DGFT Regulatory Doc
In force — no superseding record on file.
HANDBOOK OF PROCEDURES [1st April, 2015 – 31st March, 2020]
Government of India Ministry of Commerce and Industry Department of Commerce
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Table of Contents CHAPTER 1 ............................................................................................................................. 13 INTRODUCTION & TRADE FACILITATION ................................................................................. 13 1.01 Notification of Procedure .................................................................................................... 13 1.02 Objective .............................................................................................................................. 13 1.03 Definition ............................................................................................................................. 13 1.04 e-governance of Foreign Trade ........................................................................................... 14 1.05 Procedure ............................................................................................................................ 14 1.06 Use of Digital Signature ....................................................................................................... 14 1.07 Separate applications for exports from EDI and on EDI ports ............................................ 15 1.08 Application for exports from Non EDI ports .......................................................................
orts from EDI and on EDI ports ............................................ 15 1.08 Application for exports from Non EDI ports ....................................................................... 15 1.09 Application for exports from EDI ports ............................................................................... 15 1.10 No manual feeding allowed for EDI shipments .................................................................. 15 1.11 Dispensing with hard copy of documents ........................................................................... 16 1.12 Processing of Non EDI Shipping bills at RA ......................................................................... 16 1.13 Instructions for filing of applications .................................................................................. 16 1.14 EDI Procedure for claiming benefits in respect of Third Party exports .............................. 16 1.15 Conversion of Currencies in e-BRCs .................................................................................... 16 1.16 Guidelines for Processing of claims where an exporter gets payment through Insurance Agencies (and not through banks) towards realization of export proceeds ...................... 17 1.17 EDI Help Desk & Online Complaint registration and monitoring system .......................... 17 1.18 E-Mail ..................................................................................................................................
on and monitoring system .......................... 17 1.18 E-Mail .................................................................................................................................. 17 1.19 eTrade Project ..................................................................................................................... 18 CHAPTER 2 ................................................................................................................................. 19 GENERAL PROVISIONS REGARDING EXPORTS AND IMPORTS ........................................................ 19 2.00 Policy ................................................................................................................................... 19 2.01 Coverage ............................................................................................................................. 19 2.02 Countries of Imports / Exports ............................................................................................ 19 Applications: ..................................................................................................................................... 19 2.03 Filing of Application ............................................................................................................ 19 2.04 Territorial Jurisdiction of RA ............................................................................................... 20 2.05 Incomplete Application .......................................................................................................
............................................................... 20 2.05 Incomplete Application ....................................................................................................... 20 2.06 Application Fee ................................................................................................................... 20 Importer Exporter Code (IEC): .......................................................................................................... 20
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2.07 IEC Number Exempted Categories ...................................................................................... 20 2.08 Application for IEC ............................................................................................................... 22 2.09 IEC Format ........................................................................................................................... 23 2.10 Validity of IEC ...................................................................................................................... 23 2.11 Validity of IEC for EOUs / SEZs ............................................................................................ 23 2.12 One PAN-One IEC ................................................................................................................ 24 2.13 Surrender of IEC ..................................................................................................................
.......................................................... 24 2.13 Surrender of IEC .................................................................................................................. 24 2.14 Modification of IEC .............................................................................................................. 24 2.15 Profile of Importer / Exporter ............................................................................................. 24 Issue of Authorisation: .................................................................................................................... 25 2.16 Validity period of Authorisation/ Licence / Certificate / Authorisation / Permissions / CCPs ..................................................................................................................................... 25 2.17 Date of reckoning of Import / Export.................................................................................. 26 2.18 Validity of Authorisation/ Licence for import/export ......................................................... 26 2.19 Validity of Scrips .................................................................................................................. 26 2.20 Revalidation of Import / Export Licence Certificate/ Authorisation / Permissions for Non- SCOMET items .....................................................................................................................
/ Export Licence Certificate/ Authorisation / Permissions for Non- SCOMET items ..................................................................................................................... 26 2.21 Authority to Revalidate ....................................................................................................... 27 2.22 Application for Revalidation ............................................................................................... 27 Procedure for issuing Duplicate copies: .......................................................................................... 27 2.23 Duplicate copies of Export / Import Authorisation ............................................................. 27 2.24 Documents required for duplicate copy of freely transferable Authorisation ................. 27 2.25 Exception ............................................................................................................................. 28 2.26 Mechanism for issuing duplicates ....................................................................................... 28 2.27 Validity of duplicate Authorisation ..................................................................................... 28 2.28 Applicability of the provision .............................................................................................. 28 Bank Guarantee /LUT: ......................................................................................................................
....................................................... 28 Bank Guarantee /LUT: ...................................................................................................................... 28 2.29 Execution of BG/Legal undertaking for Advance Authorisation/ EPCG Authorisation ... 28 2.30 Corporate Guarantee .......................................................................................................... 29 2.31 Advance Payment ............................................................................................................... 29 2.32 Import under Lease Financing ............................................................................................ 29 In case of loss of Documents: .......................................................................................................... 29 2.33 Issuance of scrips against lost EP copy of the Shipping Bills and / or original Bank Realisation Certificate ......................................................................................................... 29 2.34 Claims against lost copy of shipping bill ............................................................................. 30
.................................................................. 29 2.34 Claims against lost copy of shipping bill ............................................................................. 30
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2.35 Submission of Certified Copies of Documents .................................................................... 30 Warehousing Facility: ....................................................................................................................... 30 2.36 Warehousing Facility ........................................................................................................... 30 Certificates: ....................................................................................................................................... 31 2.37 Free Sale and Commerce Certificate .................................................................................. 31 2.38 End User Certificate ............................................................................................................ 32 2.39 Imports under Indo-US Memorandum of Understanding .................................................. 32 Imports: ............................................................................................................................................ 33 2.40 Import of Consumer or Other goods as Gifts ..................................................................... 33 2.41 Import of Cheque Books /Ticket Forms etc. .......................................................................
Gifts ..................................................................... 33 2.41 Import of Cheque Books /Ticket Forms etc. ....................................................................... 34 2.42 Import of Reconditioned/ Second Hand Aircraft Spares .................................................... 34 2.43 Import of Replacement Goods ............................................................................................ 34 2.44 Other Conditions for Import of Replacement Goods......................................................... 35 2.45 Import of Overseas Office Equipment ................................................................................ 35 2.46 Import of Ammunition by Licensed /Authorised Arms Dealers .......................................... 35 2.47 Duty Free Imports for specific Sectors: ............................................................................... 36 2.48 Import under Govt. to Govt. Agreements........................................................................... 37 2.49 Transfer of Imported Goods ............................................................................................... 37 Import of Restricted Items: .............................................................................................................. 38 2.50 Import of Restricted Items .................................................................................................. 38 2.51 EXIM Facilitation Committee ..............................................................................................
................................................................... 38 2.51 EXIM Facilitation Committee .............................................................................................. 38 2.52 Import of Restricted Items Required by Hotels, Restaurants, Travel Agents, Tour Operators and other Specified Categories.......................................................................... 39 2.53 Import of Restricted items for R&D by units of Government ............................................. 40 2.54 Import of Metallic Waste and Scrap ................................................................................... 40 2.55 Recognition as Pre-shipment Inspection Agency (PSIA) and issuance of Pre- shipment Certificate (PSIC) ................................................................................................................. 43 2.56 Responsibility and Liability of PSIA and Importer ............................................................... 43 2.57 Import of other kinds of metallic waste and scraps ........................................................... 44 2.58 Imports of seconds and defectives ..................................................................................... 45 2.59 Services of Inspection and Certification Agencies .............................................................. 45 Tariff Rate Quota Scheme: ...........................................................................................................
............................................................ 45 Tariff Rate Quota Scheme: ........................................................................................................... 45 2.60 Procedure for import under the Tariff Rate Quota Scheme ............................................... 45 2.61 Eligible entities for allocation of quota ............................................................................... 46
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2.62 Conditions applicable on availing quotas ........................................................................... 47 Exhibits and Samples: ...................................................................................................................... 48 2.63 Exhibits Required for National and International Exhibitions or Fairs and Demonstration48 2.64 Sale of Exhibits .................................................................................................................... 48 2.65 Import of Samples ............................................................................................................... 48 2.66 Exports of Samples / Exhibits .............................................................................................. 49 Exports : ............................................................................................................................................ 49 2.67 Export Policy .......................................................................................................................
........................................................ 49 2.67 Export Policy ....................................................................................................................... 49 2.68 Gifts / Spares / Replacement Goods ................................................................................... 49 2.69 Export of Items Reserved for MSME Sector ....................................................................... 49 2.70 Export by post ..................................................................................................................... 50 2.71 Direct negotiation of export documents ............................................................................ 50 SCOMET: ........................................................................................................................................... 50 2.72 Application for Grant of Export Authorisation/Certificate/ Permission for non-SCOMET Items ................................................................................................................................... 50 2.73 Application for SCOMET Authorisation ............................................................................... 51 2.74 Inter Ministerial Working Group ......................................................................................... 51 2.75 Applicability of WMD Act ....................................................................................................
................................................................ 51 2.75 Applicability of WMD Act .................................................................................................... 53 2.76 Supply of SCOMET Items from DTA to SEZ ......................................................................... 54 2.77 Outreach Programmes on SCOMET Export Control System ............................................... 54 2.78 Procedure/ Guidelines for filing / Evaluation of Applications for Entering into an Arrangement or Understanding for Site Visits, On-site Verification and Access to Records / Documentation ................................................................................................................. 55 2.79 Issue of authorisation for repeat orders ............................................................................. 57 2.80 Revalidation of SCOMET authorisation ............................................................................... 58 2.81 Export of Military Stores ..................................................................................................... 58 2.82 Time-line for comments/NOC ............................................................................................. 58 Export through State Trading Enterprises (STE): ............................................................................. 58 2.83 Export of Items under (STE) ................................................................................................
................................................................. 58 2.83 Export of Items under (STE) ................................................................................................ 58 Provisions for exporters/other provisions for doing trade and business: ..................................... 59 2.84 Free of Cost Exports for status holders ............................................................................... 59 2.85 Admissibility of benefits on payment through insurance cover ......................................... 59 2.86 Irrevocable Letter of Credit ................................................................................................. 59 2.87 RBI write-off on export proceeds realization ...................................................................... 60 2.88 Conversion of E.P. copy of shipping bill from one Scheme to another .............................. 60
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2.89 Offsetting of Export Proceeds ............................................................................................. 60 Provisions related to Quality Certification: ..................................................................................... 61 2.90 Quality Certification ............................................................................................................ 61 Agencies authorised to grant Quality Certification: ....................................................................... 61 Export Promotion Council (EPC)/ Commodity Boards: ...................................................................
tion: ....................................................................... 61 Export Promotion Council (EPC)/ Commodity Boards: ................................................................... 62 2.91 Registering Authorities ....................................................................................................... 62 2.92 Criteria for EPCs as Registering Authorities ........................................................................ 62 2.93 Registration- cum- Membership Certificate (RCMC) .......................................................... 63 2.94 Applying for RCMC .............................................................................................................. 63 2.95 Validity Period of RCMC ...................................................................................................... 64 2.96 Intimation Regarding Change in Constitution of Business of RCMC holder ....................... 64 2.97 De- Registration .................................................................................................................. 64 2.98 Appeal Against De-registration ........................................................................................... 64 2.99 Directives of DGFT ............................................................................................................... 65 Other General Provisions: ................................................................................................................
........................................................ 65 Other General Provisions: ................................................................................................................ 65 2.100 Identity Cards for Importers /Exporters ............................................................................ 65 2.101 Interview with authorised Officers ..................................................................................... 65 2.102 Authorised signatory ........................................................................................................... 66 Preferential Trade Agreements: ...................................................................................................... 66 2.103 Free Trade Agreements (FTAs) / Preferential Trade Agreements (PTAs) ........................... 66 2.104 Unilateral Tariff Preferences ............................................................................................... 67 2.105 Certificates of Origin (CoO) ................................................................................................. 68 2.106 Rules of Origin (Preferential) .............................................................................................. 68 2.107 TRQ under FTA/CECA .......................................................................................................... 69 2.108 Rules of Origin (Non-Preferential) ......................................................................................
................................................................... 69 2.108 Rules of Origin (Non-Preferential) ...................................................................................... 71 CHAPTER 3 ................................................................................................................................. 74 Exports from India Schemes ............................................................................................................ 74 3.01 Merchandise Exports From India Scheme (MEIS) ............................................................... 74 3.02 Applications for Export of goods through courier or foreign post offices using e- Commerce ........................................................................................................................... 75 3.03 Proof of Landing ................................................................................................................. 76 3.04 Service Exports From India Scheme (SEIS) .......................................................................... 77 Common Procedural features applicable to MEIS and SEIS, unless specifically provided for: ..... 78 3.05 Transitional Arrangement ................................................................................................... 78
le to MEIS and SEIS, unless specifically provided for: ..... 78 3.05 Transitional Arrangement ................................................................................................... 78
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3.06 Jurisdictional RA / RA Concerned ........................................................................................ 78 3.07 Applicability of Provisions contained in Chapter 2 and 9 of this HBP ................................. 79 3.08 Port of Registration of Scrips ............................................................................................. 79 3.09 Facility for Split Scrips ......................................................................................................... 80 3.10 Procedure to upload documents by Chartered Accountant / Company Secretary / Cost Accountant .......................................................................................................................... 80 3.11 Import from private / public Bonded warehouses ............................................................. 80 3.12 Re-export of defective / unfit goods .................................................................................. 81 3.13 Validity period and Revalidation ......................................................................................... 81 3.14 Declaration of Intent on shipping bills for claiming rewards under MEIS including export of goods through courier or foreign post offices using e-Commerce. ...............................
81 3.14 Declaration of Intent on shipping bills for claiming rewards under MEIS including export of goods through courier or foreign post offices using e-Commerce. ............................... 81 3.15 Last date of filing of application for Duty Credit Scrips ...................................................... 82 3.16 Application for Shipments from EDI Ports and Non-EDI Ports under MEIS .................... 82 3.17 Risk Management System ................................................................................................... 83 3.18 Status Certificate ................................................................................................................. 84 3.19 Application for grant of Status Certificate .......................................................................... 84 3.20 Validity of status certificate ................................................................................................ 85 3.21 Maintenance of Accounts ................................................................................................... 85 3.22 Refusal /Suspension /Cancellation of Certificate ............................................................... 85 3.23 Appeal ................................................................................................................................. 86 CHAPTER 4 .................................................................................................................................
....................................................... 86 CHAPTER 4 ................................................................................................................................. 87 DUTY EXEMPTION / REMISSION SCHEME ....................................................................................... 87 4.01 Policy ................................................................................................................................... 87 4.02 General Provision ................................................................................................................ 87 4.03 Applicant details ................................................................................................................. 87 4.04 Advance Authorisation ....................................................................................................... 87 4.05 Advance Authorisation for items which are otherwise prohibited for export ................... 88 4.06 Fixation of Norms ................................................................................................................ 88 4.07 Self Declared Authorisations where SION does not exist ................................................... 90 4.08 Cases involving Acetic Anhydride, Ephedrine and Pseudo- ephedrine as inputs. ............. 90 4.09 Cases requiring Sanitary Import Permit. ............................................................................. 91 4.10 Advance Authorisation for applicants with multiple units .................................................
rmit. ............................................................................. 91 4.10 Advance Authorisation for applicants with multiple units ................................................. 91 4.11 Advance Authorisation for Free of Cost and Paid Material ................................................ 92 4.12 Entitlement ......................................................................................................................... 92
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4.13 Authorisation in Excess of Entitlement ............................................................................... 94 4.14 Application and On-line Inter-Ministerial Consultations for fixation of norms / adhoc norms .. 94 4.15 Undertaking ........................................................................................................................ 94 4.16 Time limit for fixation of norms by Norms Committees ..................................................... 95 4.17 Time limit for Representation ............................................................................................. 96 4.18 Provision for Pharmaceutical Products ............................................................................... 96 4.19 Application & Processing .................................................................................................... 96 4.20 Redemption of Authorisation issued under paragraph 4.18 HBP ...................................... 97 4.21 Maintenance of Proper Accounts .......................................................................................
issued under paragraph 4.18 HBP ...................................... 97 4.21 Maintenance of Proper Accounts ....................................................................................... 97 4.22 Standardisation of Adhoc Norms ........................................................................................ 98 4.23 Modification of SION ........................................................................................................... 98 4.24 Amendment of Export item and inputs .............................................................................. 98 4.25 Revision of SION by NC ..................................................................................................... 99 4.26 Description of an Advance Authorisation ........................................................................... 99 4.27 Exports in Anticipation of Authorisation............................................................................. 99 4.28 Exporters Risk ................................................................................................................... 100 4.29 Admissibility of drawback in case of rejection of application ......................................... 100 4.30 Advance Authorisation or DFIA for Intermediate Supplies .............................................. 100 4.31 Advance Release Order (ARO) ..........................................................................................
Intermediate Supplies .............................................. 100 4.31 Advance Release Order (ARO) .......................................................................................... 101 4.32 Details to be given for issue of ARO .................................................................................. 101 4.33 Back to Back Inland Letter of Credit (L/C) ......................................................................... 101 4.34 Endorsement by Banks under Back to Back LC ............................................................... 102 4.35 Facility of Supporting Manufacturer/ Jobber/co- licensee ............................................... 103 4.36 Acceptance of BG/LUT ...................................................................................................... 103 4.37 Port of Registration ........................................................................................................... 104 4.38 Facility of Clubbing of Authorisations ............................................................................... 106 4.39 Enhancement/ Reduction in the value of Advance Authorisation ................................. 107 4.40 Application fee for enhancement ..................................................................................... 108 4.41 Revalidation of Authorisation ........................................................................................... 108 4.42 Export Obligation (EO) Period and its Extension ..............................................................
............................................................................. 108 4.42 Export Obligation (EO) Period and its Extension .............................................................. 109 4.43 Provisional clearance of export consignment .......................................................... 110 4.44 Monitoring of Export Obligation ....................................................................................... 110 4.45 Advance Authorisation for Annual Requirement ............................................................ 111 4.46 Fulfilment of Export Obligation......................................................................................... 112
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4.47 Redemption / No Bond Certificate ................................................................................... 112 4.48 Transitional Arrangement for Authorisations issued upto 26.08.2009 ............................ 114 4.49 Regularisation of Bonafide Default ................................................................................... 114 4.50 Payment of Customs Duty and Interest in case of bonafide default in EO ...................... 116 4.51 Maintenance of Proper Accounts ..................................................................................... 117 4.52 Consideration of cases against lost EP copy of the Shipping Bills and / or Bank Realisation Certificate / e-BRC .............................................................................................................
against lost EP copy of the Shipping Bills and / or Bank Realisation Certificate / e-BRC ............................................................................................................. 118 DUTY FREE IMPORT AUTHORISATION SCHEME (DFIA) ................................................................. 119 4.53 Policy ................................................................................................................................. 119 4.54 Application ........................................................................................................................ 119 4.55 Facility for Split DFIA ......................................................................................................... 119 4.56 Re-export of goods imported under DFIA Scheme ........................................................... 119 4.57 Maintenance of proper accounts of import and its utilisation ......................................... 120 GEMS AND JEWELLERY SECTOR ..................................................................................................... 120 4.58 General Provision .............................................................................................................. 120 4.59 Application for Replenishment Authorisation .................................................................. 120 4.60 Wastage Norms .................................................................................................................
