DFRC Scheme in Exim Policy 2002-2007

Last amendment 116/30.11.2007; 63/08.05.2008

Ntfn 46         In exercise of the powers
22.04.2002   conferred by sub-section (1) of
                     section 25 of the Customs Act,

1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts materials when imported into India, from the whole of the duty of customs leviable thereon, under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), and from the whole of the Special Additional Duty leviable thereon under section 3A, of the said Customs Tariff Act, subject to the following conditions, namely: –

(i) that the importer has been granted duty free replenishment certificate licence or duty free replenishment certificate licence for intermediate supply, as the case may be, by the Licensing Authority by the Licensing Authority for import of the said materials in terms of paragraph 4.2 of the Export and Import Policy (hereinafter referred to as the said licence) and the said licence is produced at the time of clearance for debit by the proper officer of the customs;

(ii) the said licence contains the endorsements specifying, inter alia;

(a) the Standard Input Output Norm (SION) number, description and value of the resultant product exported on the reverse;

(b) the shipping bill number(s) and date(s) and FOB value in Indian Rupees of the resultant product, on the reverse; and

Provided that in respect of materials* specified in the Sensitive List contained in paragraph 4.31 of the Hand Book of Procedure (Vol. 1) of the Export and Import Policy, the materials permitted in the said licence shall be of the same quality, technical characteristics and specifications as the materials used in the said resultant product:

Provided further that in respect of said materials* the exporter shall give declaration with regard to technical characteristics, quality and specification of materials used in the shipping bill;

(iii) that the said licence and / or materials shall be freely transferable;

(iv) that the imports and exports are undertaken through sea ports at Mumbai, Calcutta, Cochin, (Magdalla) Kakinada, Kandla, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin, Visakhpatnam, Dehej, Nagapattanam, Okha, Mundra, Bedi (including Rozi –Jamnagar), Muldwarka , Porbander, Dharmatar, Vadimar, Haldia (Halida Dock Complex of Kolkata Port) and Krishnapatnam or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Mumbai, Calcutta, Coimbatore, Delhi, Hyderabad, Jaipur, Madras, Srinagar, Trivandrum, Varanasi, Nagpur, Cochin, Rajasansi (Amritsar), Indore and Dabolim (Goa) or through any of the Inland Container Depots and Agra, Bangalore, Coimbatore, Delhi, Faridabad, Gauhati, 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), Malanpur, Waluj (Aurangabad), Anaparthy (Andhra Pradesh), Salem, Singanalur, Jodhpur, Kota, Udaipur, Ahmedabad, Bhiwadi, Madurai Bhilwara, Pondicherry, Garhi Harsau, Bhatinda, Dappar (Dera Bassi), Chheharata (Amritsar), Karur, Miraj, Rewari, Bhusawal, Jamshedpur, Surajpur, Dadri , Tuticorin, Kundli, Bhadohi, Raipur, Mandideep (District Raisen) Durgapur (Export Promotion Industrial park), Babarpur and Loni (District Ghaziabad) or through the Land Customs Station at Ranaghat Singhabad, Raxaul, jogbani, Nautanva (Sonauli), Petrapole, Mahadipur, Nepalganj Road, Dawki, Agartala, Sutarkandi, Amritsar Rail Cargo, Attari Road, Hilli, Ghojadanga and Changrabandha or Special Economic Zone as specified in the notification issued under section 76A of the Customs Act 1962 (52 of 1962). [Amended by 46/17.05.2005; 77/22.08.2005; 97/17.17.11.2005; 41/05.05.2006; 63/04.05.2007; 116/30.1.2007; 19/24.02.2009]

Provided further that the Commissioner of Customs may by special order and subject to such conditions as may be specified by him, permit import and export from any other seaport, airport or inland container depot or through a land customs station.

Explanation. – In this notification, -

(i) “Export and Import Policy”, means Export and Import Policy 2002-2007, notified by the Government of India in the Ministry of Commerce vide notification No. 1/2002-2007, dated the 31st March, 2002;

(ii) “Licensing Authority”, means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorised by him to grant a licence under the said Act;

(iii) “Materials” means –

(a) raw materials, components, intermediates, consumables and parts used in the manufacture of resultant product;

(b) packing materials used in the packaging of resultant product.