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    Chapter - 2 General Provisions Regarding Exports and Imports


    Chapter - 2 : General Provisions Regarding Exports And Imports


    Policy 2.1 Policy relating to general provisions regarding exports and imports is given in Chapter-2 of FTP.
    Countries of
    Imports / Exports
    2.2 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).
    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).
    Application Fee 2.3 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.
    Territorial Jurisdiction
    of Regional Authorities
    (RA)
    2.4 Every application, unless otherwise specified, shall be submitted to RA concerned, as indicated in Appendix-1 of HBP v1.
    Filing of Application 2.5 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.
    Profile of Importer/
    Exporter
    2.6 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.
    Self Addressed
    Stamped Envelope
    2.7 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.
    IEC No:
    Exempted Categories
    2.8 Following categories of importers or exporters are exempted from
    Categories obtaining IEC number:
    (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.
    (ii) Ministries / Departments of Central or State Government.
    (iii) Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture.
    (iv) Persons importing / exporting goods from / to Nepal, Myanmar through Indo-Myanmar border areas and China (through Gunji, Namgaya Shipkila and Nathula ports), provided CIF value of a single consignment does not exceed Indian Rs.25, 000. In case of Nathula port, the applicable value ceiling will be Rs. 100,000.
    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.
    (v) Following permanent IEC numbers shall be used by non-commercial PSUs and categories of importers / exporters mentioned against them for import / export purposes:
    S.No Code Number Categories of Importers / Exporters
    1 0100000011 All Ministries / Departments of Central  Government and agencies wholly or partially owned by them.
    2 0100000029 All Ministries / Departments of any State Government and agencies wholly or partially owned by them.
    3 0100000037 Diplomatic personnel, Counselor officers in India and officials of UNO and its specialised agencies.
    4 0100000045 Indians returning from / going abroad and claiming benefit under Baggage Rules.
    5 0100000053 Persons / Institutions / Hospitals importing or exporting goods for personnel use, not connected with trade or manufacture or agriculture.
    6 0100000061 Persons importing / exporting goods from /to Nepal
    7 0100000070 Persons importing / exporting goods from /to Myanmar through Indo-Myanmar border areas
    8 0100000088 Ford Foundation
    9 0100000096 Importers importing goods for display or use in fairs / exhibitions or similar
    events under provisions of ATA carnet This IEC number can also be used by
    importers importing for exhibitions/fairs as per Para 2.29 of HBPv1.
    10 0100000100 Director, National Blood Group Reference Laboratory, Bombay or their authorized offices.
    11 0100000126 Individuals / Charitable Institution /Registered NGOs importing goods,
    which have been exempted from Customs duty under Notification issued by Ministry of Finance for bonafide use by victims affected by natural calamity.
    12 0100000134 Persons importing / exporting permissible goods as notified from time to time, from / to China through Gunji, Namgaya Shipkila and Nathula ports,
    subject to value ceilings of single consignment as given in Para 2.8(iv) above.
    13 0100000169 Non-commercial imports and exports by entities who have been authorized by Reserve Bank of India.
    Application for Grant
    of IEC Number
    2.9 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 documentsprescribed 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).
    IEC Format and
    Statements
    2.9.1 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.
    Validity of IEC No. 2.9.2 An IEC number allotted to an applicant shall be valid for all its branches / divisions / units / factories.
    Duplicate Copy of
    IEC Number
    2.9.3 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.
    Surrender of
    IEC Number
    2.9.4 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.
    Application for Import
    and Export of Restricted
    Items
    2.10 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.
    Imports under Indo-US
    Memorandum of
    Understanding
    2.11 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):
    (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.
    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.
    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.
    Validity of
    Import Licence/Certificate/
    Authorisation/Permissions/
    CCPs/Export licence
    2.12 Validity of import / export Authorisation from date of issue shall be as follows, unless specified otherwise:
    (i) Advance Authorisation / DFIA
    (including Advance Authorisation for
    annual requirement, and Replenishment
    Authorisation for Gem & Jewellery
    per Chapter- 4 of FTP)
    24 months
    (ii) a For Zero duty EPCG Authorisations
    (other than spares)
    36 months
       
    (ii) b For 3% EPCG Authorisations
    (other than spares)
    36 months
       
    (iii) EPCG Authorisation for Spares,
    refractories, catalyst and consumables
    Co-terminus with EOP of EPCG Authorisation
    (iv) Others including CCP and DEPB,
    unless otherwise specified
    24 months
    (v) Advance Authorisation / DFIA for  deemed export (including Advance Authorisation for annual requirement) 24 months or Co-terminus with contracted
    duration of project execution,
    whichever is later.
    (vi) Export Licence / Authorisation
    12 months
    (However, EFC
    may decide to
    issue Export
    Authorisation for
    a longer duration
    in case of R&D
    studies based on
    recommendation
    of technical
    authority)
    (vi) Export Licence / Authorisation 12 months (However, EFC
    may decide to issue Export
    Authorisation for a longer duration in case of R&D
    studies based on recommendation of technical
    authority)
    2.12.1 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.
    2.12.2 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.
    2.12.3 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.
    2.12.4 Similarly, EOP shall be deemed to be valid until month end.
    Revalidation of Import
    Export Licence /
    Certificate / Authorisation
    Permissions
    2.13 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.
    2.13.1 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. (This para is substituted by DGFT PUBLIC NOTICE No 38/2009-14, Date : 03-02-2010 )