............................................................. 120 4.60 Wastage Norms ................................................................................................................. 121 4.61 Value Addition ................................................................................................................... 122 4.62 Entitlement ....................................................................................................................... 123 4.63 Loss of Gem and Jewellery in transit ................................................................................ 123 4.64 Gem & Jewellery Replenishment Authorisations ............................................................. 123 4.65 Agency Commission .......................................................................................................... 124 4.66 Endorsement on shipping Bill and Invoice. ....................................................................... 124 4.67 Conditions of Exports ........................................................................................................ 124 4.68 Proof of Exports ................................................................................................................ 125 4.69 Conversion of Purity/Fineness .......................................................................................... 125 4.70 Release of Gold/Silver/ Platinum by Nominated Agencies...............................................
....................................................................................... 125 4.70 Release of Gold/Silver/ Platinum by Nominated Agencies............................................... 126 4.71 Terms of payment ............................................................................................................. 126 4.72 Port of Export .................................................................................................................... 126 4.73 Export by Post ................................................................................................................... 127 4.74 Export of Cut & Polished Diamonds for Certification/ Grading & Re- import ................. 127 4.75 Import of Diamonds for Certification/Grading & re-export ............................................. 128 4.76 Enlistment /Authorisation of Laboratories for Certification/ Grading of Diamonds of 0.25 carat and above ................................................................................................................ 128
n of Laboratories for Certification/ Grading of Diamonds of 0.25 carat and above ................................................................................................................ 128
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4.77 Export Against Supply By Foreign Buyer ........................................................................... 129 4.78 Export Procedure / Payment of Customs Duty ................................................................. 130 4.79 Maintenance of Accounts ................................................................................................. 132 4.80 Export Through Exhibitions / Export Promotion Tours / Export of Branded Jewellery .... 132 4.81 Export against supply by Nominated Agencies ................................................................. 134 4.82 Replenishment Basis ......................................................................................................... 135 4.83 Outright Purchase Basis in Advance ................................................................................. 136 4.84 Loan Basis .......................................................................................................................... 136 4.85 Exports against Advance Authorisation ............................................................................ 137 4.86 Regularistion of Bonafide Default ..................................................................................... 137 4.87 Replenishment Authorisation for Import of Consumables etc. ........................................
ult ..................................................................................... 137 4.87 Replenishment Authorisation for Import of Consumables etc. ........................................ 138 4.88 Personal Carriage of Gems & Jewellery Export Parcels .................................................... 138 4.89 Personal Carriage of Gems & Jewellery Import Parcels ................................................... 138 4.90 Duty free import of samples ............................................................................................. 139 4.91 Re-import of rejected jewellery ....................................................................................... 139 4.92 Diamond & Jewellery Dollar Accounts .............................................................................. 139 4.93 Export and import of Diamond, Gemstone & Jewellery on consignment basis ............... 139 4.94 Guidelines/ Monitoring for import of precious metal by the Nominated Agencies ........ 140 CHAPTER 5 ............................................................................................................................... 144 EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME .............................................................. 144 5.01 Policy ................................................................................................................................. 144 5.02 Application Form ...............................................................................................................
............................................................ 144 5.02 Application Form ............................................................................................................... 144 5.03 Nexus Certification ............................................................................................................ 144 5.04 Certificate of Installation of Capital Goods ....................................................................... 144 5.05 Port of Registration ........................................................................................................... 145 5.06 Import of spares, tools, refractories and catalysts ........................................................... 145 5.07 Conversion of EOU/ Relocated SEZ Units to DTA Unit under EPCG Scheme .................... 146 5.08 Sourcing of Capital Goods Manufactured Indigenously ................................................... 146 5.09 Issuance of Advance authorisation for import of inputs .................................................. 147 5.10 Conditions for fulfilment of Export Obligation ................................................................. 147 5.11 Realization of Export proceeds ......................................................................................... 149 5.12 Calculation of Average Export Obligation ......................................................................... 149 5.13 Exemption from maintenance of average export obligation............................................
ort Obligation ......................................................................... 149 5.13 Exemption from maintenance of average export obligation............................................ 149 5.14 Block-wise Fulfilment of EO .............................................................................................. 150
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5.15 Monitoring of Export Obligation ....................................................................................... 151 5.16 Automatic Reduction/ Enhancement upto 10% Duty saved amount and pro rata Reduction/ Enhancement in export obligation................................................................. 151 5.17 Extension in Export Obligation Period .............................................................................. 152 5.18 Provision for Units under BIFR/Rehabilitation .................................................................. 152 5.19 Relief in Average Export Obligation .................................................................................. 153 5.20 Automatic EO extension in the event of ban on export product...................................... 153 5.21 Export Obligation Shortfall................................................................................................ 153 5.22 Redemption ...................................................................................................................... 154 5.23 Regularization of Bonafide Default and Exit from EPCG Scheme .....................................
......................................................................................... 154 5.23 Regularization of Bonafide Default and Exit from EPCG Scheme ..................................... 154 5.24 Maintenance of Records ................................................................................................... 155 5.25 Re-Export / Replacement of Capital Goods Imported under EPCG Scheme .................... 155 5.26 Penal Action ...................................................................................................................... 155 5.27 Clubbing of EPCG authorisations ...................................................................................... 155 5.28 Post Export EPCG Duty Credit Scrip(s) .............................................................................. 156 5.29 Green Technology Products .............................................................................................. 158 CHAPTER 6 ............................................................................................................................... 159 EXPORT ORIENTED UNITS (EOUs), ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs), SOFTWARE TECHNOLOGY PARKS (STPs) SCHEME AND BIO-TECHNOLOGY PARKS (BTPs). ......... 159 6.00 Scheme .............................................................................................................................. 159 6.01 Application / Approval / Renewal of approval..................................................................
.............................................................................. 159 6.01 Application / Approval / Renewal of approval.................................................................. 159 6.02 Legal Undertaking (LUT) ................................................................................................... 161 6.03 Export of Goods and Services ........................................................................................... 161 6.04 Import / Domestic Procurement of Goods ....................................................................... 162 6.05 Repair / Remaking of Jewellery ........................................................................................ 163 6.06 Conditions of Import ......................................................................................................... 163 6.07 Taking out of Fax Machines / Laptop / Computers outside approved premises ............ 165 6.08 Facility of working from a place outside the unit ............................................................. 165 6.09 Leasing of Capital Goods ................................................................................................... 166 6.10 Net Foreign Exchange (NFE) Earnings ............................................................................... 166 6.11 Maintenance of Accounts .................................................................................................
................................................................... 166 6.11 Maintenance of Accounts ................................................................................................. 167 6.12 Monitoring of NFE ............................................................................................................. 168 6.13 Conversion of Scrap / Dust / sweeping of Gold / Silver / Platinum into Standard Bars .. 168 6.14 DTA Supplies ..................................................................................................................... 168
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6.15 Supplies to other EOU / EHTP / STP / SEZ / BTP Units .................................................... 168 6.16 Transfer of Power from one Unit to another .................................................................... 168 6.17 Supply of Precious / Semiprecious / Synthetic Stones from DTA ..................................... 169 6.18 Application for grant of entitlements ............................................................................... 169 6.19 Export through Other Exporters ....................................................................................... 169 6.20 Others Entitlements .......................................................................................................... 170 6.21 Sub – Contracting ..............................................................................................................
........................................................... 170 6.21 Sub – Contracting .............................................................................................................. 170 6.22 Contract Farming .............................................................................................................. 172 6.23 Export through Exhibitions / Export Promotion Tour ....................................................... 172 6.24 Personal Carriage of Gems and Jewellery for Export Promotion Tours ........................... 173 6.25 Export through Show-rooms abroad / Duty free shops ................................................... 174 6.26 Sale through Showrooms / Retail outlets at International Airports ................................. 174 6.27 Personal Carriage of Import / Export Parcels including through Foreign
Bound Passengers ............................................................................................................. 174 6.28 Replacement / Repair of Imported / Indigenous Goods .................................................. 175 6.29 Samples ............................................................................................................................. 175 6.30 Donation of Computer and Computer Peripherals ........................................................... 176 6.31 Distinct Identity .................................................................................................................
......................................................... 176 6.31 Distinct Identity ................................................................................................................. 177 6.32 Unit Approval Committee for EOUs .................................................................................. 177 6.33 Approval of EHTP / STP / BTP Units .................................................................................. 178 6.34 Administration of EOUs / Powers of DC / Designated Officer........................................ 178 6.35 Change of Location / Inclusion of Additional Location with BOA Approval ...................... 180 6.36 Clearance of Capital Goods in DTA ................................................................................... 181 6.37 Depreciation Norms .......................................................................................................... 181 6.38 Conversion .......................................................................................................................... 182 6.39 Revival of Sick Units ........................................................................................................ 182 6.40 Fast Track Clearance Procedure ........................................................................................ 182 6.41 Time Bound Disposal of Applications ...............................................................................
......................................................................... 182 6.41 Time Bound Disposal of Applications ............................................................................... 184 CHAPTER 7 ............................................................................................................................... 186 DEEMED EXPORTS .......................................................................................................................... 186 7.00 Policy ................................................................................................................................. 186 7.01 Procedure for claiming Benefits ........................................................................................ 186 7.02 Criteria for claiming Benefits .......................................................................................... 186 7.03 Eligibility criteria for claiming TED / Drawback ................................................................. 187
..................................................................... 186 7.03 Eligibility criteria for claiming TED / Drawback ................................................................. 187
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7.04 Procedure for claiming TED refund on Fuel ...................................................................... 188 7.05 Frequency of application and time period for claiming TED / Drawback ........................ 189 7.06 Fixation of Brand Rate....................................................................................................... 189 7.07 Time barred / supplementary claim ................................................................................. 190 7.08 Exemption from payment of TED ..................................................................................... 190 7.09 Applicability of other Rules ............................................................................................... 190 7.10 Payment of interest .......................................................................................................... 190 7.11 Internal Audit Mechanism ................................................................................................ 191 CHAPTER 8 ............................................................................................................................... 192 QUALITY COMPLAINTS AND TRADE DISPUTES .............................................................................. 192 8.01 Committee on Quality Complaint& Trade Dispute (CQCTD) ............................................
DE DISPUTES .............................................................................. 192 8.01 Committee on Quality Complaint& Trade Dispute (CQCTD) ............................................ 192 8.02 Composition of the CQCTD ............................................................................................... 193 8.03 Format for Lodging Complaint .......................................................................................... 194 8.04 Mechanism for resolving Quality Complaint and Trade Dispute ...................................... 194 8.05 Role of the Nodal Officer .................................................................................................. 194 CHAPTER 9 ............................................................................................................................... 196 MISCELLANEOUS MATTERS ............................................................................................................ 196 9.01 Denomination of Import Authorisation/Licence/ Certificate/ Permissions ..................... 196 9.02 Late Cut ............................................................................................................................. 196 9.03 Supplementary Claims ...................................................................................................... 197 9.04 Furnishing of Information .................................................................................................
................................................................. 197 9.04 Furnishing of Information ................................................................................................. 197 9.05 Clarifications on Policy/Procedure .................................................................................... 197 9.06 Consumption Register ....................................................................................................... 198 9.07 Export Facilitation ............................................................................................................. 198 9.08 Standing Grievance Committee ........................................................................................ 198 9.09 Counter Assistance ............................................................................................................ 198 9.10 Time Bound Disposal of Applications ............................................................................... 199 9.11 Date of shipment/Dispatch in respect of Imports ............................................................ 200 9.12 Date of Shipment/ Dispatch in respect of Exports .......................................................... 200 9.13 General Power of Review .................................................................................................. 202 Glossary............................................................................................................................203
..................................... 202 Glossary............................................................................................................................203
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CHAPTER 1 INTRODUCTION & TRADE FACILITATION
1.01 Notification of Procedure
In pursuance of the provisions of paragraph 1.03 of Foreign Trade Policy (FTP), the Director General of Foreign Trade (DGFT) hereby notifies the procedure to be followed by an exporter or importer or by the licensing/Regional Authority or by any other authority for purpose of implementing the provisions of Foreign Trade (Development & Regulation) Act, the Rules/orders made thereunder and the provisions of Foreign Trade Policy. The said procedure is contained in following compilations:
(a) Hand Book of Procedures (b) Appendices & Aayat Niryat Forms and (c) Standard Input Output Norms (SION)
These compilations, as amended from time to time, shall come into force
from the date of their notification and shall remain in force until 31st March,
2020.
1.02 Objective
The objective is to implement provisions of FT (D&R) Act, Rules and Orders made thereunder and provisions of FTP (2015-20) by laying down simple, transparent and EDI compatible procedures which are user friendly and are easy to comply with and administer for efficient management of foreign trade. 1.03 Definition
For the purpose of this Handbook, definitions and glossary contained in FT (D&R) Act, Rules and orders made thereunder and in the FTP (2015-20) shall apply.
of foreign trade. 1.03 Definition
For the purpose of this Handbook, definitions and glossary contained in FT (D&R) Act, Rules and orders made thereunder and in the FTP (2015-20) shall apply.
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1.04 e-governance of Foreign Trade
(a) DGFT delivers most of its services on a transparent and efficient EDI platform using tools like Online filing of Applications, Message Exchange with Community Partners, Digital Signatures and Electronic payment of application fee. Use of EDI at DGFT has enabled faster processing, speedier communication by e-mail and on- line availability of application processing status. The endeavour is to achieve higher level of information sharing through SMS.
(b) Export Import related information including Acts, Rules, Policy & Procedures thereof including online DGFT portal can be accessed at http://dgft.gov.in/.
(c) All the DGFT Regional Authorities are EDI enabled and connected with the DGFT Central Server to provide online connectivity to EXIM community in a 24x7 environment.
(d) DGFT keeps expanding the scope and domain of EDI on a continuous basis. The endeavour is to achieve higher level of integration with community partners. 1.05 Procedure
An exporter shall file his application online on DGFT website at http://dgft.gov.in/. Application will then be processed in accordance with prevalent rules and regulations. The processing of applications will be made online. DGFT shall issue deficiency letters, if any, in online mode or through use of e-mail.
essed in accordance with prevalent rules and regulations. The processing of applications will be made online. DGFT shall issue deficiency letters, if any, in online mode or through use of e-mail. No communication shall be issued by DGFT in manual mode. 1.06 Use of Digital Signature
(a) DGFT allows online filing of applications with Class-II digital signature with IEC number embedded in it. A list of DGFT approved digital signature issuing authorities is given as under:
15
(i) (n) Code Solutions CA (ii) e-Mudhra (iii) Safescrypt (Siffy Communication Limited)
(b) For purposes other than submission of the application, such as an enquiry or uploading/processing of eBRC data, class II or above digital signature certificate issued by any approved entity of Controller of Certifying Authority of India is accepted. 1.07 Separate applications for exports from EDI and on EDI ports
Separate applications shall be filed to DGFT for exports from EDI ports and Non EDI ports. 1.08 Application for exports from Non EDI ports
An exporter would be able to file his application on DGFT website at http://dgft.gov.in/. Applicant will then submit to concerned RA the hard copy of application along with requisite documents. Authorisation/Scrip shall be issued on the basis of hard copies of documents as prescribed in HBP after due scrutiny. 1.09 Application for exports from EDI ports
Applications relating to exports from EDI ports will be filed online as per relevant provisions.
f documents as prescribed in HBP after due scrutiny. 1.09 Application for exports from EDI ports
Applications relating to exports from EDI ports will be filed online as per
relevant provisions. Physical or Hard copy of the following documents shall
not be required to be submitted:
(i)
Applications to DGFT
(ii)
EDI shipping bills
(iii) Electronic Bank Realisation Certificate (eBRC)
(iv)
RCMC
1.10 No manual feeding allowed for EDI shipments
For EDI shipping Bills, no manual feeding of Shipping bill details will be allowed to the applicants in the online software and benefits will
16
accordingly be granted by RAs without the need for cross verifying EDI Shipping Bill details. 1.11 Dispensing with hard copy of documents Hard copy of documents already submitted online in exporter’s profile shall not be called for. 1.12 Processing of Non EDI Shipping bills at RA
In case of the Non EDI shipping bills or the shipping bills not received through the Message Exchange from Customs, concerned RA shall verify the details entered by the exporter from the original shipping bills before grant of benefits.
the shipping bills not received through the Message Exchange from Customs, concerned RA shall verify the details entered by the exporter from the original shipping bills before grant of benefits. 1.13 Instructions for filing of applications
Detailed step by step instructions for online filing of an application are
available at the relevant HELP files at DGFT website and at scheme specific
ANF of the HBP
1.14 EDI Procedure for claiming benefits in respect of Third Party
exports
For claiming benefits under EDI system in respect of Third Party exports
the process will be initiated by the First party who will link shipping bills
and BRCs to repository. If the First Party chooses not to claim benefit for a
particular shipping bill item/s, it may authorize Third Party to claim benefit
for such shipping bill item/s. After such authorization by First party, Third
Party will be able to utilize the shipping bill item/s in its application”.
1.15 Conversion of Currencies in e-BRCs
(a) Currencies, where Exchange rates are notified by CBEC: The foreign exchange realized (as mentioned by bank in the e BRC) is converted to Indian Rupee (INR) using the monthly exchange rates published by CBEC as on Let Export Order (LEO).
(b) Currencies, where Exchange rates are not notified by CBEC: In such cases, total realized value in INR (as mentioned by bank in the
nge rates published by CBEC as on Let Export Order (LEO).
(b) Currencies, where Exchange rates are not notified by CBEC: In such cases, total realized value in INR (as mentioned by bank in the
17
e BRC), will be converted into US$ by using the US$ /INR exchange rate prevailing on the date of realization as published by CBEC. 1.16 Guidelines for Processing of claims where an exporter gets payment through Insurance Agencies (and not through banks) towards realization of export proceeds
(a)
An applicant realizing export proceeds through Insurance Agency
will approach the concerned RA with the proof of payment issued by
the concerned Insurance Agency. RA, after satisfying itself of the bona
fide of the payment, will obtain approval of Additional DGFT (EDI)
and then will upload the value (in lieu of e BRC value) in EDI system
of DGFT for processing of the case.
(b) If the proof of payment issued by the Insurance Agency mentions
claim value both in foreign exchange and INR, RA will use the foreign
exchange value for processing. If the claim value is mentioned only in
equivalent INR, RA will convert this INR value in equivalent US$
using the exchange rate (published by CBEC) applicable on the date
of settlement of insurance claim.
1.17 EDI
Help
Desk
&
Online
Complaint
registration
and
monitoring system
An EDI Help Desk is available to assist the exporters in filing online applications on the DGFT portal and resolving other EDI related issues.
e Complaint registration and
monitoring system
An EDI Help Desk is available to assist the exporters in filing online applications on the DGFT portal and resolving other EDI related issues. For assistance an email may be sent at dgftedi@nic.in or Toll Free number 1800111550 can be used. Help Desk facility is also operational at the 4 Zonal Offices of DGFT, namely, CLA (New Delhi), Mumbai, Chennai & Kolkata. An Online Complaint registration and monitoring system allows users to register complaint and receive status/ reply online (details at http://dgft.gov.in).
1.18 E-Mail
Use of Email for queries relating to import/export is encouraged. Contact email ids are available at http://dgft.gov.in/exim/2000/ dgftContactUS. html.
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1.19 eTrade Project
The e TRADE project facilitates users to carry out all their foreign trade
related compliances, regulatory or otherwise, online. Department of
Commerce pilots this project.
