CBEC Clarification on Import of Prohibited Goods for
Export Production under Advance Authorization – Para 4.4.2 of HoP
[CBEC Circular No. 04 dated 10th February
2014]
Subject: Export of a prohibited item under Advance Authorization.
The Department
of Revenue has issued notification no. 01/2014-Customs dated 17.01.2014 to
implement changes in the Foreign Trade Policy (2009-14) which have been made
vide Department of Commerce Notification
No. 51(RE-2013)/2009-2014 dated 14.11.2013 read with
DGFT’s Public Notice No.37/2009-2014(RE-2013) dated 14.11.2013.
2. The changes
in the FTP provide for permitting the export of items which are otherwise
prohibited for export, namely, items falling under Chapter 7 and 15 of ITC (HS)
Schedule 2, under the Advance Authorization Scheme with specific conditions that are stricter
than under a normal Advance Authorization. In such cases, the Advance
Authorization will contain specific mention of the Public Notice No.
37/2009-2014(RE-2013) dated 14.11.2013.
3. Amongst the stricter conditions are – (a)
export is subject to pre-import condition and the resultant product exported has to be
manufactured out of the raw material already imported under the scheme (b)
there has to be notified SION/prior fixation of norms by Norms Committee in
terms of Para 4.4.2 of HBP Vol.1 (c) the Import/Export is permitted only
through specific EDI enabled ports (d)
EO period is 90 days from the date of clearance on import with no extensions
(e) facility of regularisation of bonafide defaults under para 4.28
of HBP vol.1 is not available (f) imported material is subject to actual user
condition and no transfer for any purpose, including job work, is permitted
(g) imported material found defective or unfit
for use has to be re-exported within thirty days, extendable by another thirty
days.
4. Further, at the time of export
an undertaking from the authorization holder has been prescribed to the effect
that the resultant products, being exported against the authorization, which is
otherwise prohibited for export, has been manufactured from the material
already imported under the authorization. This undertaking is to also contain
details of imports and exports made under the authorization. This condition has
been prescribed to enable the customs officer to form a reasonable satisfaction
that the goods under export are not the prohibited goods. The officer is to record
suitable comments in this regard in the EDI field for departmental comments.
5. The field formations may also
keep in view the Circular No. 5/2010-Cus dated 16.3.2010 and instruction no.
609/119/2010-DBK dated 18.1.2011.
6. This may be brought to the
notice of the trade by issuing suitable Trade/ Public Notices. Officers may be
suitably guided through Standing Orders. Difficulties faced, if any, in
implementation of the Notification may be brought to the notice of the Board at
an early date.
F.No.605/27/2013-DBK