    [Old - However, revalidation of freely transferable Authorisation and stock and sale Authorisation shall not be permitted unless validity has expired while in custody of Customs authority / RA. ]
    2.13.2 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.
    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. (This para is added by DGFT PUBLIC NOTICE No 38/2009-14, Date : 03-02-2010 )
    2.13.3 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.
    Duplicate Copies of Export-Import Licence /
    Certificate / Authorisation /
    Permissions / CCPs
    2.14 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.
    2.15 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.
    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.
    In such cases, revalidation shall be for six months from date of endorsement.
    2.15.2 RA concerned shall obtain a report regarding utilization of such Authorisation from Custom authority at port of registration before issuing duplicate, for balance unutilized.
    2.15.3 Validity of duplicate Authorisation shall be co-terminus with original period. No request shall be entertained if validity has expired.
    2.15.4 Provision of paragraph 2.15.2 and 2.15.3 shall be applicable both for cases covered under paragraph 2.14 and 2.15.
    Identity Cards 2.16 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.
    Interviews with authorized Officers 2.17 Officers may grant interview at their discretion to authorized representative of importer / exporter. Interviews / clarifications may also be sought through E-mails.
    Export of Items
    Reserved for SSI Sector
    2.18 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.
    Warehousing Facility 2.19 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.
    Execution of Bank Guarantee /
    Legal Undertaking for Advance
    Authorisation / DFIA and
    EPCG Authorisation
    2.20 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.
    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.
    Corporate Guarantee 2.20.1 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.
    Certificate of Origin(CoO) 2.21 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.
    Preferential 2.21.1 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.
    Generalised System
    of Preferences (GSP)
    (a) GSP is a non-contractual instrument by which industrialized (developed) countries unilaterally and based on non-reciprocity extend tariff concessions to developing countries. Following countries extend tariff preferences under their GSP Scheme:
    (i) United States (ii) New Zealand (iii) Belarus
    (iv) European Union, (v) Japan (vi) Russia
    (vii) Canada (viii) Norway (ix) Australia (only to LDCs)
    (x) Switzerland (xi) Bulgaria
    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.
    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.
    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.
    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.
    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.
    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.
    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.
    Non Preferential 2.21.2 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.
    AAutomatic Licence /
    Certificate /
    Authorisation /
    Permission
    2.22 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.
    Submission of
    certified copies
    of documents
    2.23 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.
    Advance Payment 2.24 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.
    Payment through ECGC cover 2.25.1 Payment through ECGC cover would count for benefits under
    ECGC cover FTP.
    Payment through
    General /Private Insurance
    Companies
    2.25.2 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.
    Irrevocable
    Letter of Credit
    2.25.3 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.
    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.
    Export by Post 2.26 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.
    Import/ Export
    through Courier
    Service
    2.26.1 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.
    Direct negotiation
    of export documents
    2.26.2 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.
    Import/Export
    of Samples
    2.27 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.
    Exports of bonafide trade and technical samples of freely exportable item shall be allowed without any limit.
    Import under
    Lease Financing
    2.28 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.
    Exhibits Required
    for National and
    International
    Exhibitions or Fairs
    and Demonstration
    2.29 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.
    Import Policy 2.30 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.
    General Procedure
    for Licensing of
    Restricted Goods
    2.31 Wherever an import Authorisation, including CCP, is required under FTP, procedure contained in this chapter shall be applicable.
      2.32 Import of Metallic Waste and Scrap
    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.
    2.32.2 mport of following types of metallic waste and scrap will be free subject to conditions detailed below:
    Sl.No. Exim code Item description
    1 720410 00 waste and scrap of cast iron
    2 72042190 Other
    3 72042920 Of High speed steel
    4 72042990 Other
    5 72043000 Waste and scrap of tinned iron or steel
    6 72044100 Turnings, shavings, chips, milling waste, saw dust, fillings, trimmings and stampings, whether or not in bundles
    7 72044900
    Other
    8 72045000 Remolding scrap ingots
    9 74040010 Copper Scrap
    10 74040022
    Brass scrap
    11 75030010 Nickel scrap
    12 76020010 Aluminium scrap
    13 79020010 Zinc scrap
    14 80020010 Tin scrap
    15 81042010 Magnesium scrap
    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 radioactive 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 radioactive contaminated, or any other explosive material in any form either used or otherwise.

    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.