The major stake holders of the project are Customs, Directorate General of Foreign Trade (DGFT), Seaports, Airports, Container Corporation of India (CONCOR), Inland container Depots(ICDs)/ Container Freight Stations (CFSs), Banks, importers/exporters, agents, airlines/shipping lines.
The project emphasizes automation of internal processes for quicker processing of trade requests. Transparency is induced in the system by reduced personal interface of importers/exporters with Government agencies.
izes automation of internal processes for quicker
processing of trade requests. Transparency is induced in the system by
reduced personal interface of importers/exporters with Government
agencies.
The project provides for following key services:
(i)
e-delivery of services / clearances by community partners like
Customs and Custodians at Sea ports, Airports and ICD/CFSs. These
services are extended to exporter, importer, agents etc.
(ii) E-filing of export / import documents by exporter, importer, agents etc to Customs and Custodians at Sea Ports, Airports and ICD / CFSs.
(iii) Electronic exchange of documents between community partners i.e. Customs and Custodians at Sea Ports, Airports, ICD/CFSs.
(iv) e-Payment by exporter, importer, agents for Custom duties;
DGFT’s application and other fee and Charges (handling/freight,
etc) of Custodians at Sea Ports, Airports, ICD/CFSs.
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CHAPTER 2 GENERAL PROVISIONS REGARDING EXPORTS AND IMPORTS
2.00 Policy
Policy relating to general provisions regarding exports and imports is given in Chapter-2 of FTP.
2.01 Coverage
This chapter covers procedure for various applications including their complete documentation. Procedure for applications for authorisations/ license/ permissions/ certificates for import/export and applications for benefits under FTP are spelt out. 2.02 Countries of Imports / Exports
Unless otherwise specifically provided, international trade (i.e. import into India and /or export from India) can take place from/to any country.
spelt out. 2.02 Countries of Imports / Exports
Unless otherwise specifically provided, international trade (i.e. import into India and /or export from India) can take place from/to any country. Country specific prohibitions/limitations, if any, are specified in the FTP/ITC (HS). Applications:
2.03 Filing of Application
(a)
Applications seeking authorisation for import/export of “restricted”
goods, for claiming benefits under the schemes in FTP or for seeking
clarifications and for other purposes may be made to the Regional
Authority (RA).
(b)
Applicants may ensure while submitting documents that documents
are either in English or Hindi. Documents in regional languages may
be got translated into English or Hindi and the translated copy may
be self-certified and submitted along with the Original copy.
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2.04 Territorial Jurisdiction of RA
Territorial jurisdiction of RAs is given in Appendix 1A of Appendices and Aayat Niryat Forms. The address of applicant determines the jurisdiction of RA. Each application, unless otherwise specified, shall be submitted to jurisdictional RA .
2.05 Incomplete Application
(a) An incomplete or unauthorised application is liable to be rejected by the competent authority with specific reason for rejection. Such incomplete application may be re-opened on rectifying the deficiencies. (b) If the deficiencies are not rectified by the applicant within a period of 90 days, the application will be deemed to have been withdrawn.
ion may be re-opened on rectifying the deficiencies. (b) If the deficiencies are not rectified by the applicant within a period of 90 days, the application will be deemed to have been withdrawn. 2.06 Application Fee
The scale of fee, mode of payment, procedure for refund of fee and categories of persons exempted from payment of fee are provided for in Appendix-2K.
Importer Exporter Code (IEC):
2.07 IEC Number Exempted Categories
(a) IEC is compulsory for import and /or exports. However, the following categories of importers or exporters are exempted from obtaining IEC.
Sl. No.
Categories Exempted from obtaining IEC
(i)
Importers covered by clause 3(1) [except sub-
clauses (e) and (l)] and exporters covered by
clause 3(2) [except sub-clauses (i) and (k)] of
Foreign Trade (Exemption from application of
Rules in certain cases) Order, 1993.
21
(ii)
Ministries /Departments of Central or State
Government
(iii)
Persons importing or exporting goods for
personal use not connected with trade or
manufacture or agriculture.
(iv)
Persons
importing/exporting
goods
from/to
Nepal, Myanmar through Indo-Myanmar border
areas and China (through Gunji, Namgaya Shipkila
and Nathula ports), provided CIF value of a single
consignment does not exceed Indian Rs.25,000.
In case of Nathula port, the applicable value
ceiling will be Rs.
hrough Gunji, Namgaya Shipkila and Nathula ports), provided CIF value of a single consignment does not exceed Indian Rs.25,000. In case of Nathula port, the applicable value ceiling will be Rs. 1,00,000/-
Further, exemption from obtaining IEC shall not be applicable for
export of Special Chemicals, Organisms, Materials, Equipments and
Technologies (SCOMET) as listed in Appendix - 3, Schedule 2 of ITC
(HS) except in case of exports by category (ii) above.
(b) Following permanent IEC numbers shall be used by non –
commercial PSUs and categories or importers / exporters mentioned
against them for import / export purposes :
Sr.
No.
Permanent
IEC
Categories of Importer / Exporter
1
0100000011 All Ministries / Departments of Central
Government and agencies wholly or partially
owned by them.
2
0100000029 All Ministries / Departments of any State
Government and agencies wholly or partially
owned by them.
3
0100000037 Diplomatic personnel, Counsellor officers in
India and officials of UNO and its specialised
4
0100000045 Indians returning from / going abroad and
claiming benefit under Baggage Rules.
0000037 Diplomatic personnel, Counsellor officers in India and officials of UNO and its specialised 4 0100000045 Indians returning from / going abroad and claiming benefit under Baggage Rules.
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5
0100000053 Persons /Institutions /Hospitals importing or
exporting goods for personal use, not
connected with trade or manufacture or
6
0100000061 Persons importing/exporting goods from /to
Nepal
7
0100000070 Persons importing / exporting goods from / to
Myanmar through Indo-Myanmar border
8
0100000088 Ford Foundation.
9
0100000096 Importers importing goods for display or use
in fairs/ exhibitions or similar events under
provisions of ATA carnet. This IEC number can
also be used by importers importing for
exhibitions/fairs as per Paragraph 2.63 of
Handbook of Procedures
10
0100000100 Director, National Blood Group
11
0100000126 Individuals
/Charitable
Institution
/Registered NGOs importing goods, which
have been exempted from Customs duty
under Notification issued by Ministry of
Finance for bonafide use by victims affected
12
0100000134 Persons importing/exporting permissible
goods as
notified from time to time, from /to China
through
13
0100000169 Non-commercial imports and exports by
entities who have been authorised by Reserve
Bank of India.
2.08 Application for IEC
(a)
Exporters / Importers shall file an application in ANF 2A format for
grant of e-IEC. Those who have digital signatures can sign and
submit the application online along with the requisite documents.
xporters / Importers shall file an application in ANF 2A format for
grant of e-IEC. Those who have digital signatures can sign and
submit the application online along with the requisite documents.
Others may take a printout of the application, sign the
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undertaking/declaration, upload the same with other requisite documents and thereafter submit the signed copy of the online application form to concerned jurisdictional Regional Authorities (RA) either through post or by hand. List of RAs, along with their jurisdiction is given in Appendix 1A
(b) Deficiency in the application form has to be removed by re-loging onto “Online IEC application” on DGFT website and filling the form again by paying the requisite application processing charges. 2.09 IEC Format
An IEC will be issued in prescribed format (ANF 2(A) (II)). A copy of such IEC shall be endorsed to concerned banker (as per details given in ANF 2A). Such endorsement should ordinarily be done using emails. 2.10 Validity of IEC
An IEC allotted to an applicant shall have permanent validity unless cancelled by the competent authority. The IEC will cover all branches / divisions / units / factories of the applicant.
IEC
An IEC allotted to an applicant shall have permanent validity unless
cancelled by the competent authority. The IEC will cover all branches /
divisions / units / factories of the applicant.
2.11 Validity of IEC for EOUs / SEZs
An IEC will remain valid irrespective of a firm’s status as a DTA unit or an EOU or a SEZ/ EHTP/STP/BTP unit and the procedure to be followed in case a firm/unit is de-bonded and converted to DTA is as under:
(a) An unit which is an EOU or in SEZ/EHTP/STP/BTP after de-bonding will not surrender the IEC obtained from its jurisdictional DC, SEZ.
(b) The jurisdictional DC, SEZ will send the original IEC file to concerned RA of DGFT after de-boding.
(c) RA becomes the custodian of such file and will allow de-bonded unit to make necessary modification in IEC. (d) The de-bonded unit to be eligible for benefits from the RA as per FTP.
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2.12 One PAN-One IEC
Only one IEC shall be issued against a single PAN. Multiple IECs against a single PAN stands deactivated suo-motu after 31.03.2015. 2.13 Surrender of IEC
If an IEC holder does not wish to operate allotted IEC, he may surrender the
same to the issuing authority. On receipt, the issuing authority shall
immediately cancel the IEC and electronically transmit it to DGFT and
Customs authorities.
2.14 Modification of IEC
(a) An application for modification shall be filed with the concerned jurisdictional RA from where IEC was originally issued.
smit it to DGFT and Customs authorities. 2.14 Modification of IEC
(a) An application for modification shall be filed with the concerned jurisdictional RA from where IEC was originally issued.
(b) An application for modification may be made for change in details like name, address, constitution, ownership in Proprietorship firms, change in nature of the firm e.g. from proprietorship to partnership etc. Change in constitution however, does not include change in Directors of Public Limited Company. 2.15 Profile of Importer / Exporter
(a)
ANF-1 contains the profile of the importer/exporter. IEC Holder shall
be responsible for updating the same as and when a change takes
place immediately or in any case at least once in a year.
(b)
Documents which are uploaded in the Importer-Exporter Profile are
not required to be filed each time the importer/exporter applies for
authorisations/scrips under different schemes of this FTP.
Documents which are uploaded in the Importer-Exporter Profile are not required to be filed each time the importer/exporter applies for authorisations/scrips under different schemes of this FTP.
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Issue of Authorisation:
2.16 Validity period of Authorisation/ Licence / Certificate / Authorisation / Permissions / CCPs
Validity period of Import / Export Authorisations from the date of issue shall be as follows, unless specified otherwise:
Sr.
No
Type of
Authorisation
Validity Period
(i)
Export Authorisation
for restricted (Non
SCOMET) goods
12 months (However, EFC may
decide to issue Export Authorisation
for a longer duration in case of R&D
studies based on recommendation of
technical authority)
(ii)
Export Authorisation
for SCOMET items
24 months
(iii)
Import Authorisations
for restricted items
and CCP
18 months
(iv)
EPCG Authorisation
18 months
(v)
Advance
Authorisations (AA)
for Deemed Export
Coterminous with contracted
duration
of project execution or 12 months,
whichever is more.
(vi) AA {except (v) above}, DFIA, Replenishment Authorisation for Gems & Jewellery as per Chapter 4 of FTP. 12 months from issue date.
However, DGFT may decide to issue specific authorisation/ class of authorisations for a longer/shorter validity period.
26
2.17 Date of reckoning of Import / Export
(a) Date of reckoning of import is decided with reference to date of shipment / dispatch of goods from supplying country as given in
Paragraph 9.11 of Handbook of Procedures and not the date of
arrival of goods at an Indian port.
(b)
Date of reckoning of export is decided with reference to date of
shipment / dispatch of goods from India as given in Paragraph 9.12
of Handbook of Procedures. However, for benefit under FTP, Let
Export Order (LEO) date shall be the date of reckoning of export.
2.18 Validity of Authorisation/ Licence for import/export
(a) Authorisations must be valid on the date of import.
(b) Similarly, export obligation period of an Authorization must be valid on the date of export. 2.19 Validity of Scrips
Scrips under Chapter 3 and 5 must be valid on the date on which actual debit of duty is made. 2.20 Revalidation of Import / Export Licence Certificate/ Authorisation / Permissions for Non-SCOMET items
(a) RA concerned may revalidate import authorisation on merits for six months from date of expiry of validity.
(b)
Export authorisation may be revalidated by RA concerned only on
approval of DGFT for six months at a time and maximum upto 12
months from date of expiry of validity.
(c)
However, revalidation of freely transferable authorisation / duty
credit scrips and stock and sale authorisation shall not be permitted
unless validity has expired while in custody of Customs Authority /
RA.
alidation of freely transferable authorisation / duty credit scrips and stock and sale authorisation shall not be permitted unless validity has expired while in custody of Customs Authority / RA.
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2.21 Authority to Revalidate
Such revalidation under Paragraph 2.20 above would be permitted under specific orders of Head of concerned Office and such revalidation would be maximum up to the extent of custody period.
2.22 Application for Revalidation
An application for revalidation of authorisation (other than SCOMET
Authorisation), may be made to RA concerned. RA would consider such
application as per FTP. Where DGFT is concerned authority, original
application shall be submitted to RA concerned and self-attested copy of
same shall be submitted to DGFT.
Procedure for issuing Duplicate copies:
2.23 Duplicate copies of Export / Import Authorisation
Where an Authorisation/ Permissions/ CCPs / Licence / Certificate / is lost or misplaced, an application for issue of a duplicate may be made along with Self declaration, as given in Appendix 2M, to concerned RA where the original license was issued. 2.24 Documents required for duplicate copy of freely transferable Authorisation
Duplicate copy of freely transferable Authorisation may be issued against an application accompanied with following documents:
(i) An application with fee equivalent to 10% of duty saved or duty credit (of unutilized balance).
(ii) A copy of FIR reporting loss.
an application accompanied with following documents:
(i) An application with fee equivalent to 10% of duty saved or duty credit (of unutilized balance).
(ii) A copy of FIR reporting loss.
(iii) Self- declaration to indemnify revenue loss, which may be caused on account of issue of such duplicate.
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2.25 Exception
When an Authorisation is lost by a Government agency and a proof to this effect is submitted, documents at serial nos. (i) to (iii) of Paragraph 2.24 above shall not be required. In such cases, revalidation shall be for six months from date of endorsement. 2.26 Mechanism for issuing duplicates
RA concerned shall obtain a report regarding utilization of such Authorisation from Custom authority at port of registration before issuing duplicate, for balance unutilized. 2.27 Validity of duplicate Authorisation
Validity of duplicate Authorisation shall be co-terminus with original
period. No request shall be entertained if validity has expired.
2.28 Applicability of the provision
Provision of Paragraph 2.26 and 2.27 shall be applicable for cases
covered under both Paragraph 2.23 and 2.24
Bank Guarantee /LUT:
2.29 Execution of BG/Legal undertaking for Advance Authorisation/
EPCG Authorisation
(a)
Before clearance of goods through Customs, Authorisation holder
shall execute a BG/LUT with Customs Authorities. In such cases, RA
shall endorse the following condition on the licence/ Authorisation:
"BG / LUT as applicable, to be executed with concerned Customs
Authorities.
/LUT with Customs Authorities. In such cases, RA
shall endorse the following condition on the licence/ Authorisation:
"BG / LUT as applicable, to be executed with concerned Customs
Authorities.
(b)
In case of indigenous sourcing, Authorisation holder shall furnish
BG/ LUT to RA as per Customs Circular No.58/2004 dated 31.10.04,
as amended from time to time. In case, the firm has already executed
BG/LUT for the full value of the licence/ certificate/ authorisation/
permission (covering the items indigenously procured) to the
29
Customs and furnishes proof of the same to Regional Authority (RA),
no BG/LUT shall be required to be executed with the RA. The RA
concerned shall endorse on the authorisation that the Customs
Authority shall release/redeem BG/LUT only after receipt of NOC or
EODC from the RA concerned. RA shall endorse a copy of the same
along with a forwarding letter to the Customs Authority at the Port of
registration for their information and record.
2.30 Corporate Guarantee
A status holder or a PSU may also submit Corporate Guarantee in lieu of Bank Guarantee/LUT in terms of the provisions of relevant Customs Circular in this regard. 2.31 Advance Payment
In case, payment is received in advance and export / deemed export
takes place subsequently, application for an Authorisation shall be filed
within specific period following the month during which exports/ deemed
export is made, unless otherwise specified.
xport
takes place subsequently, application for an Authorisation shall be filed
within specific period following the month during which exports/ deemed
export is made, unless otherwise specified.
2.32 Import under Lease Financing
Import under lease financing shall be available under EOU/ SEZ scheme.
Domestic supply of capital goods to eligible categories of deemed exports
shall be eligible for benefits of deemed export as in paragraph 7.03 of FTP,
even in cases where supplies are under lease financing.
In case of loss of Documents:
2.33 Issuance of scrips against lost EP copy of the Shipping Bills and / or original Bank Realisation Certificate
Where EP copy of Shipping Bill / original BRC is lost, claim for Scrips under Chapter 3 and Chapter 5 can be considered subject to submission of following documents:
30
(i) A duplicate /certified copy of relevant document issued by Customs Authority / Bank in lieu of original;
(ii) An application fee equivalent to 2% of relevant entitlement. However, no fee shall be charged when such document is lost by Government agencies and a documentary proof to this effect is submitted
(iii) Self-declaration by exporter about loss of document and an undertaking to surrender it immediately to concerned RA, if found subsequently
(iv) Self-declaration by exporter to effect that he would indemnify Government for financial loss if any on account of duty credit issued against lost Shipping Bills / BRC.
found subsequently
(iv)
Self-declaration by exporter to effect that he would indemnify
Government for financial loss if any on account of duty credit issued
against lost Shipping Bills / BRC. Customs Authority, before allowing
clearance, shall ensure that benefit / duty credit against such
shipping bill has not been availed.
2.34 Claims against lost copy of shipping bill
Claim against lost Shipping Bill / BRC shall be preferred within a period
of six months from date of release of duplicate copy of Shipping Bill / date
of realization of export proceeds. Any application received thereafter
shall be rejected.
2.35 Submission of Certified Copies of Documents
Wherever original documents have been submitted to a different RA / nominated agencies or to a different division of same RA, applicant can furnish photocopy of documents duly certified by him in lieu of original. Warehousing Facility:
2.36 Warehousing Facility
(a) Public / Private Customs Bonded Warehouses may be set up in DTA as per Chapter-IX of Customs Act, 1962, to import items in terms of
31
Paragraph 2.36 of FTP. On receipt of goods, such warehouses shall
keep these goods for one year without payment of applicable
customs duties. Goods can be cleared against Bill of Entry for home
consumption, on payment of custom duty and on submission of
Authorisation wherever required, after an order for clearance of
such goods for home consumption is issued by competent customs
authorities. In case of clearance against duty free categories
/concessional duty categories, exemption / concession from duty
shall be allowed.
(b)
Goods can be re-exported without payment of customs duty
provided shipping bill or a bill of export is presented in respect of
such goods; and order for export of such goods has been made by
competent customs authorities.
Certificates:
2.37 Free Sale and Commerce Certificate
(a)
(i) RAs may issue, on application, Free Sale and Commerce certificate
for export of items not covered under Drugs & Cosmetics Act, 1940,
which have usage in hospitals, nursing homes and clinics, for medical
and surgical purposes and are not prohibited for export. Validity of
such certificate shall be two years from date of issue unless
otherwise specified.
(ii) An application for grant of Free Sale and Commerce Certificate
may be made to RA concerned as per format in ANF 2 H of
Appendices and Aayat Niryat Forms with Annexure A therein. RA
shall issue Free Sale and Commerce Certificate as per Annexure B of
ANF2H.
may be made to RA concerned as per format in ANF 2 H of
Appendices and Aayat Niryat Forms with Annexure A therein. RA
shall issue Free Sale and Commerce Certificate as per Annexure B of
ANF2H.
