Chapter 1
Introduction
Notification |
In
pursuance of the provisions of paragraph 2.4 of FTP, the Director General of
Foreign Trade (DGFT) hereby notifies the compilations known as HBPv1, HBPv2 and
Schedule of DEPB rates. These compilations, as amended from time to time,
shall remain in force until 31st March, 2014, except DEPB scheme, which shall
continue to be operative till 31st December, 2010 or till a replacement
scheme is announced, whichever is earlier. |
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Objective |
Objective
is to implement provisions of FT (D&R) Act, Rules and Orders made there
under and FTP (2009-14) by laying down simple, transparent and EDI compatible
procedures, which are easy to comply with and administer, for efficacious
management of foreign trade. |
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Definition |
For
purpose of this Handbook, definitions and glossary contained in FT (D&R)
Act, Rules and Orders made there under and the FTP (2009-14) shall apply. |
Chapter 2
General Provisions
Regarding Exports and Imports
Policy |
Policy
relating to general provisions regarding exports and imports is given in
Chapter-2 of FTP. |
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Countries of Imports /
Exports |
Unless
otherwise specifically provided, import / export will be valid from / to any
country. Above provisions shall, however, be subject to all conditionality,
or requirement of Authorisation as required under
Schedule I and / or Schedule II of ITC (HS). |
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Above
provisions shall, however, be subject to all conditionality, or requirement
of Authorisation as required under Schedule I and /
or Schedule II of ITC (HS). |
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Application Fee |
The
scale of fee, mode of payment, procedure for refund of fee and categories of
persons exempted from payment of fee are contained in Appendix-21B. |
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Territorial Jurisdiction of
Regional Authorities (RA) |
Every
application, unless otherwise specified, shall be submitted to RA concerned,
as indicated in Appendix-1 of HBP v1. |
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Filing of Application |
An
incomplete or unauthorised application is liable to
be rejected giving specific reason for rejection. In case of manual
applications, applicant would furnish a soft copy of the application in MS
word format. |
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Profile of Importer/
Exporter |
Each
importer / exporter shall be required to file importer/exporter profile once with
RA in ANF 1. RA shall enter such information in database so as to dispense
with need for asking information again. In case of any change in information
given in ANF 1, importer / exporter shall intimate same to RA. |
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Self Addressed Stamped
Envelope |
Applicant
shall furnish a self addressed envelope of 40x15 cm with required postal
stamp affixed, for all documents required to be sent by Speed Post. |
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IEC No: Exempted Categories |
Following
categories of importers or exporters are exempted from Categories obtaining
IEC number: |
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(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. |
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(ii)
Ministries / Departments of Central or State Government. |
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(iii)
Persons importing or exporting goods for personal use not connected with
trade or manufacture or agriculture. |
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(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. 100,000. |
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However,
exemption from obtaining IEC number 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. |
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(v)
Following permanent IEC numbers shall be used by non-commercial PSUs and
categories of importers / exporters mentioned against them for import /
export purposes: |
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Application for Grant of
IEC Number |
An
application for grant of IEC Number shall be made by Registered Office, in
case of companies and Head Office in case of proprietorship concerns,
partnership concerns and HUFs, of applicant, except EOUs and SEZ units, to
concerned RA in ANF2A with documents prescribed therein. Only one IEC would
be issued / allowed against a single PAN number. The
application (ANF 2 A) for issuance of fresh IEC or modification of IEC shall
indicate the name and designation of the person whose photograph has been
affixed on the Bank Certificate. A photograph of the person alongwith his/her name and designation shall also be
affixed on the IEC No. to be issued (Appendix 18 B). |
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IEC Format and Statements |
RA
concerned shall issue an IEC number in prescribed format (Appendix-18B). A
copy of such IEC number shall be endorsed to concerned banker (as per details
given in ANF 2A). A
consolidated statement (in Appendix 18 C) of IEC numbers issued by RA shall
be sent to Exchange Control Department of RBI as given in Appendix-18D. |
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Validity of IEC No. |
An
IEC number allotted to an applicant shall be valid for all its branches /
divisions / units / factories. |
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Duplicate Copy of IEC
Number |
Where
an IEC Number is lost or misplaced, issuing authority may consider requests
for grant of a duplicate copy of IEC number, on an affidavit. |
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Surrender of IEC Number |
If
an IEC holder does not wish to operate allotted IEC number, he may surrender
same by informing issuing authority. On receipt of such intimation, issuing
authority shall immediately cancel it and electronically transmit it to DGFT
and Customs authorities. |
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Application for Import and
Export 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 as specified under relevant Chapters of this Handbook. |
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Imports under Indo-US
Memorandum of Understanding |
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. The following are designated
Import Certificate Issuing Authorities (ICIA): |
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(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. |
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A
request for an import certificate shall be made in ANF 2C. Import certificate
in Appendix-31 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. 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. |
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2.11A |
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 31A of HBPv1. The certificate shall be issued
based on application made under ANF 2C-1 along with documents prescribed
therein. |
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Validity of Import Licence/Certificate/ Authorisation/Permissions/
CCPs/Export licence |
Validity
of import / export Authorisation from date of issue
shall be as follows, unless specified otherwise: |
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Where
an Authorisation expires during the month, such Authorisation shall be deemed to be valid until last day
of concerned month. This proviso would be applicable even for a revalidated Authorisation. |
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Validity
of an import Authorisation is decided with
reference to date of shipment / dispatch of goods from supplying country as
given in Paragraph 9.11 A of HBP v1 and not the date of arrival of goods at
an Indian port. |
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Provisions
of paragraph 2.12.1 above shall not be applicable to DEPB, Service Providers
under SFIS, VKGUY and duty credit scrips issued
under FMS and FPS, which are duty credit entitlements and must be valid on
date on which actual debit of duty is made. |
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Similarly,
EOP shall be deemed to be valid until month end. |
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Revalidation of Import
Export Licence / Certificate / Authorisation
Permissions |
RA
concerned may revalidate import Authorisation on
merits, for six months from date of expiry of validity. However, Export Licence may only be revalidated by RA concerned on
recommendation of DGFT for six months at a time and maximum upto 12 months from date of expiry of validity. |
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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. [Paragraph
2.13.1 substituted by 39-PN(RE)/03.02.2010]. |
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Such
revalidation (under 2.13 and 2.13.1 above) would be
permitted under specific orders of Head of concerned Office and would be
maximum up to extent of custody period. |
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2.13.2A |
For the purpose of
re-credit of 4% Special Additional Duty (SAD) of customs in the freely
transferable Duty credit scrips
(including DEPB), revalidation for a maximum period of 6 months from the date
of endorsement, shall be allowed in case the balance period of validity is
less than 6 months on the date of re-credit. [Para2.13.2A inserted by 38-PN(RE)/03.02.2010]. |
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An
application for revalidation (including for restricted items), may be made to
RA concerned. RA would consider such application as per government rules /
notifications. Where DGFT is concerned authority, original application shall
be submitted to RA concerned and self-attested copy of same shall be
submitted to DGFT. |
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Duplicate Copies of
Export-Import Licence / Certificate / Authorisation / Permissions / CCPs |
Where
an Authorisation is lost or misplaced, an
application for issue of a duplicate may be made along with an affidavit, as
given in Appendix-24, to issuing RA. RA concerned may, on merits to be
recorded, issue a duplicate after issuing an order for cancellation of
original and informing customs authority where original was registered. |
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2.15
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Duplicate
copy of freely transferable Authorisation, may be
issued against an application accompanied with following documents: a.
An application with fee equivalent to 10% of duty saved or duty credit (of
unutilized balance). b.
A copy of FIR reporting loss. c.
Original affidavit on notorised stamp paper. d.
Indemnity bond on a stamp paper undertaking to indemnify revenue loss, which
may be caused on account of issue of such duplicate. |
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2.15.1 |
When
an Authorisation has been lost by a Government
agency and a proof to this effect is submitted, documents at serial nos. (a) to (d) above shall not be required. |
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In
such cases, revalidation shall be for six months from date of endorsement. |
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2.15.2
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RA
concerned shall obtain a report regarding utilization of such Authorisation from Custom authority at port of
registration before issuing duplicate, for balance unutilized. |
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2.15.3
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Validity
of duplicate Authorisation shall be co-terminus
with original period. No request shall be entertained if validity has
expired. |
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2.15.4
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Provision
of paragraph 2.15.2 and 2.15.3 shall be applicable both for cases covered
under paragraph 2.14 and 2.15. |
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Identity Cards |
To
facilitate collection of Authorisation and other
documents from DGFT Head Quarters and RA, identity cards (as in Appendix 20B,
valid for 3 years) may be issued to proprietor/partners / directors and
authorised employees (not more than three), of importers and exporters, upon
application as in Appendix 20A. In
addition, Identity Card may also be issued by the applicant firms on their
letterhead to the concerned employees. These Identity Cards may be
countersigned by the concerned RA. However,
application for identity card in Appendix 20B will require to be made by the
applicant and all other parameters would need to be met. However, in case of
limited companies, RA may approve allotment of more than three identity cards
per company. In
case of loss of an identity card, a duplicate card may be issued on the basis
of an affidavit. For common directors / partners, of a group company or in
any other similar cases, RA may issue multiple identity cards after recording
reasons in writing. |
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Interviews with authorized
Officers |
Officers
may grant interview at their discretion to authorized representative of
importer / exporter. Interviews / clarifications may also be sought through
E-mails. |
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Export of Items Reserved
for SSI 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. |
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Warehousing Facility |
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 paragraph 2.28 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 applicable 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. In
case of clearance against DEPB and other duty credit scrips
customs duty on imports may be adjusted. Goods
can be re-exported without payment of customs duty provided (i) a shipping bill or a bill of export is presented in
respect of such goods; and (ii) order for export of such goods has been made
by competent customs authorities. |
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Execution of Bank Guarantee
/ Legal Undertaking for Advance Authorisation /
DFIA and EPCG Authorisation |
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.” 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 / authorization / permission
(covering the items indigenously procured) to the 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 authorization 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. |
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Execution of Bank
Guarantee/Legal Undertaking for DEPB/Freely transferable schemes under
Chapter 3 |
2.20A |
At
the time of filing application for scrip(s) under DEPB Scheme/freely
transferable incentive Scheme under Chapter 3 of FTP, without Bank Realisation Certificate (BRC), the applicant shall
execute BG/LUT (as per Customs Circular no. 58/2004) with the RA as per
Appendix 25C or Appendix 25D respectively. |
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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. In case of a group company, if one company of a Group is a status
holder, Corporate Guarantee may be given for another company by this company,
which is not a status holder. |
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Certificate of Origin(CoO) |
Certificate
of Origin (CoO) is an instrument to establish
evidence on origin of goods imported into any country. There are two
categories of CoO viz. (1) Preferential and (2) Non
preferential. |
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Preferential |
Free
Trade Agreement. These arrangements / agreements prescribe Rules of Origin
which have to be met for exports to be eligible for tariff preference. Authorised
agencies shall 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. Export Inspection Council (EIC) is agency authorised to print
blank certificates. Authorised agencies may charge a fee, as approved by DoC, for services rendered. |
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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: |
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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. 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-4A. |
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Global System of Trade
Preference (GSTP) |
(b)
Under agreement establishing GSTP, tariff concessions are exchanged among
developing countries, who have signed agreement. Presently, 46 countries are
members of GSTP and India has exchanged tariff concessions with 12 countries
on a limited number of products. EIC is sole agency authorised to issue CoO under GSTP. |
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SAARC Preferential Trading
Agreement (SAPTA) |
(c)
SAPTA was signed by seven SAARC members namely India, Pakistan, Nepal,
Bhutan, Bangladesh, Sri Lanka and Maldives in 1993 and came into operation in
1995. Four rounds of trade negotiations have been completed and more than
3000 tariff lines are under tariff concessions among SAARC countries. List of
agencies, authorised to issue CoO under SAPTA are
notified under Appendix – 4B. |
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Asia-Pacific Trade Agreement
(APTA) |
(d)
APTA is a preferential trading arrangement designed to liberalise
and expand trade in goods progressively in Economic and Social Commission for
Asia and Pacific (ESCAP) region through liberalization of tariff and
nontariff barriers. At present, Bangladesh, Sri Lanka, South Korea, India and
China are exchanging tariff concessions under APTA. Agencies authorised to
issue CoO under APTA are listed in Appendix – 4B. |
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India-Sri Lanka Free Trade
Agreement (ISLFTA) |
(e)
Free Trade Agreement (FTA) between India and Sri Lanka was signed on
20.12.1998 and was operationalised in March, 2000
following notification of required Customs tariff concessions by Government
of Sri Lanka and India. EIC is sole agency to issue CoO
under ISLFTA. |
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India-Afghanistan
Preferential Trade Agreement |
(f)
A Preferential Trade Agreement between Transitional Islamic State of
Afghanistan and Republic of India was signed on 6.3.2003 and was operationalised with issuance of Customs Notification No
76/2003 dated 13.5.2003. EIC is sole agency to issue CoO
under India Afghanistan Preferential Trade Agreement. |
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Indo-Thailand Framework
Agreement for Free Trade Area |
(g)
India and Thailand have signed protocol to implement Early Harvest Scheme under
India- Thailand Free Trade Agreement on 01.09.2004.Tariff preferences for
imports on items of Early Harvest Scheme would be available only to those
products, which satisfy Rules of Origin Criteria, notified by Department of
Revenue, Ministry of Finance, vide notification No.101/2004- Customs dated
31.08.2004. EIC would be sole agency to issue CoO
under Early Harvest Scheme of Framework Agreement on India-Thailand Free
Trade Agreement. |
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Non Preferential |
Government
has also nominated certain agencies to issue Non Preferential CoO in accordance with Article II of International
Convention Relating to Simplification of Customs formalities, 1923. These CoOs evidence origin of goods and do not bestow any right
to preferential tariffs. List of notified agencies is provided in Appendix –
4C. In addition, agencies authorized to issue Preferential CoO as per Para 2.21.1 of HBP v1 are
also authorized to issue Non-Preferential CoO. All
exporters who are required to submit CoO (Non
Preferential) would have to apply to any of agencies enlisted in Appendix–4C
with following documents: (a)
Details of quantum / origin of inputs / consumables used in export product. (b)
Two copies of invoices. (c)
Packing list in duplicate for concerned invoice. (d)
Fee not exceeding Rs.100 per certificate as may be prescribed by concerned
agency. The
agency would ensure that goods are of Indian origin as per general principles
governing rules of origin before granting CoO (non
preferential). Certificate would be issued as per Format given in Annexure-II
to Appendix–4C. It should be ensured that no correction/re-type is made on
certificate. Any
agency desirous of enlistment in Appendix–4C may submit their application as
per Annexure I to Appendix 4C to the concerned RA. In
case of tea, all exporters who are required to submit CoO
(Non-Preferential) shall apply to Tea Board or any Inspection Agency
authorized by Tea Board and enlisted in Appendix-4C of HBP v1 with documents
listed above. |
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Automatic Licence / Certificate / Authorisation
/ Permission |
Status
holders shall be issued Authorisation automatically
within stipulated time period. Deficiency, if any, informed through covering
letter, shall be required to be rectified by status holders within 10 days
from date of communication of deficiency. |
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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. |
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Advance Payment |
In
case, payment is received in advance and export / deemed exports takes place subsequently,
application for an Authorisation shall be filed
within specific period following the month during which exports / deemed
exports are made, unless otherwise specified. |
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Payment through ECGC cover |
Payment
through ECGC cover would count for benefits under ECGC cover FTP. |
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Payment through General /
Private Insurance Companies |
Amount
of Insurance Cover for transit loss by General Insurance and Private Approved
Insurance Companies in India would be treated as payment realized for exports
under various export promotion schemes. |
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Irrevocable Letter of
Credit |
In
case where applicant applies for duty credit scrip / DEPB / DFIA / discharge of
EO against confirmed irrevocable letter of credit (or bill of exchange which
is unconditionally Avalised / Co-Accepted / Guaranteed by a bank) and this is
confirmed and certified by exporter’s bank in relevant Bank Certificate of
Export and Realization, payment of export proceeds shall be deemed to be
realized. For Status Holders, irrevocable letter of credit would suffice. |
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RBI write-off on export
proceeds realization |
2.25.4 |
Realization
of export proceeds shall not be insisted under any of the Export Promotion
Schemes under this Foreign Trade Policy, if the Reserve Bank of India (RBI)
writes off the requirement of realization of export proceeds on merits and
the exporter produces a certificate from the concerned Foreign Mission of
India about the fact of non-recovery of export proceeds from the buyer.
However, this would not be applicable in self-write off cases. |
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Export by Post |
In
case of export by post, exporter shall submit following documents in lieu of documents
prescribed for export by sea / air: 1)
Bank Certificate of Export and Realisation as in
Appendix-22A. 2)
Relevant postal receipt 3)
Invoice duly attested by Customs authorities. |
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Import/ Export through
Courier Service |
Imports
/ Exports through a registered courier service is
permitted as per Notification issued by DoR.
However, importability / exportability of such items shall be regulated in
accordance with FTP. |
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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. |
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Import/Export of Samples |
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 Rs.2000 (CIF) in one consignment shall be
allowed without an Authorisation by any person
connected with Tea industry. Duty
free import of samples upto Rs 100,000 for all
exporters (Rs.300,000 for gems and jewellery sector) shall be allowed as per terms and
conditions of Customs notification. Exports of bonafide
trade and technical samples of freely exportable item shall be allowed
without any limit. |
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Exports
of bonafide trade and technical samples of freely
exportable item shall be allowed without any limit. |
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Import under Lease
Financing |
Import
under lease financing shall be available under EPCG Scheme, EOU / SEZ scheme.
Domestic supplier of capital goods to eligible categories of deemed exports shall
be eligible for benefits of deemed exports as in paragraph 8.3 of FTP, even
in cases where supplies are under lease financing. |
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Exhibits Required for
National and International Exhibitions or Fairs and Demonstration |
Import
/ export of exhibits, 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 certificate from an officer of a rank not below that of an
Under Secretary / Deputy DGFT in DoC / DGFT or an
officer of Indian Trade Promotion Organization (ITPO) duly authorised by its
Chairman in this behalf, to effect that such exhibition, fair or similar show
or display. (i) has been approved or sponsored by DoC or ITPO; and (ii)
is being held in public interest. 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. |
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Import Policy |
Policy
relating to general provisions regarding import of capital goods, raw materials,
intermediates, components, consumables, spares, parts, accessories,
instruments and other goods is given in Chapter 2 of FTP. |
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General Procedure for
Licensing of Restricted Goods |
Wherever
an import Authorisation, including CCP, is required
under FTP, procedure contained in this chapter shall be applicable. |
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|
Import
of Metallic Waste and Scrap |
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2.32.1 |
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. |
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2.32.2 |
Import
of following types of metallic waste and scrap will be free subject to
conditions detailed below : |
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|
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Shredded
Form: Import of metallic waste and scrap listed above in shredded form shall be
permitted through all ports of India subject to following conditions: - a.
Importer shall furnish the following documents to the customs at the time of
clearance of goods: I)
Pre-shipment
inspection certificate as per the format in Annexure-I to Appendix 5, from
any of the Inspection & Certification agencies given in Appendix-5, 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)
Copy of the contract between the importer and the exporter stipulating that
the consignment does not contain any radio active contaminated material in
any form. Import from Hodaideh, Yemen and Bandar Abbas, Iran will be in shredded form only. |
||||||||||||||||||||||||||||||||||||||||||||||||||
Unshredded compressed and
loose form: Import
of metallic waste, scrap listed in para 2.32.2 above in unshredded
compressed and loose form shall be subject to following conditions:- a.
Importer shall furnish the following documents to the Customs at the time of
clearance of goods: I)
Pre-shipment inspection certificate as per the format in Annexure-I to
Appendix 5 from any Inspection & Certification agencies given in
Appendix-5 to the effect that: i)
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 is actually a metallic waste/ scrap/seconds/defective as
per the internationally accepted parameters for such a classification. II)
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, radio active contaminated, or any other explosive material in any
form either used or otherwise. |
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b
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.Paradip, 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.ICD Ahmedabad, 25.ICD Pitampur and 26.ICD Malanpur”. |
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2.32.2.A |
In
case any agency wishes to be enlisted under Appendix-5, they may furnish an
application to the office of Director General of Foreign Trade with the
following documents in the format in Appendix-5-A, which will be considered
by an Inter-Ministerial Committee. (a) A brief on the activities of the agency, its history,
membership, organisational structure, manpower,
etc. (b) Infrastructural setup, logistics, testing labs etc for
carrying out the inspection of metallic scrap. (c) List of companies / agencies for which testing has
been carried out. [Para 2.32.2 substituted by 17-PN(RE)/13.11.2009]. |
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2.32.3
|
However,
import of other kinds of metallic waste and scrap will be allowed in terms of
conditions of ITC (HS). |
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2.32.4 |
Import
policy for seconds and defective, rags, PET bottles / waste, and ships is given in ITC (HS). |
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Import of Second Hand
Capital Goods |
Import
of second hand capital goods including refurbished / reconditioned spares, except
those of personal computers/ laptops, shall be allowed freely, subject to
conditions for following categories: Import
of second hand computers including personal computers/ laptops and
refurbished/reconditioned spares thereof is restricted. Import
of refurbished / reconditioned spares of capital goods, other than those of
personal computers/laptops will be allowed on production of a Chartered
Engineer certificate that such spares have atleast
80% residual life of original spare. |
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[Omitted by DGFT Public Notice No.
62(RE)/13.05.2010] |
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2.33A |
Customs
or any other Central or State Government authority may avail of services of
Inspection and Certification Agencies in Appendix 5 of the HBP v1, for
certifying residual life as well as valuation / purchase price of capital
good. |
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Import of Ammunition by Licensed
Arms Dealers |
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. 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. An
application for grant of an Authorisation for items
listed above may be made to RA in ANF 2B along with documents prescribed
therein. |
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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. |
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2.35.1
|
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. |
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2.35.2
|
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 industry, including office and other equipment required for their
own professional use. |
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2.35.3
|
Import
entitlement under paragraphs 2.35.1 and 2.35.2 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 and shall not be transferable
except within the group company or to managed hotels. |
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|
2.35.4 |
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). |
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2.35.5
|
An
application for grant of an Authorisation under
paragraphs 2.35.1 and 2.35.2 may be made in ANF 2B to DGFT through Director
of Tourism, Government of India who will forward application to RA concerned
along with their recommendations. |
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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). |
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Import of Other Restricted
Items |
ITC
(HS) contains list of restricted items. An application for import of such items
may be made, in ANF 2B 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. |
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EXIM Facilitation Committee |
Restricted
item Authorisation may be granted by DGFT or
Committee any other RA authorised by him in this behalf. DGFT / RA may take
assistance and advice of a Facilitation Committee. The
Assistance of technical authorities may also be taken by seeking their
comments in writing. Facilitation Committee will consist of representatives
of Technical Authorities and Departments / Ministries concerned. |
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2.37A |
Import authorizations for a
restricted item, if so directed by the competent authority, shall be issued
for import through one of the sea ports or air ports or ICDs or LCS, as per
the option indicated, in writing, by the applicant. However, for import of rough marble, port
of registration is mandatory and the applicant must indicate the same in the
application itself. Authorization holder shall register the import authorisation at the port specified in the Authorization
and thereafter all imports against said authorization shall be made only
through that port, unless the authorization holder obtains permission from
customs authority concerned to import through any other specified port. [Para 2.37A amended by
51-PN(RE)/30.03.2010] |
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Gifts of Consumer or Other
Goods |
In
terms of provisions contained in paragraph 2.19 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 2B along with documents
prescribed therein. 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. |
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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. |
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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. |
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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). |
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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). |
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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 marinecum-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. |
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2.42.1
|
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. 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. |
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2.42.2
|
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. |
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Transfer of Imported Goods |
Freely
importable goods can be transferred by sale or otherwise by importer freely.
