No Protection to Prior Contract Protection under Para 2.4 for One to One Nexus in Advance Authorisation under Para 4.1.15 Inserted on 1 Aug 2013

[DGFT Public Notice No. 35 dated 30^th October 2013]

Subject: Amendments in Notification No. 31 (RE–2013)/2009-2014 dated 1^st August, 2013

In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992),as amended, the Central Government hereby amends para 2 of Notification No. 31 dated 1.8.2013 by adding two sentences at the end of the existing para.

The amended paragraph 4.1.15 will read as under: (new sentences being added at the end of the para are in bold letters for easy reference)

“4.1.15 Wherever SION permits use of either (a) a generic input or (b) alternative inputs, unless the name of the specific input(s) [which has (have) been used in manufacturing the export product] gets indicated / endorsed in the relevant shipping bill and these inputs, so endorsed, match the description in the relevant bill of entry, the concerned Authorisation will not be redeemed. In other words, the name/description of the input used (or to be used) in the Authorisation must match exactly the name/description endorsed in the shipping bill. At the time of discharge of export obligation (EODC) or at the time of redemption, RA shall allow only those inputs which have been specifically indicated in the shipping bill. These provisions will also be applicable for supplies to SEZs and supplies made under Deemed exports. Details as given above will have to be indicated in the relevant export documents/import documents/ documents for domestic procurement. ”

Effect of this Notification:

This Notification makes it explicit that provisions of para 4.1.15 of FTP are applicable for supplies to SEZs and deemed exports as well.