(b) (i) RAs may also issue, on application, Free Sale and Commerce Certificate for export of any other item which is not restricted or prohibited for export. Validity of such certificate shall be two year from date of issue unless otherwise specified.
32
(ii) An application for grant of Free Sale and Commerce Certificate for these items may be made to RA concerned as per format in ANF 2H of Appendices and Aayat Niryat Forms along with Annexure A therein. RA shall issue Free Sale and Commerce Certificate as per Annexure B of ANF 2H. 2.38 End User Certificate
In case of import of any freely importable item in India, if a foreign Government insists on certification of end user of the item, before permitting export of the same from their country, RA may issue such certificates as per Appendix 2Q of Appendices and Aayat Niryat Forms. The certificate shall be issued based on application made under ANF 2 J along with documents prescribed therein. 2.39 Imports under Indo-US Memorandum of Understanding
(a) Import of specified capital goods, raw materials and components, from United States of America (USA) is subject to US Export Control Regulations. US suppliers of such items are required to obtain an export authorisation based on import certificate issued in India.
United States of America (USA) is subject to US Export Control Regulations. US suppliers of such items are required to obtain an export authorisation based on import certificate issued in India. The following are designated Import Certificate Issuing Authorities (ICIA):
(i) Department of Electronics (DoE), for computer and computer based systems
(ii)
Department of Industrial Policy and Promotion (DIPP),
Technical Support Wing (TSW), for organised sector units
registered under it, except for computers and computer based
systems;
(iii) Ministry of Defence (MoD), for defence related items;
(iv)
DGFT for small scale industries and entities not covered above
as well as on behalf of any of the above;
(v)
Embassy of India, Washington, DC, on behalf of any of the
above.
33
(b) Application for an import certificate shall be made in ANF 2K(i).
Import certificate in Appendix-2P(Ia) may be issued by ICIA directly
to importer with a copy to (i) Ministry of External Affairs (MEA)
(AMS Section), New Delhi, (ii) DoE, New Delhi; and (iii) DGFT.
(c) However, this import certificate will not be regarded as a substitute
for an import authorisation in respect of items mentioned as
restricted in ITC (HS) and an import authorisation will have to be
obtained for such items.
ficate will not be regarded as a substitute
for an import authorisation in respect of items mentioned as
restricted in ITC (HS) and an import authorisation will have to be
obtained for such items.
(d)
India’s import and export with regard to USA’s unilateral export
control items [Crime Control (CC) Items as listed in Appendix
2P(iia) and Regional Security (RS) items as listed in Appendix
2P(iib)] will be governed by the following regulations:
Items listed at both Appendix 2P (iia) and Appendix 2P(iib) will be
allowed by DGFT for import from USA provided the importer submits
the following documents in ANF 2K(i) :
(i)
documentary proof of Bill of Lading indicating Port of USA,
(ii)
legal undertaking that goods shall not be exported/ alienated;
and
(iii) Import is with Actual User condition.
(e)
In case the importer wants to subsequently export the imported
items from USA,, or any part thereof, such export will require an
authorisation from DGFT as per ANF 2K(ii) and Export certificate
will be issued in the format Appendix-2P(ib).
(f)
Import /export of such items shall be allowed only through EDI
enabled ports of India.
Imports:
2.40 Import of Consumer or Other goods as Gifts
(a)
In terms of provisions contained in Paragraph 2.25 of FTP, an
application for grant of CCP for import as gifts of items appearing as
restricted for imports in ITC (HS) shall be made to the DGFT as in
ANF 2M along with documents prescribed therein.
f FTP, an application for grant of CCP for import as gifts of items appearing as restricted for imports in ITC (HS) shall be made to the DGFT as in ANF 2M along with documents prescribed therein.
34
(b) Where recipient of a gift is a charitable, religious or an educational
institution registered under any law in force, and gift sought to be
imported has been exempted from payment of customs duty, such
import shall be allowed by customs authorities without a CCP.
2.41 Import of Cheque Books /Ticket Forms etc.
Indian branches of foreign banks, insurance companies and travel agencies may import chequebooks, bank draft forms and travellers cheque forms without a CCP. Similarly, airlines / shipping companies operating in India, including persons authorised by such airlines / shipping companies, may import passenger ticket forms without a CCP. 2.42 Import of Reconditioned/ Second Hand Aircraft Spares
Import Authorisation for reconditioned / second hand aircraft spares is not needed on recommendation of Director General of Civil Aviation, Government of India (DGCA). 2.43 Import of Replacement Goods
Goods or parts thereof on being imported and found defective or otherwise unfit for use or which have been damaged after import, may be exported without an Authorisation, and goods in replacement thereof may be supplied free of charge by foreign suppliers or imported against a marine insurance or marine-cum-erection insurance claim settled by an insurance company.
ds in replacement thereof may
be supplied free of charge by foreign suppliers or imported against a
marine insurance or marine-cum-erection insurance claim settled by an
insurance company. Such goods shall be allowed clearance by the customs
authorities without an import Authorisation provided that:
(a)
Shipment of replacement goods is made within 24 months from
date of clearance of previously imported goods through Customs or
within guarantee period in case of machines or parts thereof where
such period is more than 24 months; and
(b) No remittance shall be allowed except for payment of insurance and
freight charges where replacement of goods by foreign suppliers is
subject to payment of insurance and / or freight by importer and
documentary evidence to this effect is produced while making
remittance.
35
2.44 Other Conditions for Import of Replacement Goods
(a) In case of short-shipment, short-landing or loss in transit, import
of replacement goods will be permitted based on certificate issued
by customs authorities without an import Authorisation.
(b) This procedure shall also apply to cases in which short shipment of
goods is certified by foreign supplier, who has agreed to replace free
of cost.
(c) Cases not covered by above provisions will be considered on merits
by DGFT for grant of Authorisation for replacement of goods for
which an application may be made as per paragraph 2.50 of HBP.
Cases not covered by above provisions will be considered on merits
by DGFT for grant of Authorisation for replacement of goods for
which an application may be made as per paragraph 2.50 of HBP.
2.45 Import of Overseas Office Equipment
On winding up of overseas offices, set up with approval of RBI, used office equipments and other items may be imported without Authorisation. 2.46 Import of Ammunition by Licensed /Authorised Arms Dealers
(a) Import of following types of ammunition are allowed against an
Authorisation by licensed arms dealers subject to conditions as may
be specified:
(i)
Shotgun Cartridges 28 bore;
(ii)
Revolver Cartridges of .450, .455 and .45 bores;
(iii) Pistol Cartridges of .25, .30 Mauser, .450 and .45 bores;
(iv)
Rifle Cartridges of 6.5 mm, .22 savage, .22 Hornet,300
Sherwood, 32/40, .256, .275, .280, 7m/m Mauser, 7 m/m Man
Schoener, 9m/m Mauser, 9 m/m Man Schoener, 8x57, 8x57S,
9.3 m/m, 9.5 m/m, .375 Magnum, .405, .30.06, .270, .30/30
Winch, .318, .33 Winch,.275 Mag., .350 Mag.,400/350, .369
Purdey, .450/400, .470, .32 Win,.458 Win, .380 Rook, .220
Swift and .44 Win. bores.
um, .405, .30.06, .270, .30/30
Winch, .318, .33 Winch,.275 Mag., .350 Mag.,400/350, .369
Purdey, .450/400, .470, .32 Win,.458 Win, .380 Rook, .220
Swift and .44 Win. bores.
36
(b) An import Authorisation shall be issued at 5% of value of annual average sales turnover of ammunition (whether indigenous or imported) during preceding three licensing years subject to a minimum of Rs. 2000. (c) An application for grant of an Authorisation for items listed above may be made to RA in ANF 2M along with documents prescribed therein. 2.47 Duty Free Imports for specific Sectors:
(A) R&D Equipment for Pharmaceuticals and Bio- technology Sector
(i)
Duty free import of goods (as specified in list 28 of Customs
notification No.21/2002 dated 1.3.2002, as amended from
time to time) upto 25% of FOB value of exports during
preceding licensing year, shall be allowed.
(ii) The eligible unit may furnish an application given in Appendix-
8A to RA concerned duly countersigned by Chartered
Accountant.
(iii) In respect of duty free import of R&D equipment, units not
registered with Central excise shall be allowed to give
Installation Certificate issued by an independent Chartered
Engineer.
(B)
Agro-Chemicals Sector :
(i)
Duty free imports of goods as specified in list 28A of Customs
notification No. 21/2002 dated 1.3.2002, upto 1% of FOB value
of exports made during preceding licensing year, shall be
allowed to agro chemicals sector unit having export turnover of
Rs.
Customs
notification No. 21/2002 dated 1.3.2002, upto 1% of FOB value
of exports made during preceding licensing year, shall be
allowed to agro chemicals sector unit having export turnover of
Rs. 20 crore or above during preceding licensing year.
(ii)
The eligible unit shall apply in form given in Appendix-8B to
RA concerned duly countersigned by Chartered Accountant.
(iii) In respect of duty free import of R&D equipment, units not
registered with Central excise shall be allowed to give
37
Installation Certificate issued by an independent Chartered Engineer. 2.48 Import under Govt. to Govt. Agreements
Import of goods under Government to Government agreements may be
allowed without an Authorisation or CCP on production of necessary
evidence to satisfaction of Customs authorities.
2.49 Transfer of Imported Goods
(a) Cases where prior permission is required: Transfer of imported goods which are subject to Actual User condition and have become surplus to needs of Actual User, shall be made only with prior permission of RA concerned.
ission is required:
Transfer of imported goods which are subject to Actual User condition and
have become surplus to needs of Actual User, shall be made only with prior
permission of RA concerned. Following information alongwith supporting
documents shall be furnished with request for grant of permission for
transfer, to RA concerned:
(i)
Reasons for transfer of imported material;
(ii) Name, address, IEC number and industrial Authorisation
registration, if any, of transferee;
(iii) Description, quantity and value of goods imported and those
sought to be transferred;
(iv)
Copies of import Authorisation and bills of entry relating to
imports made;
(v)
Terms and conditions of transfer as agreed upon between
buyer and seller.
(b)
Cases where prior permission is not required
(i)
in case of sale or otherwise by importer of freely importable
goods;
(ii)
for goods imported with Actual User condition, provided such
good is freely importable without Actual User condition on
date of transfer
rwise by importer of freely importable
goods;
(ii)
for goods imported with Actual User condition, provided such
good is freely importable without Actual User condition on
date of transfer
38
(iii) for goods with AU Condition after a period of two years from
the date of import.
(iv) for transfer of Imported Firearms (a) after 10 years of import
or (b) on attaining the age of 60 years by such importer.
(v)
for transfer of weapon/s (firearm/s) imported by a Renowned
Shooter (as defined in Policy Condition 3 of Chapter 93 of ITC
(HS) 2012) for the purpose of his/her pursuing shooting as a
sport to any upcoming shooter as certified either by the
National Rifle Association of India (NRAI) or the Department of
Sports, Ministry of Youth Affairs & Sports after two years from
the
date
of
import.
The
transferee
can subsequently
transfer/resell to any buyer as certified by the NRAI or
Department of Sports for the sole purpose of pursuing shooting
as a sport after one year from the date of its first sale. Such
transfer/sale is subject to the provisions of the Arms Act, 1959
and
other
rules/regulations
by
state/local
police.
NRAI/Department of Sports will maintain the required records.
Import of Restricted Items:
2.50 Import of Restricted Items
An application for grant of an Authorisation for import or export of items mentioned as ‘Restricted’ in ITC (HS) may be made to RA, with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein.
ion for grant of an Authorisation for import or export of items mentioned as ‘Restricted’ in ITC (HS) may be made to RA, with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein. Original application along with Treasury Receipt (TR) / Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA. 2.51 EXIM Facilitation Committee
(a) Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf. DGFT / RA may take assistance and advice of a Facilitation Committee while granting authorisation. The Assistance of technical authorities may also be
39
taken by seeking their comments in writing. Facilitation Committee will consist of representatives of Technical Authorities and Departments / Ministries concerned. (b) Import authorisations 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. However, for import of rough marble, port of registration is mandatory and the applicant must indicate the same in the application itself.
s per the option indicated, in
writing, by the applicant. However, for import of rough marble, port
of registration is mandatory and the applicant must indicate the same
in the application itself. Authorisation holder shall register the
import authorisation at the port specified in the Authorisation and
thereafter all imports against said authorisation shall be made only
through that port, unless the authorisation holder obtains permission
from customs authority concerned to import through any other
specified port.
2.52 Import of Restricted Items Required by Hotels, Restaurants,
Travel Agents, Tour Operators and other Specified Categories
Items mentioned as restricted for imports in ITC (HS) required by
hotels, restaurants, travel agents and tour operators may be allowed
against an Authorisation, based on recommendation of Director General,
Tourism, Government of India.
(a) Hotels, including tourist hotels, recognised by Director General
of Tourism, Government of India or a State Government shall be
entitled to import Authorisation upto a value of 25% of foreign
exchange earned by them from foreign tourists during preceding
licensing year, for import of essential goods related to hotel and
tourism industry.
risation upto a value of 25% of foreign
exchange earned by them from foreign tourists during preceding
licensing year, for import of essential goods related to hotel and
tourism industry.
(b)
Travel agents, tour operators, restaurants, and tourist
transport operators and other units for tourism, like adventure/
wildlife and convention units, recognized by Director General of
Tourism, Government of India, shall be entitled to import
authorisation up to a value of 10% of foreign exchange earned by
them during preceding licensing year, for import of essential goods
which are restricted for imports related to travel and tourism
40
industry, including office and other equipment required for their own
professional use.
(c)
Import entitlement under paragraphs 2.52 (a) and 2.52 (b) of any
one licensing year can be carried forward, either in full or in part, and
added to import entitlement of two succeeding licensing years.
(d)
Such imported goods may be transferred after 2 years with
permission of DGFT. No permission for transfer will be required in
case the imported goods are re-exported. However, re-export shall be
subject to all conditionality, or requirement of licence, or permission,
as may be required under Schedule II of ITC (HS).
(e) An application for grant of an Authorisation under paragraphs 2.52
(a) and 2.52 (b) may be made in ANF 2 M to DGFT through Director
of Tourism, Government of India who will forward application to RA
concerned along with their recommendations.
nder paragraphs 2.52 (a) and 2.52 (b) may be made in ANF 2 M to DGFT through Director of Tourism, Government of India who will forward application to RA concerned along with their recommendations. 2.53 Import of Restricted items for R&D by units of Government
All restricted items and items permitted to be imported by STEs, except live animals, required for R&D purpose may be imported without an Authorisation by Government recognized Research and Development units. 2.54 Import of Metallic Waste and Scrap
Import of any form of metallic waste, scrap will be subject to the condition
that it will not contain hazardous, toxic waste, radioactive contaminated
waste / scrap containing radioactive material, any type of arms,
ammunition, mines, shells, live or used cartridge or any other explosive
material in any form either used or otherwise.
(a)
Import of following types of metallic waste and scrap will be free
subject to conditions detailed below:
Sl.
Exim Code
Item description
1.
720410 00 Waste and scrap of cast iron
2.
72042190
Other
3.
72042920
Of High speed steel
4.
72042990
Other
ree
subject to conditions detailed below:
Sl.
Exim Code
Item description
1.
720410 00 Waste and scrap of cast iron
2.
72042190
Other
3.
72042920
Of High speed steel
4.
72042990
Other
41
72043000 Waste and scrap of tinned iron or Steel 6. 72044100 Turnings, shavings, chips, milling waste, saw dust, fillings, trimmings and stampings, whether or not in bundles. 7. 72044900 Other 8. 72045000 Re-melting scrap ingots 9. 74040010 Copper scrap 10. 74040022 Brass scrap 11. 75030010 Nickel scrap 12. 76020010 Aluminium scrap 13. 79020010 Zinc scrap 14. 80020010 Tin scrap 15. 81042010 Magnesium scrap
(b)
‘Freely’ Importable metallic waste and scraps (shredded) as listed
above shall be permitted through all ports of India subject to
following conditions:
(i)
At the time of the clearance of goods, importer shall furnish to
the Customs pre-shipment inspection certificate as per the
format to Appendix 2H from any of the Inspection &
Certification agencies given in Appendix-2G, to the effect that
the consignment was checked for radiation level and scrap
does not contain radiation level (gamma and neutron) in excess
of natural background. The certificate shall give the value of
background radiation level at that place as also the
maximum radiation level on the scrap; and
(ii)
Importer shall also furnish copy of the contract with the
exporter stipulating that the consignment does not contain any
radioactive contaminated material in any form.
evel on the scrap; and
(ii)
Importer shall also furnish copy of the contract with the
exporter stipulating that the consignment does not contain any
radioactive contaminated material in any form.
(c) Import from Hodaideh, Yemen and Bandar Abbas, Iran will be in
shredded form only.
(d)
Import of un-shredded compressed and loose form of metallic waste,
scrap listed in paragraph 2.54(a) above in shall be subject to the
following conditions:-
42
(i)
At the time of the clearance of goods, importer shall furnish to
the Customs pre-shipment inspection certificate as per the
format in Appendix 2H from any of the Inspection&
Certification agencies given in Appendix-2G to the effect that
the consignment does not contain any type of arms,
ammunition, mines, shells, cartridges, or any other explosive
material in any form either used or otherwise, and that the
consignment was checked for radiation level and it does not
contain radiation level (gamma and neutron) in excess of
natural background. The certificate shall give the value of
background radiation level at that place as also the maximum
radiation level on the scrap.
(ii)
The imported item (s) is actually a metallic waste/ scrap
/seconds /defective as per the internationally accepted
parameters for such a classification.
maximum
radiation level on the scrap.
(ii)
The imported item (s) is actually a metallic waste/ scrap
/seconds /defective as per the internationally accepted
parameters for such a classification.
(iii) Copy of the contract between the importer and the exporter
stipulating that the consignment does not contain any type of
arms, ammunition, mines, shells, cartridges, radioactive
contaminated, or any other explosive material in any form
either used or otherwise.
(iv) Import of scrap would take place only through following
designated ports and no exceptions would be allowed even in
case of EOUs, SEZs:-
“1. Chennai, 2. Cochin, 3. Ennore, 4. JNPT, 5. Kandla, 6.
Mormugao, 7. Mumbai, 8. New Mangalore, 9. Paragraphdip,
10. Tuticorin, 11.Vishakhapatnam, 12.ICD Loni, Ghaziabad, 13.
Pipava, 14. Mundra, 15. Kolkata, 16. ICD Ludhiana, 17. ICD
Dadri (Greater Noida), 18. ICD Nagpur, 19. ICD Jodhpur, 20.
ICD Jaipur, 21. ICD Udaipur, 22. CFS Mulund, 23. ICD Kanpur,
24. ICDAhmedabad, 25. ICD Pitampur and 26. ICD Malanpur”.
Dadri (Greater Noida), 18. ICD Nagpur, 19. ICD Jodhpur, 20.