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. |
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2.43.1
|
Prior
permission of RA shall not, however, be necessary for transfer or disposal of
goods, which were imported with Actual User condition, provided such goods
are freely importable without Actual User condition on date of transfer. |
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2.43.2 |
Prior
permission of RA shall also not be required for transfer or disposal of
imported goods after a period of two years from the date of import. However,
transfer of imported firearms by the importer / Authorisation
holder shall be permitted only after 10 years of import with approval of
DGFT. “Renowned
Shooters” for 3 consecutive years are allowed to sell their imported weapons
after three years from date of import of the respective weapon. Other
“Renowned Shooters” are allowed to sell their weapons after 5 years from the
date of import. The sale shall be subject to approval from DGFT. |
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Sale of Exhibits |
(i) Sale of exhibits of restricted items, mentioned in ITC
(HS), imported for an international exhibition / fair organized / approved /
sponsored by ITPO 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 lakhs (CIF) for such exhibits for
each exhibitor. However,
sale of exhibits of items, which were freely imported
shall be made, without an Authorisation, within
bond period allowed for re-export on payment of applicable customs duties. (ii)
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. |
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Import of Overseas Office
Equipment |
On
winding up of overseas offices, set up with approval of RBI, used office
equipment and other items may be imported without Authorisation. |
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Prototypes |
Import
of new / second hand prototypes / second hand samples may be allowed on
payment of duty without an Authorisation to an
Actual User (industrial) engaged in production of or having industrial licence / letter of intent for research in item for which
prototype is sought for product development or research, as the case may be,
upon a self-declaration to that effect, to satisfaction of customs
authorities. |
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Restricted items for
R&D |
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. |
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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. |
|||||||||||||||||||||||||||||||||||||||||||||||||
Application for Grant of
Export Licence/Certificate / Permission |
An
application for grant of Export Authorisation in
respect of items mentioned in Schedule 2 of ITC (HS) may be made in ANF 2D
(2E for SCOMET items) to DGFT along with documents prescribed therein. EFC
shall consider applications on merits for issue of export Authorisation. An
Inter-Ministerial Working Group in DGFT shall consider applications for
export of Special Chemicals, Organisms, Materials, Equipment and Technologies
(SCOMET) as specified in Appendix-3 to Schedule 2 of ITC (HS) based on
guidelines given below. Applications
for licences to export items or technology on
SCOMET List are considered case-by-case, based inter alia on the following
general criteria: I.
Following factors, among others, are taken into account in the evaluation of
applications for export of items on SCOMET List: a.
Credentials of end-user, credibility of declarations of end-use of the item
or technology, integrity of chain of transmission of item from supplier to
end-user, and on potential of 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, objectives of global
nonproliferation, or its obligations under treaties 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 recipient State; d.
The capabilities and objectives of programmes of
recipient State relating to weapons and their delivery; e.
Assessment of end-uses of item(s); f.
Applicability to an export licence application of
relevant bilateral or multilateral agreements to which India is a party. A
condition for consideration of an application for an export licence is submission of stipulated certifications to
effect, inter alia, 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.Government of India may also require
additional formal assurances, as appropriate, including on end-use and
non-retransfer, from State of recipient. III.
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 that Department under Atomic Energy Act, 1962. For
certain items in Category 0, formal assurances from recipient State will
include non-use in any nuclear explosive device. Licences
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. IV.
Additional end-use conditions may be stipulated in licences
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. V.
Applications for transfer of “Technology” for any item on the List will be
considered as an application for export of item itself. VI.
Licences for export of items in this 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 certifications. No
export licence for display or exhibition shall be
issued for ‘Technology’ in any category or for items under Categories 0, 1,
and 2. 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 licence shall invite civil and/or criminal prosecution. Note
2: Licences for export of items in this 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 licence 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 licence. Note
3: Export of items in Category 2 of this list may also be controlled by other
applicable guidelines issued from time-to-time. Exporters of items in this
category are advised to seek guidance from DGFT. Note
4: Exporters are entitled to apply for a ‘destination licence’
for countries and / or groupings of countries for export to which only
re-transfer conditions need be imposed. Note
5: 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
6: ‘Technology’ (see also entry ‘Technology’ in glossary in Appendix-3 to
Schedule 2 of ITC (HS)): 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. 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. RAs
may also 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. An application for grant of Free Sale and Commerce Certificate may
be made to RA concerned as per format in Appendix 39 of HBP Vol.I, along with Annexure A therein. RA shall issue Free
Sale and Commerce Certificate as per Annexure B of Appendix 39. |
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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) shall be made in ANF 2EE to
DGFT(Hqrs.), New Delhi along with documents
prescribed therein. These applications shall be
considered by an Inter-Ministerial Working Group (IMWG) in DGFT 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. (e) In case site visit, on-site verification or access to
records/documentation is to be carried out by a foreign government 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
authorization. (b) Site visit, on-site verification or access to
records/documentation will be allowed only to individuals mentioned in the
authorization. (c) Site visit, on-site verification or access to
records/documentation shall be concluded during the period mentioned in the
authorization. (d) Exporter/Importer will keep a record of site visit, on-site
verification or access to records/documentation alongwith
detail of individuals who visited the premises during this visit and produce
the same as and when required to do so by the GOI. (e) No exchange of goods, services and technologies and any
documentation including drawings, specification sheets etc. will take place
during the visit. (f) Exporter/importer may be required to give any additional
assurance that the Government of India may require. (g) Any other condition that may be stipulated in the permission. III. Provisions of Weapons of Mass Destruction Act, 2005 shall also
apply to an arrangement or understanding that involves site visit, on-site
verification or access to records/documentation. IV. Any violation of any condition of the license shall invite civil/
criminal prosecution as per law. [The paragraph inserted by 50-PN(RE)/29.03.2010] |
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Export of Items under State
Trading Regime (STR) |
An
application for export of items mentioned in ITC (HS) under STR regime may be
made to DGFT. |
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Exports of Samples /
Exhibits |
An
application for export of samples or exhibits, which are restricted for
export, may be made to DGFT. |
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Free of Cost |
Status
holders shall be entitled to export freely exportable items on free of cost basis
for export promotion subject to an annual limit of Rs.10 lakh or 2% of
average annual export realization during preceding three licensing years
whichever is higher. |
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Gifts / Spares /
Replacement Goods |
For
export of gifts, indigenous / imported warranty spares and replacement goods
in excess of ceiling / period prescribed in paragraphs 2.32, 2.33 and 2.37
respectively of FTP, an application may be made to DGFT. |
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Furnishing of Returns in
respect of Exports in non Physical form |
All
exports made in non physical form by using communication links including high
speed data communication links, internet, telephone line or any other channel
which do not involve Customs authorities has to be compulsorily reported on
quarterly basis to concerned EPC (Para 3.12 of FTP) as given in Appendix 19C. These
provisions shall be applicable to all exporting units located anywhere in
country including those located in STP, SEZ, EHTP
and under 100% EOU scheme. |
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Duty Free Import of R&D
Equipment for Pharmaceuticals and Bio-technology Sector |
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. The
eligible unit may furnish an application given in Appendix- 15A to RA
concerned duly countersigned by Chartered Accountant. 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. |
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2.55.1
|
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. 20 crore or above during
preceding licensing year. The
eligible unit shall apply in form given in Appendix-15B to RA concerned duly
countersigned by Chartered Accountant. 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. |
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Conversion of E.P. copy of shipping
bill from one Scheme To Another |
If
Customs Authorities, after recording reasons in writing, permit conversion of
an E.P. copy of any scheme-shipping bill on which benefit of that scheme has not
been availed, exporter would be entitled to benefit under scheme in which
shipment is subsequently converted. |
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Offsetting of Export
Proceeds |
Subject
to specific approval of RBI, any payables, or equity investment made by an Autorisation holder under any export promotion scheme,
can be used to offset receipts of his export proceeds. In such cases,
offsetting would be equal to realization of export proceeds and exporter
would have to submit following additional documents: a)
Appendix-22D in lieu of Bank Realisation
Certificate. b)
Specific permission of RBI. |
|||||||||||||||||||||||||||||||||||||||||||||||||
Quality Certification |
It
has been a constant endeavor to promote quality standards in export product /
units manufacturing export product. |
|||||||||||||||||||||||||||||||||||||||||||||||||
2.58.1 |
One
of salient features incorporated in FTP as per paragraph 3.10.3 for promotion
of quality standards is grant of Export / Trading House status on achievement
of a lower threshold limit for units having ISO-9000 (series), ISO-14000
(Series) or HACCP certification or WHOGMP or SEI CMM level-2 & above
status / certification. |
|||||||||||||||||||||||||||||||||||||||||||||||||
2.58.2
|
List
of such agencies authorised to grant quality certification is given in
Appendix-6. For
ISO 9000 (Series) and for ISO 14000 (Series), the Agencies accredited with National
Accreditation Board for Certification Bodies (NABCB) under Quality Council of
India shall be deemed to be authorized under this Policy. List of such
accredited agencies is available on the web site www.qcin.org and also
provided under Appendix 6. Any
agency desirous of enlistment in Appendix –6 may submit their application as
per Annexure I to Appendix 6 to concerned RA. |
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Procedure for import under
the Tariff Rate Quota Scheme |
2.59 |
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: |
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|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Para 2.59 substituted by
49-PN(RE)/18.03.2010] |
||||||||||||||||||||||||||||||||||||||||||||||||||
Eligible entities for
allocation of quota |
2.59.1 |
(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. (NAFED), Minerals and Metals Trading
Corporation (MMTC), Projects & Equipment Corporation of India Limited
(PEC) and Spices Trading Corporation Limited (STCL). Para
2.59.1 substituted by 49-PN(RE)/18.03.2010] (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), 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 All eligible entities are
eligible to avail quotas as per request of applicants received. All
eligible entities desiring availment of quota as
mentioned above, may make application to EFC in ANF 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
e.g. Applications for TRQ for 2010-2011 must reach DGFT by 01.03. 2010. Imports
have to be completed before 31st March of financial year i.e. consignments
must be cleared by customs authorities before this date. Since
import of maize (corn) is through STEs, the allottes
of quota i.e. designated agencies in para 1 (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 para 2.11 of FTP, 2009-2014, if they do
not wish to make imports through FCI. Application
fee for these applications shall be paid according to procedure contained in
Appendix 21 B to HBP-v1. EFC in DGFT will evaluate and allot quota among
applicants by 31st March of each financial year preceding
to year of quota e.g. for 2010-11, EFC will allot quota by 31st March 2010. |
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Issuance of scrips against lost EP copy of the Shipping Bills and /
or original Bank Realisation Certificate |
2.60
|
In
case where EP copy of Shipping Bill / original BRC has been lost, claim under
VKGUY/ FMS/ FPS can be considered subject to submission of following
documents: - a)
A duplicate / certified copy of concerned document issued by Customs
Authority / Bank in lieu of original; b)
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; c)
An affidavit by exporter about loss of document and an undertaking to
surrender it immediately to concerned RA, if found subsequently; d)
An indemnity bond 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. |
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2.60.1 |
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 / on date of
realization of export proceeds. Any application received thereafter shall be
rejected. |
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Export Promotion Council
(EPC)/ Commodity Boards (CB) |
A
list and product category of EPCs, including CB is given Appendix-2.
Commodity Boards function as EPCs for products allotted to them. EPC is
authority issuing RCMC |
|||||||||||||||||||||||||||||||||||||||||||||||||
Non-Profit, Autonomous and Professional
Bodies |
EPCs
are non-profit organizations registered under Companies Act or Societies
Registration Act. |
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2.62.1
|
EPCs
shall be autonomous and shall regulate their own affairs. However, if Central
Government frames uniform bylaws for constitution and / or for transaction of
business for EPCs, they shall adopt the same with such modifications as
Central Government may approve having regard to special nature or functioning
of such EPC. Concerned
Administrative Ministry would interact with Managing Committee of EPC
concerned at least twice a year. |
|||||||||||||||||||||||||||||||||||||||||||||||||
Registering Authorities
issuing RCMC |
2.63 |
(i) While obtaining RCMC, an exporter has to declare his
main line of business in the application. The exporter is required to obtain
RCMC from the Council which is concerned with the product of his main line of
business. (ii)
(iii)
In case an export product is not covered by any Export Promotion
Council/Commodity Board, etc. RCMC in
respect thereof is to be obtained from FIEO.
Further, in case of multi product exporters, not registered with any
EPC, where main line of business is not
discernible, the exporter has an option to obtain RCMC from Federation
of Indian Exporters Organization (FIEO). [Paragraph
amended by 44-PN(RE)/22.02.2010]. (iv)
Exporters of minor forest produce and their value added products shall obtain
RCMC from SHEFEXIL, EPC. Software exporters shall register themselves with
Electronic and Software EPC. (v)
Exporters of 14 specific services as listed in Appendix- 2 of HBPv1, are
required to register themselves with Services
EPC. Other service exporters shall register themselves with FIEO. (vi)
In respect of exporters having their head office / registered office in State
of Orissa, RCMC may be obtained from FIEO office in Bhubaneswar irrespective
of product being exported by them. However, exporters of minor forest product
from the State can also obtain RCMC from SHEFEXIL, EPC. (vii)
In respect of multi product exporters having their head office/ registered
office in the North Eastern States, RCMC may be obtained from Shellac &
Forest Products Export Promotion Council (except for the products looked
after by APEDA, Spices Board and Tea Board). |
||||||||||||||||||||||||||||||||||||||||||||||||
Registration cum Membership
Certificate (RCMC) |
An
exporter may, on application given in Appendix-19A, register and become a
member of EPC. On being admitted to membership, applicant shall be granted
forthwith Registration cum- Membership Certificate (RCMC) of EPC concerned,
in format given in Appendix-19B. In case an exporter desires to get
registration as a manufacturer exporter, he shall furnish evidence to that
effect. Prospective
/ potential exporters may also, on application, register and become an
associate member of an EPC. |
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Validity Period of RCMC |
2.64.1 |
RCMC
shall be deemed to be valid from 1st April of licensing year in which it was
issued and shall be valid for five years ending 31st March of licensing year,
unless otherwise specified. |
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Intimation Regarding Change
In Constitution |
In
case of change in ownership, constitution, name or address of an exporter, it
shall be obligatory on part of RCMC holder to intimate such change to
registering authority within a period of one month from date of such change.
Registering authority, however, may condone delays on merits. |
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Furnishing Of Returns |
2.66 |
Exporter
shall furnish quarterly returns / details of his exports of different
commodities to concerned registering authority. However, status holders shall
also send quarterly returns to FIEO in format specified by FIEO. |
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De-Registration |
Registering
authority may de-register an RCMC holder for a specified period for violation
of conditions of registration. Before such de-registration, RCMC holder shall
be given a show cause notice by registering authority, and an adequate and
reasonable opportunity to make a representation against the proposed
de-registration. Upon de–registration, concerned EPC shall intimate the same
to all RAs. |
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Appeal Against
De-registration |
2.68 |
A
person aggrieved by a decision of registering authority in respect of any
matter connected with issue of RCMC may prefer an appeal to DGFT or an
officer designated in this behalf within 45 days against said decision and
decision of appellate authority shall be final. |
||||||||||||||||||||||||||||||||||||||||||||||||
Directives of DGFT |
DGFT
may direct any registering authority to register or deregister an exporter or
otherwise issue such other directions to them consistent with and in order to
implement provisions of FT (D&R) Act, Rules and Orders made there under,
FTP or this Handbook. |
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2.70 |
Electronic
Data Interchange |
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Eligibility |
Facility
of electronic filing of applications shall be available to all exporters. |
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Procedure |
An
exporter would be able to file his application on DGFT website at
http://dgft.gov.in/. Application will then be processed in accordance with
prevalent rules and regulations. Applicant
will have to visit concerned office to hand-over hard copy of application
along with requisite documents including application fee. Authorisation
shall be issued on receipt of hard copies of documents as mentioned above
after due scrutiny as prescribed in HBP v1. |
|||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Incentives for EDI |
Following
deductions in Application Fee would be admissible for applications signed
digitally and / or where application fee is paid electronically through EFT (electronic
fund transfer) |
|||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits |
Facility
will reduce unnecessary physical interface with DGFT. It will enable faster
processing, speedier communication of deficiencies, if any, and on-line
availability of application processing status. |
|||||||||||||||||||||||||||||||||||||||||||||||||
2.70.5
|
Authorisation
issued using DGFT Electronic Application System shall be transmitted
electronically to Customs through EDI Mode. This shall also obviate need for
verification of Authorisations before allowing
clearance. |
|||||||||||||||||||||||||||||||||||||||||||||||||
New EDI Initiatives |
To
further improve quality of services some new EDI initiatives are being taken
by DGFT: Electronic
Message Exchange between Customs and DGFT in respect of incentive schemes
under Chapter 3 will become operational by 31st December, 2009. |
Chapter
- 3
Promotional
Measures
Status Certificates |
Policy
for status holder is given in Chapter 3 of FTP. |
|
Application for Grant of
Status |
Application
for grant of status shall be filed by 31st March, in ANF 3A. An existing
status holder shall be automatically treated to be an equivalent status holder
as given in Para 3.10 of FTP. |
|
3.2.1
|
Application
shall be filed with jurisdictional RA / Development Commissioner (DC).
However, in cases where export performance of EOUs / SEZs is clubbed together
with company / firm / Group Company in DTA, the same will be considered by
jurisdictional RA (in DGFT) only. |
|
3.2.2
|
All
newly issued Status certificates shall be valid from 1st April of the year
during which application for recognition was filed. For renewals, application
filed before expiry of current validity, renewals shall have a validity
commencing from 1st April of next licensing year; otherwise validity period
shall be 1st April of year during which application was filed. All Status
Certificates shall be valid for a period of 5 years reckoned from the 1st
April of the relevant year. All Status Certificates valid beyond 31.3.2014
shall continue to remain in force, in case provisions of Foreign Trade Policy
(2014-19) continue to recognize the status. Pending the finalization of the
applications for grant of recognition, existing status holders who have
applied for recognition before the expiry of their status, shall have a grace
period of 6 months. During this grace period of 6 months such status holders
shall continue to be recognized as Status holders even after the expiry of
earlier Status Certificate i.e. till September end, unless their applications
are finally rejected or status recognition is granted once again, as the case
may be. |
|
Maintenance of Accounts |
Status
Holder shall maintain true and proper accounts of its exports and imports
based on which such recognition has been granted. Record shall also be
maintained during validity period and for a minimum period of three years thereafter.
These accounts shall be made available for inspection to RA concerned or any
authority nominated by DGFT. |
|
Refusal / Suspension /
Cancellation of Certificate |
Status
certificate may be refused or suspended or cancelled by RA concerned, if
status holder or any agent or employee 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; or (e)
Fails to furnish information required by this Directorate |
|
3.4.1
|
A
reasonable opportunity shall be given to status holder before taking any
action under above paragraph. |
|
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 thereon. |
|
3.6 |
Served from India Scheme (SFIS) |
|
(a)
|
Policy
for SFIS is given in Chapter 3 of FTP. |
|
(b)
|
For
foreign exchange earned during current financial year, application for Duty
Credit Scrip shall be filed on monthly/quarterly/half-yearly/annual basis, at
the option of the applicant to be exercised along with first application for
the current financial year, with jurisdictional RA, in ANF 3B along with
documents prescribed therein, for which the last date for filing application
on time shall be 12 months from the end of relevant month / quarter /
half-year /year periodicity. |
|
(c)
|
Service
provider shall within one month of completion of imports made or expiry of
validity of Duty Credit scrip whichever is earlier, submit a statement of
imports made under it to jurisdictional RA with a copy to jurisdictional
Excise authorities (service tax cell) wherever applicable. |
|
Ineligible Remittances and
Services for SFIS scheme |
Foreign
exchange remittances other than those that are earned for rendering of
services would not be counted for entitlement. Thus, other sources of foreign
exchange earnings such as equity or debt participation, donations, receipts
of repayment of loans etc. and any other inflow of foreign exchange,
unrelated to rendering of service, would be ineligible. For calculation of
entitlement, following shall not be taken into account. |
|
Proof of Landing for FMS
and MLFPS |
(a)
Foreign Exchange remittances: I.
related to Financial Services Sector 1.
Raising of all types of foreign currency Loans; 2.
Export proceeds realization of clients; 3.
Issuance of Foreign Equity through ADRs / GDRs or other similar instruments; 4.
Issuance of foreign currency Bonds; 5.
Sale of securities and other financial instruments; 6.
Other receivables not connected with services rendered by financial
institutions; and |
|
II.
earned through contract/regular employment abroad (e.g. labour remittances); |
||
(b)
Payments for services received from EEFC Account; |
||
(c)
Foreign exchange turnover by Healthcare Institutions like equity participation,
donations etc. (However, remittances received on account of medical
treatment, surgery, testing, consultancy and health care provided by the
institution shall be eligible.); |
||
(d) Foreign exchange turnover by Educational Institutions
like equity participation, donations etc. (However remittances received on
account of the course fees and consultancy provided by the institution shall
be eligible.); |
||
(e)
Export turnover relating to services of units operating under SEZ / EOU /
EHTP / STPI / BTP Schemes or supplies of services made to such units; |
||
(f)
Clubbing of turnover of services rendered by SEZ /EOU / EHTP / STPI/ BTP
units with turnover of DTA Service Providers; |
||
(g)
Service Providers in Telecom Sector (Sr. No 2C of Appendix 10); |
||
|
h)
Foreign Exchange earnings for Services provided by Airline and Shipping Lines
Service providers for routes plying from any country X to any country Y only,
not touching India at all; and |
|
|
i)
Exports of Goods. |
|
3.7 |
Vishesh Krishi and Gram Udyog Yojana (VKGUY) |
|
3.7.1
|
Policy
pertaining to VKGUY is given in Chapter 3 of FTP. Appendix 37A contains the list
of VKGUY items along with the admissible date of export. Application for
grant of Duty Credit scrip under VKGUY for exports made from 27.8.2009
onwards shall be made to RA concerned in ANF3C along with documents
prescribed therein. Listed products shall be eligible for Duty Credit Scrip
upon exports on or after the Date of Export indicated in the relevant
Appendix. |
|
3.7.2 |
Policy
pertaining to the Agri. Infrastructure Incentive Scrip under VKGUY is given
in Para 3.13.4 of Chapter 3 of FTP. All
Status Holders may apply for grant of Duty Credit scrip for export made
during current year to RA, CLA, New Delhi in ‘ANF 3D - ANF for Policy Para
3.13.4.’ along with documents prescribed therein. Applicants
may file one application before the last date prescribed for each half year
period (Apr-Sep / Oct-Mar). Applications
for exports during Apr-Sept period shall be filed from 15th January till 15th
February of current year and for exports during Oct-Mar period, applications
shall be filed from 1st May till 31st May of the next licensing year. Applications
received after the last date shall be summarily rejected, as Para 9.3 and
Para 9.4 shall not be applicable. The allocation of duty credit scrips by RA, CLA, New Delhi, under Para 3.13.4 of FTP,
shall be done proportionate to the eligible claims of individual
applications, vis-à-vis the total eligible claims of all the status holders
put together, received for each half year (Apr-Sep / Oct-Mar) periods, in
such a way that the total benefits granted for all status holders put
together does not exceed the limit prescribed for each half year in Para
3.13.4 of FTP. Accordingly if the total eligible claim of all the status
holders put together is, say, Rs 200 Cr, each applicant status holder would
be granted one-fourth of the claim an applicant is eligible for |
|
Focus Market Scheme (FMS) |
||
3.8 |
Policy
pertaining to FPS is given in Chapter 3 of FTP. Notified Products are listed
in Appendix 37D. |
|
3.8.1
|
An
application for exports made from 27.8.2009 onwards shall be filed, with RA
concerned in ANF3C along with documents prescribed therein. Eligibility of
Focus Product (as in Appendix 37C) shall be determined from date of export as
per Para 9.12 of HBP v1. |
|
Applicant
shall be required to submit proof of landing of export for FMS and MLFPS
consignment in specified market. Any one of the following documents should
suffice, as a proof of landing of export consignment in specified Focus 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. or his
accredited agent in India) duly certified by them, evidencing arrival of
export cargo to destination Focus Market, or (v) For Land locked Focus
Market, Rail/Lorry receipts of transportation of goods from Port to Land
locked Focus Market, or (vi) Any other documents that may satisfactorily
prove to RA concerned that goods have landed in / reached the Focus Market.
