VII. Authorization for export of items in Categories 0, 3 (other than 31)), 4, 5 and 7 of the SCOMET list to Iran would be subject to the relevant provisions contained in Annex B to the UN Security Council resolution 2231 (2015). The licensing authority, i.e. DGFT or Department of Atomic Energy, as the case may be, on completion of th: IMWG process or the applicable internal process, shall seek the concurrence of Disarmament and International Security Affairs (D&ISA) Division in the Ministry of External Affairs, a: required.

th: IMWG process or the applicable internal process, shall seek the concurrence of Disarmament and International Security Affairs (D&ISA) Division in the Ministry of External Affairs, a: required.

IX. The Inter Ministerial Working Group shall normally meet cnce every month. Where a case has been deferred in the IMWG and subsequently, NOC(s) has / have been received from all concerned agencies with no divergence in views, authorisation shall be issued with the approval of Chairman, IMWG and the case shall be brought before IMWG in its subsequent meeting for approval on ex-post fiucto basis. Case(s), where a decision could not be arrived in IMWG, shall be placed before Director General of Foreign Trade for appropriate decision on grant of authorization.

2.79 Issue of authorization for repeat orders

Applications for grant of authorizations for repeat orders for export of SSOMET items shall be approved by Chairman IMWG on automatic basis and the cas? shall be brought before IMWG in its subsequent meeting for approval on ex-post facto basis. The approval will be subject to the fulfillment of the following criteria:

• (i) (a) the product along with the technical specification (b) the exporter (c) the foreign buyer (d) the consignee or the intermediaries, if any (e) the end user (f) the end use and (g) the country of destination; shall be same.

• (ii) The permitted quantity against repeat export authorizations shall not be more than 2 times of the quantity in original authorization, subject to the arnual manufacturing capacity of the end user in respect of the relevant product, as -ertified by the end user.

• (iii) Only the applications submitted within two years from the date of approval by IMWG of the original SCOMET authorization will be cligible for repeat authorization.

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• (iv) There shall be a cap of two repeat authorizations against the origi1al authorization.

• (v) A declaration by the authorized signatory on the qualifying conditions as per (i) to (iv) above shall be submitted along with the application for consideration under the repeat order route”.

• 2.80 Revalidation of SCOMET authorization

ry on the qualifying conditions as per (i) to (iv) above shall be submitted along with the application for consideration under the repeat order route”.

• 2.80 Revalidation of SCOMET authorization

Revalidation of export authorisation for SCOMET items will be governed in terms of Paragraph 2.20(b) .

3. Effect of this Public Notice:

Para No. 2.16, 2.20, 2.51, 2.74, 2.79 and 2.80 of the Handbook of ?rocedures of FTP 2015- 20 have been amended.

(Alok \ ardhan Ch edi) Director Gene:al of Foreign Trade 3-matl: dgft@nic.in

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(Issued from F.No.01/91/180/ 18/AM17/EC)