ICD Jaipur, 21. ICD Udaipur, 22. CFS Mulund, 23. ICD Kanpur,
24. ICDAhmedabad, 25. ICD Pitampur and 26. ICD Malanpur”.
43
2.55 Recognition as Pre-shipment Inspection Agency (PSIA) and issuance of Pre- shipment Certificate (PSIC)
(a) Application for recognition in respect of PSIAs have to be made in proforma prescribed in ANF 2L. (b) For applicants based in India application fee will be Rs. 7500/- and for applicants based abroad the application fee will be US $200. The fees may be amended from time to time by DGFT. (c) The applications will be considered by an Inter- Ministerial Committee. (d) The PSIAs will be issued a recognition certificate valid for three years. However, DGFT has the right to suspend/cancel such a certificate at any time during the 3 year term. At the end of 3 years PSIA has to make a fresh application for further recognition. (e) PSIA shall issue Pre-Shipment Inspection Certificate (PSIC) in the format given in Appendix 2H. (f) A PSIA can carry out inspections in countries within its area of operation, where it does not have a full time equipped branch office, by deputing its Inspectors. However, for such inspections, the PSIA will be required to give prior intimation to DGFT by sending an email (at address psia-dgft@nic.in) and furnishing details of visit / inspection done by the Inspector in PSIC.
nspections, the PSIA will be required to give prior intimation to DGFT by sending an email (at address psia-dgft@nic.in) and furnishing details of visit / inspection done by the Inspector in PSIC. 2.56 Responsibility and Liability of PSIA and Importer
(a) In case of any mis-declaration in PSIC, PSIA would be liable to pay a
penalty upto Rs. 10 Lakh (if the agency is based in India) or up to US
$20,000/- (if the agency is based in a foreign country), in addition to
suspension/ cancellation of recognition.
(b)
The importer and exporter would be jointly and severally
responsible for ensuring that the material imported is in accordance
with the declaration given in paragraph 2.55 of Handbook of
Procedures. They shall also be responsible for import of any material
in contravention of the declaration as required under Paragraph
44
2.55 of Handbook of Procedures and would be liable to pay penalty
up to Rs 10 Lakh.
(c) The scanned copy of the PSIC (in pdf format) shall be uploaded by
the PSIA on DGFT website. The certificate shall be issued in
prescribed form Appendix 2H.
to pay penalty
up to Rs 10 Lakh.
(c) The scanned copy of the PSIC (in pdf format) shall be uploaded by
the PSIA on DGFT website. The certificate shall be issued in
prescribed form Appendix 2H.
(d)
The PSIA will make a video clip of 3-5 minutes of the inspection
carried out in mp3/mp4/flv/wav format, duly capturing the
following activities/details:
(i) the time, date, place of the inspection
(ii) photographs of the exporter and representative of the importer (if available)
(iii) the name and identity number of inspector
(iv) instrument number
(v) the container number
(vi) the event of stuffing of container and sealing of the same
(vii) the carriage and its registration number on which the container is loaded
(viii) the process of signing of the PSIA certificate by the authorised person. (e) The video clip and PSIC will be uploaded on DGFT website by PSIA, through digital signatures. These would be available to the concerned customs authorities to view & verify the same. Till such time the DGFT website link is operationalised, the PSIC and video clip will be e-mailed (psia-dgft@nic.in) to the DGFT and the concerned customs authorities by the Authorised Signatory of PSIA. 2.57 Import of other kinds of metallic waste and scraps
Import of other kinds of metallic waste and scrap will be allowed in terms of conditions of ITC (HS).
y the Authorised Signatory of PSIA. 2.57 Import of other kinds of metallic waste and scraps
Import of other kinds of metallic waste and scrap will be allowed in terms of conditions of ITC (HS).
45
2.58 Imports of seconds and defectives
Import policy for second and defective, rags, PET bottles /waste, and ships is given in ITC (HS). 2.59 Services of Inspection and Certification Agencies
Customs or any other Central or State Government authority may avail of services of Inspection and Certification Agencies in Appendix 2G of the Appendices and Aayat Niryat Forms, for certifying residual life as well as valuation / purchase price of capital goods. Tariff Rate Quota Scheme:
2.60 Procedure for import under the Tariff Rate Quota Scheme
Attention is invited to Government of India, Ministry of Finance
(Department of Revenue), Notification No. 21/2002- Customs dated
01.03.2002 and Notification No. 33/2010- Customs dated 12.03.2010. As
per these, import of four items viz., (1) Skimmed and whole milk powder,
milk food for babies etc. (0402.10 or 0402.21) and White Butter, Butter oil,
Anhydrous Milk Fat (0405) (2) Maize (corn): other (1005.90) (3) Crude
sunflower seed or safflower oil or fractions thereof (1512.11) and (4)
Refined rape, colza or mustard oil, other (1514.19 or 1514.99) is allowed in
a financial year, up to quantities as well as such concessional rates of
customs duty as indicated below:
Descriptio
n
HS No.
pe, colza or mustard oil, other (1514.19 or 1514.99) is allowed in a financial year, up to quantities as well as such concessional rates of customs duty as indicated below: Descriptio n
HS No.
In/out
of
quota
rate
(%)
as per
WTO
In/out of
quota
rate (%)
As per
Indian
Tariff
Notification
TRQ
Skimmed Milk powder/ whole milk powder
040210 15/60 15/60 12/12-Cus Sl. No. 7 10,000M T 040221 15/60 15/60 12/12-Cus Sl. No. 7
46
Maize (corn), other than seed quality 100590 15/60 0/50 12/12-Cus Sl. No. 37/38 5,00,000 MT Crude sunflower seed oil and safflower seed oil 151211 50/300 50/75 12/12-Cus Sl. No. 60/61 1,50,000 MT Rape, colza or mustard oil 151419 45/75 45/10 12/12-Cus Sl. No. 64/66 1,50,000 MT
151499 45/75 45/10 12/12-Cus Sl. No. 64/66 Butter and other fats 040510 n.a. 0/30 12/12-Cus Sl. No. 9 15,000M T
040590 10
0/30 12/12-Cus Sl. No. 9
040590 20
0/30 12/12-Cus Sl. No. 9 Butter and other fats 040520 n.a. 0/40 12/12-Cus Sl. No. 9 15,000M T
040590 90
0/40 12/12-Cus Sl. No. 9
2.61 Eligible entities for allocation of quota
(a) Milk Powder (Tariff Code No. 0402.10 or 0402.21) and White Butter,
Butter oil, Anhydrous Milk Fat (0405): National Dairy Development
Board (NDDB), State Trading Corporation (STC), National
Cooperative
Dairy
Federation
(NCDF),
National
Agricultural
Cooperative Marketing Federation of India Ltd.
tional Dairy Development
Board (NDDB), State Trading Corporation (STC), National
Cooperative
Dairy
Federation
(NCDF),
National
Agricultural
Cooperative Marketing Federation of India Ltd. (NAFED), Minerals
and Metals Trading Corporation (MMTC), Projects & Equipment
Corporation of India Limited (PEC) and Spices Trading Corporation
Limited (STCL).
(b)
Maize (corn)(Tariff Code No. 1005.90): National Agricultural
Cooperative Marketing Federation of India Ltd.(NAFED), State
Trading Corporation (STC), Minerals and Metals Trading Corporation
(MMTC), Projects & Equipment Corporation of India Limited(PEC),
47
Spices Trading Corporation Limited (STCL) and State Cooperative Marketing Federations (c) Crude sunflower seed or safflower oil or fractions thereof (Tariff Code No. 1512.11) and Refined rape, colza, canola or mustard oil, other (Tariff Code No. 1514.19 or 1514.99): National Dairy Development Board (NDDB), State Trading Corporation (STC), National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED),Spices Trading Corporation Limited (STCL) and Central Warehousing Corporation (CWC), State Cooperative Marketing Federation & State Cooperative Civil Supplies Corporation. 2.62 Conditions applicable on availing quotas
All eligible entities are eligible to avail quotas subject to the conditions as
detailed below:
(i)
All eligible entities desiring availment of quota as mentioned above,
may make application to EFC in ANF 2M to DGFT, Udyog Bhavan,
New Delhi – 110 011.
onditions as
detailed below:
(i)
All eligible entities desiring availment of quota as mentioned above,
may make application to EFC in ANF 2M to DGFT, Udyog Bhavan,
New Delhi – 110 011. Completed application forms along with
prescribed documents must reach on or before 1st March of each
financial year preceding to the year of quota
(ii)
Imports have to be completed before 31st March of financial year i.e.
consignments must be cleared by customs authorities before
this date.
(iii) Since import of maize (corn) is through STEs, the allottees of quota
i.e. designated agencies in paragraph 2.61 (b) above for this item
shall also be granted an import Authorisation for allotted quantities
as indicated at Sl. No. 21 (b) of Customs Notification No.
21/2002 dated 1.3.2002 in terms of paragraph 2.20 of FTP, 2015-
2020.
(iv) Application fee for these applications shall be paid according to
procedure contained in Appendix 2K of Appendices & Aayat Niryat
Forms.
(v)
EFC in DGFT will evaluate and allot quota among applicants by 31st
March of each financial year preceding to year of quota.
dure contained in Appendix 2K of Appendices & Aayat Niryat
Forms.
(v)
EFC in DGFT will evaluate and allot quota among applicants by 31st
March of each financial year preceding to year of quota.
48
Exhibits and Samples:
2.63 Exhibits Required for National and International Exhibitions or Fairs and Demonstration
(a) Import / export of exhibits, which are freely importable/exportable, including construction and decorative materials required for the temporary stands of foreign / Indian exhibitors at exhibitions, fair or similar show or display for a period of six months on re-export / re- import basis, shall be allowed without an Authorisation on submission of a bond/ security to Customs and ATA Carnet. (b) Extension beyond six months for re-export / re-import will be considered by Customs authorities on merits. Consumables such as paints, printed material, pamphlets, literature etc. pertaining to exhibits need not be re-exported/re-imported. 2.64 Sale of Exhibits
(a)
Restricted Items: Sale of exhibits of restricted items, mentioned in
ITC (HS), imported for an international exhibition / fair may also be
made, without an Authorisation within bond period allowed for re-
export, on payment of applicable customs duties, subject to a ceiling
limit of Rs.5 lakh (CIF) for such exhibits for each exhibitor.
(b)
Freely importable items: However, sale of exhibits of items which are
freely importable shall be allowed within bond period allowed for re-
export on payment of applicable customs duties.
or.
(b)
Freely importable items: However, sale of exhibits of items which are
freely importable shall be allowed within bond period allowed for re-
export on payment of applicable customs duties.
(c)
If goods brought for exhibition are not re-exported or sold within
bond period due to circumstances beyond control of importer,
Customs Authorities may allow extension of bond period on merits.
2.65 Import of Samples
(a) No Authorisation shall be required for Import of bonafide technical and trade samples of items restricted in ITC (HS) except vegetable seeds, bees and new drugs. Samples of tea not exceeding
49
Rs.2000 (CIF) in one consignment shall be allowed without an Authorisation by any person connected with Tea industry.
(b) Duty free import of samples upto Rs.3,00,000 for all exporters shall
be allowed as per terms and conditions of Customs Notification.
2.66 Exports of Samples / Exhibits
(a)
Exports of bonafide trade and technical samples of freely exportable
item shall be allowed without any limit.
(b)
An application for export of samples/exhibits, which are restricted
for export, may be made to DGFT as per ANF-2Q.
Exports :
2.67 Export Policy
Policy relating to Exports is given in Chapter-2 of FTP. Further, Schedule 2, Appendix-1 of ITC (HS) specifies list of items, which may be exported without an Authorisation but subject to terms and conditions specified.
orts is given in Chapter-2 of FTP. Further, Schedule 2, Appendix-1 of ITC (HS) specifies list of items, which may be exported without an Authorisation but subject to terms and conditions specified. 2.68 Gifts / Spares / Replacement Goods
For export of gifts, indigenous / imported warranty spares and replacement goods in excess of ceiling / period prescribed for exports of Gifts; export of Spares and export of replacement goods in FTP, an application may be made to DGFT in ANF 2Q. 2.69 Export of Items Reserved for MSME Sector
Units other than small scale units are permitted to expand or create new
capacities in respect of items reserved for small scale sector, subject to
condition that they obtain an Industrial licence under the Industries
(Development and Regulation) Act, 1951, with export obligation as may be
specified. Such licensee is required to furnish a LUT to RA and DGFT in this
regard. DGFT / RA concerned shall monitor export obligation.
Regulation) Act, 1951, with export obligation as may be
specified. Such licensee is required to furnish a LUT to RA and DGFT in this
regard. DGFT / RA concerned shall monitor export obligation.
50
2.70 Export by post
In case of export by post, exporter shall submit following documents in lieu of documents prescribed for export by sea/air: (a) Bank Certificate of Export and Realisation as in e-BRC in Appendix2U (b) Relevant postal receipt (c) Invoice duly attested by Customs Authorities. 2.71 Direct negotiation of export documents
In cases where exporter directly negotiates document (not through
authorised dealer) with permission of RBI, he is required to submit
following documents for availing of benefits under export promotion
schemes:
(a)
Permission from RBI allowing direct negotiation of documents
(not required for status holders),
(b)
Copy of Foreign Inward Remittance Certificate (FIRC) as per Form
10-H of Income Tax department in lieu of BRC, and
(c)
Statement giving details of shipping bills / invoice against which
FIRC was issued.
SCOMET:
2.72 Application for Grant of Export Authorisation/Certificate/ Permission for non-SCOMET Items
An application for grant of Export Authorisation in respect of restricted
items [other than Special Chemicals, Organisms, Materials, Equipment and
Technologies (SCOMET)] mentioned in Schedule 2 of ITC (HS)
Classifications of Export and Import Items may be made in ANF 2 N to
DGFT (Headquarters) along with documents prescribed therein.
d
Technologies (SCOMET)] mentioned in Schedule 2 of ITC (HS)
Classifications of Export and Import Items may be made in ANF 2 N to
DGFT (Headquarters) along with documents prescribed therein. EFC shall
consider applications on merits for issue of export Authorisation.
51
2.73 Application for SCOMET Authorisation
(a) An application for grant of Export Authorisation in respect of SCOMET items mentioned in Appendix 3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items may be made in ANF 2 O to DGFT (Hqrs) along with documents prescribed therein.
(b)
However, such applications are mandatorily to be filed through
online system under the Icon E-COM on the website of DGFT. The
Uniform Resource Locator [URL] for online application is
http://dgft.gov.in/CallModule.asp?sch =SCOMET. While submitting
the online application, all the required documents including End User
Certificates (EUCs) are to be uploaded as PDF files. Manual
submission of application is dispensed with except the original End
User Certificate(s) in Appendix 2 S from all entities in the chain of
supply viz. the foreign buyer, end user and intermediary/consignee
(if they are different from the foreign buyer & end user), which is/are
to be submitted in hard copy to SCOMET Section of DGFT (HQ),
besides electronic submission.
user and intermediary/consignee (if they are different from the foreign buyer & end user), which is/are to be submitted in hard copy to SCOMET Section of DGFT (HQ), besides electronic submission. 2.74 Inter Ministerial Working Group
An Inter-Ministerial Working Group (IMWG) in DGFT (Hqrs.) 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 guidelines:
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 security or foreign policy goals
and objectives, goals and objectives of global non-proliferation, or
ming of its export, to contribute to end-uses that are not in conformity with India’s national security or foreign policy goals and objectives, goals and objectives of global non-proliferation, or
52
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, to which India is a party, to the case under
consideration.
II.
Application shall be accompanied by an end user certificate as per
Appendix 2S, 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
Government 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
exported, the name of the importer, the specific end-use of the
subject goods and details of Purchase Order/Contract.
IV.
III.
The end-user certificate will indicate the name of the item to be
exported, 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.
V.
Licensing authority for items in Category 0 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
53
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.
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 of mass destruction.
VII. Authorisations for export of items in SCOMET List (other than
those under Category 0, 1 and 2) solely for purposes of display or
exhibition shall not require any end-use or end-user certification.
isations for export of items in SCOMET List (other than those under Category 0, 1 and 2) solely for purposes of display or exhibition shall not require any end-use or end-user certification. However, no export Authorisation for display or exhibition shall be issued for ‘Technology’ in any category 2.75 Applicability of WMD Act
Export of items not on SCOMET List may also be regulated under
provisions of the Weapons of Mass Destruction and their Delivery Systems
(Prohibition of Unlawful Activities) Act, 2005.
Note 1:
Export or attempt to export in violation of any of conditions of
Authorisation shall invite civil and/or criminal prosecution.
Note 2:
Authorisations for export of items in SCOMET List for display
or exhibition abroad are subject to a condition of re-import
within a period not exceeding six months. Exporters are
entitled to apply for an export authorisation for such items
exhibited abroad. If exhibitor intends to offer that item for sale
during exhibition abroad, such sale shall not take place without
a valid Authorisation.
Note 3:
Export of items in Category 2 of SCOMET list may also be
controlled by other applicable guidelines issued from time-to
time.
ch sale shall not take place without
a valid Authorisation.
Note 3:
Export of items in Category 2 of SCOMET list may also be
controlled by other applicable guidelines issued from time-to
time.
54
Note 4:
Exporters are entitled to request that only such conditions
need be imposed as are subject of government-to-government
instruments of accord over export of items on SCOMET List.
Note 5:
‘Technology’ (see also entry ‘Technology’ in glossary in
Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export
and Import Items): Approval of export of an item on the
SCOMET List also authorizes the export to same end-user of
minimum ‘technology’ required for installation, operation,
maintenance and repair of the item.
2.76 Supply of SCOMET Items from DTA to SEZ
No export authorisation is required for supply of SCOMET items from DTA to SEZ. However, all supplies of SCOMET items from DTA to SEZ will be reported to the Development Commissioner of the respective SEZ by the supplier in the prescribed proforma [Annexure 1 to Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items] within one week of the supplies getting effected. An annual report of such supplies from DTA to SEZ shall be sent to SCOMET Section, DGFT (Hqrs), Department of Commerce, Udyog Bhawan, Maulana Azad Road, New Delhi- 110011, by the Development Commissioner (DC), SEZ in the prescribed proforma [Annexure 2 to Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items].
a Azad Road, New Delhi- 110011, by the Development Commissioner (DC), SEZ in the prescribed proforma [Annexure 2 to Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items]. Report by the DC, SEZ is to be filed by 15th May of every financial year for the supplies effected during the preceding financial year. Export Authorisation is, however, required if the SCOMET items are to be physically exported outside the country from SEZ i.e. to another country (Refer Rule 26 of the SEZ Rules, 2006). 2.77 Outreach Programmes on SCOMET Export Control System
DGFT in association with Administrative Ministries/ Departments and
Trade Associations will organize Industry Outreach Programme on regular
basis for an effective awareness among the exporters/ importers dealing
with trade, in particular, in SCOMET items.
55
2.78 Procedure/ Guidelines for filing / Evaluation of Applications for Entering into an Arrangement or Understanding for Site Visits, On-site Verification and Access to Records / Documentation
An application for entering into an arrangement or understanding involving site visit, on-site verification or access to records/documentation by a foreign government or a foreign third party either acting directly or through an Indian party as mentioned in Appendix 3 of Schedule 2 of ITC (HS) Classifications of Export and Import Items shall be made in ANF 2 P to DGFT (Hqrs.), New Delhi along with documents prescribed therein.
an party as mentioned in Appendix 3 of Schedule 2 of ITC
(HS) Classifications of Export and Import Items shall be made in ANF 2 P to
DGFT (Hqrs.), New Delhi along with documents prescribed therein. These
applications shall be considered by an Inter-Ministerial Working Group
(IMWG) in DGFT (Hqrs.) based on following guidelines/general criteria:
I.
Following factors, among others, will be taken into account in the
evaluation of applications for entering into an arrangement or
understanding for site visits, on-site verification and access to
records/ documentation:
(a)
Purpose for which arrangement / understanding is proposed
under which site visit or on-site verification or access to
records/documentation is to be undertaken.
(b)
Credentials and details of the parties involved.