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. Further, in the
case of issuance of any other document under (vi) above, the accredited agent
must state that he has verified that this proof of landing of goods in relevant
Focus Market is given based on information available in the Goods Carrier’s
backup database and he has issued this document accordingly. |
||
|
Focus Product Scheme (FPS) |
|
3.9 |
Policy
pertaining to FPS is given in Chapter 3 of FTP. Notified Products are listed
in Appendix 37D. |
|
3.9.1 |
An
application for exports made from 27.8.2009 onwards shall be filed, with RA
concerned in ANF3C along with documents prescribed therein. Eligibility of
Focus Product (as in Appendix 37D) shall be determined from date of export as
per Para 9.12 of HBP v1. |
|
3.9.2 |
The
procedure for filing applications against export of Market Linked Focus Products
under FPS (Para 3.15.3 of FTP) will be the same as laid down for Focus
Product Scheme in Para 3.9.1 above. In case of applications for grant of
benefit under Market Linked Focus Product scheme, for proof of landing of
export consignment in specified market, Para 3.8.2 of HBP Vol.1 shall apply. |
|
3.10 |
Procedure for Status Holders Incentive Scrip |
|
3.10.1 |
Policy
pertaining to Status Holders Incentive Scrip is given in Para 3.16 of Chapter
3 of FTP. |
|
3.10.2
|
ANF3E
and other conditions for claiming Status Holders Incentive Scrip shall be
notified separately. |
|
3.10.2 |
Application for grant of Duty Credit Scrip under SHIS (Para 3.16 of FTP)
for exports made during 2009-10 or for exports made during 2010-11, as the case
may be, shall be made to jurisdictional RA concerned in ANF3E along with
documents prescribed therein. |
|
3.10.3 |
The last date of filing the application shall be 31st March 2011 for SHIS
Application on exports made during 2009-10 (and 31st March 2012 for SHIS
Application on exports made during 2010-11). |
|
3.10.4 |
As Para 3.17.8 of FTP does not apply to SHIS, shipments where VKGUY, FMS,
FPS (including MLFPS) benefits have been claimed/will be claimed by applicant
or by the supporting manufacturer (based on disclaimer by the exporter) shall
be entitled for SHIS benefits to the exporter Status Holder. SHIS is entitled
for shipments where foreign exchange realisation is
in the name of applicant Status Holder. |
|
3.10.5 |
Merchant Status Holders shall have the facility to list the supporting
manufacturer till the date of filing of the Application for claiming the SHIS
benefits. To list the supporting manufacturer, proof of supporting manufacturer may
be given to RA concerned by giving any of the export documents (Shipping
Bill/Bill of Export/ARE forms/Customs/Bank attested Invoices) evidencing the
same. Listed Supporting Manufacturers shall be co-licensee of the SHIS Scrip. |
|
3.10.6 |
SHIS scrip can be used for payment of applicable duties on import of
Capital Goods (as defined in FTP) relating to the sectors specified in Para 3.16.4
of FTP. The Scrip / the goods so imported shall be with Actual User
Condition. Imports of Capital Goods shall be related to any of the sectors
listed in Para 3.16.4 of FTP, without any sector wise value limitation; even
by the listed supporting manufacturers. |
|
3.10.7 |
Para 3.11.8 of this HBP shall not apply to this Scheme. Further,
Monitoring the realization of export proceeds shall be in terms of 3.11.12
& 3.11.13 of this HBP. [Para 3.10.2 to 3.10.7
inserted by 54-PN(RE)/08.04.2010] |
|
3.11 |
Common Procedural Features for Promotional Schemes,
Applicable to all Schemes in this Chapter, Unless Specifically Provided for: Schemes
In This Chapter, Unless Specifically Provided For: |
|
Jurisdictional RA/RA
Concerned |
Applicant
shall have option to choose Jurisdictional RA on the basis of Corporate
Office, Registered Office, Branch Office address
endorsed on IEC. However, once opted, no change would be allowed. |
|
3.11.2
|
Provisions
contained in Chapter 2 and 9 of this HBP shall apply to all Promotional
Schemes. However,
it is clarified that in case the importer wants to use a specific
permission/license for import of a restricted item as well as pay the duty
using Duty Credit Scrip, then Duty Credit Scrip shall be allowed to be used
only if the item is also importable under the respective paras
of Duty Credit Scrip (reference FTP Paras 3.12.6,
3.13.4, 3.16.4, and 3.17.5). (Sub-para inserted by DGFT Public Notice No. 03/2009-14 New Delhi, Dated:
31st August, 2009). |
|
Port of Registration |
Duty
Credit Scrip (including splits) shall be issued with a single port of
registration which shall be the port of export. After issue of Duty Credit
Scrip, but before registration with Customs, the Applicant can change the
port of registration from RA concerned. Before registration, authorities
shall verify genuineness of Duty Credit scrip, from RA concerned, until EDI
system of message exchange is put in place. However,
applicant may use Duty Credit Scrip for imports from any other port (that
includes ICD/LCS) after obtaining TRA from authorities at port of
registration. The above procedure shall be applicable only in respect of EDI
enabled ports. In case of exports through non-EDI ports, the port of
registration shall be the port of exports. |
|
However,
applicant may use Duty Credit scrip for imports from any other port (that
includes ICD/LCS) after obtaining TRA from authorities at port of
registration. The above procedure shall be applicable only in respect of EDI
enabled ports. In case of exports through non-EDI ports, the port of
registration shall be the port of exports. |
||
Facility for Split Scripts
|
Split
certificates of Duty Credit Scrip subject to a minimum of Rs 5 Lakh each and
multiples thereof may also be issued, on request at the time of application
with different port of registration. After
issue, request of splits shall 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. In case of exports through non-EDI ports, the facility of
splits shall not be allowed, after issue of scrip. |
|
Import from private /
public bonded warehouses |
Entitlement
can be used for import from private / public bonded warehouses subject to
fulfillment of paragraph 2.28 of FTP and terms and conditions of DoR
notification. |
|
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. |
|
Validity Period &
Revalidation |
Duty Credit Scrip shall
be valid for a period of 24 months and Revalidation of Duty Credit Scrip shall
not be permitted unless covered under paragraph 2.13.1 or paragraph 2.13.2 A
of HBP v1. [Paragraph substituted by 38-PN(RE)/03.02.2010]. |
|
Declaration of Intent on
Free Shipping Bills |
For
export shipments filed under Free Shipping Bill category, for exports of
products / to markets eligible under Chapter 3 of FTP (Appendix 37A, 37C,
37D), the exporter shall state the intention to claim benefits under Chapter
3 of FTP by declaring on the Free Shipping Bills as under: ‘I/We,
hereby, declare that I/We shall claim the benefits, as admissible, under
Chapter 3 of FTP’. This
declaration shall not be required for export shipments under any of the
schemes of Chapter 4 (including drawback) or Chapter 5 of FTP. Further
for products, markets notified during the year, this declaration shall be
necessary for exports under Free Shipping Bills, only after a grace period of
one month from the date of relevant public notice. Moreover
for exports made prior to date of notification of products / markets, such a
declaration will not be required, since export shipments under Free Shipping
Bills have already taken place. |
|
Last date of filing of
application for Duty Credit Scrips, except for FTP
Para 3.13.4 and FTP Para 3.16 |
Applications
for obtaining Duty Credit Scrip shall be filed within a period of twelve
months from the date of export or within six months from the date of
realization or three months from the date of printing / release of shipping
bill, whichever is later, in respect of shipments for which claim is being
filed. Further, for shipments already made prior to the
inclusion/modification of the items / markets in relevant appendices by
various Public Notices issued from time to time; the last date for filing applications
shall be six months from the end of the month of the relevant Public Notice
that included/ |
|
3.11.10 |
Shipments
from EDI Ports and Non-EDI Ports cannot be clubbed in one application. Port
of registration for EDI enabled ports shall be the port of export. 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. |
|
|
3.11.11 |
Freely
Transferable Duty Credit Scrip shall be granted on FOB value of exports. FOB
Value of Exports shall be taken from the Shipping Bill (FOB value in free
foreign exchange declared on the Shipping Bill and converted into Indian
Rupees at the Monthly Customs Rate of Exchange on the date of LEO). Date
of export is determined as per Para 9.12 of HBPv1. Multiple Applications can
be filed and supplementary cut shall not be applicable. However, an
application shall contain a maximum of upto 50
shipping bills. |
|
3.11.12 |
All
the pre-realization cases are to be monitored by RA concerned with respect to
realization of export proceeds. The procedure prescribed in Para 4.45 shall
apply, mutatis mutandis, to freely transferable Duty Credit Scrips issued under Chapter 3 on the pre-realization
basis. However for adjustment of excess / short realisation,
procedure in Para 3.11.13 is to be followed. |
|
3.11.13 |
(i) In case there is no pending claim and there is no cash
deposit towards the amount immediately after the expiry of 12 months time
period from the date of issuance of the Scrip, the RA shall initiate
necessary action. If the Scrip holder does not pay the amount within 60 days
of the expiry of aforesaid 12 months time period, the scrip holder shall be
required to pay the said amount along with 15% interest per annum from the
date of issuance of the Scrip(s) for the Duty Credit for which BRC or
Documentary evidence (evidencing realisation of
export proceeds as required under FTP or the Procedure laid thereunder) could not be produced. In case the Scrip
holder surrenders the unutilized / partially unutilized Duty Credit Scrip,
then unutilized / partially unutilized credit shall be deduced from the
payable amount. (ii)
In case the FOB value realized in free foreign exchange is higher as per BRC,
when compared to the FOB value in free foreign exchange as declared on the
Shipping Bill(s) on which the original duty credit scrip was issued,
supplementary claim shall be filed within a period of six months from the
date of realization. |
Chapter-4
Duty
Exemption / Remission Scheme
Policy |
Policy
relating to Duty Exemption / Remission Scheme is prescribed in Chapter 4 of
FTP. |
|||||||||||||||||||||||||||||||||||||
General Provision |
An
application for grant of an Advance Authorisation /
Advance Authorisation for Annual Requirement / DEPB
/ DFIA may be made by Registered office or Head office or a branch office or
manufacturing unit of eligible exporter, to RA concerned. |
|||||||||||||||||||||||||||||||||||||
4.3
|
Where
applicant is branch office or manufacturing unit(s) of an exporter, it shall
furnish self certified copy of valid RCMC where name of branch office or
manufacturing unit is given. |
|||||||||||||||||||||||||||||||||||||
Advance Authorisation |
Where
SION have been published, an application in ANF 4A, along with documents
prescribed therein, shall be submitted to RA concerned. |
|||||||||||||||||||||||||||||||||||||
4.4.1
|
In
case of export of gold /silver / platinum jewellery
and articles thereof, quantity, wastage and value addition norms shall be as
prescribed in paragraph 4A of FTP and HBP v1. |
|||||||||||||||||||||||||||||||||||||
4.4.2
|
In
case where norms have not been published, an application in ANF 4B, along
with prescribed documents, shall be furnished to concerned Norms Committee
(NC) at DGFT Headquarters for fixation of Norms. In
such cases, original copy of application along with prescribed fee shall be
filed with RA concerned and a self attested copy of same shall be filed with
NC. Authorisation
in such cases shall be issued by RA as per NC recommendation. NC
shall also function as a recommendatory authority for SION. DGFT may notify
such norms. |
|||||||||||||||||||||||||||||||||||||
4.4.3
|
Where
import of Acetic Anhydride, Ephedrine and Pseudoephedrine is required as an
input, applications shall be filed with RA concerned. Copies
of such applications shall also be simultaneously endorsed to the Drug
Controller of India, Nirman Bhawan,
New Delhi, Narcotics Commissioner, Central Bureau of Narcotics, Gwalior and
respective Zonal Director of Narcotics Control Bureau, alongwith
a declaration that applicant will maintain prescribed records and also submit
prescribed returns. |
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4.4.4
|
RA,
while issuing Advance Authorisation for import of
Acetic Anhydride, Ephedrine and Pseudo- ephedrine, shall endorse a condition
that before effecting imports, NOC shall be obtained from Narcotics
Commissioner of India, Central Bureau of Narcotics, Gwalior
and shall also endorse a copy of Authorisation to
Drug Controller, Nirman Bhawan,
New Delhi and concerned Zonal Director of Narcotics Control Bureau. |
|||||||||||||||||||||||||||||||||||||
Advance Authorisation for applicants
with multiple units |
Transfer
of any duty free material imported or procured against Advance Authorisation from one unit of company to another for
manufacturing purpose shall be done with prior intimation to jurisdictional
Excise Authorities with a clear understanding that no benefit of CENVAT shall
be claimed on such transferred inputs. However, such transfers shall not be
allowed to units located in areas covered by Central Excise Notification No.
39/2003 and 50/2003 (i.e. Himachal Pradesh / Uttaranchal). In case of
non-excisable company / products, units should maintain a proper record.
However to avail facility, all such units should be available in IEC
certificate and follow rules and regulation of Central Excise for job work.
Large Taxpayer Units (LTUs) having multiple units, may not follow above job
work procedure, after fulfillment of EO. Duty Free material imported or procured
against advance authorization can be taken from the port directly to the
project site of the project authority as per provision stated in ANF 4A and
DOR guide lines. |
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Advance Authorisation for Free of Cost
and Paid Material |
For
policy in paragraph 4.1.8, a specific endorsement shall be made on exchange control
copy of Advance Authorisation disallowing
remittances for material being supplied free of cost. All inputs imported
shall be utilised in manufacturing of product
except wastage. |
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Self Declared Authorisations where SION
does not exist |
RA
may also issue Advance Authorisations, where SION
are not fixed, based on self declaration and an undertaking by applicant for
a final adjustment as per Adhoc / SION fixed by NC. However,
no Advance Authorisation shall be issued under this
paragraph for import of following products:- i.
All vegetable / edible oils classified under Chapter - 15 and all types of
oilseeds classified under Chapter - 12 of ITC (HS) book; ii.
All types of cereals classified under Chapter – 10 of ITC (HS) book; iii.
All spices other than light black pepper (light berries) having a duty of
more than 30%, classified under Chapter-9 and 12 of ITC (HS) book; iv.
All types of fruits/vegetables having a duty of more than 30%, classified
under Chapter 7 and 8 of ITC (HS) book; and v.
Horn, hoof and any other organ of animal. vi.
Honey. vii.
Rough Marble Blcks/slabs For
export of perfumes, perfumery compounds and various feed ingredients
containing vitamins, no Authorisation shall be
issued by RA and applicants may apply under Para 4.4.2 above. Where export
and/or import of biotechnology items are involved, Authorisation
under this paragraph shall be issued by RA only on submission of a “No
Objection Certificate” from Department of Biotechnology. |
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Entitlement |
CIF
value of one or more such authorisations shall be
maximum 500% of FOB and / or FOR value of preceding year’s exports and / or
supplies in case of status holders and Rs. 5 crore or 500% of the FOB and /
or FOR value of preceding year exports and / or supply, whichever is more,
for others. However,
in cases where NC has already ratified norms for same export and import
products in respect of an authorization obtained under paragraph 4.7, such
norms shall be valid for a period of one year reckoned from the date of
ratification. In
such cases Authorisations shall be issued by RA
concerned under “Adhoc Norms Fixed” category and
application copies need not be forwarded to NC for fixation / ratification of
norms. Authorisation
holder in such cases shall be entitled for further authorisation
(s) as per norms ratified by NC without need for subsequent ratification by
NC. In such cases, applicant would file application under Adhoc
Norms Fixed category. However,
NC should ensure that such adhoc norm(s), if not
notified already, are notified within six months of the ratification of such adhoc norm(s). |
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4.7.2
|
Once
norms are fixed by NC, value limits mentioned in above paragraph would not be
applicable to advance authorisations issued under
this paragraph. Such authorisations, subsequent to
fixation of norms by NC, may be enhanced. It
is mandatory for industry to provide production data etc. as may be required
by DGFT / EPC for fixation of SION. Otherwise, applicant shall not be allowed
to take benefit of Advance Authorization scheme for taking repeat advance
authorizations on self-declared basis. |
|||||||||||||||||||||||||||||||||||||
Authorisation in Excess of
Entitlement |
An
applicant shall be entitled for authorisation in
excess of entitlement mentioned in paragraph 4.7.1 subject to furnishing of
100% Bank Guarantee to Customs authority to cover exemption from customs
duties. A specific endorsement to this effect shall be made on authorisation. |
|||||||||||||||||||||||||||||||||||||
Application |
Original
application with prescribed documents shall be submitted to concerned RA. RA shall forward a copy of application
within 7 days from Authorisation issue date to NC
for fixation of norms within prescribed time. |
|||||||||||||||||||||||||||||||||||||
Undertaking |
Applicant
shall give an undertaking that he shall abide by norms fixed by NC and
accordingly pay duty, together with interest, on unutilised
inputs as per norms fixed by NC. However, Authorisation
holder has option to undertake additional EO in proportion to excess unutilized
inputs. In case application is rejected by NC, authorization holder shall pay
customs duty saved along with interest on imported inputs, as notified. However
in such cases where the NC decides adhoc norms
based on information available to it and the exporter represents against the
decision of the NC, time limit for filing representation, if any, before the
Norms Committee shall be four months from the date of communication of
decision of the fixation of adhoc norms by NC. In
addition, an amount as per Para 4.28(i)(b) below has to be deposited. For project supplies,
the time limit for filing representations, if any, against the decision of
Norms Committee shall be one year from the date of communication of decision
of the Norms Committee. [Last sentence
inserted by DGFT Public Notice No. 12(RE)/ 22.09.2009]. |
|||||||||||||||||||||||||||||||||||||
4.7.6
|
In
such cases, where norms are not finalised by NC
within four months from Authorisation issue date,
norms as applied for shall be treated as final and no adjustment will be
made. However,
where application for fixation of adhoc / SION is
rejected on account of non-furnishing of required documents/information, Authorisation holder shall be liable for penalty as
stated in above paragraph. In case SION for the said product is notified,
SION would be made applicable for deciding wastage norm and EO. In such cases
where export obligation is completed pending fixation of norms by NC,
entitlement for authorisation as given in paragraph
4.7.1 may be re-credited upon production of documentary evidence (copies of
Shipping bill / bill of export / Central Excise certified copies of invoices)
showing fulfillment of export obligation in respect of previous authorisations. However, bond waiver / redemption shall
not be allowed pending fixation of norms in such cases. |
|||||||||||||||||||||||||||||||||||||
Standardisation of Adhoc Norms |
For
standardization of norms, an application may be made by manufacturer exporter
or merchant exporter tied to supporting manufacturer, duly filled in with
complete data. Such applications shall be made to NC in ANF 4B. Import of
fuel may also be allowed under SION by NC subject to following: - (a)
Facility of import of fuel shall be allowed only to manufacturer having
captive power plant. (b)
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 4.7 above. (c)
Fuel should be allowed only against an actual user Authorisation.
However in case of DFIA, fuel can only be transferred to agencies granted
marketing rights by the Ministry of Petroleum and Natural Gas. (d)
Applications of fixation for fuel entitlement for new sectors and
modification of the existing entitlement as per General Note for Fuel in HBP
v2 would be made to NC along with requisite data in ANF 4B. |
|||||||||||||||||||||||||||||||||||||
Modification of SION |
An
application for modification of existing SION may be filed before the NC by
manufacturer exporter or merchant-exporter, tied to supporting manufacturer,
in form given in ANF 4B. |
|||||||||||||||||||||||||||||||||||||
Amendment of Export item and inputs |
An
application for amendment of an export item or inputs SION or under Adhoc Norms may be filed by manufacturer or merchant
exporter as per ANF 4B. Applicant
would give justification for seeking amendment and same would be considered
by Regional Authority with specific approval of Head of office. In case of
any major change in input or request for more wastage to that allowed under
SION or adhoc norm, same should be referred to NC
for ratification. |
|||||||||||||||||||||||||||||||||||||
Revision of SION by NC |
NC
may identify SIONs which in its opinion are required be reviewed. Exporters
are required to submit revised ANF 4B for such revision. It is mandatory for industry
exporter(s) to provide production and consumption as may be required by DGFT
/ EPC for revision of Otherwise, applicant shall not
be allowed to take benefit Advance Authorization scheme. |
|||||||||||||||||||||||||||||||||||||
Description of an Advance Authorisation |
An
Advance Authorisation shall specify: (a)
names and description of items 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. However, if
in SION, quantity and value of individual inputs is a limiting factor, same
shall be applicable. (c)
aggregate CIF value of imports; and (d)
FOB / FOR value and quantity of exports / supplies. |
|||||||||||||||||||||||||||||||||||||
Exports in Anticipation of Authorisation
|
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. The requirement of endorsement of
file number or authorisation number on the shipping
bill would be dispensed with once the EDI Data Transmission System for the
shipments becomes operational. If
application is approved, authorisation shall be
issued based on input / output norms in force on the date of receipt of
application by RA in proportion to provisional exports/supplies already made
till any amendment in norms is notified. For
remaining exports, Policy / Procedures in force on authorisation
issue date shall be applicable. |
|||||||||||||||||||||||||||||||||||||
4.12.1
|
Exports
/ supplies made in anticipation of grant of an Advance Authorisation
shall be entirely on risk and responsibility of exporter. |
|||||||||||||||||||||||||||||||||||||
4.12.2
|
Conversion
of duty free shipping bills to drawback shipping bills may also be permitted by
customs authorities in case application for an Advance Authorisation
is rejected or modified by RA. |
|||||||||||||||||||||||||||||||||||||
Advance Authorisation or DFIA for
Intermediate Supplies |
Application
for grant of Advance Authorisation or DFIA for
Intermediate supply may be made on the basis of a tie-up agreement with
exporter (physical / deemed) holding an Advance Authorisation
or DFIA. RA concerned shall consider such requests. Advance
Authorisation or DFIA for Intermediate supply shall
be issued after making Authorisation invalid for
direct import of items, to be supplied by intermediate manufacturer. In such
cases, a copy of the invalidation letter will be given to Authorisation
holder and copy thereof will be sent to intermediate supplier as well as RA
of intermediate supplier. Authorisation
holder in such case has an option either to supply intermediate product to
the holder of Advance Authorisation or DFIA or to
export (physical / deemed) directly. Intermediate supplier can also supply
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. However, once Electronic
message transfer facility among the RAs becomes fully operational, sending
copy of invalidation letter / ARO to jurisdictional RA shall not be required. Facility
of Advance Authorisation shall be available even in
cases where intermediate supplier has supplied or intend to supply material
subsequent to fulfilment of EO by exporter holding
Advance Authorisation / DFIA from where
invalidation letter was issued. |
|||||||||||||||||||||||||||||||||||||
Advance Release Order (ARO) |
An
application may be made to RA concerned for grant of ARO to procure inputs
from indigenous sources / STEs. |
|||||||||||||||||||||||||||||||||||||
4.14.1 |
Application
shall specify: (i) name, description and quantity of items and (ii)
individual value of items to be procured. 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. An
ARO issued for procurement of an individual item shall be automatically valid
for procurement from one or more indigenous sources. |
|||||||||||||||||||||||||||||||||||||
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. |
|||||||||||||||||||||||||||||||||||||
4.15.1 |
Before
opening the L/C, bank will ensure that necessary BG LUT has been executed by
Advance Authorisation / Non Transferable DFIA
holder and an endorsement to that effect has been made on the Authorisation. However,
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 Authorisation / DFIA stands reduced
by a sum of Rs. __________, being value of inland L/C No.________ opened
today by authorisation holder in favour of M/s
_____________ (name and address of indigenous supplier). |
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4.15.2
|
Authorisation
shall be invalidated by bank for direct import only in respect of full
quantity and value of item being sourced indigenously. |
|||||||||||||||||||||||||||||||||||||
4.15.3
|
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. |
|||||||||||||||||||||||||||||||||||||
4.15.4
|
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. |
|||||||||||||||||||||||||||||||||||||
4.15.5
|
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 8.3 (b)
and (c) of FTP, as applicable. |
|||||||||||||||||||||||||||||||||||||
4.15.6
|
Where
import is permitted as an input under this scheme, gold/silver can be sourced
through nominated agencies as given in FTP (Chapter 4) for supply against the
Advance Authorisations/DFIA issued. Before supply
of material, nominated agencies should follow same procedure as given in
paragraph 4.15.1 above. |
|||||||||||||||||||||||||||||||||||||
Facility of Supporting Manufacturer(s)/Jobber/co-licensee |
Imported
material may be used in any unit of holder of Advance Authorisation
or Non Transferable DFIA (subject to condition of paragraph 4.5 of this
Handbook) or jobber / supporting manufacturer provided same is endorsed on authorisation by RA. 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
/ DFIA scheme and authorisation holder desires to
have material processed through any other manufacturer or jobber. Upon
such endorsement made by RA, 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. However
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 RA’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 fulfillment of EO. |
|||||||||||||||||||||||||||||||||||||
|
In
case BG / LUT has been redeemed, advance authorization holder can get duty
free inputs processed from any manufacturer under Actual User condition as
per job work regulations prescribed under Central Excise Rules. However such
restriction shall not be applicable in case of transferable DFIA holder. |
|||||||||||||||||||||||||||||||||||||
Acceptance of BG/LUT |
At
the time of issue of authorisation, acceptance of
undertaking given by applicant to RA concerned in relevant ANF will be
endorsed on the reverse of Advance Authorisation. Authorisation holder shall execute Bank Guarantee / Legal
Undertaking, as the case may be, in terms of para 2.20 of HBP v1. |
|||||||||||||||||||||||||||||||||||||
Port of Registration |
Advance
Authorisation shall be issued for purpose of import
and export through one of sea ports or airports or ICDs or LCS specified
below. Authorisation holder shall register authorisation at the port specified in 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.
However, exports may be made through any of the specified ports. |
|||||||||||||||||||||||||||||||||||||
Sea Ports |
||||||||||||||||||||||||||||||||||||||
Mumbai,
Kolkata, Cochin, Kakinada, Kandla, Mangalore, Marmagoa,
Chennai, Paradeep, Pipavav,
Sikka, Tuticorin
Vishakhapatnam, Dahej, Nagapattinam,
Okha, Mundhra, Surat (Magdalla), Jamnagar, Nhava Sheva, Haldia, Krishnapatnam, Bedi (including Rozi-Jamnagar), Dharamtar, Muldwarka, Porbander,
Vadinar. |
||||||||||||||||||||||||||||||||||||||
Airports |
||||||||||||||||||||||||||||||||||||||
Ahmedabad,
Bangalore, Bhubaneshwar, Mumbai, Kolkata Coimbatore
Air Cargo Complex, Cochin, Delhi, Hyderabad, Jaipur, Srinagar, Trivandrum,
Varanasi, Nagpur, Chennai, Indore, Dabolim (Goa), Lucknow (Amausi),
Rajasansi ( |
||||||||||||||||||||||||||||||||||||||
ICDs |
||||||||||||||||||||||||||||||||||||||
Agra,
Bangalore, Coimbatore, Delhi, Faridabad, Guwahati (Amingaon),
Guntur, Hyderabad, Jaipur, Jallandhar, Kanpur,
Ludhiana, Moradabad, Nagpur, Pimpri (Pune), Pitampur (Indore), Surat, Tirupur, Varanasi,
Nasik, Rudrapur(Nainital),
Dighi (Pune), Vadodara, Daulatabad, (Wanjarwadi and Maliwada), Waluj (Aurangabad), Anaparthy,
Salem Mallanpur, Singanalur,
Jodhpur, Kota, Udaipur, Ahmedabad, Bhiwadi,
Madurai, Bhilwara, Pondicherry, Garhi
Harsaru, Bhatinda, Dappar, Chheharata (Amritsar), Karur, Miraj, Rewari, Bhusawal, Jamshedpur, Surajpur, Dadri, Tuticorin, Babarpur, Bhadohi, |
||||||||||||||||||||||||||||||||||||||
LCS |
||||||||||||||||||||||||||||||||||||||
Ranaghat,
Singhabad, Raxaul, Jogbani, Nautanva (Sonauli), Petrapole, Mahadipur, Hilly, Chengrabanda,
Dawki, Atari, Ghojadanga,
Agartala, [New Ports in bold letters inserted
by 25-PN(RE)/09.12.2009]. |
||||||||||||||||||||||||||||||||||||||
SEZ |
||||||||||||||||||||||||||||||||||||||
As
notified by Central Government, any SEZ can be a specified port for import
and export. |
||||||||||||||||||||||||||||||||||||||
4.19.1
|
Commissioner
of Customs may permit imports and exports from any other seaport / airport /
ICD or LCS. |
|||||||||||||||||||||||||||||||||||||
4.19.2
|
For
imports from Airport / Seaport / ICD / LCS other than port of registration, a
TRA shall be issued by the customs authority at the port of registration to
customs authority at port of import. |
|||||||||||||||||||||||||||||||||||||
Facility of Clubbing |
Facility
of clubbing shall be available only for redemption / regularisation
of cases and no further import or export shall be allowed. For this facility,
authorisations are required to have been issued
under similar Customs notification even pertaining to different financial
years. However in case of Authorisations issued in
2004-09 period or thereafter, Advance Authorisations
with different customs notification can be clubbed. |
|||||||||||||||||||||||||||||||||||||
4.20.1
|
RA,
under whose jurisdiction authorisation is issued or
DGFT (HQ) in other cases, shall consider a request in ANF 4D for clubbing all
imports and exports of more than one Advance Authorisation
provided imported inputs are properly accounted for as per norms. Value
addition of the authorisations so clubbed shall be
average of minimum value addition prescribed in FTP and Procedure laid thereunder, imposed on individual authorisations.
Upon clubbing, authorisations shall, for all
purposes, be deemed to be one Authorisation and
thereafter shortfall, if any, shall be regularized in terms of para 4.28 of
HBP v1. |
|||||||||||||||||||||||||||||||||||||
4.20.2
|
Accountability
of imports and exports shall be restricted in relation to individual
categories of Advance Authorisations including
Advance Authorisation for annual requirements. |
|||||||||||||||||||||||||||||||||||||
4.20.3
|
Facility
is available only for Advance Authorisation(s)
where there is shortfall in fulfillment of EO, and which is sought to be
clubbed with an advance Authorisation(s) which is
valid for imports. For expired Authorisation(s)
with EO shortfall and which is sought to be clubbed with an advance Authorisation(s) which is valid for imports, applicant
shall pay composition fee for EO period extension as per paragraph 4.22
below. |
|||||||||||||||||||||||||||||||||||||
4.20.4
|
Wherever
exports are effected beyond EO extension period (allowed vide paragraph 4.22 below)
of earlier authorisation, no clubbing shall be
permitted. |
|||||||||||||||||||||||||||||||||||||
4.20.5
|
Notwithstanding
provisions of para 4.20.3 and 4.20.4 above, Clubbing of all expired Authorisations may also be permitted provided all expired
Authorisations have been issued during Exim Policy period 1992-1997 & 1997-2002 i.e., 1st
April 1992 to 31st March, 2002. However clubbing of erstwhile Value Based
Advance licences shall not be allowed. |
|||||||||||||||||||||||||||||||||||||
Enhancement/Reduction in the value of Authorisation |
In
respect of an Advance Authorisation, RA concerned
(as per their financial powers) may consider a request for: (a)
enhancement / reduction in CIF value of advance authorisation; (b)
enhancement / reduction in CIF value, quantity of inputs, FOB value and quantity
of exports of an advance authorization; provided
VA after such enhancement does not fall below minimum VA stipulated in FTP
and HBP v1 laid thereunder and there is no change
in input-output norms and FTP under which advance authorisation
was issued. |
|||||||||||||||||||||||||||||||||||||
[However, in case of advance authorisations issued prior to 27.8.09 under the FTP,
2004-09, the following conditions shall apply for any enhancement in the
value of the authorisation: (i) Wherever,
exports are subsequent to 27.8.09, enhancement in CIF/FOB values shall be
subject to a minimum value addition (VA) of 15% for that component of
exports. (ii) Wherever,
the exports are prior to 27.8.09, enhancement of CIF/ FOB value shall be
subject to a minimum Value addition of 15% or the V.A. declared in the
original Advance Authorization application, whichever is lower.] [Sub para inserted by 15-PN(RE)/27.10.2009]. |
||||||||||||||||||||||||||||||||||||||
|
4.21.1 |
Request
for prorata enhancement in value and quantity may
be made either before or after exports. In such cases where there is a change
in SION prior to export of said product, pro-rata enhancement shall be given
after calculating entitlement on revised SION. |
||||||||||||||||||||||||||||||||||||
4.21.2
|
The
application for the enhancement/ reduction in the value of Authorisation shall be made in ANF 4E. |
|||||||||||||||||||||||||||||||||||||
Application fee for enhancement |
Application
fee leviable for enhancement would be on the
difference in CIF values of original and final Authorisation.
However, no application fee would be charged if value of Authorisation
is being reduced or applicant has paid maximum fee of Rs 100,000 (for manual
applications) and Rs 50,000 (for digitally signed applications) respectively
in original application for Advance Authorisation/DFIA. |
|||||||||||||||||||||||||||||||||||||
Export Obligation (EO) Period its Extension |
Fulfillment
Period of EO under an Advance Authorisation shall
commence from Authorisation issue date, unless
otherwise specified. EO shall be fulfilled within 36 months except in case of
supplies to projects / turnkey projects in India / abroad under deemed
exports category, where EO must be fulfilled during contracted duration. EO
period for Advance Authorizations issued with input (s) as mentioned in
Appendix 30A shall be as per the period stipulated against each entry
therein. Facility of extension of EOP shall not be allowed in case of Advance
Authorisation issued for these inputs. RA shall make
an endorsement in Advance Authorisation to this
effect. |
|||||||||||||||||||||||||||||||||||||
|
4.22.1
|
Whenever
a ban / restriction is imposed on export of any product, export obligation
period in respect of Advance Authorisation already
issued prior to imposition of ban, would stand automatically extended for a
period equivalent to the duration of ban, without any composition fee. For the
Advance Authorisation (erstwhile licences) where raw sugar has been imported between
21.09.04 and 15.4.08, but the export obligation is yet to be fulfilled, the
export obligation period stands automatically extended upto
31.03.2011 without payment of composition fee. Advance licence /
authorisation holder has the option to pay the
customs duty as applicable, on the date of import for the quantity of import
proportionate to unfulfilled E.O. and get the case regularized accordingly [Paragraph 4.22.1 amended by
29-PN(RE)/07.01.2010]. |
||||||||||||||||||||||||||||||||||||
4.22.2
|
Customs
may allow provisional clearance of export consignment as and when Authorisation holder produces documentary evidence of
having applied for EO extension to concerned RA. |
|||||||||||||||||||||||||||||||||||||
Revalidation of Authorisation |
RA
may consider a request of original Authorisation
holder and grant one revalidation for six months from expiry date. Request(s)
for revalidation of Authorisation shall be made in
ANF 4E. |
|||||||||||||||||||||||||||||||||||||
Monitoring of Obligation |
RA,
with whom undertaking is executed by Advance Authorisation
holder, shall maintain a proper record in a master register indicating
starting and closing dates of obligation period and other particulars to
monitor EO. Within
two months from date of expiry of period of obligation, Authorisation
holder shall submit requisite evidence in discharge of export obligation in
accordance with paragraph 4.25 below. However,
in respect of shipments where six months period (one year in case of status
certificate holder and others as per RBI guidelines) for realisation
of foreign exchange has not become due, RA shall not take action for non
submission of bank certificate of exports and realisation,
provided other document substantiating fulfillment of EO have been furnished. |
|||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||
4.24.1
|
In
case Authorisation holder fails to complete EO or
fails to submit relevant information / documents, RA shall take action by
refusing further Authorisations, enforce condition
of Authorisation and Undertaking and also initiate
penal action as per law. |
|||||||||||||||||||||||||||||||||||||
Advance Authorisation for Annual Requirement |
Exporters
eligible for such Authorisations shall file an
application in ANF 4A to RA concerned. All provisions as to Advance Authorisation given above would apply except the
following: (i) RA while issuing Authorisation
shall mention technical characteristics quality and specifications in respect
of following inputs:-Alloy steel including stainless steel, copper alloy,
synthetic rubber, bearings, solvents, perfumes/ essential oils/aromatics chemicals,
surfactants, relevant fabrics and marble. (ii)
Authorisation holder shall have flexibility to
export any product falling under export product group using duty exempted
material. (iii)
Within eligible entitlement, an exporter may apply for one or more than one authorisations in a licensing year, subject to condition
that against one port of registration only one authorisation
can be issued for same product group. One time enhancement / reduction of the
authorisation shall be available in terms of paragraph
4.21 above. (iv)
On completion of EO against one or more authorisations,
all issued in same licensing year, entitlement of an exporter for that
licensing year shall be deemed to be revived by an amount equivalent to EO
completed against authorisation(s). (v)
In respect of export product for which Standard Input Output Norms (SION)
does not exist, the authorization holder shall submit an application in “Aayaat-Niryaat Form” along with prescribed documents to
NC before making the shipment. The applicant shall also furnish Advance Authorisation for Annual Requirement No. and date along
with the File No. from which the same was issued in the covering letter to
the application. |
|||||||||||||||||||||||||||||||||||||
Fulfillment of Export Obligation |
Authorisation
holder shall furnish prescribed documents in ANF 4F in support of fulfillment
of EO. |
|||||||||||||||||||||||||||||||||||||
Discharge of export obligation against advance licences
issued prior to 1.4.2002 |
Quantity
Based Advance licences issued prior to 1.4.2002
shall be disposed off as per Public Notice No. 79 dated 2.1.2006, PN 151
dated 26.2.09, as amended from time to time. |
|||||||||||||||||||||||||||||||||||||
Redemption / No Bond Certificate |
In
case EO has been fulfilled, RA shall redeem the case. After redemption, RA
shall forward a copy of redemption letter indicating shipping bill number(s),
date(s), FOB value in Indian rupees as per shipping bill(s)
and description of export product in respect of shipment which were taken
into account for the purpose of fulfillment of EO to Customs authority at
port of registration. Such details shall also be placed by the Zonal Offices
in their website immediately after issuance of export obligation discharge/redemption
letter/No Bond Certificate (in case of “No BG / LUT” facility) and by DGFT Hqr in DGFT website on monthly basis for customs
authority to access it from website. Cancellation/
redemption of BG / LUT would be undertaken by Customs within 30 days of issue
of Export Obligation Discharge Certificate (EODC) / bond waiver by RA. Ordinarily,
redemption of BG / LUT shall not preclude customs authority from conducting
random checks and from taking action against Authorisation
holder for any misrepresentation, mis-declaration
and default detected subsequently. Further
RA shall also take action against authorisation
holder in case of non-submission of Appendix 23, duly filled in, as
stipulated in Paragraph 4.30 below or for any misrepresentation, misdeclaration and default detected subsequently in
details declared and furnished in Appendix 23. An endorsement to this effect
shall be made by RA in the redemption certificate. |
|||||||||||||||||||||||||||||||||||||
Transitional Arrangement for Authorisations
issued upto 26.08.2009 |
Advance
Licences including Advance Licences
for Annual Requirement issued upto 26.08.2009 shall
be governed by provisions contained in Chapter-7 of HBP v1 (RE-2001),Chapter
4 of HBP v1 (2002-2007) as Notified on 31.3.2002 and Chapter 4 of HBP v1
(2004-2009) as notified on 31.8.2004 respectively as amended from time to time,excepting provisions relating to clubbing and
extension in E.O. period, which shall be governed by provisions of paragraphs
4.20 and 4.22.1 respectively above and any other provision, as notified by
DGFT. However,
wherever Customs duty is to be paid on unutilised
material, same shall be paid alongwith interest
thereon as notified. |
|||||||||||||||||||||||||||||||||||||
Regularisation of Bonafide Default |
Cases
of bonafide default in fulfillment of EO may be
regularized by RA as under: (i) If EO is fulfilled in terms of value, but there is a
shortfall in terms of quantity, the Authorisation
holder shall, for regularization, pay:- a)
to customs authorities, customs duty on unutilized value of imported/
indigenously procured material along with interest as notified; however, for
the customs duty component, the authorisation
holder has the option to furnish valid duty credit scrips
issued under Chapter 3 of FTP and DEPB; and b)
an amount equivalent to 3% of the CIF value of unutilised
imported material through a TR in authorised branch of Central Bank of India
indicating the “Head Account: 1453, Foreign Trade and Export Promotion and
Minor Head 102”. Authorisation holder shall also be
required to obtain a separate authorisation for regularisation of excess imported input. However,
provisions of this sub paragraph shall not be applicable if unutilised imported material was freely importable on the
date of import. ii)
If the EO is fulfilled in quantity but there is shortfall in value, no
penalty shall be imposed if Authorisation holder
has achieved minimum value addition prescribed. However, if value addition
falls below the minimum value addition prescribed Authorisation
holder shall be required to deposit an amount equal to 1% of shortfall in FOB
value in Indian Rupee through TR in authorised branch of Central Bank of
India as above or through EFT mode. Value
wise shortfall shall be calculated with reference to actual quantity of
exports and FOB value of realisation with reference
to prorata quantity of imports and CIF value. For
example, if export performance is only 50% quantitywise
but import has been for complete CIF value permitted, then value addition
would be calculated on a prorata basis, i.e with reference to 50% of CIF value of imports. This
would accordingly imply that where Authorisation
holder is unable to export, no penalty on valuewise
shortfall shall be imposed. (iii)
If EO is not fulfilled both in terms of quantity and value, the Authorisation holder shall, for the regularisation,
pay as per (i) and (ii) above. (iv)
In case an exporter is unable to complete EO undertaken in full and he has
not made any import under Authorisation, Authorisation holder will also have an option to get the Authorisation cancelled and apply for drawback after
obtaining permission from Customs authorities for conversion of shipping
bills to Drawback Shipping Bills. (v)
RA shall compare relevant portion of Appendix-23 duly verified and certified
by Chartered Accountant with that of norms allowed in Authorisation(s)
and actual quantity imported against Authorisation(s)
in the beginning of licensing year for all such Authorisations
redeemed in preceding licensing year. In this verification process, in case
it is found that Authorisation holder has consumed
lesser quantity of inputs than imported, Authorisation
holder shall be liable to pay customs duty on unutilized value of imported
material, alongwith interest thereon as notified,
or effect additional export within the EO period.
However, for the customs duty component, the authorisation
holder has the option to furnish valid duty credit scrips
issued under Chapter 3 of FTP and DEPB. |
|||||||||||||||||||||||||||||||||||||
Time Period For Depositing Fines Customs Duty, Etc. |
Customs
duty with interest to be recovered from Authorisation
holder on account of regularisation or enforcement
of BG LUT, shall be deposited by Authorisation
holder in relevant Head of Account of Customs Revenue i.e., “Major Head 0037
- Customs and minor head 001- Import Duties” in prescribed T.R. Challan within 30 days of demand raised by regional
customs authority and documentary evidence shall be produced to this effect to
RA / customs authority immediately. However, for the customs duty component,
the authorisation holder has the option to furnish
valid duty credit scrips issued under Chapter 3 of
FTP and DEPB. On
receipt of such documentary evidence from Authorisation
holder, RA shall intimate details of recovery/ deposits made to Customs
Authority at port of registration under intimation to Joint Secretary
(Drawback), Department of Revenue, Ministry of Finance, Jeevan
Deep Building, New Delhi. Payment
of amount of duty, interest and any dues for regularisation
shall, however, be without prejudice to any other action that may be taken by
Customs Authorities at any stage under Customs Act, 1962. |
|||||||||||||||||||||||||||||||||||||
Maintenance of Proper Accounts |
Every
Advance Authorisation holder shall maintain a true
and proper account of consumption and utilisation
of duty free imported / domestically procured goods against each authorisation as prescribed in Appendix-23. These records
are required to be sent to the concerned RA at the beginning of each
licensing year for all those authorisations, which
have been redeemed in previous licencing year.
However, these records in said format are required to be submitted for authorisations issued on or after 13-05-2005. Such
records should be preserved for a period of at least three years from date of
redemption. |
|||||||||||||||||||||||||||||||||||||
Consideration of cases against lost EP copy of the Shipping Bills
and / or Bank Realisation Certificate |
In
case where Original EP copy of Shipping Bill / original BRC has been lost,
request for EODC, "No BG / LUT condition" under Advance Authorisation / DFIA scheme or endorsement of
transferability under DFIA scheme can be considered, subject to submission of
following documents in lieu of those original documents: a)
A duplicate / Customs Certified / Self-attested copy of the shipping Bill in
lieu of the original; Duplicate / Bank certified copy of BRC in lieu of
original; b)
An application fee equivalent to 1% of duty saved amount. However, no fee
shall be charged when such document is lost by Government agencies and a
documentary proof to this effect is submitted; c)
An affidavit by exporter about loss of document and an undertaking to
surrender it immediately to concerned RA, if found subsequently; d)
An indemnity bond by exporter to the effect that he would indemnify
Government for financial loss, if any, on account of duty free import
entitlement availed /allowed against lost Shipping Bills / BRC. Customs
Authority, before allowing redemption of BG / LUT or clearance after
endorsement of “No BG / LUT condition” or endorsement of transferability,
shall verify the genuineness of such shipping bill (s) and ensure that no
double benefit against such shipping bill has been availed. This specific
condition shall be endorsed by RA concerned on the EODC. |
|||||||||||||||||||||||||||||||||||||
Duty Free Import Authorisation (DFIA) Scheme |
||||||||||||||||||||||||||||||||||||||
Duty Free Import Authorisation (DFIA)
Scheme |
Policy
relating to the Duty Free Import Authorisation
(DFIA) Scheme is prescribed in Chapter 4 of FTP. |
|||||||||||||||||||||||||||||||||||||
Application |
An
application in ANF 4H along with documents therein, shall be submitted to RA
concerned. |
|||||||||||||||||||||||||||||||||||||
|
4.32.1 |
Guidelines
as in paragraph 4.4.1 and 4.4.3 above would be adhered to. |
||||||||||||||||||||||||||||||||||||
|
4.32.3 |
However
in respect of following items, exporter shall be required to give declaration
with regard to technical characteristics, quality and specification in
shipping bill. RA while issuing DFIA shall mention technical characteristics,quality and specification in respect of
such inputs: Alloy
steel including Stainless Steel, Copper Alloy, Synthetic Rubber, Bearings,
Solvent, Perfumes/ Essential Oil/ Aromatic Chemicals, Surfacatants,
Relevant Fabrics, Marble, Articles made of polypropylene, Articles made of Paper
and Paper Board, Insecticides, Lead Ingots, Zinc Ingots, Citric Acid,
Relevant Glass fibre reinforcement (Glass fibre, Chopped / Stranded Mat, Roving Woven Surfacing
Mat), Relevant Synthetic Resin (unsaturated polyester resin, Epoxy Resin,
Vinyl Ester Resin, Hydroxy Ethyl Cellulose), Lining
Material. |
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Facility for Split DFIA |
Split
Authorisations of DFIA subject to a minimum of CIF
value of Rs. 10 lakhs each and multiples thereof may also be issued, on
request at the time of seeking transferability. A fee of Rs. 1000/- each
shall be paid for each split authorization. Split-up
DFIAs shall be permitted with same Port of Registration as appearing on the
original DFIA. |
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|
4.33 |
Provisions
of paragraphs 4.6, 4.11, 4.12, 4.12.1, 4.18, 4.19, 4.21, 4.22, 4.23, 4.24,
4.26 and 4.28 of this Handbook shall also be applicable for DFIA Scheme. |
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DFIA for applicants with multiple units |
Transfer
of any duty free material imported or procured against actual user DFIA shall
be governed by provisions of paragraph 4.5 above. |
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Re-export of goods imported under DFIA Scheme |
Goods
imported against transferable DFIA, which are found defective or unfit for use,
may be re-exported, as per DoR guidelines. In such cases 95% of CIF value
debited against DFIA for export of such goods, shall be generated by
concerned Commissioner of Customs as an Authorisation,
containing amount generated and the details of original DFIA.Based
on the certificate, a fresh DFIA shall be issued by concerned RA.Fresh DFIA, so issued, shall have same port of
registration and shall be valid for a period equivalent to balance period
available on date of import of such defective/ unfit goods. |
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Fulfillment of Export Obligation and maintenance of proper
accounts of imports |
Provision
of paragraph 4.25 above shall apply.Original DFIA
holder shall maintain a true and proper account of consumption and utilisation of duty free imported / domestically procured
goods against each authorisation as as prescribed in Appendix-23. These records are required
to be sent to concerned RA along with request for
bond waiver /redemption / discharge of export obligation/ transferability.