(c)
Credentials of end-user, credibility of declarations of end-use of
the items or technology, the integrity of chain of transmission
of the item from the supplier to the end-user, and on the
potential of the item or technology, including the timing of its
export, to contribute to end-uses that are not in conformity
with India’s national security or foreign policy goals and
objectives, the objectives of global non-proliferation, or its
obligations under treaties to which it is a State party.
(d)
The assessed risk that the arrangement / understanding could
lead to dual-use items and technology falling into the hands of
terrorists, terrorist groups and non-State actors.
a State party.
(d)
The assessed risk that the arrangement / understanding could
lead to dual-use items and technology falling into the hands of
terrorists, terrorist groups and non-State actors.
(e)
In case site visit, on-site verification or access to records/
documentation is to be carried out by a foreign government
56
or its representative(s), the following shall be taken into
consideration :-
(i)
Export control measures instituted by the foreign
government;
(ii)
Capabilities and objectives of programs of the foreign
government relating to weapons and their delivery.
(f)
Applicability of relevant bilateral and multilateral agreements
to which India is a party.
(g)
Assessment of any threat that such site visit, on-site
verification or access to records/ documentation may pose to
India’s national security, and relations with any other country.
(h) Assessment of possible links of the foreign parties with
terrorist organizations and non-state actors within their own
country or in any other country.
II.
Permission for arrangement or understanding involving site visit, on-
site verification or access to records / documentation will be subject
to the following conditions:
(a) Site visit, on-site verification or access to records
/documentation will be confined to the purpose, sites and
activity for which permission given/which have been
mentioned in the authorisation.
(b)
Site
visit,
on-site
verification
or
access
to
records/
documentation will be allowed only to individuals mentioned
in the authorisation.
(x) India - Malaysia CECA
(c)
The list of Preferential Trade Agreements (PTAs) signed by India are:
(i)
Asia Pacific Trade Agreement (APTA)
(ii)
Global System of Trade Preferences (GSTP)
67
(iii) India - Afghanistan PTA (iv) India - MERCOSUR PTA (v) India - Chile PTA (vi) SAARC Preferential Trading Arrangement (SAPTA)
(d) The list of these agreements with the participating countries as well as their entry into force is given in Appendix 2A. 2.104 Unilateral Tariff Preferences
Under these schemes, both developed and developing countries grant unilateral tariff preferences to exports from developing countries including Least Developed Countries (LDCs). Some of these schemes are: (A) Generalised System of Preferences (GSP):
(a) GSP is a non-contractual instrument by which industrialized (developed) countries unilaterally and based on non- reciprocity extend tariff concessions to developing countries. Following countries extend tariff preferences under their GSP Scheme: (i) United States of America (ii) New Zealand (iii) Belarus (iv) European Union (v) Japan (vi) Russia (vii) Canada (viii) Norway (ix) Australia (only to LDCs) and (x) Switzerland
(b) GSP schemes of these countries detail sectors / products and tariff lines under which benefits are available, including conditions and procedures governing benefits. These schemes are renewed and modified from time to time.
ies detail sectors / products and tariff lines under which benefits are available, including conditions and procedures governing benefits. These schemes are renewed and modified from time to time. Normally Customs of GSP offering countries require information in Form ‘A’ (prescribed for GSP Rules Of Origin) duly filled by exporters of beneficiary countries and certified by authorised agencies. List of agencies authorised to issue GSP CoO is given in Appendix-2 C.
(B) Duty Free Tariff Preference (DFTP) Scheme for LDCs:
(a) The mandate for Duty Free Quota Free (DFQF) access to Least Developed Countries (LDCs) came from Paragraph 47 of the
68
Hong Kong Ministerial Declaration of December 2005. India became the first developing country to extend this facility to LDCs through its Duty Free Tariff Preference (DFTP) Scheme for LDCs which came into effect in August, 2008 with tariff reductions spread over five years. The Scheme provided preferential market access on tariff lines that comprise 92.5% of global exports of all LDCs.
(b) Subsequently in 2014, the Scheme was modified both with reference to increase in coverage as well as its simplification. This was in response to requests from several LDCs for additional product coverage on lines of of their export interest and simplification of the Rules of Origin procedures.
as its simplification.
This was in response to requests from several LDCs for
additional product coverage on lines of of their export interest
and simplification of the Rules of Origin procedures. Under the
new expanded DFTP Scheme, India is granting duty free access
on 96.4% of the total tariff lines, thereby retaining only about
3.6% of lines in the Exclusion and Positive Lists.For details
Department of Commerce’s website: http://commerce.gov.in/
trade/ international _tpp _DFTP.pdf. and Customs’ Notification
No.8/2014 dated 1st April, 2014 may also be referred to in this
regard.
2.105 Certificates of Origin (CoO)
(a) Certificate of Origin (CoO) is an instrument to establish evidence on origin of goods imported into any country.
(b) There are two categories of CoO viz.
(i)
Preferential and
(ii) Non preferential
2.106 Rules of Origin (Preferential)
(a)
The rules of origin are the rules that determine the origin of a good
for the purpose of exports to a trading partner. Under an FTA, PTA or
a unilateral tariff concession, the tariff concessions are granted by an
importing country only when these prescribed rules of origin are
pose of exports to a trading partner. Under an FTA, PTA or a unilateral tariff concession, the tariff concessions are granted by an importing country only when these prescribed rules of origin are
69
adhered to. Rules of origin also facilitate in computation of trade statistics and for determination and imposition of trade remedial measures.
(b)
Some of the key criteria used in the determination of the rules of
origin are:
(i)
Wholly obtained
(ii)
Change in tariff classification
(iii) Value addition
(iv)
Non minimal operations
(c)
For exports under India’s FTAs, PTAs and GSP, specified agencies are
authorised to issue the certificates of origin, They shall also provide
services relating to issue of CoO, including details regarding rules of
origin, list of items covered by an agreement, extent of tariff
preference, verification and certification of eligibility. The list of these
agencies authorised under the various FTAs/ PTAs is given in
Appendix 2B
(d)
Export Inspection Council (EIC) is the agency authorised to print
blank certificates. The website of the EIC (www.eicindia.gov.in)
provides procedural details (including fee) for issuance of the
certificate of origin.
2.107 TRQ under FTA/CECA
Government, from time to time, undertakes commitments for import under Tariff Rate Quota (TRQ) in various FTA/CECA. Accordingly, DGFT notifies the procedure for administration of TRQ from time to time. The Tariff Rate Quotas as existing is as under:
for import under Tariff Rate Quota (TRQ) in various FTA/CECA. Accordingly, DGFT notifies the procedure for administration of TRQ from time to time. The Tariff Rate Quotas as existing is as under:
70
Descrip- tion
HS No.
In/out of quota rate (%) as per WTO In/out of quota rate (%) As per Indian Tariff
Notification
TRQ
Vanaspati,
bakery
shortening
and
margarine
from Sri
Lanka
1516, 1517
or 1518
(other than
15161000,
15171010,
15179030
and
15180040
which are
prohibited
for import)
No.2/2007-
Customs
dated 5th
January
2007
*2,50,00
0
MT
Pepper
from Sri
Lanka
0904
No.2/2007-
Customs
dated 5th
January
2007
*2500
MT
Desiccated
Coconut
from Sri
Lanka
08011100
No.2/2007-
Customs
dated 5th
January
2007
*500 MT
Articles of
apparel and
clothing
accessories
imported
from Sri
Lanka
61, 62
5%/10 % 26/2000-Cus List 3 8 million pieces Tea and preparagrap htions thereof imported from Sri 2101
15%/30 % 26/2000-Cus List 4 15 million kgs.
rted from Sri Lanka 61, 62
5%/10 % 26/2000-Cus List 3 8 million pieces Tea and preparagrap htions thereof imported from Sri 2101
15%/30 % 26/2000-Cus List 4 15 million kgs.
71
Lanka Vegetable fats (Vanaspati) from Nepal
22/2007-Cus
5th June 2007
1 Lakh
MT
Acrylic Yarn
from Nepal
-do-
10,000
MT
Copper
products
from Nepal
Chapter 74
of ITC(HS)
and 8544
-do-
10,000
MT
Zinc Oxide
from Nepal
-do- 2500MT
- Imports will be permitted subject to the arrangements / Procedure as
laid down in
Annexure-I of Appendix-2A.
2.108 Rules of Origin (Non-Preferential)
(a) Rules of Origin (Non-Preferential) criteria are as under:
(I)
Goods are to be manufactured by the exporting entity as per
the definition of “Manufacture” in Paragraph 9.31 of FTP; and
(II) If imported inputs (Duty Paid or Duty Free) have been used for the production of export product, the export product can be considered to be originating in India (Non Preferential) only if the imported inputs undergo the processing/ operations that exceed the following:
(i) simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making-up of sets of articles), washing, painting, cutting;
(ii) changes of packing and breaking up and assembly of consignments;
(iii) simple cutting, slicing and repacking or placing in bottles, flasks, bags, boxes, fixing on cards or boards, and all other simple packing operations;
ing up and assembly of consignments;
(iii) simple cutting, slicing and repacking or placing in bottles, flasks, bags, boxes, fixing on cards or boards, and all other simple packing operations;
72
(iv) operations to ensure the preservation of products in good condition during transport and storage (such as drying, freezing, keeping in brine, ventilation, spreading out, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations);
(v) affixing of marks, labels or other like distinguishing signs on products or their packaging;
(vi) simple mixing of products ;
(vii) simple assembly of parts of products to constitute a complete product;
(viii) disassembly;
(ix) slaughter which means the mere killing of animals; and
(x) mere dilution with water or another substance that does not materially alter the characteristics of the products.
(b) Government has also nominated certain agencies to issue Non- Preferential Certificate of Origin (CoO). These CoOs evidence origin of goods and do not bestow any right to preferential tariffs. List of notified agencies is provided in Appendix–2 E. In addition, agencies authorised to issue Preferential CoO are also authorised to issue Non- Preferential CoO.
(c)
All exporters who are required to submit CoO (Non Preferential)
would have to apply to any of agencies enlisted in Appendix–2 E
with following documents:
(i)
Details of quantum / origin of inputs / consumables used in
export product.
(ii)
Two copies of invoices.
to apply to any of agencies enlisted in Appendix–2 E with following documents:
(i)
Details of quantum / origin of inputs / consumables used in
export product.
(ii)
Two copies of invoices.
(iii) Packing list in duplicate for concerned invoice.
73
(iv) Fee not exceeding Rs.100 per certificate as may be prescribed by concerned agency.
(d)
The agency would ensure that goods are of Indian origin as per
criteria defined in (d) below before granting CoO (non preferential).
Certificate would be issued as per format given in Annexure-II to
Appendix 2 E. It should be ensured that no correction/re-type is
made on certificate. Any agency desirous of enlistment in Appendix–
2 E may submit their application as per Annexure-I to Appendix 2 E
to DGFT.
(e) Non-preferential -Self Certification: Manufacturer exporters who are also Status Holders shall be eligible to self-certify their goods as originating from India, if goods qualify the criteria, as laid down in (a) above, as per Annexure –III to Appendix 2 E.
2.109 Approved Exporter Scheme (AES) for self -certification
Details of the Scheme are provided in Appendix 2F of AANF.
teria, as laid down in (a) above, as per Annexure –III to Appendix 2 E.
2.109 Approved Exporter Scheme (AES) for self -certification
Details of the Scheme are provided in Appendix 2F of AANF.
74
CHAPTER 3 Exports from India Schemes 3.01 Merchandise Exports From India Scheme (MEIS)
(a) Policy for Merchandise Exports from India Scheme (MEIS) is given in Chapter 3 of FTP.
(b)
An application for claiming rewards under MEIS on exports(other
than Export of goods through courier or foreign post offices using e-
Commerce), shall be filed online, using digital signature, on DGFT
website at http://dgft.gov.in with RA concerned in ANF 3A. The
relevant shipping bills and e BRC shall be linked with the on line
application.
(c) If application is filed for exports made through EDI ports, then hard copy of the following documents need not be submitted to RA: hard copy of applications to DGFT, EDI shipping bills, electronic Bank Realisation Certificate (e-BRC) and RCMC. The applicant shall submit the proof of landing in the manner prescribed under paragraph 3.03 of HBP.
(d) In case application is filed for exports made through non EDI ports, then applicant need to submit export promotion copy of non EDI shipping bills. The applicant shall submit the proof of landing in the manner prescribed under paragraph 3.03 of HBP. The applicant shall upload scanned copies of any other prescribed documents for claiming scrip unless specified otherwise.
he proof of landing in the manner prescribed under paragraph 3.03 of HBP. The applicant shall upload scanned copies of any other prescribed documents for claiming scrip unless specified otherwise. However applicant need not submit hard copy of applications to DGFT, electronic Bank Realisation Certificate (e-BRC) and RCMC in this case also.
(e)
Applicant shall file separate application for each port of export.
(f)
Processing of Non EDI Shipping bills at RA: In cases the Non EDI
shipping bills or the shipping bills not received through the Message
Exchange from Customs, concerned RA shall verify the details
75
entered by the exporter from the original shipping bills before grant of scrip.
(g) No manual feeding allowed for EDI shipments: For EDI Shipping Bill, no manual feeding of Shipping bill details shall be allowed to the applicants in the online system. Rewards will be granted by RAs without the need for cross verifying EDI Shipping Bill details.
(h) RA shall process the electronically acknowledged files and scrip shall be issued after due scrutiny of electronic documents.
(i) The documents which are not required to be submitted in original, shall be retained by the applicant for a period of 3 years from the date of issuance of scrip.
(j)
Licensing Authority may call such documents in original at any time
within 3 years.
riginal, shall be retained by the applicant for a period of 3 years from the date of issuance of scrip.
(j)
Licensing Authority may call such documents in original at any time
within 3 years. In case the applicant fails to submit the original
documents on demand by Licensing Authority the applicant shall be
liable to refund the rewards granted along with interest at the rate
prescribed under Section 28 AA of Customs Act 1962, from the date
of issuance of scrip.
(k)
Eligibility of product, corresponding ITC[HS] code, and markets(as
given in Appendix 3B) for claiming rewards under MEIS shall be
determined from Let Export Date as per Paragraph 9.12 of HBP.
3.02 Applications for Export of goods through courier or foreign post
offices using e-Commerce
(a) Application shall be filed on line, using digital signature, in ANF 3D by exporter. The applicant shall submit the proof of landing in the manner prescribed under paragraph 3.03 of HBP.
(b) Applicant shall file separate application for each port of export.
(c) RA will manually examine the submitted documents before grant of scrip.
escribed under paragraph 3.03 of HBP.
(b) Applicant shall file separate application for each port of export.
(c) RA will manually examine the submitted documents before grant of scrip.
76
3.03 Proof of Landing
(a)
Wherever the reward under MEIS is available to all countries, proof
of landing shall not be required to be submitted for claiming the
reward
(b) Uploading/submission of documents, as a proof of landing:
As a measure of ease of doing business, documents as a proof of
landing of export consignment in notified market can be digitally
uploaded in the following manner:-
(i)
Any exporter may upload the scanned copy of document as
mentioned at paragraph 3.03 (c) (i) under his digital signature.
(ii)
Status holders falling in the category of Three Star, Four Star or
Five Star export house category may upload scanned copies of
documents as mentioned at paragraph 3.03(c) (iv).
(iii) In all other cases the physical copy, in original, shall be filed by
all categories of exporters.
(c)
Applicant shall be required to submit or upload, as the case may be,
any one of the following documents as a proof of landing of export
consignment in notified Market:
(i)
A self attested copy of import bill of entry filed by importer in
specified market, or
(ii)
Delivery order issued by port authorities, or
(iii) Arrival notice issued by goods carrier, or
(iv) Tracking report from the goods carrier (Shipping Line/Airline etc.
market, or
(ii)
Delivery order issued by port authorities, or
(iii) Arrival notice issued by goods carrier, or
(iv) Tracking report from the goods carrier (Shipping Line/Airline etc. or his accredited agent in India) duly certified by them, evidencing arrival of export cargo to destination Market, or
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(v)
For Land locked notified Market, Rail/Lorry receipts of
transportation of goods from Port to Land locked notified
Market,
(vi) Any other document that may satisfactorily prove to RA concerned that goods have landed in / reached the notified Market.
(d)
In case of (iv) and (vi) above, the accredited agent of the Goods
Carrier must certify that he is the accredited agent of the concerned
Goods Carrier on the date of issuance of the tracking report /
document.
(e) Further, in the case of issuance of any other document under (vi) above, the accredited agent must state that proof of landing of goods in relevant notified Market is given based on information available in the Goods Carrier’s backup database and he has verified the same and issued this document accordingly.
(f)
In cases of exports using e commerce, exporter may submit express
operator landing certificate/online web tracking print out indicating
airway bill number as prescribed in enclosure (B) to ANF 3D.
3.04 Service Exports From India Scheme (SEIS)
(a) Policy for Service Exports From India Scheme (SEIS) is given in Chapter 3 of FTP.
airway bill number as prescribed in enclosure (B) to ANF 3D. 3.04 Service Exports From India Scheme (SEIS)
(a) Policy for Service Exports From India Scheme (SEIS) is given in Chapter 3 of FTP.
(b)
An application for grant of duty credit scrip for eligible services
rendered shall be filed online for a financial year on annual basis in
ANF 3B using digital signature.
(c) RA shall process the application received online after due scrutiny.
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Common Procedural features applicable to MEIS and SEIS, unless specifically provided for: 3.05 Transitional Arrangement
(a) For the goods exported or services rendered upto the date of notification of current Foreign Trade Policy, which were otherwise eligible for issuance of scrip under erstwhile chapter 3 of the earlier Foreign Trade Policy(ies) and scrip is applied on or after the date of notification of current Foreign Trade Policy against such export of goods or services rendered, the application shall be made to Jurisdictional RA in the form with documents as prescribed in the HBP v I 2009-2014.
(b) Upto 30th June 2015, applicants in respect of exports on which FPS/MLFPS/FMS/VKGUY/SFIS are claimed, shall have a choice to file applications in the manner prescribed in the previous policy(ies) or in the manner given in paragraph 3.01 or paragraph 3.04, as applicable, of HBP 2015-20. From 1st July 2015, all such applications shall be submitted in the manner given in paragraph 3.01 or
paragraph 3.04, as applicable, of HBP 2015-20 only.
(c)
Applicants shall continue to file application in respect of SHIS, IEIS
and Agri Infrastructure incentive scheme scrip in the application
form and manner prescribed in the previous policy (ies).
3.06 Jurisdictional RA / RA Concerned
Applicant shall have option to choose Jurisdictional RA on the basis of
Corporate Office/ Registered Office/Head Office / Branch Office address
endorsed on IEC for submitting application/applications under MEIS and
SEIS. This option need to be exercised at the beginning of financial year.
Once an option is exercised, no change would be allowed for claims relating
to that year. To illustrate, if an exporter has chosen RA Chennai for claiming
rewards for exports made in 2015-16,then all claims for exports made in
2015-16, irrespective of the date of application shall be made to RA
Chennai only.
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3.07 Applicability of Provisions contained in Chapter 2 and 9 of this HBP
Provisions contained in Chapter 2 and 9 of this HBP shall apply to MEIS and SEIS. 3.08 Port of Registration of Scrips
(a) Port of Registration under MEIS would be as follows:
(i) Duty Credit Scrip (including splits) under MEIS shall be issued with a single port of registration which shall be the port of export.