Such records should be preserved for a period of at least three years from
date of redemption. |
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Transferability of DFIA |
Once
export obligation is fulfilled and required documents as stipulated in Paragraph
4.36 above have been furnished, RA shall make authorisation
transferable subject to conditions stipulated for this scheme including an
endorsement on the authorisation itself as to
liability of additional customs duty / excise duty in respect of imported /
indigenously procured inputs, as the case may be, which have already been
imported under Actual User DFIA and are sought to be transferred after
fulfillment of E.O. DFIA holder shall deposit additional customs duty /
excise duty alongwith applicable interest as per
Customs Notification in relevant Head of Account of Customs Revenue i.e.,
“Major Head 0037 – Customs and Minor Head 001 – Import Duties” in prescribed
T.R. Challan and furnish a documentary evidence to
RA alongwith the application for endorsement of
transferability. |
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Duty Entitlement Passbook (DEPB) Scheme |
Policy
relating to Duty Entitlement Passbook (DEPB) Scheme is given in Chapter-4 of
FTP. Duty credit under the scheme shall be calculated by taking into account
deemed import content of said export product as per SION. Value addition
achieved by export of such product shall also be taken into account while
determining the rate of duty credit under the scheme. |
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Fixation of DEPB Rate |
ANF
4C prescribes form regarding fixation of DEPB rates. All applications for
fixation of DEPB rates shall be routed through concerned EPCs which shall
verify the FOB value of exports as well as international price of inputs
covered under SION. |
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Provisional DEPB Rate |
To
encourage diversification and to promote export of new products, DEPB
Committee would be empowered to notify provisional DEPB rates. However, such
DEPB rates would be valid for a limited period of time during which exporter would
furnish data on export and import for regular fixation of rates. |
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Exports in anticipation of DEPB Rate |
No
exports shall be allowed under DEPB scheme unless rate of concerned export
product is notified. |
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Port of Registration |
Exports/imports
made from specified Sea Ports, Airports, ICD & LCSs given in paragraph
4.19 above and made to any Special Economic Zone (SEZ), notified by Central
Government, are entitled to DEPB. |
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4.40.1 |
DEPB
shall be issued with single port of registration, which will be the port from
where exports have been effected. |
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Maintenance of Record |
Each
Custom House at ports shall maintain a separate record of details of exports
made under DEPB. |
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Credit under DEPB and Present Market Value |
In
respect of products where rate of credit entitlement under DEPB Scheme comes
to 10% or more, amount of credit against each such export product shall not
exceed 50% of Present Market Value (PMV) of export product. During export,
exporter shall declare on shipping bill that benefit under DEPB Scheme would
not exceed 50% of PMV of export product. However PMV declaration shall not be
applicable for products for which value cap exists irrespective of DEPB rate
of product. |
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Utilization of DEPB credit |
As
notified in FTP. |
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Application for DEPB |
An
application for grant of credit under DEPB may be made to RA concerned in ANF
4G alongwith prescribed documents. Agency
commission shall be allowed for DEPB entitlement upto
12.5% of FOB value only. FOB value in free foreign exchange shall be
converted into Indian rupees as per exchange rate for exports, notified by
Ministry of Finance, as applicable on the date of order of “Let Export” by
Customs. |
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4.43A
|
In
respect of consignment exports wherein exporter has declared FOB value on a
provisional basis, exporter shall be eligible for final assessment of such
shipping bill based on actual FOB realised upon
sale of such goods in freely convertible currency. |
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4.43B
|
An
application for grant of credit for supplies from DTA to SEZ can be made by
DTA unit or SEZ unit. DTA unit may claim benefits either from RA or Development
Commissioner concerned. In case claims have been filed with RA, RA while
allowing benefits to the DTA unit will simultaneously endorse a copy of
communication to concerned Development Commissioner alongwith
details of export documents . In case DTA supplier
prefers claim with Development Commissioner, the Development Commissioner
will verify Denied Entity List (DEL) status of supplier from DGFT website
before allowing DEPB benefits. SEZ unit will file application with
Development Commissioner concerned in ANF 4G along with prescribed documents. |
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4.44
|
DEPB
shall be issued with transferable endorsement. |
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Monitoring of Realisation |
RA
shall monitor all such cases wherein the Scrip(s) has been issued without
Bank Realisation Certificate(BRC)
and ensure that the BRC is submitted within 12 months from the date of
issuance of the Scrip. In case no RBI extension is produced, RA shall
initiate action for recovery of the same. In such cases, DEPB holder (the
original applicant) shall deposit in cash or through debit of the valid DEPB
/ adjustment of pending DEPB claim for an amount equivalent to the Duty Free
Credit allowed. If amount realized in Free Foreign Exchange is less, then
payable amount would be reduced proportionately. However, if the DEPB holder
does not pay the amount within 60 days of the expiry of the 12 months time
period from the date of issue of the Scrip, he shall be required to pay the
said amount along with 15% interest per annum from the date of issuance of
Scrip(s) for the Duty Credit for which BRC or Documentary evidence
(evidencing realisation of export proceeds as
required under FTP or the Procedure laid thereunder)
could not be produced by the DEPB holder. In case he surrenders the
unutilized / partially unutilized Duty Credit Scrip, then unutilized/
partially unutilized Credit shall be deducted from the payable amount. In
case of Cash Payment, the same shall be deposited in the Head of Account of
Customs as stated in paragraph 4.29 above. |
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Time Period |
Application
for obtaining credit shall be filed within a period of twelve months from the
date of exports or the date of up linking of EDI shipping bill details in the
DGFT website, or within three months from the date of printing / release of
shipping bill, whichever is later, in respect of shipments for which claim
has been filed. [However,
in case the application is filed along with BRC, the time period for filing
shall be within a period of twelve months from the date of exports or six
months from the date of realisation of export
proceeds or the date of up-linking of EDI shipping bill details in the DGFT
website or within three months from the date of printing / release of
shipping bill, whichever is later, in respect of shipments for which claim
has been filed]. (Last
paragraph inserted by 12-PN(RE)/22.09.2009) In
case the FOB realisation in free foreign exchange
is higher as per BRC than the FOB value in the shipping bill(s) on which
original DEPB was issued, supplementary claim shall be filed within a period
of six months from the date of realisation, in
respect of shipments for which claim has been filed. |
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4.47
|
Wherever
provisional shipment has been allowed by customs authorities, DEPB against
such exports shall be issued only after release of shipping bill by Customs.
In such cases, application for DEPB shall be filed within six months from date
of release of such shipping bill. |
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Frequency of Application |
All
shipping bills in any one application must relate to exports made from one
Custom House only. There is no limit on number of shipping bills which can be
filed through EDI mode in a single application. |
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Verification by Customs |
In
case of EDI shipping bills before 1.10.2005 and non-EDI shipping bills, RA
shall ensure that while issuing DEPB, Shipping Bill No(s) and date(s), FOB
value in Indian Rupees as per Shipping Bill(s) and description of export
product are endorsed on DEPB. Before allowing imports against such DEPB,
Customs shall verify that details of exports, as given on DEPB, are as per their
records. However, in case of EDI shipping bills issued on or after 1-10-2005
from EDI ports which are being transmitted electronically by Customs to DGFT,
DEPBs issued shall be sent to Customs at port of registration through an
electronic message exchange system and DEPB shall be registered at port of
registration electronically. No verification of shipping bills against which
such DEPBs have been issued, will be required before
allowing imports against these DEPBs. |
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Revalidation |
No revalidation shall
be granted beyond original period of validity of DEPB unless covered under
paragraph 2.13.1 or paragraph 2.13.2 A of HBP v1. [Paragraph substituted
by 38-PN(RE)/03.02.2010]. |
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Re-export of goods imported under DEPB Scheme |
Goods
imported under DEPB scheme, which are found defective or unfit for use, may
be re-exported, as per guidelines given in paragraph 3.11.6 of HBP v1. |
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Issuance of DEPB and other duty credit certificates against lost
EP copy of the Shipping Bills |
In
case where EP copy of Shipping Bill has been lost,DEPB
and other duty credit certificates, claim can be considered subject to
submission of following documents:- a)
A duplicate / certified copy of Shipping Bill issued by Customs authority in
lieu of original; b)
An application fee equivalent to 2% of the DEPB or other duty credit
entitlement in respect of lost Shipping Bills. However, no fee shall be
charged when Shipping Bill is lost by Government agencies and a documentary
proof to this effect is submitted; c)
An affidavit by exporter about loss of Shipping Bills and an undertaking to
surrender it immediately to concerned RA, if found subsequently; and d)
An indemnity bond by exporter to the effect that he would indemnify
Government for financial loss if any on account of DEPB or other duty credit
certificate issued against lost Shipping Bills. Customs
authority, before allowing clearance, shall ensure that no DEPB benefit has
been availed against same shipping bill. |
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4.52.1
|
Claim
against lost Shipping Bill shall be preferred within a period of six months
from date of release of duplicate copy of shipping bill and any application
received thereafter will be rejected. This is subject to the condition that
the request for duplicate copy of Shipping Bill to Customs Authority was
filed within the time period similar to that mentioned in paragraph 4.46
above. However, if a provisionally assessed DEPB shipping bill is lost, time
period for filing an application for DEPB would be six months from the date
of release of the finally assessed shipping bill. |
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Loss Of Original Bank Certificate |
In
such cases where original Bank Realisation
Certificate (BRC) has been lost, the DEPB claim can be considered subject to
submission of following documents: a)
A duplicate copy of BRC issued by bank authority in lieu of original loss; b)
An application fee equivalent to 2% of the DEPB entitlement in respect of
lost BRC; c)
An affidavit by exporter about loss of BRC and an undertaking to surrender it
immediately to RA, if found subsequently; d)
An indemnity bond by exporter to the effect that he would indemnify
Government for financial loss, if any, on account of DEPB issued against lost
BRC. Claim
against lost BRC shall be preferred within a period of six months from date
of realisation and application received thereafter
will be rejected. In
such cases, where both documents have been lost, exporter shall follow
procedure laid down in paragraph 4.52 and 4.53. Time period for such
application shall be as per paragraph 4.52 and 4.53, whichever is later.Late cut provision stated in paragraph 9.3 shall be
applicable. |
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|
(Para 4.54 deleted by 12-PN(RE)/22.09.2009) |
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4A
|
Policy
relating to Gem Replenishment Authorisation, and scheme for gold/ silver/platinum jewellery
is given in paragraph 4A of FTP. |
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Replenishment Authorisation |
An
application for REP Authorisation may be made in
ANF 4I alongwith documents prescribed therein to RA
concerned as in Appendix-1A. |
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4A.1.1
|
Application
shall be filed within six months following the month during which the export
proceeds are realised. For export proceeds realised during the month, consolidated application for
entire month shall be filed. |
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4A.1.2
|
In
case where payment is received in advance and exports take place
subsequently, application for REP Authorisation
shall be filed within six months following the month during which exports are
made. |
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4A.1.3
|
For
purpose of clarity, it is again reiterated that the month in which the export
has been made in case of advance payment and the month in which export
proceeds have been realised in part or full after
making of exports, shall be excluded while calculating period of six months
for filing of application for REP Authorisation. |
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Wastage Norms |
Wastage
or manufacturing loss on gold/silver/ platinum jewellery
and articles thereof is as follows:
|
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Value Additions |
Under scheme for export
of jewellery, value addition shall be calculated as
per paragraph 4A.6 of FTP. Minimum value addition shall be:
|
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4A.2.2
|
Entitlement
of quantity of gold / silver / platinum against the export shall be quantity
of gold / silver / platinum in item of export plus admissible wastage / manufacturing
loss. |
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Loss of Gem and Jewellery |
Consignments
of gem and jewellery items exported out of country
and lost in transit after exports, where foreign exchange against such
exports has been realised or insurance claims
settled, will also be eligible for REP Authorisation. |
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Gem & Jewellery Replenishment Authorisations |
Gem
REP Authorisations shall be valid for import of
precious stones, semi-precious and synthetic stones and pearls. In addition, Authorisation shall also be valid for import of empty jewellery boxes upto 5% of
value of Authorisation within its overall CIF
value. Gem REP Authorisations issued against export
of studded gold / silver / platinum jewellery articles, shall also be valid for import of cut and
polished precious semi-precious stones other than emerald upto
10% of CIF value of Authorisation within its
overall CIF value. |
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4A.4.1
|
Gem
REP Authorisation are
available as per scale given in Appendix-12B. |
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Filing of Application |
(i) An application for Gem Rep Authorisation
may be given to RA concerned as given in Appendix-1A in the form given in
Appendix-22-F alongwith prescribed documents. (ii)
In case E.P Copy of Shipping Bill and Customs attested invoice is submitted
to nominated agencies, exporter shall furnish a self certified photo copy of
same along with a certificate from nominated agencies certifying carat/value
of studdings in case of studded jewellery
and excess value addition achieved in case of plain jewellery
and articles. (iii)
Provision of paragraph 4A.1.1 to 4A.1.4 will also be applicable for Gem Rep Authorisations. |
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Agency Commission |
Exporter
availing scheme of gold / silver / platinum jewellery
are allowed to pay agency commission. Value addition shall be calculated
after deducting agency commission. |
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Endorsement on shipping Bill and Invoice |
During
export of jewellery, shipping bill and invoice
presented to customs authorities shall contain description of item, its
purity, weight of gold/ silver/ platinum content, wastage claimed thereon,
total weight of gold/ silver/ platinum content plus wastage claimed and its
equivalent quantity in terms of 0.995/ 0.999 fineness for gold/ silver and in
terms of 0.9999 fineness for platinum and its value, fob value of exports and
value addition achieved. If purity of gold/silver/platinum used is same in
respect of all or some of items made out from each of these metals for
export, exporter may give total weight of gold/silver/ platinum and other
details of such similar items which are of same purity. In case of studded
items, shipping bill shall also contain description, weight and value of
precious/ semiprecious stones/diamonds/ pearls used in manufacture, and weight
/ value of any other precious metal used for alloying gold/silver. |
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Conditions of Exports |
Exports
shall be allowed by customs authorities provided endorsement made on shipping
bill and invoice are correct and value addition achieved is not below minimum
prescribed in FTP. |
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Proof of Exports |
Exporter
has to furnish the proof of exports, wherever required for export of gold /
silver / platinum jewellery and articles thereof,by furnishing following documents: (a)
E.P copy of the shipping bill; (b)
Customs attested invoice; (c)
Bank certificate of realisation in Appendix 22A. In
case of Personal carriage of jewellery by foreign
buyer, following documents should be submitted by the exporter/seller as
proof of exports for claiming export entitlements: (a)
Copy of shipping bill filed by Indian Seller; (b)
A copy of Currency Declaration Form filed by Foreign Buyer with Customs at
the time of his arrival; and (c)
Foreign Exchange Encashment Certificate from Bank.In
addition to this, Personal Carriage on Documents Against Acceptance (DA)/
Cash On Delivery (COD) basis is also allowed. Exporter will have to furnish
following documents as proof of exports for claiming export entitlements: (i) Copy of Shipping Bill filed by Indian Seller; and (ii)
Bank Certificate of Export and Realisation Instructions
issued by Customs Department in this regard should be followed mutatis
mutandis. |
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Conversion of Purity/Fineness |
For
conversion of quantity of gold/ silver/platinum in terms of equivalent
quantity in terms of fineness, following formula shall be used: (i) Where items of gold has been exported in terms of
carats, quantity of gold shall be multiplied by number of carat of gold
exported, divided by 24 and thereafter again divided by 0.995/0.999/0.900 to
arrive at equivalent quantity of gold in terms of fineness of 0.995/
0.999/0.900 respectively; and (ii)
Wherever purity of item of export is expressed in terms of fineness, the
quantity of gold/silver/platinum shall be multiplied by fineness of gold/silver/platinum
exported and thereafter divided by 0.995 / 0.999 / 0.900 to arrive at
equivalent quantity of gold/ silver/platinum in terms of 0.995 / 0.999 /
0.900 fineness respectively’. |
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Release of Gold/Gold / silver / platinum by Nominated Agencies |
Gold
/ silver / platinum shall be released to exporter of jewellery
by nominated agencies/RBI authorised banks in multiples of 10 gms or in Ten Tola Bars in
respect of golds. However, silver shall be released
to exporters in multiples of 1 Kg only.Any balance
of gold/ silver/ platinum shall be available to exporter along with his
future entitlement. Gold/ silver shall be released by the nominated agencies in terms of 0.995 fineness or more and platinum in terms
of 0.900 fineness or more. |
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Terms of payment |
Export
of gold / silver / platinum jewellery and articles
thereof shall be against irrevocable letter of credit, payment of cash on
delivery basis, Documents Against Acceptance or advance payment in foreign
exchange. |
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Port of Export |
Exports
under schemes of gold /silver/platinum jewellery
and articles thereof shall be allowed by airfreight and Foreign Post Office
through the Customs House at Mumbai, Calcutta, Chennai, Cochin, Delhi,
Jaipur, Bangalore, Kochi, Coimbatore, Ahmedabad, Dabolin
Airport, Goa, Hyderabad and Surat (Surat Hira Bourse). Export by
courier shall also be allowed through Custom Houses at Mumbai, Calcutta,
Chennai, Cochin, Coimbatore, Delhi, Jaipur, Bangalore, Ahmedabad and
Hyderabad upto FOB value of Rs.20 lakhs per
consignment. |
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Export by Post |
Policy
for export of gems and jewellery parcel by post is
in paragraph 4A.16 of FTP. At the time of exports, exporter shall submit
following documents: (i) Shipping bills or invoice presented at foreign Post
Office; (ii)
Certificate from nominated agencies indicating price at which gold/
silver/platinum was booked or given on outright sale basis or loan basis; (iii)
Three copies of invoice. |
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Import of Diamonds for Certification/Grading & re-export |
This
facility has been stated in Paragraph 4A.2 of FTP. At the time of imports of
diamonds, the bill of entry shall have the detailed description, including
the dimensions /specifications of the diamonds. At the time of re-export
after grading/ certification, the Bill of entry details should be endorsed in
the shipping bill, so far as the dimensions and other specifications/ details
of the diamonds are concerned, so as to establish a clear correlation between
the imported diamonds and the diamonds being re-exported. In addition, a
separate self certificate shall be attached by GIA (or any other approved
agency) along with the shipping bill at the time of shipment, for matching of
the imports to that of the exports as per the documents and GIA (or any other
approved agency) certificate. GIA
(or any other agency approved in this regard) shall obtain GR waiver as per
the procedure laid down by RBI, in all such cases. Re-export
of the imported diamonds shall be completed within a maximum time period of 3
months from the date of import(s). At the time of import, the agency shall
give an undertaking to the customs to this effect. GIA (or any other agency
approved in this regard) shall furnish a quarterly report to the customs
authority at the port of import by 25th of the month, succeeding the end of
the quarterly period, to ensure that the exports are effected
within the stipulated time period. |
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Export Against Supply By Foreign Buyer |
Before
clearance of each consignment of import supplied by foreign buyer, nominated
agency shall execute a bond with Customs, undertaking to export within
stipulated period in contract, gold/silver/platinum jewellery
or articles equivalent to entire import quantity of gold/silver/platinum,
mountings and findings etc excluding admissible wastage. In
case of direct supply of gold/silver/platinum, alloys, findings and mountings
of gold/silver/platinum and plain semi-finished gold/silver/platinum jewellery to status holder/ exporter, Status
Holder/exporter shall furnish a Bank Guarantee/LUT, as per Customs Rules and regualtions to Customs equivalent to Customs Duty leviable on imported gold/ silver/ platinum, alloys,
findings and mountings of gold/ silver/ platinum and plain semi-finished
gold/ silver/ platinum jewellery etc. BG
/LUT, executed with Customs shall be valid for one year. In case of direct
supply to Status Holder/exporter, exports shall be completed within 90 days.
In case of non-fulfillment of EO / non-achievement of stipulated value
addition, Customs Department shall proceed to recover custom duty alongwith interest which may include enforcement of BG
/LUT. Besides importer will be liable to penal action under Customs Act. |
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4A.15.1 |
Nominated
agency/Status Holder/exporter shall be liable to pay customs duty leviable on that quantity which is proved to have been
not exported. |
|||||||||||||||||||||||||||||||||||||
4A.15.2 |
Goods
shall be cleared through Customs by nominated agency/Status Holder/exporter.
Even where export order is received by an Associate,
goods shall be cleared through Customs by nominated agency only and not
Associate. Associate shall, in such cases, authorise
nominated agency to act as its agent to file Bill of Entry and shipping bill. |
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4A.15.3 |
At
time of export, shipping bill presented to Customs shall also contain the
following: (i) Name and address of associate/Status Holder/exporter; (ii)
An endorsement by nominated agency that export is made against an order
received by concerned associate, its date of registration with nominated
agency. In case of exports by Status Holder/exporter, a Self Declaration
shall be provided to this effect; (iii)
Name of Customs House through which gold/ silver/platinum/plain semi-finished
gold/ silver/ platinum jewellery was imported and
corresponding Bill of Entry No. and date and date of import. |
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4A.15.4 |
Each
shipping bill shall be valid for exports only through Customs House located
at the place where office of nominated agency/Status Holder/ exporter
concerned is situated. It shall be valid for shipment for a period of seven
days including the date on which endorsement was made by nominated agency in
case of exports through nominated agency. If exports cannot be made within
this period, exporter shall file a fresh shipping bill. |
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4A.15.5 |
At
the time of export, exporter shall submit following documents: (i) Shipping bill with two extra copies where exports are
made from a Customs House other than Customs House through which
corresponding import of gold/ silver/ platinum/plain semi-finished
gold/silver/ platinum jewellery was effected. In other cases, shipping bill with an extra
copy; (ii)
Three copies of invoice; (iii)
Certificate from nominated agency indicating quantity and value of items
supplied by foreign buyer. |
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4A.15.6 |
Customs
authorities shall return two copies of shipping bill and connected invoice
duly attested. One copy shall be sent to person who presented documents and
the other copy shall be sent by Customs to office of nominated agency/Status
holder/ exporter. |
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4A.15.7 |
In
case of exports through nominated agency, exporter shall submit proof of
exports to nominated agency within 15 days of exports, who shall, after
verifying documents, release admissible quantity of the gold/ silver/
platinum etc. to exporter. |
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4A.15.8 |
Exporter
may also obtain, in advance, gold/ silver/ platinum etc. supplied by foreign
buyer by furnishing a BG /LUT for an amount equal to international price of
such items plus customs duty payable thereon. BG /LUT shall be redeemed only
when the exporter has furnished proof of exports to nominated agency and
accounted for the use of items supplied in advance in export product. |
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4A.15.9 |
For
redemption of bond/ BG /LUT executed with Customs,nominated
agency/Status Holder/exporter shall furnish a statement indicating items, its
quantity and value supplied by foreign buyer, corresponding Bill of Entry
number and date, number of each of shipping bills against which corresponding
exports was made. |
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Maintenance of Accounts |
4A.16 |
Nominated
agency shall maintain complete account,consignment-wise,
of the gold, silver, platinum, mountings, findings/ plain semi-finished
gold/silver/ platinum jewellery etc. imported for
execution of each export order, exports effected and quantity of gold,
silver, platinum mountings, findings etc. released against such exports. For
direct exports, similar accounts shall also be maintained by Status Holder.
Such accounts shall be maintained for a minimum period of three years from
date of exports. |
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Export Through Exhibitions / Export Promotion Tours / Export of
Branded Jewellery |
Nominated
agencies shall produce to Customs Authorities letter in original or its
certified copy, containing Government’s approval for holding
exhibition/export of branded jewellery. Any
other person shall produce to Asst. Commissioner, customs letter in original
or its certified copy containing GJEPC’s approval for holding exhibitions/
export promotion tour/export of branded jewellery. In
case of re-import, such items, on arrival, shall be verified alongwith export documents before clearance. |
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4A.18
|
(a)
Exports under this scheme shall be subject to following conditions for
following modes of export: (i) Export of Gems and Jewellery
for holding/ participating in overseas exhibition.Exports
under this scheme shall be subject to the following conditions:Items not sold abroad shall be reimported
within 60 days of close of exhibition. However
in case exporter is participating in more than one exhibition within 45 days
of close of first exhibition, then 60 days shall be counted from date of
close of last exhibition. . In case of exhibition in USA, the time period
shall be 90 days instead of 60 days mentioned above. In case of personal
carriage of gems and jewellery for holding
/participating in overseas exhibitions, value of such gems and jewellery shall not exceed US $ 5 million. Gold/ silver/
platinum content on items sold in such exhibitions may be imported as
replenishment. Exporter shall take replenishment from nominated agency within
120 days from the close of the exhibition gold /silver/platinum for replenishment
content against items sold abroad in exhibition. (ii)
Personal Carriage of gems & jewellery or export
through airfreight/post parcel route for Export Promotion Tours/photo
shoots/fashion shows overseas.Personal
carriage/export through airfreight/post parcel route of gold/silver/ platinum
jewellery, cut and polished diamonds, precious,
semi-precious stones, beads and articles as samples upto
US$ 1 Million for export promotion tours/photo shoots/fashion shows and
temporary display/ sale abroad is also permitted with approval of Gem & Jewellery EPC subject to the condition that promoter
would bring back jewellery / goods or repatriate
sale proceeds within 45 days from date of departure through normal banking
channel. In case of personal carriage for export promotion tours, exporter
shall declare personal carriage of such samples to Customs while leaving
country and obtain necessary endorsement on Export Certificate issued by Jewellery Appraiser of Customs. In such cases exporter
shall book with nominated agency, within 120 days after export promotion tour
or expiry of stipulated period of 45 days, whichever is earlier,
gold/silver/platinum for replenishment content against items sold abroad. (iii)
Export of branded jewellery.Export of branded jewellery is also permitted with approval of Gem & Jewellery EPC for display/sale in permitted shops set up
abroad or in showroom of their distributors/ agents. Items not sold abroad
within 365 days shall be re-imported. Exporter shall book with nominated
agency within 120 days after the end of stipulated period of 365 days,
gold/silver/platinum for replenishment content against items sold abroad. (b)
Following documents shall be submitted for claiming such replenishment: (i) Customs attested invoice; (ii)
Copy of the approval letter issued by Government/GJEPC; (iii)
Certificate from nominated agency/ GJEPC as in Appendix-22F. (c)
In case of exhibitions organised by nominated agencies, gold/silver/ platinum
shall be imported as replenishment by nominated agencies within 60 days from
close of exhibition |
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4A.19 |
Nominated
agencies shall maintain a complete account of exports made, goods sold
abroad, goods re-imported, and metals purchased abroad and imported into India.
Such account shall be maintained for a minimum period of three years from
date of close of exhibition. |
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Export Against Supply By Nominated Agencies |
Exporter
may obtain gold/silver/ platinum on following basis:- (i) Replenishment basis after completion of exports; (ii)
Outright purchase basis in advance; (iii)
Loan basis. |
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Replenishment Basis |
Exporter
may apply to nominated agency for booking of precious metal
gold/silver/platinum. Quantity of precious metal booked with nominated agency
shall be equivalent to precious metal content in the export product and
admissible wastage. |
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4A.21.1 |
Applicant
shall at the time of booking deposit an earnest money for a minimum amount of
20% of notional price of precious metal, which shall be adjusted at actual
sale. |
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4A.21.2 |
Exporter
may also export jewellery on a notional rate based
on certificate provided by Bank. Exporter must fix price within credit terms
allowed to buyer and realise proceeds within the
due date of the credit terms or 180 days, whichever is earlier. Exporter
exporting on a notional basis under Replenishment Scheme must book the same
quantity of gold with Nominated Agency on same rate that he may have booked
with buyer. Nominated agencies shall purchase precious metal on behalf of
exporter at the rate so fixed and thereafter issue a purchase certificate
bearing a serial number to exporter indicating quantity of gold/
silver/platinum and CIF value, in dollars including the Rupee equivalent.
Price shall be actual price at which gold/ silver/platinum is purchased by
nominated agencies plus permitted service charges levied by nominated
agencies shall be included with the price of gold/ silver/ platinum for value
addition. Duplicate and triplicate copies of exporter’s application together
with copies of purchase certificate for exporter shall be sent by nominated
agencies to concerned Custom House as well as to the negotiating bank who
will confirm realization at which gold has been purchased. Exporter exporting
under notional rate will get replenishment only after proceeds are realised. |
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4A.21.3
|
Exports
shall be effected within a period of 120 days from
date of booking and drawal of precious metal shall
be completed within a period of 150 days from date of booking or within 30
days from date of export whichever is later. |
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Outright Purchase Basis in Advance |
4A.22 |
Exporter
may obtain required quantity of precious metal in advance on outright
purchase basis subject to furnishing of BG / LUT to nominated agencies for an
amount as may be prescribed by nominated agency. On failure to effect exports
within period prescribed, the nominated agencies shall enforce BG / LUT, as
the case may be. |
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4A.22.1
|
Exports
shall be effected within a maximum period of 90 days
from date of outright purchase of precious metal. |
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Loan Basis |
Exporter
may obtain required quantity of precious metal on loan basis subject to
furnishing of BG / LUT, for customs duty to nominated agencies for an amount
as may be prescribed by nominated agencies. On failure to effect exports
within the period prescribed, the nominated agencies shall enforce the BG /
LUT. |
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4A.23.1 |
Exporter
has to pay interest on gold taken on loan basis at the rate as may be
specified. |
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4A.23.2
|
Export
has to be completed within a maximum period of 90 days from date of release
of gold on loan basis. No extension for fulfillment of EO shall be allowed. |
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4A.23.3 |
Exporter
shall be permitted to export jewellery on the basis
of a notional rate certificate to be issued by nominated agency / GJEPC. This
rate will be based on prevailing Gold/US$ rate and the US$/INR rate in
notional rate certificate. Certificate issued by nominated agency/GJEPC
should not be older than 7 working days of date of shipment. Value addition
will have to be achieved on rate as may be got fixed with buyer and Nominated
Agency.Exporter shall have flexibility to fix the
price and repay Gold Loan within 180 days from date of export. This price
shall be communicated to nominated agencies who will issue a certificate
showing final confirmation of the rate to the bank negotiating documents, to
ensure export proceeds are realized at this rate. |
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4A.24
|
Nominated
agencies may accept payment in dollars towards cost of import of precious
metal from EEFC account of exporter. |
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Exports against Advance Authorisation |
Procedure
applicable to Advance Authorisations under
Chapter-4 of HBP v1 shall generally apply to this scheme except norms for
value addition, EO period and regularization of default. Value addition for
Gems and Jewellery items shall be as per paragraph
4A.2.1 of this Handbook. |
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4A.25.1
|
EO
will be required to be fulfilled within 120 days from date of import of each
consignment against Authorisation. However EO
period shall be 180 days from date of import of findings, mountings made of
gold, platinum and silver and export of jewellery.
No further extension in EO period will be allowed. Advance Authorisation holder may also import gold as
replenishment after completion of exports. |
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4A.26
|
Advance
Authorisation holder may obtain gold /silver /
platinum from nominated agencies in lieu of direct imports. In such a case,
nominated agency shall make, both exchange control copy and customs purpose
copy of Authorisation invalid for direct imports. |
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Regularization of Bonafide Default |
Cases
of bonafide default in fulfillment of EO by an
exporter who has obtained precious metals from nominated agencies may be regularised provided exporter has paid customs duty alongwith interest thereon as notified by Customs.
However, for the customs duty component, the authorisation
holder has the option to furnish valid duty credit scrips
issued under Chapter 3 of FTP and DEPB. Further, in case of Advance Authorisation, the provisions as given in paragraph 4.28
above shall apply. This shall be without prejudice to any action that may be
taken against exporter under FT(D&R) Act, Order
or Rules issued thereunder. |
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Replenishment Authorisation for Import
of Consumables etc. |
A
replenishment authorization for duty free import of consumables and tools (as
notified by Customs) for Jewellery made out of
precious metals (other than Gold & Platinum) equal to 2% and for Cut and
Polished Diamonds and Jewellery made out of Gold
and Platinum equal to 1% of FOB value of exports of the preceding year, may
be issued on production of Chartered Accountant Certificate indicating the
export performance. However, in case of Rhodium finished Silver jewellery, entitlement will be 3% of FOB value of exports
of such jewellery. This Authorisation
shall be non-transferable and subject to actual user condition. Application
for import of consumables etc., as given above, may be made to the concerned
RA in ANF 4I. |
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Personal Carriage of Gems & Jewellery
Export Parcels |
Personal
Carriage of gems & jewellery parcels by Foreign
Bound Passengers from all EOU/SEZ units and all firms in DTA through Airports
in Delhi, Mumbai, Kolkata, Chennai,Cochin,
Coimbatore, Bangalore, Hyderabad, Jaipur is permitted. Procedure for Personal
Carriage of exports shall be as prescribed by Customs. Export proceeds shall,
however, be realised through normal banking
channel. For claiming Replenishment in case of Personal Carriage of Exports
by Foreign Bound passenger, documents shall be same as mentioned under
paragraph 4A.21.2 above. Authorised Courier Companies are also permitted to
operate on the above lines. |
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Personal Carriage of Gems & Jewellery
Import Parcels |
Personal
carriage of gems & jewellery import parcels by
an Indian importer/ Foreign National may be permitted into all EOUs/SEZ units
and all firms in DTA through airports in Delhi, Mumbai, Kolkata, Chennai, Bangalore,
Hyderabad Jaipur.Procedure will be same as for
import of goods by air-freight except that parcels shall be brought to
Customs by Importer / Foreign National for examination and release. Clearance
of imports under this scheme shall be as per normal customs clearance
procedure. |
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Duty free import of samples |
Duty
free import of gems and jewellery samples upto Rs 3 lakhs or 0.25% of the average of last three
years export turnover of gems and jewellery items,
whichever is lower, shall be allowed in a financial year as per Customs
notification. |
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Re-import of rejected jewellery |
An
exporter of plain/ studded precious metal jewellery
shall be allowed to re-import duty free jewellery
rejected and returned by buyer upto 2% of FOB value
of exports in preceding licencing year (based on CA
certified copy of export of preceding year) with refund of any duty
exemption/refund/ replenishment benefit availed on inputs used as per customs
rules and regulations. |
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4A.32.1
Deleted. |
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Diamond & Jewellery Dollar Accounts |
Policy
for Diamond and Jewellery Dollar Accounts is given
in paragraph 4A.17 of FTP. Detailed procedure for its operation will be
notified separately. |
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Export of Diamond, Gemstone & Jewellery
on consignment basis |
Policy
for export of diamond, gemstone and jewellery on
consignment basis is given in paragraph 4A.20 of FTP. Detailed
procedure in this regard shall be governed as per the relevant Customs Rules
& Regulations. Re-import of these items (either in complete or partial
lot) exported on consignment basis shall be subject to condition that
exporter follows prescribed provisions of relevant customs notification to
establish that goods are the same which were exported. |
Chapter
5
Export
Promotion Capital Goods (EPCG) Scheme
Policy |
Policy
relating to zero duty EPCG scheme and concessional 3% duty EPCG Scheme are given
in Chapter 5 of FTP. |
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Exclusions under Zero Duty
EPCG Scheme |
Zero
duty EPCG Scheme under para 5.1 of FTP shall not be available for import of
capital goods relating to export of products covered under following
chapters/headings of ITC(HS) classification: Chapters
1 to 24, 25 to 27, 31, 40, 43, 44, 45 , 47 to 49, 68 to 70, 71, 81 (metals in
primary and intermediate forms only), 89, 93, 97, 98 ITC(HS)
7201 to 7212, 7218 to 7220, 7224 to 7226, 7401 to 7406, 7501 to 7504, 7601 to
7603, 7801, 7802, 7901 to 7903, 8001, 8002 and 8401. However, zero duty EPCG
Scheme will be available for handicraft exports under Chapters 5, 44, 68, 97. Imports
under zero duty scheme shall also not be available
for units who are currently availing any benefits under Technology Upgradation Fund Scheme (TUFS) administered by Ministry
of Textiles, Government of India. Zero duty EPCG scheme shall also not be
available to applicants, who avail in that year, the benefit of Status Holder
Incentive Scheme under Paragraph 3.16 of FTP. All
other provisions pertaining to the concessional 3% EPCG scheme under this
Chapter, to the extent they are not inconsistent with the above provisions of
zero duty EPCG scheme, shall be applicable to the zero duty scheme also. |
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Application Form |
An
application for grant of an authorization may be made to RA concerned in ANF
5A along with documents prescribed therein. |
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|
RA
concerned shall, on the basis of nexus certificate from an Independent Chartered
Engineer (CEC) submitted by the applicant in Appendix 32A, issue EPCG
authorization. Reasonable
wastage, if any, anticipated at the time of installation of capital goods
will also be certified by the Chartered Engineer in the nexus certificate and
the same would be mentioned in the condition sheet of the EPCG authorization
at the time of issue. RA shall thereafter forward a copy of the EPCG
authorization to the concerned Jurisdictional Central Excise Authority. The
wastage so permitted at the time of issuance of authorization would be
allowed to be sold on payment of applicable duty on sale of scrap/ waste. |
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5.3.1
|
Authorization
holder shall produce to the concerned RA a certificate from the
Jurisdictional Central Excise Authority, confirming installation of Capital
Goods at factory/premises of authorization holder or his supporting
manufacturer(s) / vendor(s) within six months from date of completion of
import. (This
para amended by DGFT Public Notice No.
11/2009-14 New Delhi, Dated: 16th September, 2009) In
the case of import of spares, the installation certificate shall be submitted
by the Authorization holder within a period of three years from the date of
import. However,
in case of units not registered with Central Excise Authorities, the
Authorization holder shall produce to the concerned RA, a certificate from an
independent Chartered Engineer confirming the said installation of capital
goods/spares. |
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5.3.2
|
EPCG
authorization shall be issued with a single port of registration mentioned in
paragraph 4.19 of HBPv1 for imports. However, exports can be made from any
port specified in paragraph 4.19. |
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5.3.3 |
(i) An applicant may also apply for import of spares,
tools, spare refractories and catalyst as are
required for installation and maintenance of Capital Goods. Application
shall contain list of plant/ machinery installed in factory/ premises of
applicant for which spares, tools, spare refractories
and catalyst are required, duly certified by Chartered Engineer or
Jurisdictional Central Excise Authorities. In
such cases EPCG authorization shall not specify list of spares but shall
indicate:- (a)
Name of plant /machinery for which spares are required. (b)
Value of duty saved allowed under the authorization. (c)
Description of product to be exported with value of export obligation as per
FTP. (ii)
Further, at time of final redemption of export obligation, authorization
holder shall submit certificate from Independent Chartered Engineer
confirming use of spares, tools, spare refractories
and catalyst so imported in the installed capital goods on the basis of stock
& consumption register maintained by authorization holder. |
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EPCG Scheme to resultant
DTA Unit from conversion of EOU/ Relocated SEZ Units |
An EOU/ a relocated SEZ
unit, while converting to a DTA Unit, may apply for an EPCG authorization in
ANF alongwith documents prescribed therein. ‘No
Objection Certificate’ should be produced from concerned Development
Commissioner. |
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Indigenous Sourcing of
Capital Goods |
EPCG
authorization holder intending to source capital goods indigenously, either alongwith application or after issuance of EPCG
authorization, shall request to RA for invalidation of EPCG authorization for
direct import/ issue of ARO , alongwith name and
address of source person of the capital goods. |
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5.5.1
|
RA
concerned will issue such invalidation letter /ARO, in duplicate. |
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5.5.2
|
Indigenous
manufacturer intending to supply capital goods to EPCG authorization holder
may apply to RA in ANF for issuance of Advance authorization for import of
inputs including components required for manufacture of capital goods to be
supplied to EPCG authorization holder. |
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Leasing of Capital Goods |
An
EPCG authorization holder may, source capital goods from a domestic leasing
company. In such cases, the Bill of Entry of imported capital goods or
commercial invoice of indigenous capital goods, shall be signed jointly by
EPCG authorization holder and leasing company. However, EPCG authorization
holder shall alone be fully responsible for fulfillment of export obligation. |
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Conditions for fulfillment
of Export Obligation |
In
addition to conditions mentioned in paragraph 5.5 of FTP following conditions
shall also be applicable for fulfillment of export obligation. |
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5.7.1
|
EPCG
authorization holder shall export either directly or through third party (s).
If a merchant exporter is EPCG authorization holder, name of supporting
manufacturer shall also be indicated on shipping bills. At the time of
export, EPCG authorization No. and date shall be endorsed on shipping bills
which are proposed to be presented towards discharge of export obligation. |
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5.7.2
|
Export
proceeds shall be realized in freely convertible currency except for deemed
exports. Exports to SEZ units /Supplies to developers/ Co-developers,
irrespective of currency of realization would also be counted for discharge
of Export Obligation. |
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5.7.3 |
Supplies
made to Oil and Gas sector also may be counted towards discharges of export
obligation against an EPCG authorization provided it has been issued on or
before 31.03.2000 and no benefit under paragraph 8.3.of FTP has been claimed
on such supplies. |
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5.7.4
|
Exports
made to former USSR, or to such countries as notified by DGFT, shall not be
counted for fixing average level of exports. Additional
Export Obligation (over and above indicated average) for all previous EPCG
Licenses, which have not been redeemed, will be indicated separately. Exports
made against EPCG authorizations, which have not been redeemed, shall not be
added up for calculating the average export performance for the purpose of
subsequent EPCG authorization. |
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5.7.5
|
Exports
under EPCG scheme shall also be entitled for benefits under Chapter 4 of FTP. |
|||||||||||||||||||
5.7.6 |
In
case of export of goods relating to handicraft, handlooms, cottage, tiny
sector, agriculture, aqua-culture (including fisheries), animal husbandry,
floriculture, horticulture, pisciculture,
viticulture, poultry and sericulture, the EPCG authorization holders shall
not be required to maintain average level of exports. However, this exemption
from maintenance of average level of exports shall not be allowed for import
of fishing trawlers, boats, ships and other similar items. Goods,
excepting tools imported under EPCG scheme by such sectors, shall not be
allowed to be transferred for a period of five years from date of imports
even in cases where export obligation has been fulfilled. Transfer of capital
goods to group companies, within five years from the date of import would
however be permitted after fulfillment of EO, under intimation to RA and
jurisdictional Central Excise Authority. |
|||||||||||||||||||
5.8
|
The
Authorization holder under the EPCG scheme shall fulfill the export
obligation over the specified period in the following proportions:
|
|||||||||||||||||||
5.8.1
|
In
respect of Authorizations, on which the value of duty saved is Rs.100 crore
or more , the export obligation shall be fulfilled over a period of 12 years
(not applicable to zero duty EPCG scheme) in the following proportion:-
|
|||||||||||||||||||
5.8.2
|
However,
the export obligation of a particular block of year may be set off by the
excess exports made in the preceding block year. The Authorization holder
would intimate the regional authority on the fulfillment of the export
obligation, as well as average exports, within three months of completion of
the block, by secured electronic filing using digital signatures. |
|||||||||||||||||||
5.8.3 |
Where
export obligation of any particular block of years is not fulfilled in terms
of the above proportions, except in such cases where the export obligation
prescribed for a particular block of years is extended by the Regional
Authority subject to payment of composition fee of 2% on duty saved amount
equal to unfulfilled portion of EO, such Authorization holder shall, within 3
months from the expiry of the block of years, pay duties of customs (alongwith applicable interest as notified by DoR) of an
amount equal to that proportion of the duty leviable
on the goods which bears the same proportion as the unfulfilled portion of
the export obligation bears to the total export obligation. |
|||||||||||||||||||
5.8.4 |
EPCG
authorizations issued upto 31.03.2000 shall be
governed by provisions laid down in paragraph 6.11 in HBP v1 (RE-99).
Notwithstanding the same in HBPv1 (RE-99), authorization holder shall not
have to surrender special Import licence in case of
value wise shortfall. Authorizations
issued from 1st April, 2000 upto 31st March, 2002
shall be governed by provisions of Chapter 6 of HBPv1 (RE-01) as amended from
time to time. Authorizations
issued from 1st April, 2002 upto 31st August, 2004
shall be governed by provisions of para 5.8 of HBP v1 (RE-02) as amended from
time to time. |
|||||||||||||||||||
Monitoring of Export
Obligation |
Authorization
holder shall submit to RA concerned by 30th April of every year, report on
fulfillment of export obligation. RA concerned may issue partial EO
fulfillment certificate, provided export performance is proportionately
adequate to fulfillment of export obligation. |
|||||||||||||||||||
Automatic
Reduction/Enhancement upto 10% of CIF value and prorata Reduction/ Enhancement in export obligation |
If
authorization issued has actually been utilized for import of a value in
excess, upto 10% of CIF value /duty saved amount of
authorization, authorization shall be deemed to have been enhanced by that
proportion. Customs shall automatically allow clearance of goods in excess, upto 10% of authorization value/ duty saved amount,
without endorsement by concerned RA In
such case, authorization holder shall furnish additional fee to cover excess
imports effected, in terms of CIF value/duty saved
amount, to RA concerned, within one month of excess imports taking place.
Export obligation shall automatically stand enhanced proportionately. In
case of utilization being more than 10%, concerned RA as per their financial
powers, may endorse as per extant provisions. Authorization holder shall
furnish additional BG/ LUT to the customs authority. |
|||||||||||||||||||
5.10.1 |
Similarly,
if EPCG authorization holder has utilized authorization less than the value
earmarked in authorization, his export obligation shall stand reduced on prorata basis with reference to actual utilization of
authorization. |
|||||||||||||||||||
Extension of Export
Obligation Period |
Concerned
RA, may consider one or more requests for grant Obligation Period of
extension in export obligation period, on payment of composition fee equal to
2% of proportionate duty saved amount on unfulfilled export obligation or an
enhancement in export obligation imposed to the extent of 10% of total export
obligation imposed under authorization, as the case may be, at the choice of
exporter, for each year of extension sought. Such first extension in EO
period can be for a maximum period of 2 years. Extension
in EO period beyond two years’ period available above, may be considered, for
a further extension upto 2 years with a condition
that 50% of duty payable in proportion to the unfulfilled export obligation
is paid by authorization holder to Custom authorities before an endorsement
of extension is made on EPCG authorization by RA concerned. In such cases, no
composition fee is to be paid or additional EO is to be imposed as prescribed
in the Para above. In case the firm is still not able to complete the export
obligation, duty already deposited will be deducted from total duty plus
interest to be paid for EO default. However
for zero duty EPCG scheme only one extension of 2 years in export obligation
period shall be available, subject to conditions mentioned above. Extension
in export obligation period shall also be subject to such terms and
conditions as may be prescribed by competent authority. |
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5.11.1
|
The
firm /company, which is applying for registration
with BIFR/ Rehabilitation Department of State Government, shall also intimate
DGFT with regard to relief sought for EPCG authorization, if any, within 30
days of receipt of application by agency concerned. DGFT,
thereafter, shall take up the matter with agency concerned to safeguard government
interest on account of default in fulfillment of export obligation imposed on
EPCG authorization obtained by such firm/companies. DGFT
may consider such application for grant of period of extension upto 12 years, or as per rehabilitation package prepared
by operating agency and approved by BIFR board/ state authority. |
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5.11.2 |
To provide relief to exporters of those sectors where total exports in
that sector/product group has declined by more than 5% as compared to
the previous year, average export obligation for the year may be reduced
proportionate to reduction in exports of that particular sector/product group
during the relevant year as against the preceding year. However, in case export decline is
continuous over consecutive years, the base year for calculation of
eligibility and calculation of reduction in Average Export Obligation will be
taken as the year after which the exports have shown continuous decline. The sectors/product groups for which this relaxation is to be allowed
shall be conveyed by the DGFT to all the RAs within seven months of the end
of the previous financial year, and the RAs shall re-fix the annual average
EO for previous year accordingly, for exporters in that sector/product group. [Para 5.11.2 substituted by
36-PN(RE)/21.01.2010] |
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Automatic EO extension in
the event of ban on export product |
Whenever
a ban/restriction is imposed on export of any product, export obligation
period in respect of EPCG authorizations already issued prior to imposition
of ban of such export products, would stand automatically extended for a
period equivalent to the duration of ban, without any composition fee and
exporter would not be required to maintain average E.O. as well for the ban
period. |
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Export Obligation
Shortfall |
RA
concerned may condone shortfall upto 5% in export
obligation arising out of duty saved amount. |
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Redemption |
As
evidence of fulfillment of export obligation, authorization holder shall
furnish application in ANF 5 B with documents prescribed therein. On
being satisfied, RA concerned shall issue a certificate of discharge of
export obligation to the EPCG authorization holder and send a copy to customs
authorities with whom BG/LUT has been executed. RA
shall ensure disposal of such applications within 30 days. Shortcomings, if
any, shall be pointed out in one go. All correspondence, thereafter, shall
relate to these deficiencies only. Fresh correspondence, if necessary, shall
be within 15 days. Once documents are complete, EO will be discharged within
30 days of receipt of complete documents / information. Process
of issue of final discharge certificate/ rejection shall be completed within
a period of 90 days from date of receipt of initial request. Applications
that remain outstanding beyond a period of 90 days shall be reported to DGFT alongwith reasons thereof, immediately thereafter. |
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Regularization of Bonafide Default |
In
case, EPCG authorization holder fails to fulfill prescribed export
obligation, he shall pay duties of Customs plus interest as prescribed by
Customs authority. Such facilities can also be availed by EPCG authorization
holder to exit at his option. The
authorization holder will have the option to furnish valid duty credit scrips, issued under Chapter 3 of FTP & DEPB, for
payment of the customs duty component. |
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Maintenance of Records |
Every
EPCG authorization holder shall maintain, for a period of 3 years from date
of redemption, a true and proper account of exports/ supplies made and
services rendered towards fulfillment of export obligation. |
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Re-Export of Capital Goods
Imported under EPCG Scheme |
Capital
Goods imported under EPCG scheme, which are found defective or unfit for use,
may be re-exported back to foreign supplier within three years from the date
of payment of duty on importation thereof, with permission of RA / Customs
Authority. Consequently, EO would be refixed. |
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Replacement of Capital
Goods |
Capital
Goods imported and found defective or otherwise unfit for use may be
exported, and Capital Goods in replacement thereof be imported under EPCG scheme.