(ii) Duty credit scrip needs to be registered at the port of exports. This is to be done prior to allowing usage of duty credit.
a single port of registration which shall be the port of export.
(ii) Duty credit scrip needs to be registered at the port of exports. This is to be done prior to allowing usage of duty credit. Once registered at EDI port, scrip can be automatically used at any EDI port for import and at any manual port under Telegraphic Release Advise (TRA) procedure.
(iii) In case port of registration is a manual port, TRA shall be required for imports at any other port.
(b)
In case of scrip applied under Service Exports from India Scheme, the
applicant can choose any port as port of registration and mention it
in the application at the appropriate column. RA will issue the scrip
with such port of registration. Such Duty credit scrip needs to be
registered at the port of registration of duty credit. Once registered at
EDI port, scrip can be automatically be used at any EDI port for
import and at any manual port under Telegraphic Release Advise
(TRA) procedure. In case port of registration is a manual port, TRA
shall be required for imports at any other port.
ny EDI port for import and at any manual port under Telegraphic Release Advise (TRA) procedure. In case port of registration is a manual port, TRA shall be required for imports at any other port.
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3.09 Facility for Split Scrips
(a) On request, split certificates of Duty Credit Scrip subject to a minimum of Rs. 5 Lakh each and multiples thereof may also be issued, at the time of application.
(b)
Once Duty Credit Scrip has been issued, request for splits can be
permitted with same port of registration as appearing on the original
Scrip. The above procedure shall be applicable only in respect of EDI
enabled ports.
(c)
In case of export through non-EDI ports, the facility of splits shall not
be allowed after issue of Scrip.
3.10 Procedure to upload documents by Chartered Accountant /
Company Secretary / Cost Accountant
(a)
In order to move towards paperless processing of reward schemes,
an electronic procedure is being developed to upload digitally signed
documents by Chartered Accountant / Company Secretary / Cost
Accountant. Such documents like annexure attached to ANF 3 B, ANF
3C and ANF 3D, which are at present signed by these signatories, can
be facilitated by this procedure.
(b)
Till such time it is made mandatory to upload these annexure
digitally, such annexures attached to ANF 3B, ANF3C, ANF3D would
continue to be submitted in physical from to RA.
(c)
Exporter shall link digitally uploaded annexure with his online
applications after creation of such facility.
F3D would
continue to be submitted in physical from to RA.
(c)
Exporter shall link digitally uploaded annexure with his online
applications after creation of such facility.
3.11 Import from private / public Bonded warehouses
Entitlement can be used for import from private / public bonded warehouses subject to fulfilment of paragraph 2.36 of FTP and terms and conditions of DoR notification.
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3.12 Re-export of defective / unfit goods
Goods imported which are found defective or unfit for use, may be re-
exported, as per DoR guidelines. Where Duty Credit Scrip has been used for
imports, Customs shall issue a certificate containing particulars of Scrip
used, date of import of re-exported goods and amount debited while
importing such goods. Based on this certificate, upon application, a fresh
Scrip shall be issued by concerned RA to extent of 98% of debited
amount, with same port of registration and valid for a period equivalent
to balance period available on date of import of the defective / unfit goods.
3.13 Validity period and Revalidation
Duty Credit Scrip shall be valid for a period of 18 months from the date of
issue and must be valid on the date on which actual debit of duty is made.
Revalidation of Duty Credit Scrip shall not be permitted unless covered
under paragraph 2.20(c) of HBP.
3.14 Declaration of Intent on shipping bills for claiming rewards
under MEIS including export of goods through courier or
foreign post offices using e-Commerce.
under paragraph 2.20(c) of HBP.
3.14 Declaration of Intent on shipping bills for claiming rewards
under MEIS including export of goods through courier or
foreign post offices using e-Commerce.
(a) Export shipments filed under all categories of the Shipping Bills would need the following declaration on the Shipping Bills in order to be eligible for claiming rewards under MEIS: “ We intend to claim rewards under Merchandise Exports From India Scheme (MEIS)”. Such declaration shall be required even for export shipments under any of the schemes of Chapter 4 (including drawback), Chapter 5 or Chapter 6 of FTP. In the case of shipping bills (other than free shipping bills), such declaration of intent shall be mandatory with effect from 1st June 2015.
(b) Whenever there is a decision during the financial year to include any new product/goods or new markets then to avail such rewards:
(i)
For exports of such products/goods, to such markets, a grace
period of one month from the date of notification/public notice
will be allowed for making this declaration of intent.
wards:
(i)
For exports of such products/goods, to such markets, a grace
period of one month from the date of notification/public notice
will be allowed for making this declaration of intent.
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(ii) After the grace period of one month, all exports (of such products/goods or to such markets) would have to include the declaration of intent on all categories of shipping bills.
(iii) For exports made prior to date of notification/public notice of products/markets, such a declaration would not be required since such exports would have already taken place. 3.15 Last date of filing of application for Duty Credit Scrips
(a) Application for obtaining Duty Credit Scrip under MEIS shall be filed within a period of :
(i) Twelve months from the Let Export (LEO) date or
(ii) Three months from the date of :
(1) Uploading of EDI shipping bills onto the DGFT server by Customs. (2) Printing/ release of shipping bills for Non EDI shipping bills.
whichever is later, in respect of shipments for which claim is being filed.
(b) For SEIS, the last date for filing application shall be 12 months from the end of relevant financial year of claim period. 3.16 Application for Shipments from EDI Ports and Non-EDI Ports under MEIS
(a)
Shipments from EDI Ports and Non-EDI Ports cannot be clubbed in
one application.
(b)
Port of registration for EDI enabled ports shall be the port of export.
Accordingly separate application shall be filed for each EDI port.
n-EDI Ports cannot be clubbed in
one application.
(b)
Port of registration for EDI enabled ports shall be the port of export.
Accordingly separate application shall be filed for each EDI port.
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(c)
In case of exports through non-EDI port, the port of registration shall
be the relevant non EDI port of exports. Accordingly separate
application shall be filed for each non EDI port.
(d) Multiple applications can be filed and supplementary cut shall not be applicable. However, an application can be filed with upto a maximum of 50 shipping bills.
3.17 Risk Management System
The policy relating to Risk Management System is given in Paragraph 3.19 of FTP. The Risk Management System shall be in operation as under:-
(a)
Computer System in DGFT HQ, on random basis, will select 10% of
cases for each RA which has issued scrips in the preceding month by
10th of the month.
(b) The list of such selected cases will be sent to concerned RA by NIC by 15th of the month.
(c) Concerned RA, will in turn, ask for the original documents by 30th of the month for examination in detail.
(d)
The applicant shall be under obligation to submit the document
asked for in the next 15 days.
(e)
Concerned RA in turn will examine such documents in next 15 days.
In cases, there is any deficiency the applicant shall rectify it in next
one month from the date of communication by RA. In case of excess
availment of rewards, the applicant shall refund the excess claim
with interest as prescribed in paragraph 3.19 of FTP.
t in next
one month from the date of communication by RA. In case of excess
availment of rewards, the applicant shall refund the excess claim
with interest as prescribed in paragraph 3.19 of FTP.
(f)
In case the applicant fails to submit the original documents/ rectify
the deficiencies / refund the excess claim as stipulated above, RA will
initiate action as per FTDR Act and Rules.
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3.18 Status Certificate
Policy for Status Holders is given in Chapter 3 of FTP. 3.19 Application for grant of Status Certificate
(a) Status Certificates issued under FTP 2009-14 to an IEC holder shall remain valid till 30th June 2015 or till the issuance of status certificate to such IEC holder under this policy, whichever is earlier.
(b) Applicants shall be required to file an application online for recognition of status under the Policy in ANF 3C. Scanned copy of relevant prescribed documents shall be uploaded by the applicant unless prescribed otherwise.
(c) Online Application for status certificate shall be filed using digital signature with jurisdictional RA / Development Commissioner (DC) by Registered Office in the case of Company and by Head Office in the case of others as indicated in table below:
S.No.
Category
Issuing /renewing
Authority for
Status
Certificate
1.
IEC holder having exports
of DTA unit as well as
exports of SEZ/EOU unit.
EHTP/STP/BTP
Concerned
Regional
Authority
as
per
jurisdiction indicated in
Appendix 1A
2.
Certificate
1.
IEC holder having exports
of DTA unit as well as
exports of SEZ/EOU unit.
EHTP/STP/BTP
Concerned
Regional
Authority
as
per
jurisdiction indicated in
Appendix 1A
2.
IEC
holder
having
SEZ/EOU unit only
Concerned
Development
Commissioner
as
per
jurisdiction indicated in
Appendix 1A
3.
IEC holder having DTA
unit only
Concerned
Regional
Authority
as
per
jurisdiction indicated in
Appendix 1A
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3.20 Validity of status certificate
(a) Status Certificates issued under this FTP shall be valid for a period of 5 years from the date on which application for recognition was filed.
(b) Status Certificates valid beyond 31.3.2020 shall continue to remain in
force, in case provisions of subsequent Foreign Trade Policy continue
to recognize the status.
3.21 Maintenance of Accounts
Status Holders shall maintain true and proper accounts of its exports and imports based on which such recognition has been granted. Records shall be maintained for a period of two years from the date of grant of status certificate. These accounts shall be made available for inspection to RA concerned or any Authority nominated by DGFT.
hall be maintained for a period of two years from the date of grant of status certificate. These accounts shall be made available for inspection to RA concerned or any Authority nominated by DGFT. 3.22 Refusal /Suspension /Cancellation of Certificate
Status Certificate may be refused / suspended/ cancelled by RA concerned, if status holder or authorized representative acting on his behalf:
(a) Fails to discharge export obligation imposed;
(b)
Tampers with Authorisations;
(c)
Misrepresents or has been a party to any corrupt or fraudulent
practice in obtaining any Authorisation;
(d) Commits a breach of FT (D& R) Act, or Rules, Orders made there under and FTP, The Customs Act 1962, The Central Excise Act 1944, FEMA Act 1999 and COFEPOSA Act 1974; or
(e)
Fails to furnish information required by this Directorate.
A reasonable opportunity shall be given to Status Holder before taking any action under this paragraph.
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3.23 Appeal
An applicant, who is not satisfied with decision taken to suspend or cancel Status Certificate, may file an appeal to DGFT within 45 days. Decision of DGFT shall be final and binding thereon.
l
An applicant, who is not satisfied with decision taken to suspend or cancel Status Certificate, may file an appeal to DGFT within 45 days. Decision of DGFT shall be final and binding thereon.
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CHAPTER 4 DUTY EXEMPTION / REMISSION SCHEME 4.01 Policy
Policy relating to Duty Exemption / Remission Schemes is prescribed in Chapter 4 of Foreign Trade Policy. 4.02 General Provision
(i)
Application for grant of Advance Authorisation / Advance
Authorisation for Annual Requirement / Duty Free Import
Authorisation (DFIA) shall be filed online (digitally signed) by IEC
holder to the concerned jurisdictional Regional Authority as per
Appendix 1A. Applicant could be either Registered office or Head
office or a branch office or a manufacturing unit of the IEC holder.
(ii) Applicant shall upload documents as prescribed in ANF 4A, if any, at the time of online filing of application. No physical copy of application is required to be submitted to Regional Authority.
(iii) In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms /
standardization of norms, then only such documents may be
submitted in physical form to the concerned Norms Committee in
DGFT headquarters.
4.03 Applicant details
Where applicant is a branch office or a manufacturing unit, name of branch office or manufacturing unit should appear in electronic RCMC and in IEC of the applicant. 4.04 Advance Authorisation
Applicant shall file application online in ANF 4A.
ng unit, name of branch office or manufacturing unit should appear in electronic RCMC and in IEC of the applicant. 4.04 Advance Authorisation
Applicant shall file application online in ANF 4A. Same form is applicable where Standard Input Output Norms (SION) have been notified or on the
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basis of adhoc norms or on self declaration basis as per paragraph 4.07 of Hand Book of Procedures. 4.05 Advance Authorisation for items which are otherwise prohibited for export
(i)
Items covered under Chapter 7 and Chapter 15 of ITC (HS) Schedule
2, which is prohibited for export, may be allowed to be exported
under the advance authorization scheme. Export shall be allowed
subject to pre-import condition under notified SION/prior fixation of
norms by Norms Committee in terms of paragraph 4.06 of Hand
Book of Procedures. Import and Export would be permitted only
through EDI enabled ports.
(ii) The Export obligation period (EOP) of advance authorizations issued for such items shall be 90 days from the date of clearance of import consignment and no extension in EOP shall be allowed. Such import shall be subject to actual user condition and no transfer of imported raw material, for any purpose, including job work, shall be permitted. In case of non-fulfilment of EO/ non-achievement of stipulated value addition, a penalty equal to five times of the CIF value of the imported material, corresponding to the shortfall in EO, shall be imposed in addition to the applicable duty and interest.
ated value addition, a penalty equal to five times of the CIF value of the imported material, corresponding to the shortfall in EO, shall be imposed in addition to the applicable duty and interest. Provisions of Paragraph 4.49 of Handbook of Procedures shall not be applicable in this case. 4.06 Fixation of Norms
(i)
In case where norms have not been notified, application in ANF
4B, along with prescribed documents, shall be uploaded online to
concerned Norms Committee (NC) in DGFT headquarters for
fixation of norm. Details of Norms Committees along with products
groups dealt by each Norms Committee and respective email
addresses for correspondence relating to norms fixation is as
follows:
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Norms
Committees
(NC) in DGFT
headquarters
For fixation / revision /
amendment of norms of
Export
Products
under
following ITC HS Chapters
Email
addresses
for
communication
with
respective
Norms Committee
NC-1
81 to 84, 86 to 93
nc1.dgft@nic.in
NC-2
72 to 76, 78 to 80, 85
nc2.dgft@nic.in
NC-3
29, 30
nc3.dgft@nic.in
NC-4
27, 28, 31 to 38, 44 to 49, 68
to 71
nc4.dgft@nic.in
NC-5
41 to 43, 50 to 67
nc5.dgft@nic.in
NC-6
1 to 26, 94 to 98
nc6.dgft@nic.in
NC-7
39, 40
nc7.dgft@nic.in
(ii)
An applicant shall indicate a valid email address for communication
purpose and to ensure that this email address is active.
to 26, 94 to 98 nc6.dgft@nic.in NC-7 39, 40 nc7.dgft@nic.in
(ii)
An applicant shall indicate a valid email address for communication
purpose and to ensure that this email address is active.
(iii) The decisions of Norms Committees shall be available on the website of DGFT (http://dgft.gov.in) periodically and the applicants shall update themselves the status of norms fixation in respect of Authorisation obtained by them.
(iv) Norms Committees shall also function as recommendatory authority for notification of SION and DGFT may notify such norms from time to time.
(v)
Exporters / EPC shall provide data to the Norms Committee for the
fixation of SION for the export product within three months of such
request made by Norms Committee. Norms Committee shall
endeavour to notify such adhoc norm(s), if not notified already,
within six months of the ratification of such adhoc norm (s).
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(vi) It is mandatory for industry / manufacturers/ EPCs to provide production and consumption data etc for the past three years, as may be required by DGFT for fixation of SION. Otherwise, applicants shall not be allowed to take benefit of Advance Authorisation scheme for taking repeat Advance Authorisations on self-declared basis. Norms Committee may also seek data from Central Excise (CBEC). 4.07 Self Declared Authorisations where SION does not exist
(i)
Regional Authority may also issue Advance Authorisation where
SION is not fixed, based on self declaration by applicant.
CBEC). 4.07 Self Declared Authorisations where SION does not exist
(i)
Regional Authority may also issue Advance Authorisation where
SION is not fixed, based on self declaration by applicant. Wastage so
claimed shall be subject to wastage norms as decided by Norms
Committee. The applicant shall submit an undertaking to abide by
decision of Norms Committee. The provisions in this regard are given
in paragraph 4.03 and 4.11 of FTP.
(ii)
In case of revision / rejection, applicant shall pay duty and interest as
notified by DoR within thirty days from the date of hosting of Norms
Committee decision on DGFT website.
(iii) No Authorisation under this paragraph will be issued by Regional Authority for items listed in paragraph 4.11of FTP. 4.08 Cases involving Acetic Anhydride, Ephedrine and Pseudo- ephedrine as inputs.
(i)
Where Acetic Anhydride, Ephedrine and Pseudo- ephedrine is
required as an input for import, applications shall be filed with
Regional Authority concerned. After filing application online, printed
copy of such application shall also be simultaneously endorsed by
applicant to (a) Drug Controller of India, Nirman Bhawan, New Delhi,
(b) Narcotics Commissioner, Central Bureau of Narcotics, Gwalior (c)
respective Zonal Director of Narcotics Control Bureau. The
applicant should declare that they would maintain prescribed
records / documents and also submit prescribed returns to the
relevant authorities, within time as prescribed by law from time to
time.
plicant should declare that they would maintain prescribed records / documents and also submit prescribed returns to the relevant authorities, within time as prescribed by law from time to time.
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(ii) Regional Authority shall endorse a copy of such Advance Authorisation to the above three agencies. Regional Authority shall also endorse a condition that before effecting imports, ‘No Objection Certificate’ shall be obtained from Drug Controller and Narcotics Commissioner of India. 4.09 Cases requiring Sanitary Import Permit.
(i)
Where import of meat and meat products of any kind including fresh,
chilled and frozen meat, tissue or organs of poultry, pig, sheep, goat;
egg & egg powder; milk & milk products; bovine, ovine and caprine
embryos, ova or semen; and pet food products of animal origin has
been sought as an input under Advance Authorisation, the Regional
Authority, while issuing Advance Authorisation shall endorse a
condition that before effecting imports of any of these inputs,
Sanitary Import Permit shall be obtained from the Department of
Animal Husbandry, Dairying and Fisheries (DAHDF).
(ii) Regional Authority shall also endorse a copy of authorisation to DAHDF, Krishi Bhawan, New Delhi. 4.10 Advance Authorisation for applicants with multiple units
(i)
Transfer of any duty free material imported or procured against
Advance Authorisation from one unit of a company to another unit
for manufacturing purpose shall be done with prior intimation to
jurisdictional Excise Authority.
ial imported or procured against Advance Authorisation from one unit of a company to another unit for manufacturing purpose shall be done with prior intimation to jurisdictional Excise Authority. Benefit of CENVAT shall not be claimed on such transferred input.
(ii)
Such transfers shall not be allowed to units located in areas covered
by Central Excise Notification Numbers 32/1999, 33/1999, 39/2001,
56/2002, 57/2002, 49/2003, 50/2003, 56/2003, 71/03, 8/2004 and
20/2007 and any other notification issued by DoR from time to
time. (The areas presently included are Himachal Pradesh,
Uttarakhand, Jammu and Kashmir, Kutch in Gujarat, Assam, Tripura,
Meghalaya, Mizoram, Manipur, Nagaland, Arunachal Pradesh and
Sikkim).
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(iii) In case of non-excisable company / products, units should maintain a proper record.
(iv) To avail this facility, names of such units should appear in IEC. Rules
and Regulation of Central Excise for job work would be followed.