In such cases, while allowing export, the Customs shall credit the duty
benefit availed which can be debited again at the time of import of such
replaced Capital Goods. |
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Penal Action |
In
case of failure to fulfill export obligation or any other condition of
authorization, authorization holder shall be liable for action under FT
(D&R) Act, 1992, Orders and Rules made there under, provisions of FTP and
Customs Act, 1962. |
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Clubbing of EPCG
authorization |
Clubbing
of two or more EPCG authorizations of same authorization holder would be
permitted. |
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5.18.1 |
An
application for clubbing can be made only to RA concerned in ANF 5D. Clubbing
shall not be permitted in case authorizations are issued by different RAs. |
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5.18.2 |
Total
export obligation would be refixed taking into
account total of duty saved or total of CIF value of imports. |
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5.18.3 |
On
Clubbing, authorizations for all purpose shall be deemed to be a single EPCG
authorization. Export obligation period for clubbed authorization shall be
reckoned from first authorization issue-date. However, in cases where clubbed
CIF / duty saved value exceeds Rs.100 crore, no corresponding benefit of
increase in export obligation period shall be admissible. |
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5.18.4
|
Average
export obligation for clubbed authorizations would be highest of average
export obligations endorsed on individual authorizations so clubbed. |
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5.18.5
|
No
clubbing would be permitted after expiry of EOP. |
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5.18.6 |
The
aforesaid provisions for Clubbing of EPCG Authorizations shall be applicable
for authorizations issued on or after 1.4.2007. However, EPCG authorizations
issued prior to 1.4.2007 shall be governed by provisions contained in Chapter
5 of HBP v1 (RE-2006). |
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Refixation of Export Obligation upon conversion from CIF based to duty based
EO |
(a)
EPCG authorization holder can apply for refixation
of export obligation as given in para 5.5 (i) of
FTP in ANF 5C. (b)
For all EPCG authorizations, authorization holder should have fulfilled
mandated (original or amended) block wise export obligation, till previous
block to application date. In all such cases, refixed
export obligation would be computed as under: (% export obligation
unfulfilled) x (8) x (duty saved on authorization issue-date) (c)
There would be no change in average export obligation fixed or export
obligation period of original authorization. |
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Technological Upgradation of Capital Goods |
Application
for technological upgradation of the capital goods
would be made in ANF 5A. |
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Import of Refurnished/ Reconditioned
Spares and Tools |
Import
of refurbished / reconditioned spares must have a residual life not less than
80% of life of original spare, which would be certified by EPCG authorization
holder. The
tools imported under EPCG Scheme may be transferred to any of units or group
companies of applicant. |
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5.22
|
Revalidation
of authorizations issued under EPCG scheme shall not be allowed. |
CHAPTER
6
Export
Oriented Units (EOUs), Electronics Hardware Technology Parks (EHTPs), Software
Technology PARKS (STPs) Scheme and Bio-Technology Parks (BTPs)
Scheme |
Policy
relating to EOUs, EHTPs, STPs and BTPs Schemes is given in Chapter 6 of FTP. |
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Applications / Approval/
Renewal of approval |
6.2.1 |
For
setting up an EOU, three copies of application as in Appendix 14-I-A may be
submitted to DC. |
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|
6.2.2 |
Applications
for setting up units under EOU scheme other than proposals for setting up of
unit in service sector (except R&D,software
and IT enabled services, or any other service activity as may be delegated by
BoA), shall be approved or rejected by Units
Approval Committee within 15 days, as per criteria indicated in Appendix
14-I-B and sector specific conditions relating to approval as in Appendix
14-I-C. In other cases, approval may be granted by DC after clearance by BoA. |
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6.2.3 |
Proposals
for setting up EOU requiring industrial licence may
be granted approval by DC after clearance of proposal by BoA
(as per Appendix 14-I-D) and Department of Industrial Policy and Promotion
within 45 days on merits. |
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|
6.2.4 |
STP
/ EHTP complexes can be set up by Central Government, State Government,
Public or Private Sector Undertakings or any combination thereof, duly approved
by Inter-Ministerial Standing Committee (IMSC) in Ministry of Communication
and Information Technology (Department of Information Technology - DoIT). Application for setting up EHTP / STP unit shall
be in format prescribed by DoIT and shall be submitted
to officer designated by DoIT. |
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|
6.2.5 |
BTP
can be set up by Central Government, State Government,Public or Private Sector Undertakings or any
combination thereof. Application for setting up of BTP shall be submitted to
Department of Bio-Technology (DoBT) and such
applications which meet guidelines prescribed by DoBT
will be approved and recommended to DGFT for notification. Application for
setting up of BTP unit shall be submitted to officer designated by DoBT. |
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|
6.2.6 |
LoP /
LoI shall specify item(s) of manufacture / service
activity, annual capacity, projected annual export for first five years in
dollar terms, Net Foreign Exchange (NFE) earnings, limitations, if any,
regarding sale of finished goods, by-products and rejects in DTA and such
other matter as may be necessary and also impose such conditions as may be
required. |
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|
6.2.7 |
LoP/LoI issued to EOU / EHTP / STP / BTP units by concerned
authority would be construed as an authorization for all purposes. Standard
format for LoP for EOU is given in Appendix 14-
I-E. |
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|
6.2.8 |
EOUs
shall have separate earmarked premises for separate LoP.
Similarly, EOUs may be approved on leased premises provided lease has been
obtained from Government Department / Undertaking / Agency. However, in case
lease is obtained from private parties, it shall have a validity period of
five years from date of LUT and DC shall satisfy himself of genuine nature of
lease. |
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|
6.2.9 |
On
completion of approval period as provided for in para 6.6 of FTP, it shall be
open to unit to continue under scheme or opt out of scheme. Where unit opts
to continue, DC will extend approval period. If no intimation in this regard
is received from unit within a period of six months of expiry of approval
period, DC will take action, suo moto, to cancel approval under EOU scheme and take
further action in this regard. Where units give their option to continue
after expiry of six months as stipulated above, DC will grant extension after
obtaining approval of BoA. |
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Legal Undertaking(LUT) |
Approved
EOU / EHTP / STP / BTP unit shall execute an LUT with DC / Designated Officer
concerned as in Appendix 14- I-F. |
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6.3.2 |
All
EOU / EHTP / STP / BTP units should have permanent email address. No LUT for
new units shall be executed unless unit has its permanent e-mail address and
digital signature on said e-mail ID. In event of an EOU not having permanent
email address and digital signature, further imports and DTA sale shall not
be permitted by DC. |
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Export of goods and
services |
Software
units may undertake exports using data communication links or in form of
physical exports (which may be through courier service also), including
export of professional services. |
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6.4.2 |
EOUs
shall be permitted to export jewellery on basis of
a notional rate certificate issued by nominated agency. This rate will be
based on prevailing Gold / US$ rate and US$ / INR rate in notional rate
certificate. Certificate issued by nominated agency should not be older than
7 working days of date of shipment. |
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6.4.3 |
Exporter
shall have flexibility to fix price and repay gold loan within 180 days from
date of export. Price shall be communicated to nominated agencies who will
issue a certificate showing final confirmation of rate to bank negotiating
document, to ensure export proceeds are realized at this rate. |
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6.4.4
|
Gems
& Jewellery EOUs may re-export imported goods
and export domestically procured goods, including goods generated out of
partial processing / manufacture. Besides, supply of unsuitable / broken cut
and polished diamonds, precious and semi-precious stones upto
5% of value of imported or indigenously procured goods to DTA against valid
Gems & Jewellery REP as applicable on payment
of appropriate duty is also permitted. |
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Import / Domestic
Procurement of Goods |
Goods
permitted to be imported / procured from DTA shall include: (a)
Raw materials, components, consumables,intermediates,
spares and packing materials; (b)
Capital goods, whether new or second-hand, including inter-alia following and
their spares: (i) DG sets, captive power
plants, transformers and accessories for all above. (ii)
Pollution control equipment. (iii)
Quality assurance equipment. (iv)
Material handling equipment, like fork lifts and overhead cranes, mobile
cranes, crawler cranes, hoists and stackers. (v)
Un-interrupted Power Supply System (UPS),Special racks for storage, storage
systems, modular furniture, computer furniture, anti-static carpet,
teleconference equipment, Servo Control System, Air-conditioners / Airconditioning system, panel for electricals
and special data transmission cable. (vi)
Security Systems. (vii)
Tools, jigs, fixtures, gauges, moulds, dyes, instruments and accessories. (c)
Raw materials for making capital goods for use within unit. (d)
Others including: (i) Prototypes and technical samples for existing
product(s) and product diversification development or evaluation. (ii)
Drawings, blue prints, charts, microfilms and technical data. (iii)
Office equipment, including PABX, Fax machines, projection system, Computers,
Laptop and Server. (e)
Spares and consumables for above items. (f)
Any other items not mentioned above with approval of BoA. |
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6.5.2
|
EOUs
may import plain / studded gold / platinum or silver jewellery
for export after repairs / remaking. |
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Conditions of Import |
Import
of goods by EOU / EHTP / STP / BTP units shall be subject to following
conditions: (a)
Goods shall be imported into EOU / EHTP / STP / BTP premises. However,
agriculture and allied sectors and granite sector units in EOU may supply /
transfer capital goods and inputs in farm / fields / quarries with prior
intimation to jurisdictional Customs / Central Excise authorities, provided
ownership of goods rests with EOUs. Granite sector would also be allowed to
take spares upto 5% of value of Capital Goods to
quarry site. (b)
Procedure as prescribed under Customs / Central Excise rules for EOUs and
units in EHTP / STP / BTP will be followed and appropriate bond executed with
Customs / Central Excise authorities. (c)
Goods, except capital goods and spares, shall be utilized by EOU / EHTP / STP
/ BTP units within a period of three years or as may be extended by Customs
authorities. However, imported tea shall be utilized within a period of 6
months from date of import. Similarly, export obligation against import of
items {covered by Chapter 9 of ITC(HS)} and coconut oil shall be fulfilled
within a period of 90 days from the date on which first import consignment is
cleared by Customs Authorities.However, in case of
import of spices for VA purpose like crushing / grinding / sterilization or
for manufacture of oils and oleoresins of pepper, cardamom and chillies (and not for simple cleaning, grading,
re-packing etc.), EO shall be fulfilled within 120 days from the date of importation
of first consignment. However, for imports completed up to 31.12.2008, export
obligation period shall be 150 days from the date of clearance. In case of
import of spices (d)
Goods already imported / shipped / arrived before issue of LoP / LoI are also eligible for
duty free clearance under EOU / EHTP / STP / BTP scheme, provided customs
duty has not been paid and goods have not been cleared from Customs. (e)
Consumption of inputs by the EOU / EHTP / STP / BTP unit shall be based on
the Standard Input Output Norms (SION) provided that: (i) where no SION have been notified, generation of waste,
scrap and remnants upto 2% of input quantity shall
be allowed; (ii)
where additional items other than those given in SION are required as inputs
or where generation of waste, scrap and remnants is beyond 2% of input
quantity, use of such inputs shall be allowed by the jurisdictional DC within
a period of three months from the date of and based on self declared norms,
with the unit undertaking to adjust self-declared / ad hoc norms in
accordance with norms as finally fixed by Norms Committee in DGFT; (iii)
in case of any difficulty in fixation of SION as
above, BoA in consultation with Norms Committee in
DGFT, will decide on a case to case basis. |
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Fax machines/laptop
computers outside approved premises |
EOU
/ EHTP / STP / BTP units may install one fax machine at a place of its
choice, outside premises of unit, subject to intimation of its location to
concerned Customs / Central Excise authorities. |
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6.7.2
|
EOU
/ EHTP / STP / BTP units may, temporarily take out of premises of unit, duty free
laptop computers and video projection systems for working upon by authorized
employees. |
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6.7.3 |
EOU
/ EHTP / STP / BTP units may install personal computers not exceeding two in number,
imported / procured duty free in their registered / administrative office
subject to DoR guidelines. |
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6.7.4
|
For
IT and IT enabled services, persons authorized by software units may access facility
installed in EOU / EHTP / STP / BTP unit through communication links. |
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Leasing of Capital Goods |
Value
of imported capital goods financed through leasing companies or obtained free
of cost and / or on loan / lease basis, shall also be taken into account for
purpose of calculation of NFE as defined in FTP. |
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Net Foreign Exchange (NFE)
Earnings |
EOU
/ EHTP / STP / BTP unit shall be a positive net foreign exchange earner. NFE
earnings shall be calculated cumulatively in the block period as per para 6.5
of FTP, according to the formula given below. Items of manufacture for export
specified in LoP / LoI
alone shall be taken into account for calculation of NFE. Positive
NFE = A – B> 0 Where ‘NFE’
is Net Foreign Exchange; ‘A’
is FOB value of exports by EOU / EHTP / STP / BTP unit; ‘B’is sum total of CIF value of all imported inputs and
CIF value of all imported capital goods, and value of all payments made in
foreign exchange by way of commission, royalty, fees,dividends,
interest on external borrowings / high sea sales during first five year
period or any other charges. It will also include payment made in Indian
Rupees on high sea sales. “Inputs” mean raw materials, intermediates,
components, consumables,parts
and packing materials. |
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6.9.2
|
If
any goods are obtained from another EOU / EHTP / STP / BTP / SEZ unit, or
procured from an international exhibition held in India, or bonded warehouses
or precious metals procured from nominated agencies, value of such goods
shall be included under ‘B’. |
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6.9.3
|
If
any capital goods are imported duty free or leased from a leasing company, received
free of cost and / or on loan basis or transfer, CIF value of capital goods
shall be included prorata, under ‘B’ for period it
remains with units. |
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6.9.4 |
For
annual calculation of NFE, value of imported capital goods and lump sum
payment of foreign technical know-how fee shall be amortized as under: 1st
– 10th year : 10% Provided
that above amortization rates would be applicable only if an undertaking is
given by a unit that it will not exit to DTA in the first 10 years. For
existing units, proportionate Customs and excise duty must be paid where NFE
is less than depreciation already claimed, before exit. Maintenance of
accounts |
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Maintenance of accounts |
6.10.1
|
EOU
/ EHTP / STP / BTP unit shall maintain proper account,and
shall file digitally signed quarterly and annual report as prescribed in
Annexure to Appendix 14-I-F to DC /Designated Officer in DoIT
/ DoBT and Customs and Central Excise authorities. |
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|
6.10.2 |
Unit
shall be able to account for entire quantity of each category of homogenous
goods imported / procured duty free, by way of exports, sales / supplies in
DTA or transfer to other SEZ / EOU / EHTP / STP / BTP units and balance in
stock. However, at no point of time, units shall be required to correlate
every import consignment with its exports, transfer to other SEZ / EOU / EHTP
/STP / BTP units, sales in DTA and balance in stock. Any matter for
clarification as to whether goods are homogenous or not shall be decided by
Units Approval Committee. |
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Monitoring of NFE |
Performance
of EOUs shall be monitored by Units Approval Committee as per guidelines
given in Appendix 14-I-G.Performance of EHTP / STP / BTP shall be monitored
by DoIT / DoBT jointly
with jurisdictional Central Excise / Customs authority. |
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Conversion of Scrap / dust
/ sweeping of gold silver / platinum into Standard Bars |
Scrap
/ dust / sweeping of gold / silver / platinum may be sent to Government of
India Mint / private mint from EOU / EHTP / STP units and returned to them in
standard bars in accordance with procedure prescribed by Customs authorities,
or may be permitted to be sold in DTA on payment of applicable customs duty,
on basis of gold / silver / platinum content, as may be notified by Customs
authorities. |
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DTA supplies |
Notwithstanding
provision of DTA sales in para 6.8 of FTP,such DTA
sales shall not affect application, to any goods, of any other prohibition or
regulation affecting import thereof in force at the time, when such goods are
imported. This also does not confer any immunity, exemption or relaxation at
any time from any commitment or compliance with any requirements to which
importer may be subject to under other laws or regulations. |
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Supplies to other EOU /
EHTP / STP / SEZ /BTP units |
Supplies
to other EOU / EHTP / STP / BTP / SEZ units shall be counted towards NFE
provided that such goods are permissible for procurement by these units. |
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Transfer of Power from one
unit to another one unit |
Transfer
of power from Captive Power plants (DG Sets) from one unit of EOU / EHTP /
STP / BTP to another is permitted as prescribed in sector specific condition
in Appendix 14-I-C. |
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Supply of precious
/semiprecious / Synthetic stones from DTA |
Supplier
of precious and semi-precious stones, synthetic stones and processed pearls
from DTA to EOUs shall be eligible for grant of Replenishment Authorisation at rates and for items mentioned in HBP v1.
Procedure for submission of application for grant of Replenishment Authorisation as contained in relevant Chapter of HBP v1
shall be applicable. However, application shall be made to DC concerned. Such
supplies to EOUs are not treated as deemed exports for purpose of any of
deemed export benefits. |
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Application for grant of
entitlements |
Application
for grant of all entitlements may be made to DC concerned. |
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Export through other
exporters |
An
EOU / EHTP / STP / BTP unit may export goods manufactured / software developed
by it through other exporter, or any other EOU / EHTP / STP / BTP / SEZ unit
subject to condition that: (a)
Goods shall be produced in EOU / EHTP / STP / BTP unit concerned. (b)
Level of NFE or any other conditions relating to imports and exports as
prescribed shall continue to be discharged by EOU / EHTP / STP / BTP unit
concerned. (c)
Export orders so procured shall be executed within parameters of EOU / EHTP /
STP / BTP schemes and goods shall be directly transferred from unit to port
of shipment. (d)
Fulfillment of NFE by EOU / EHTP / STP / BTP unitsin
regard to such exports shall be reckoned on basis of price at which goods are
supplied by EOUs to other exporter or other EOU / EHTP / STP / BTP / SEZ
unit. (e)
All export entitlements, including recognition as Status Holder would accrue
to exporter in whose name foreign exchange earnings are realized. However,
such export shall be counted towards fulfillment of obligation under EOU /
EHTP / STP / BTP scheme only. |
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Others Entitlements |
FOB
value of export of an EOU / EHTP / STP / BTP unit can be clubbed with FOB
value of exports of its parent company in DTA or vice versa for the purpose
of according Export House and Trading House status. |
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6.19.2 |
Sectoral norms
as notified by Government shall apply to FDI in service activities. |
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6.19.3
|
Software
units may also use computer system for training purpose (including commercial
training), subject to condition that no computer terminal shall be installed
outside bonded premises for this purpose. |
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6.19.4
|
Export
of iron ore shall be subject to decision of Government. Requirements of other
conditions of exports like minimum export price / export in consumer pack etc.
as per ITC(HS) shall apply in case raw materials are
sourced from DTA and exported without further processing / manufacturing by
EOU. Export of textile items shall be covered by bilateral agreements. Wood
based units shall comply with direction of Supreme Court contained in its
order dated 12.12.1996 in Writ (civil) No 202 of 1995- T.N.Godavarman
Thirrumulppad v/s Union of India and others with WP(Civil) No 171 of 1996 in regard to use of timber /
other wood. |
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Sub-Contracting |
Sub-contracting
by EOU gems and jewellery units through other EOUs,
or SEZ units, or units in DTA shall be subject to following conditions:- (a)
Goods, finished or semi finished, including studded jewellery, taken out for sub- contracting shall be
brought back to unit within 90 days. (b)
No cut and polished diamonds, precious and semiprecious stones (except
precious, semi-precious and synthetic stones having zero duty) shall be
allowed to be taken out for sub-contracting. (c) Receive plain gold / silver / platinum jewellery from DTA / EOU / SEZ units in exchange of
equivalent quantity of gold / silver / platinum, as the case may be,
contained in said jewellery. (d)
EOUs shall be eligible for wastage as applicable as per para 4A.2 of HBP v1
for sub-contracting and against exchange. (e)
DTA unit undertaking job work or supplying jewellery
against exchange of gold / silver / platinum shall not be entitled to deemed
export benefits. |
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6.20.2 |
Facility
of getting job work done from DTA unit will be available even when job worker
is not registered with Central Excise authority, subject to condition that
goods are brought back to premises of unit on completion of job work. |
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6.20.3
|
Export
of finished goods from job worker’s premises may be permitted, provided such
premises are registered with Central Excise authorities. Where job worker is
SEZ / EOU / EHTP / STP / BTP unit, no such excise registration is required
and export may be effected either from job worker’s
premises or from premises of unit. Export of such products from job worker’s
premises shall not be allowed through third parties as provided in FTP. |
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6.20.4
|
EOUs
may be permitted to remove moulds, jigs, tools, fixtures, tackles,
instruments, hangers and patterns and drawings to premises of
sub-contractors, subject to condition that these shall be brought back to
premises of units on completion of job work within a stipulated period. Raw
materials may or may not be sent along with these goods. |
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6.20.5
|
In
case of sub-contracting of production process abroad, goods may be exported
from sub-contractor premises subject to conditions that at the time of
clearance of goods, the EOU / EHTP / BTP / STP unit shall declare (i) the transaction value of the finished goods to be
cleared from the sub-contractor’s premises abroad; (ii) job work charges to
be paid to the subcontractor abroad; and (iii) value of intermediate goods;
supported with documents like (a) sale price contract / or invoice for the
finished goods, (b) job work contract and (c) the basis of arriving at the
value of intermediate goods. The EOU / EHTP / BTP / STP unit shall also
ensure full repatriation of foreign exchange declared as the transaction
value of the finished goods cleared from the sub-contractor’s premises
abroad. |
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Contract Farming |
EOUs
engaged in production / processing of agriculture /horticulture / aquaculture
products may, on basis of annual permission from Customs authorities, take
out inputs and equipments (specified in Appendix 14-I-J) to DTA farm subject
to following conditions:- (a)
Supply of inputs by EOUs to contract farm(s) shall be subject to input-output
norms approved by DGFT / BoA. (b)
There shall be contract farming agreement between EOU and DTA farmer(s). (c)
Unit has been in existence for at least two years and engaged in export of
agriculture / horticulture / aquaculture products; otherwise it shall furnish
bank guarantee equivalent to duty foregone on capital goods / inputs proposed
to be taken out, to Deputy / Assistant Commissioner of Customs / Central
Excise, till unit completes two years. |
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Export through Exhibitions
/ Export Promotion tour |
EOU
/ EHTP / STP / BTP units may export goods for holding / participating in
exhibitions abroad, with permission of DC, subject to following conditions:- (a)
Unit shall produce to Customs authorities letter in
original, or its certified copy containing approval of DC. For gems and jewellery items, a self certified photograph of products
shall also be submitted. (b)
In case of re-import, such items, on arrival shall be verified along with
export documents before clearance. (c)
Items not sold abroad shall be re-imported within 60 days of close of
exhibition. However, in case exporter is participating in more than one
exhibition within 45 days of close of first exhibition, then 60 days shall be
counted from date of close of last exhibition. In case of exhibition in USA,
the time period shall be 90 days instead of 60 days mentioned above. (d)
In case of personal carriage of goods and for holding / participating in
overseas exhibitions, value of such gems and jewellery
shall not exceed US $ 5 million. |
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Personal Carriage of gems
and jewellery for export promotion tours |
Personal
carriage of gold / silver / platinum jewellery, cut
and polished diamonds, precious, semi-precious stones, beads and articles as
samples upto US $ 1 million for export promotion
tours, and temporary display / sale abroad by EOUs, is also permitted with
approval of DC subject to following conditions:- (a)
EOU shall bring back goods or repatriate sale proceeds within 45 days from
date of departure through normal banking channel. (b)
Unit shall declare personal carriage of such samples to Customs while leaving
country and obtain necessary endorsement. |
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Export through show rooms
abroad/duty free shops |
Export
of goods is also permitted for display / sale in permitted shops set up
abroad or in showrooms of their distributors agents.
Items not sold abroad within 180 days shall be reimported
within 45 days. |
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Sale through showrooms /
retail outlets at International Airports |
EOUs
may set up showrooms / retail outlets at International Airports for sale of
goods in accordance with procedure laid down by Customs authorities. Items
remaining unsold after a period of 60 days shall be exported or returned to
respective EOUs. |
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Personal carriage of
Import / export Parcels including through foreign bound passengers |
For
Personal carriage of jewellery by foreign bound passenger,following documents shall be submitted by EOUs
as proof of exports: (a)
Copy of shipping bill filed by EOUs; (b)
A copy of Currency Declaration Form filed by Foreign buyer with Customs at
time of his arrival; and (c)
Foreign Exchange Realisation / Encashment
Certificate from Bank. |
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6.26.2 |
In
addition to this, Personal Carriage by foreign bound passenger on Document
Against Acceptance (DA) / Cash On Delivery (COD) basis is also allowed. EOUs
will have to furnish following documents as proof of exports:- (a)
Copy of Shipping Bill; (b)
Bank Certificate of Export and Realisation. |
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6.26.3
|
Procedure
for personal carriage of import parcels will be same as for import of goods
by airfreight except that parcels shall be brought to Customs by EOUs /
foreign national for examination and release. Instructions issued by Customs authorities
in this regard should be followed mutatis mutandis. |
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6.26.4 |
Personal
carriage of parts by foreign bound passengers shall be allowed in case same
are required for repairs of exported goods at customer site. Following documents
should be submitted as proof of exports:- (a)
Permission letter from Customs for exports. (b)
Invoice with value (for payment or free of charge). |
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Replacement /Repair of
imported / indigenous goods |
Units
may send capital goods abroad for repair with permission of Customs
authorities. Any foreign exchange payment for this purpose will also be
allowed. However, no permission will be required for sending capital goods
for repair within country. |
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6.27.2 |
EOU
/ EHTP / STP / BTP units may, on basis of records maintained by them and
prior intimation to Customs authorities:- (a)
Transfer goods to DTA / abroad for repair / replacement,testing or calibration and return. (b)
Transfer goods for quality testing / R&D purpose to any recognised
laboratory / institution upto Rs.5 lakhs per annum
without payment of duty, on giving suitable undertaking to Customs for return
of goods. However, if goods have been consumed / destroyed in process of
testing etc. a certificate from laboratory / institution to this effect be
furnished to Customs. |
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Samples |
EOU
/ EHTP / STP / BTP units may on basis of records maintained by them, and on
prior intimation to Customs authority, supply or sell samples in DTA for
display / market promotion on payment of applicable duties. |
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6.28.2
|
Remove
samples without payment of duty, on furnishing a suitable undertaking to
Customs authorities for bringing back samples within a stipulated period. |
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|
6.28.3 |
An
EOU may export free samples, without any limit, including samples made in wax
moulds, silver mould and rubber moulds through all permissible mode of export
including through courier agencies / post. For statutory requirement of
Stability & Retention sample with manufacturer, an EOU / EHTP / BTP / STP
unit may re-import without payment of duty, those samples, which were
exported by it, under intimation to Custom Authorities, and FOB value of such
samples shall not be counted for NFE purpose and other export benefits, if
any. |
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6.28.4
|
An
EOU, on basis of records maintained by them and on prior intimation to
Customs authorities, may send samples to other EOUs for display on returnable
basis within a period of 30 days. |
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Donation of Computer and
Computer peripherals |
EOU
/ EHTP / STP / BTP unit may be allowed by Customs authorities concerned to
donate imported / indigenously procured (bought or taken on loan) computer
and computer peripherals, including printer, plotter, scanner, monitor, keyboard
and storage units without payment of duty, two years after their import /
procurement and use by units, to a school run by Central Government, or
Government of a State or, a Union Territory or, a local body; an Educational
Institution run on non-commercial basis by any organization; a Registered
Charitable Hospital; a Public Library; a Public Funded Research and
Development Establishment; a Community Information Center run by Central
Government or, Government of a State or, a Union Territory or local body; an
Adult Education Center run by Central Government or, Government of a State
or, a Union Territory or a local body; or an organization of Central
Government or, a Government of a State or, a Union Territory as per Customs /
Central Excise notification. |
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Distinct Identity |
If
an industrial enterprise is operating both as a domestic unit as well as an
EOU / EHTP / STP / BTP unit, it shall have two distinct identities with
separate accounts, including separate bank accounts. It is, however, not
necessary for it to be a separate legal entity, but it should be possible to
distinguish imports and exports or supplies effected
by EOU / EHTP / STP / BTP units from those made by other units of enterprise. |
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6.31 |
Composition
of Unit Approval Committee shall be as under: Development Commissioner Chairperson Jurisdictional Commissioner of Central Excise
& Customs Member Joint DGFT Member Joint/Deputy Development Commissioner of the Zone Member Any
other nominee of any Department/Agency as special invitee [Para 6.31 inserted by 32-PN(RE)/13.01.2010]. |
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Unit Approval Committee of
EOUs |
Powers
and functions of Unit Approval Committee of EOUs shall be as under:- (a)
To consider applications for setting up EOUs other than proposals for setting
up of unit in services sector (except R&D, software and IT enabled
services, or any other service activity as may be delegated by BoA). Items of manufacture requiring industrial licence under Industrial (Development & Regulation)
Act, 1951 shall be considered by BoA. (b)
to consider and permit conversion of units in SEZ to EOU; (c)
to monitor performance of units; (d)
to supervise and monitor permission, clearances,licences
granted to units and take appropriate action in accordance with law; (e)
to call for information required to monitor performance of unit under
permission, clearances, licenses granted to it; (f)
to perform any other function delegated by Central Government or its
agencies; (g)
to perform any other function as may be delegated by State Governments or its
agencies; and (h)
to grant all approvals and clearances for
establishment and operation of EOUs. |
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Approval of EHTP / STP /
BTP units |
In
case of units under EHTP / STP scheme, necessary approval / permission shall
be granted by officer designated by DoIT/ Director
(STPI). Designated officer shall also exercise powers of adjudication under
Section 13 read with Section 11 of FT (D&R) Act, 1992 in respect of STP /
EHTP as mentioned in Gazette Notification No. S.O. 106 (E) dated 30-1-2006.
Similarly in case of units under BTP, necessary approval /permission shall be
granted by officer designated by DoBT.However,
designated officers shall adopt criteria for automatic approval of new units
as laid down in Appendix 14-I-B. |
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Administration of EOUs/
Power of DC/Designated Officer |
DC
/ Designated Officer shall have following powers in respect to units. Jurisdiction
of DC is given in Appendix 14-I-K. (1)
Conversion of sick / closed DTA unit into EOU; (2)
Conversion of EOU to STP / EHTP / BTP and viceversa
as per prescribed procedure; (3)
To allow increase in value of capital goods in terms of Indian Rupees, on
account of foreign exchange rate fluctuations; (4)
To permit capacity enhancement without any limit in case of de-licensed
industries only; (5)
Permit broad-banding for similar goods and activities mentioned in LoP or to provide for backward or forward linkages to
existing line of manufacture; (6)
Authorize change in name of company or implementing agency and change from a
company to another provided new implementing agency / company undertakes to
take over assets and liabilities of existing unit; (7)
Permit change of location from place mentioned in LoP
to another and / or include additional location provided that no change in
other terms and conditions of approval is envisaged and that new location is
within territorial jurisdiction of DC / Designated Officer; (8)
Extend validity period of LoP by three years beyond
initial validity period of LoP (except in case
where there is a restriction on initial period of approval, like setting up
of oil refinery projects); (9)
Cancel LoP wherever warranted; (10) Permit merger
of two or more units into one unit provided units fall within jurisdiction of
same DC / Designated Officer subject to condition that activities are covered
under provision of broad banding; (11)
Exercise powers of adjudication under Section 13 read with Section 11 of FT
(D&R) Act, in respect of EOUs as mentioned in Gazette Notification No.
SO. 194(E) dated 6.3.2000; (12)
Do valuation of exports declared on SOFTEX form by EOUs as per RBI A.D. (M.A
Series) Circular AP (DIR series Circular No.9 dated 25.10.2001); (13)
Issue eligibility certificates for grant of employment visa to low level
foreign technicians to be engaged by EOUs as per Ministry of Home Affairs
letter No. 25022 / 7 / 99- F.1 dated 20.9.1999; |
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Registration – cum - Membership
Certificate |
(14) |
Function
as a Registering authority for EOU / EHTP / STP / BTP unit. A separate
Registration cum- Membership Certificate shall not be required in their cases
as provided for in paragraph 2.44 of FTP except in case of spices. In case of
spices, it would be mandatory for units to get themselves registered with
Spices Board also. |
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Importer Exporter Code No.
|
(15) |
Allot
Importer-Exporter Code number for EOUs, if same has already not been allotted
to entity; |
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Green Card |
(16) |
Issue
of Green Card automatically after execution of LUT; |
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(17) |
Grant
/ renewal of Status Certificate in respect of EOUs provided it does not
involve clubbing of FOB value of exports of its parent company in DTA; |
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(18)
|
Publicity
of EOU / EHTP / STP / BTP Scheme under their jurisdiction. |
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Change of location /
inclusion of additional location with BoA approval |
BoA
may consider change of location of EOU / EHTP / STP / BTP unit from place mentioned
in LoP to another and / or to include additional
location outside territorial jurisdiction of original DC / Designated
Officer, subject to such conditions as BoA may
decide. |
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Clearance of Capital Goods
in DTA |
Clearance
of capital goods, including second hand, in DTA shall be allowed as per FTP
on payment of applicable duty and import policy in force on date of such
clearance. |
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Depreciation norms |
Depreciation
up to 100% is permissible for Computers and Computer peripherals in 5 years
and 10 years in case of other items. |
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Depreciation norms |
Depreciation
for computers and computer peripherals shall be as follows:- 10%
for every quarter in first year; 8%
for every quarter in second year; 5%
for every quarter in third year; 1%
for every quarter in fourth and fifth year. |
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Depreciation norms for
other Capital goods |
For
capital goods, other than above, depreciation rate would be as follows: 4%
for every quarter in first year; 3%
for every quarter in second and third year; 2.5%
for every quarter in fourth and fifth year; 2%
for every quarter thereafter. |
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Conversion |
Existing
DTA units, may also apply for conversion into an
EOU/EHTP / STP / BTP unit, but no concession in duties and taxes would be
available under scheme for plant, machinery and equipment already installed.
On conversion, they would get Income Tax concessions but limited to period of
10 years from original commencement of manufacture or that prescribed under
Section 10 of Income Tax Act whichever is earlier. For this purpose, DTA unit
may apply to DC / Designated Officer concerned in same manner as applicable
to new units. In case there is an outstanding export commitment under EPCG
scheme / Advance Authorization Scheme, it will follow the procedure laid down
in Appendix 14-I-O of HBP v1. |
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6.36.2
|
Existing
EHTP / STP / BTP units may also apply for conversion/ merger to EOU and
vice-versa. In such cases, units will continue to avail permissible exemption
in duties and taxes as applicable under relevant scheme. EHTP / STP / BTP
units desiring conversion as an EOU may apply to DC concerned through Officer
designated by DoIT / DoBT
in same manner as applicable to new units. Likewise, EOU desiring conversion
into EHTP / STP / BTP may apply to officer designated by DoIT
/ DoBT through DC concerned. |
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6.36.3 |
An
EOU may be shifted to SEZ with approval of DC provided EOU has achieved
pro-rata obligation under EOU scheme. |
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Revival of Sick units |
6.37 |
Subject
to a unit being declared sick by appropriate authority, proposals for revival
of unit or its take over may be considered by BoA.
Guidelines on revival of sick units are given in Appendix 14-I-M. |
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6.38 |
Fast Track Clearance Procedure |
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Eligibility |
EOUs
having a status holder certificate under FTP shall be eligible for Fast Track
Clearance Procedure. |
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Examination of Import
Cargo |
Status
holder units shall be exempted from examination of import cargo at port of
import. However, jurisdictional Commissioner of Customs / Central Excise may
examine consignments at unit’s place on random basis. |
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Domestic procurement and
import of goods |
Units
having physical export turnover of Rs. 15 crores
and above in preceding financial year shall be allowed to import goods
without payment of duty on basis of pre-authenticated procurement certificate
issued by jurisdictional Customs / Central Excise Authority. |
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Installation of Fax
Machine/Computers |
Eligible
EOUs may install one fax machine and two computers in their administrative /
registered office outside bonded premises under prior intimation to
jurisdictional Asstt. / Deputy Commissioner of
Customs or Central Excise. |
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Procurement of DG sets |
Procurement
of DG set of capacity commensurate with actual requirement of unit shall be
permitted under intimation to DC and jurisdictional Central Excise authority. |
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Temporary removal of
Capital Goods |
Eligible
EOU may remove their capital goods or parts thereof for repairs under prior
intimation to jurisdictional Asstt. / Deputy
Commissioner of Customs or Central Excise. |
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Clearance of rejects in
DTA |
Personal
carriage of samples of Gems & Jewellery by
status holder EOUs are allowed subject to limit fixed in para 6.23 without a
need for prior permission from DC / Customs / Central Excise. |
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Activities which do not
require permission |
In
respect of following activities of a status holder, permission will not be
required from DC or jurisdictional Central Excise authority: DTA
sale of finished products in terms of para 6.8(a) of FTP; Participation in
exhibition and personal carriage of Gems & Jewellery
for export promotion tours subject to fulfillment of conditions of para 6.23
of HBP v1. However, prior intimation thereof needs to be given. DC
shall dispose off applications expeditiously. Following time schedule shall
normally be followed to dispose off applications provided application is
complete in all respects and is accompanied with prescribed documents. |
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Time bound disposal of
applications |
DC
shall dispose off applications expeditiously. Following time schedule shall normally
be followed to dispose of applications provided application is complete in
all respects and is accompanied by prescribed documents. |
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|
Chapter
7
Special
Economic Zones
Procedure
relating to Special Economic Zones is contained in Special Economic Zone Rules,
2006 notified in the Gazette of India, Extraordinary No. GSR 54(E) dated
10.2.2006.
Chapter
8
Deemed
Exports
8.1
|
Policy
relating to Deemed Exports is in Chapter-8 of FTP. |
|
8.2.1 |
In
respect of supplies under paragraph 8.2(a) of FTP, procedure for issue of ARO
and Back-to-Back Inland Letter of Credit is given in paragraphs 4.14 and 4.15
of HBP v1. |
|
8.2.2
|
In
respect of supplies under paragraph 8.2(b) of FTP and DFIA, deemed export
benefits may be claimed from DC or RA concerned. Advance Authorisation
and DFIA shall be claimed from the concerned RA. Such supplies shall be
certified by receiving agencies. |
|
8.2.3
|
In
respect of supply of capital goods under paragraph 8.2 (c) of FTP, supplier
shall produce a certificate from EPCG Authorisation
holder evidencing supplies / receipt of manufactured capital goods. |
|
8.2.4
|
In
respect of supplies under categories mentioned in paragraphs 8.2(d), (e),
(f), (g), (i) and (j) of FTP, application for
Advance Authorisation shall be accompanied with a
Project Authority Certificate in Appendix 27. Payment against such supplies
shall be certified by Project Authority concerned as in Appendix 22 C. |
|
Procedure for claiming Deemed Export Drawback & Terminal Excise
Duty Refund / Exemption |
8.3.1
|
Procedure
for claiming benefits under paragraphs 8.3(b) and (c) of FTP shall be as
under:- (i) An application in ANF 8 along with prescribed documents, shall be made by supplier to RA concerned.
Recipient may also claim benefits on production of a suitable disclaimer from
supplier along with a self declaration in the format given in Annexure II of
ANF 8, regarding non-availment of CENVAT credit in
addition to prescribed documents. (ii)
In case of supplies under paragraphs 8.2(a), (b) & (c) of FTP, claim
shall be filed against receipt of payment through normal banking channel as
in Appendix 22B. Claims should be filed within a period of twelve months from
the date of payment. In cases where payment is received in advance, last date
for submission of application may be correlated with date of supply instead
of date of receipt of payment. Claim can be filed ‘Invalidation Letter / ARO
wise’ against individual Authorisations within the
time limit as specified above. 100% TED refund may be allowed after 100%
supplies have been made physically and payment received least up to 90%.
However, grant of deemed export duty drawback will be limited to the extent
of payment received. (iii)
In respect of supplies under paragraph 8.2(b) of FTP, where supplier wants to
claim benefits from RA, RA shall allow deemed export benefits to DTA
supplier, on receipt of certified copies of Central Excise attested invoice
as proof of supplies made and / or Central Excise attested CT3 form and proof
of validity of LoP. For supply of High Speed Diesel
/ Furnace Oil from Depots of domestic oil Public Sector Undertakings under
Para 8.2 (b) of FTP, terminal excise duty shall be refunded on the basis of
duty paid certificate issued by concerned domestic oil Public Sector
Undertakings in the format given in Annexure I to ANF 8. Duty refund will be
allowed for quantity of HSD / Furnace oil procured by EOU / EHTP / STP / BTP
unit for its production activities, as certified by concerned DC / Bond
authorities. (iv)
In respect of supplies under categories mentioned in paragraphs 8.2(d), (e),
(f), (g), (h), (i) & (j) of FTP, claim may be
filed either on the basis of proof of supplies effected or payment received.
Claims should be filed within a period of twelve months from date of receipt
of supplies by project authority or from date of receipt of the payment as
per the option of applicant, either against a particular project or all the
projects. Claims may also be filed where part payments have been received.
100% TED refund may be allowed after 100% supplies have been made physically
and payment received at least up to 90%. However, grant of deemed export duty
drawback will be limited to the extent of payment received. |
8.3.2
|
For
claiming exemption from payment of terminal excise duty, procedure prescribed
by Central Excise authority shall be followed. |
|
8.3.3
|
Where
All Industry Rate of Drawback is not available or same is less than 4/5th of
duties actually paid on materials or components used in production or
manufacture of the said goods, an application in ANF 8 along with prescribed
documents may be made to RA or DC, for fixation of brand rate. Recipient may
claim benefits on production of a suitable disclaimer from supplier along
with a self declaration in the format given in Annexure II of ANF 8,
regarding non-availment of CENVAT credit in
addition to prescribed documents. |
|
8.3.4
|
Claim
application shall be filed along with application for fixation of brand rate of
duty drawback, in case brand rate is required to be fixed. Provision of late
cut under paragraph 9.3 and supplementary claim under paragraph 9.4 shall
also be applicable under this sub-paragraph. |
|
8.3.5
|
RA
may consider provisional payment up to 75% of drawback claim in case of
private companies and 90% in case of PSUs, pending fixation of brand rate. |
|
8.3.6
|
Subject
to procedure laid down in HBP, Customs and Central Excise Duty Drawback Rules,
1995 shall apply mutatis mutandis to deemed exports. |
|
Procedure for claiming deemed export benefits by Sub-contractor |
8.4 |
In
respect of supplies made by sub-contractor to main contractor under
paragraphs 8.2(d), (e), (f), (g), (i) and (j), main
contractor may make payment to sub-contractor and issue payment certificate
as in Appendix 22-C as Form 1-C. However, for supplies under paragraph
8.2(d), (e), (f), (g) and (j), payment certificate from main contractor shall
not be insisted for refund of terminal excise duty. Deemed export benefits to
sub-contractor would be available to the extent of goods that are
manufactured and supplied by him or outsourced from other manufacturers, for
value as indicated in Appendix 22-C of HBP v1. |
Payment of interest on delayed refund of Duty Drawback / TED |
8.5 |
For
payment of interest, in accordance with Para 8.5.1 of FTP, separate
application for claiming interest is not required and a single cheque for main claim and interest can be issued to the
claimant. However, separate account will be maintained by RAs for the amount
of interest disbursed by them. |
Chapter
9
Miscellaneous
Matters
9.1 |
An IEC holder must get the
change in name / address constitution incorporated within 90 days of such
change. Provided, however, RA
issuing IE Code may, condone delay on payment of penalty of Rs. 1000/-. Change in constitution,
aforesaid, does not include change in directors of Public Limited Company. |
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Denomination of Import Authorisation / Licence
Certificate / Permissions |
9.2 |
CIF value of Authorisation / FOB value of export obligation shall be
indicated both in Rupees and in freely convertible currency(s) at the exchange
rate(s) prevailing on Authorisation issue date. |
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9.2.1 |
Remittance of foreign
exchange and discharge of export obligation against Authorisation
shall be regulated in freely convertible currency. |
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9.2.1.1 |
No enhancement in Rupee value
shall be necessary if remittance of foreign exchange is covered by CIF value
of Authorisation shown in freely convertible
currency. |
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9.2.2 |
However, on Advance Authorisation(s), issued for exports to ACU countries,
export obligation shall be denominated and discharged in ACU dollars. |
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9.2.3 |
Export obligation in
Advance Authorisation for intermediate supply and
for deemed export, where supplies are to be made within the country, shall be
denominated and discharged in Indian rupees. |
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Applications Received After Expiry of Prescribed Date of Receipt |
9.3 |
Wherever any application
is received after expiry of last date for submission of such application, the
application may be considered after imposing a late cut in the following
manner:
|
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9.4 |
Wherever any application
for supplementary claim is received, within specified time limits, such
application may also be considered after imposing a cut @2% on the
entitlement. |
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9.5 |
Every importer/ exporter
shall furnish such information as may be called for by DGFT or any officer
duly authorised. |
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9.6 |
A request seeking
clarifications on any provision of FTP or HBP, importability or exportability
of items under ITC(HS), may be made to DGFT in the
form in Appendix-28. Clarification may also be sought on E-mail. |
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9.7 |
Importer shall maintain
a register as in Appendix-23 (for 3 years period) of items imported under an Authorisation and separately for items imported with
actual user condition and its consumption. In respect of particular schemes
such register shall be maintained for specified period. |
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9.8 |
In order to resolve
exporters’ problems in a co-ordinated manner, field
offices of DGFT shall act as Export Facilitation Centres and nodal agencies.
In addition, Nodal Officers have also been nominated in other Ministries/
Departments and a list of such officers nominated to assist exporters is
given in Appendix-17. |
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9.9 |
Detail of the Grievance Redressal Mechanism is given in para 2.49 of FTP. For speedy redressal of genuine grievances of trade and industry
pertaining to FTP and Procedure, Grievance Committees have been constituted
chaired by (i) DGFT at Headquarters and (ii)
head(s) of RA(s) in regional offices. Grievance Committee will include
representatives of Federation of Indian Export Organisations (FIEO), Export
Promotion Councils/ Commodity Boards, Development Authorities, and Government
Departments/ technical authorities as their members. |
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9.9.1 |
Chairman of the
respective Grievance Committee(s) may also co-opt any other member. Meetings
of such Committees shall be held on a monthly basis. |
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9.9.2 |
Every exporter/importer
shall have a right to seek and have an opportunity to make a representation
(in writing) to and be personally heard, if he so desires, by Grievance
Committee. |
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9.9.3 |
A representation to Grievance
Committee may be made in as in Appendix-26. |
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9.10 |
For speedy disposal of
applications, “Counter Assistance” will function in all offices of DGFT. An
FTDO shall be in charge of counter in each office. On submission of application
at the counter, applicant will be handed over a token and would be advised on
same day whether his application is complete and admitted for further
processing by the office or whether there is any deficiency that needs to be
rectified. |
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|
9.10.1 |
Counter Assistant will
send application to concerned section on day of receipt for necessary
scrutiny. If there are any deficiencies, these will be noted by concerned
section and returned to counter on the same day. In case of complete
applications, applicant will be given a formal receipt indicating file number
for further reference. Deficient applications will be returned to applicant
for complying with all deficiencies. Complete applications
shall be processed by concerned section within the time frame as given under
paragraph 9.11. The application for
refund of Duty Drawback and Terminal Excise Duty under deemed export scheme
would be received at the counter, scrutinized and deficiency, if any, would
be pointed out at the counter itself and such application would be returned.
Applicant will have to rectify this deficiency and a complete application
would be accepted. Communication of any
deficiency noted subsequently should be undertaken only with approval of head
of office who shall be responsible for effective
functioning of Counter Assistance. |
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|
9.10.2 |
Counter Assistance may
also be availed of for amendments of minor nature/enquiries. Applications, in
such cases, will be received in regional offices at counter against a proper receipt.
Authorisation/licence/list/enquiry, shall be returned after carrying out necessary
amendments/ giving necessary reply as far as possible on the same day, across
the Counter. |
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9.11 |
RA shall dispose off applications
expeditiously. Following time schedule shall normally be followed to dispose
of applications provided it is complete in all respects and is accompanied by
prescribed documents.
Cases of undue delay in
disposal of applications may be brought to notice of head of regional offices
by way of a written representation, which shall be promptly enquired into and
responded to. |
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9.11 A |
Date of
shipment/dispatch for imports will be reckoned as under:-
|
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9.12 |
Date
of shipment / dispatch for exports will be reckoned as under:-
|
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9.13 |
DGFT may, on his own or
otherwise, call for records of any case pending with or decided by an officer
subordinate to him or an officer of any EPC/FIEO including a Group/ Committee
of officers nominated, appointed or authorised by him and pass such orders as
he may deem fit. |
Appendices
Are An Integral Part Of The Handbook Of Procedures – Volume 1 (2009-2014) As
Notified By The Public Notice No.1 (Re-2009) / 2009-2014 Dated 27Th August 2009
And Have Been Published Seperately. Appendices Are
Also Available On The Dgft Website
And Can Be Accessed At http://Dgft.gov.in