(v)
Imported duty free inputs can be taken from the port / domestic
supplier’s premises to the factory or the premises of the
authorization / co-authorisation holder or the factory of the
supporting manufacturer (whose name is endorsed in the
authorization or allowed by the Central Excise authority).
the premises of the authorization / co-authorisation holder or the factory of the supporting manufacturer (whose name is endorsed in the authorization or allowed by the Central Excise authority). However, such duty free material imported or procured against advance authorization can also be taken from the port directly to the project site of the project authority, subject to furnishing a bond to the customs authority at the port of import and other documents / declaration and other provisions as per Department of Revenue guidelines. 4.11 Advance Authorisation for Free of Cost and Paid Material
Authorisations granted in terms of paragraph 4.19 of FTP, a specific
endorsement by Regional Authority shall be made on exchange control
copy of Advance Authorisation disallowing remittances for material
being supplied free of cost. All imported inputs excluding wastage shall
be utilised in manufacturing of export product.
4.12 Entitlement
(a)
Maximum CIF value of one or more authorisations to be issued under
paragraph 4.07 of Hand Book of Procedures shall be as under:
(i)
For Status Holders – upto 300% of FOB and / or FOR value of
preceding year’s exports and /or supplies.
(ii)
Other than Status Holders – upto 300% of FOB or Rs. 10 crore
and / or FOR value of preceding year’s exports and/or supplies,
whichever is higher.
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(iii) Once adhoc norms are fixed by Norms Committee, value limits
mentioned in sub paragraph (i) and (ii) above, would not be
applicable to Advance Authorisations issued under paragraph
4.07 of Hand Book of Procedures. Value of such authorisations,
subsequent to fixation of norms by Norms Committee, may
be enhanced, if the Advance Authorisation was issued
restricting the CIF value to maximum of value in sub-paragraph
(i) & (ii) above.
(iv) In such cases Authorisations shall be issued by Regional Authority concerned under "Adhoc Norms Fixed" category and application copies need not be forwarded to NC for fixation / ratification of norms. Where the application has already been forwarded before the ratification of Norms, the Regional Authority shall finalise the case as per the norms subsequently ratified by NC in a similar case of the party.
(v)
Authorisation holder in such cases shall be entitled for further
authorisation (s) as per norms ratified by Norms Committee
without need for subsequent ratification by Norms Committee.
In such cases the applicant would file application under
“Adhoc Norms Fixed” category to the Regional Authority
concerned.
mittee without need for subsequent ratification by Norms Committee. In such cases the applicant would file application under “Adhoc Norms Fixed” category to the Regional Authority concerned.
(vi) Where Norms Committee has already ratified norms for same export and import products in respect of an authorization obtained under paragraph 4.07, such norms shall be valid for a period of two years reckoned from the date of ratification. The same applicant can avail repeat authorisations based on such adhoc norms. Another exporter, however, cannot be granted authorization by Regional Authority based on such adhoc norms.
(vii) Wherever an applicant has applied for input on “net-to-net basis with accountability clause” and such cases fall under paragraph 4 of General Note for Engineering Products (Product Code – C), the same need not be referred to Norms Committee
94
for fixation of norms. However, exporters shall indicate clearly details of such inputs imported on “net-to-net basis with accountability clause” in the export/supply documents namely Shipping Bills, Bill of Exports, ARE-1, ARE-3 evidencing that these imported inputs have been exported. 4.13 Authorisation in Excess of Entitlement
An applicant shall be entitled for authorisation in excess of entitlement of CIF mentioned in paragraph 4.12(a) above subject to furnishing of 100% Bank Guarantee to Customs authority to cover exemption from customs duties. Regional Authority shall made a specific endorsement to this effect on authorisation.
bove subject to furnishing of 100% Bank Guarantee to Customs authority to cover exemption from customs duties. Regional Authority shall made a specific endorsement to this effect on authorisation. This provisions shall also apply to Status Holders. 4.14 Application and On-line Inter-Ministerial Consultations for fixation of norms / adhoc norms
(i)
Application filed online by the applicant shall be forwarded
electronically to the concerned Technical / Administrative Ministry /
Department / or any other agency by the respective Norms
Committee in the DGFT headquarters within three days.
(ii)
The concerned Technical / Administrative Ministry / Department /
or any other agency as the case may be, may communicate its views /
comments / recommendations within 45 days electronically/online.
In case no comments are received within 90 days, Norms Committee
may take a view based on the facts available on record.
4.15 Undertaking
Applicant shall give an undertaking that he shall abide by norms fixed by Norms Committee and accordingly take following actions without any demur:
(i) Pay customs duty saved, together with interest as notified by DoR, on excess inputs as per norms fixed by NC. However, in case Norms Committee allows lower norms for one, more, or all inputs
(i) Pay customs duty saved, together with interest as notified by DoR, on excess inputs as per norms fixed by NC. However, in case Norms Committee allows lower norms for one, more, or all inputs
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authorisation holder will have option to undertake additional EO in proportion to excess inputs.
(ii) In case application is rejected by Norms Committee, authorization holder shall pay duty saved amount along with interest on inputs, as applicable as notified by DoR. In cases of domestically procured inputs, the amount to be paid will be based on notional customs duty payable on the inputs procured.
(iii) Applicant shall deposit amount as per paragraph 4.49(a)(ii) of HBP
in case the inputs were not freely importable. This amount is in
addition to the amounts in sub-paragraph (i) above.
4.16 Time limit for fixation of norms by Norms Committees
(i)
Where norms are not finalised by Norms Committee within four
months from the date of receipt of complete application along with
documents / technical details as per Appendix 4E, norms as applied
for may be treated as final.
(ii) In case application for fixation of adhoc norms / SION is rejected on ground of non-furnishing of required documents/ information to Norms Committee or technical authority represented in Norms Committee, authorisation holder shall be liable to pay customs duty with interest as notified by DoR and amount as per paragraph 4.49(a)(ii). In case SION for the said product is notified, SION would be made applicable for deciding wastage norms and EO.
stoms duty with interest as notified by DoR and amount as per paragraph 4.49(a)(ii). In case SION for the said product is notified, SION would be made applicable for deciding wastage norms and EO.
(iii) In cases where entitlement of the applicant for grant of Advance
Authorisation as per paragraph 4.12 was lower than the quantity of
input applied by the applicant under Advance Authorisation and
export obligation is completed pending fixation of norms by Norms
Committee, entitlement for authorisation as given in paragraph 4.12
may be re-credited upon production of documentary evidence
(copies of Shipping bill / bill of export / Central Excise certified
copies of invoices) showing fulfilment of export obligation in respect
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of previous authorisations. However, bond waiver / redemption shall not be allowed pending fixation of norms in such cases. 4.17 Time limit for Representation
Applicant may file representation against the decision of the Norms
Committee with regard to the fixation of norms within a period of 90 days
from the date of hosting of decision on DGFT website. Representation beyond
90 days shall be subject to payment of composition fee of Rs.5000/-.
4.18 Provision for Pharmaceutical Products
Regional Authority may issue Advance Authorisation for pharmaceutical products manufactured through Non-Infringing (NI) process.
ion fee of Rs.5000/-.
4.18 Provision for Pharmaceutical Products
Regional Authority may issue Advance Authorisation for pharmaceutical
products manufactured through Non-Infringing (NI) process. A manufacturer
exporter can avail the benefit of this provision whether the SION or the adhoc
norms (under self declared basis in terms of paragraph 4.07 of the Hand
Book of Procedures) for the said product is available or not. “Input
combination permitted under NI process, as approved by the concerned
agency of the regulated markets”, shall be exporter specific and country
specific and shall be available only when the exports are destined for the
same country.
4.19 Application & Processing
(i) An application for grant of an advance authorisation under paragraph 4.18 shall be filed online in ANF 4E to concerned Regional Authority along with the documents uploaded therein.
(ii) Input combination permitted under NI process for manufacturing
the product shall be certified by the Chartered Engineer (Chemical)
after due verification of the details of each input and its quantity
as given in Abbreviated New Drug Application (ANDA) / Drug
Master File (DMF) of the applicant. The Chartered Engineer
(Chemical) will certify the details as per Appendix 4L prescribed in
Hand Book of Procedures. Regional Authority shall cross verify the
requirement of inputs as per the details given in the application and
with Chartered Engineer Certificate accompanying the application
and issue the authorization. Regional Authority shall not forward
irement of inputs as per the details given in the application and with Chartered Engineer Certificate accompanying the application and issue the authorization. Regional Authority shall not forward
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such application to Norms Committee and the inputs and export
product so allowed by Regional Authority, shall be treated as input
combinations permitted under NI Process.
4.20 Redemption of Authorisation issued under paragraph 4.18 HBP
Provisions contained in paragraph 4.49 of Hand Book of Procedures,
2015-20, except sub-paragraph (f), shall be applicable. Regional
Authority shall compare the details of Appendix 4-I, duly verified
and certified by the jurisdictional Excise Authority, with that of the inputs
made/allowed in the authorisation, before allowing redemption or Bond-
waiver against individual advance authorization issued for pharmaceutical
product(s) manufactured through NI process. As a result of the verification
process, in case, it is found that the authorisation holder has consumed
lesser quantity of inputs than imported, authorisation holder shall be liable
to pay customs duty on unutilized imported material, alongwith interest
thereon as notified by DoR, or effect additional export within the EO period
to account for the export of the material remaining un utilized.
uty on unutilized imported material, alongwith interest thereon as notified by DoR, or effect additional export within the EO period to account for the export of the material remaining un utilized. However, for the Customs duty component, the authorisation holder has also the option to furnish valid duty credit scrip issued under Chapter 3 of FTP 4.21 Maintenance of Proper Accounts
Every Advance Authoritsation holder shall maintain a true and proper account of consumption and utilization of duty free imported / domestically procured inputs against each authorisation as prescribed in Appendix 4-I. This record in Appendix 4-I format, duly verified and certified by the jurisdictional Excise Authority, shall be submitted to the concerned Regional Authority at the time of filing application for redemption / bond waiver. Regional Authority shall compare the details of Appendix 4-I, with that of the inputs allowed in the authorisation, before allowing redemption or bond waiver against individual authorization. Such records shall be preserved for a period of at least three years from the date of redemption.
in the authorisation, before allowing redemption or bond waiver against individual authorization. Such records shall be preserved for a period of at least three years from the date of redemption.
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4.22 Standardisation of Adhoc Norms
(a) For standardization of norms, an application in ANF 4B shall be filed online along with complete data. Such applications shall be made to concerned Norms Committee in DGFT headquarters.
(b) Import of fuel may also be allowed with actual user condition under SION by Norms Committee subject to following:
(i) Facility of import of fuel shall be allowed only to manufacturer having captive power plant.
(ii)
In cases where SION specifically allows fuel, same shall be
permitted under Advance Authorisation. However, if fuel is not
covered specifically under SION, it may be allowed as per
general fuel Policy for products covered under SION or under
paragraph 4.07 above.
(iii) Applications for fixation of fuel entitlement for new sectors and modification of the existing entitlement as per General Note for Fuel in Hand Book of Procedures shall be filed online to the Norms Committee along with requisite data in ANF 4B. 4.23 Modification of SION
An application for modification of existing SION shall be filed online in ANF 4B to the concerned Norms Committee in DGFT headquarters. 4.24 Amendment of Export item and inputs
(i) An application for amendment of an export item or input or quantity of input under SION or under adhoc Norms shall be filed online in ANF 4B.
(ii) Applicant would give justification for seeking amendment and Regional Authority would consider it with specific approval of Head of Office. In case of any major change in input or request for
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more wastage to that allowed under SION or adhoc norm, same should be referred to Norms Committee for ratification. 4.25 Revision of SION by NC
NC may identify SIONs which in its opinion are required to be reviewed.
Exporters are required to submit revised data in ANF 4B for such
revision. It is mandatory for industry / exporter(s) to provide production
and consumption data etc. as may be required by DGFT / EPC for revision
of SION. Otherwise, applicant shall not be allowed to take benefit of
Advance Authorization scheme.
s) to provide production and consumption data etc. as may be required by DGFT / EPC for revision of SION. Otherwise, applicant shall not be allowed to take benefit of Advance Authorization scheme. 4.26 Description of an Advance Authorisation
An Advance Authorisation shall, inter-alia, specify:
(a) Names and description of items including specifications, where
applicable, to be imported and exported / supplied;
(b)
Quantity of each item to be imported or wherever quantity cannot be
indicated, value of item shall be indicated. Wherever, quantity and
value of individual inputs is a limiting factor in SION, same shall be
applicable;
(c)
Aggregate CIF value of imports; and
(d) FOB / FOR value and quantity of exports / supplies.
4.27 Exports in Anticipation of Authorisation
(a)
Exports / supplies made from the date of EDI generated file number
for an Advance Authorisation, may be accepted towards discharge of
EO. Shipping / Supply document(s) should be endorsed with File
Number or Authorisation Number to establish co-relation of
exports / supplies with Authorisation issued.
(b)
If application is approved, authorisation shall be issued based on
input / output norms in force on the date of receipt of application by
Regional Authority. If in the intervening period (i.e from date of filing
of application and date of issue of authorisation) the norms get
changed, the authorization will be issued in proportion to
nal Authority. If in the intervening period (i.e from date of filing
of application and date of issue of authorisation) the norms get
changed, the authorization will be issued in proportion to
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provisional exports / supplies already made till any amendment
in norms is notified. For remaining exports, Policy / Procedures in
force on date of issue of authorisation shall be applicable.
(c) The export of SCOMET items shall not be permitted against an Authorisation until and unless the requisite SCOMET Authorisation is obtained by the applicant. 4.28 Exporters Risk
Exports / supplies made in anticipation of grant of an Advance Authorisation shall be entirely on risk and responsibility of exporter. 4.29 Admissibility of drawback in case of rejection of application
Customs authorities in terms of DoR rules against shipping bills filed and
processed under an Advance Authorisation, in case application for an
Advance Authorisation is rejected or modified by Regional Authority,
may permit drawback.
4.30 Advance Authorisation or DFIA for Intermediate Supplies
(a)
Application for grant of Advance Authorisation or DFIA for
Intermediate supply may be made on the basis of a tie-up
arrangement with an ultimate exporter (physical / deemed) holding
an Advance Authorisation or DFIA. Regional Authority concerned
shall consider such requests.
may be made on the basis of a tie-up arrangement with an ultimate exporter (physical / deemed) holding an Advance Authorisation or DFIA. Regional Authority concerned shall consider such requests.
(b) Advance Authorisation or DFIA for Intermediate supply shall be
issued after making Authorisation of ultimate exporter invalid for
direct import of item, to be supplied by intermediate manufacturer.
In such case, a copy of the invalidation letter will be given to ultimate
exporter holding Authorisation and copy thereof will be sent to
intermediate supplier as well as Regional Authority of intermediate
supplier. Intermediate Authorisation holder in such case has an
option either to supply intermediate product to the holder of
Advance Authorisation (i.e ultimate exporter) or DFIA or to export
(physical / deemed) directly. Intermediate supplier can also supply
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the product(s) directly to the port for export by the ultimate exporter
(holder of Advance Authorisation or DFIA). In such cases, shipping
bill shall be in the name of the ultimate exporter with the
name of intermediate supplier endorsed on it.
(c)
Facility of Advance Authorisation shall be available even in cases
where intermediate supplier has supplied or intend to supply
material subsequent to fulfillment of EO by exporter holding Advance
Authorisation / DFIA from where invalidation letter was issued.
es where intermediate supplier has supplied or intend to supply material subsequent to fulfillment of EO by exporter holding Advance Authorisation / DFIA from where invalidation letter was issued. 4.31 Advance Release Order (ARO)
Application shall be filed online i n ANF 4A to Regional Authority concerned for grant of ARO to procure inputs from indigenous sources / STEs. 4.32 Details to be given for issue of ARO
(a)
Application shall specify:
(i)
Name, description including specifications, where applicable,
and quantity of items and
(ii)
Individual value of items to be procured.
(b) An ARO may be issued along with Advance Authorisation / DFIA or subsequently, and its validity shall be co-terminus with validity of Advance Authorisation / DFIA.
(c)
An ARO issued for procurement of an individual item shall be
automatically valid for procurement from one or more indigenous
sources.
4.33 Back to Back Inland Letter of Credit (L/C)
Exporter may alternatively avail facility of a back to back inland letter of credit from banks. An Advance Authorisation / DFIA holder may approach a bank for opening an inland letter of credit (L/C) in favour of an indigenous supplier.
of a back to back inland letter of credit from banks. An Advance Authorisation / DFIA holder may approach a bank for opening an inland letter of credit (L/C) in favour of an indigenous supplier.
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4.34 Endorsement by Banks under Back to Back LC
(a)
Before opening the L/C, bank will ensure that Advance Authorisation
holder has executed BG/LUT and an endorsement to that effect has
been made on the Authorisation.
(b)
Execution of BG / LUT shall not be required against transferable DFIA.
After opening inland L/C, bank shall make following endorsement on
Exchange Control and Customs copy of Advance Authorisation / DFIA:
“Value of this Advance Authorization / DFIA stands reduced by a sum of Rs. , being value of inland L/C No. opened today by authorization holder in favour of M/s ____ (name and address of indigenous supplier).”
(c)
Authorisation shall be invalidated by bank for direct import only in
respect of full quantity and value of an item being sourced
indigenously.
(d)
Original Letter of credit (L/C) may be retained by bank for negotiation
and only non-negotiable copy of L/C may be given to indigenous
supplier.
(e) Responsibility of bank shall be confined to making endorsement. Bank shall not be liable for any misrepresentation or false statement made by authorisation holder while requesting bank to make endorsement. Inland L/C opened by bank in favour of indigenous supplier shall not be cancelled for any reason whatsoever.
false statement made by authorisation holder while requesting bank to make endorsement. Inland L/C opened by bank in favour of indigenous supplier shall not be cancelled for any reason whatsoever.
(f)
Non negotiable copy of inland L/C together with photocopy of
Advance Authorisation / DFIA duly carrying endorsements made by
bank shall be sufficient for indigenous supplier to claim deemed
export benefits. L/C issued shall be entitled to benefits given in
paragraph 7.03 and 7.04 of FTP, as applicable.
(g)
Where import of gold / silver is permitted as an input under this
scheme, they can be sourced through nominated agencies (as given in
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under Schemes for Gems and Jewellery Sector in Chapter-4 of FTP) for supply against the Advance Authorisations issued. Before supply of material, nominated agencies should follow the same procedures given above under this paragraph. 4.35 Facility of Supporting Manufacturer/ Jobber/co- licensee
(a)
Imported material may be used in any unit of holder of Advance
Authorisation subject to condition of paragraph 4.10 of this Handbook
or jobber / supporting manufacturer provided same is endorsed on
authorisation by Regional Authority. If applicant desires to have name
of any manufacturer or jobber added to authorisation, he may apply.
Such endorsement shall be mandatory where prior import before
export is a condition for availing Advance Authorisation scheme and
authorisation holder desires to have material processed through any
other manufacturer or jobber.
(b)
Upon such endorsement made by Regional Authority, authorisation
holder and co-authorisation holder shall jointly and severally be liable
for completion of EO. Any one of co-authorisation holders may import
goods in his name or in joint names. BG/LUT shall also be furnished in
their joint names.
hall jointly and severally be liable for completion of EO. Any one of co-authorisation holders may import goods in his name or in joint names. BG/LUT shall also be furnished in their joint names.
(c)
If authorisation holder is registered with Central Excise, he has an
option of getting names of jobber endorsed by Central Excise as per
Central Excise Rules in lieu of Regional Authority’s endorsement. In
case manufacturer exporter holding authorisation is not registered /
not required to be registered with Central Excise authority, job work
may be allowed as per Central Excise Rules and regulations without
insisting for endorsement of supporting manufacturer’s name.
However, authorisation holder shall be solely responsible for
imported items and fulfilment of EO.
4.36 Acceptance of BG/LUT
(a)
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