    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.
    2.32.3 However, import of other kinds of metallic waste and scrap will be allowed in terms of conditions of ITC(HS).
    2.32.4 Import policy for second and defective , rags, PET bottles/waste, and ships is given in ITC(HS).
    ICD Udaipur, 22. CFS Mulund, 23. ICD Kanpur, 24. ICD Ahmedabad, 25. ICD Pitampur and 26. ICD Malanpur.
        (Paragraph 2.32.2, 3.32.2.A, 2.32.3 & 2.32.4 is amended by DGFT Public Notice 17/2009-14, Dated : 12.11.2009 )
    Import of
    Second Hand
    Capital Goods
    2.33 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.
    2.33.1 Deleted ( Ref. DGFT PUBLIC NOTICE No 62/2009-14, Dated : 13-05-2010)

    [ Notwithstanding provisions of Para 2.33 above, second hand
    computers, laptops and computer peripherals including printer,
    plotter, scanner, monitor, keyboard and storage units can be
    imported freely as donations by following category of donees:

    (i) Schools run by Central or State Government or a local
    body,

    (ii) Educational Institution run on non- commercial basis
    by any organization,
    (iii) Registered Charitable Hospital,
    (iv) Public Library,
    (v) Public funded Research and Development
    Establishment,
    (vi) Community Information Centre run by Central or State
    Government or local bodies,
    (vii) Adult Education Centre run by Central or State
    Government or a local body,
    (viii) Organization of Central or State Government or a Union
    Territory.

    Imports under this sub Para would be subject to the condition
    that goods shall not be used for any commercial purpose, is
    non transferable and complies with all terms and conditions of
    relevant Customs Rules and Regulations. ]
    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.
    Import of
    Ammunition by
    Licensed Arms Dealers
    2.34 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.
    Restricted Items
    Required By Hotels,
    Restaurants, Travel
    Agents, Tour Operators
    and other Specified
    Categories
    2.35 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.
    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.
    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.
    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.
      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).
    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.
    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).
    Import of Other
    Restricted Items
    2.36 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.
    EXIM Facilitation
    Committee
    2.37 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.
    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.[ This para amended by DGFT Public Notice No.51/2009-2014, Dated: 30th March, 2010 ]

    [Old -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. Authorization holder shall register the same 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. ]
    Gifts of Consumer or Other Goods 2.38 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.
    Import under Govt.
    to Govt. Agreements
    2.39 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.
    Import of Cheque
    Books / Ticket Forms etc.
    2.40 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.
    Import of
    Reconditioned/ Second Hand
    Aircraft Spares
    2.41 Import Authorisation for reconditioned / second hand aircraft
    spares is not needed on recommendation of Director General
    of Civil Aviation, Government of India (DGCA).
    Import of
    Reconditioned/ Second Hand
    Aircraft Spares
    2.42 Import Authorisation for reconditioned / second hand aircraft
    spares is not needed on recommendation of Director General
    of Civil Aviation, Government of India (DGCA).
    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.
    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..
    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.
    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.
    Transfer of
    Imported Goods
    2.43 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.
    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.
    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.
    Sale of Exhibits 2.44 (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.
    Import of Overseas
    Office Equipment
    2.45 On winding up of overseas offices, set up with approval of
    RBI, used office equipment and other items may be imported
    without Authorisation.
    Prototypes 2.46 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.
    Restricted items
    for R&D
    2.47 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.
    Export Policy 2.48 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
    2.49 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.


    RAs may also issue, on application, Free Sale and Commerce Certificate for export of any other item which is not restricted or prohibited for export. Validity of such certificate shall be two year from date of issue unless otherwise specified.An application for grant of Free Sale and Commerce Certificate for these items may be made to RA concerned as per format in Annexure 39-A of HBP Vol. I along with Annexure A therein.

    RA shall issue Free Sale and Commerce Certificate as per Annexure B of Appendix 39-A (This para is added by PUBLIC NOTICE NO. 64/2009-14, DATED THE 18th MAY, 2010 )


    Export of Items
    under State Trading Regime
    (STR)
    2.50 An application for export of items mentioned in ITC (HS) under
    STR regime may be made to DGFT.
    Exports of
    Samples / Exhibits
    2.51 An application for export of samples or exhibits, which are restricted for export, may be made to DGFT.
    Free of Cost 2.52. 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 realisation
    during preceding three licensing years whichever is higher.
    Gifts / Spares /
    Replacement Goods
    2.53 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.
    Furnishing of
    Returns in respect
    of Exports in
    non Physical form
    2.54 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.
    Duty Free Import of
    R&D Equipment for
    Pharmaceuticals and
    Bio-technology Sector
    2.55 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.
    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.
    Conversion of E.P.
    copy of shipping bill
    from one Scheme
    To Another
    2.56 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.
    Offsetting of
    Export Proceeds
    2.57 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 realisation
    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 2.58 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.
    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. As per it, import of four items viz., (1)
    Skimmed and whole milk powder, milk food for babies etc.
    (0402.10 or 0402.21) (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:
     
    S.No   ITC Code   No.Quantity of Concessional
          & Item   Quota   Duty
    1   Tariff Code No.   10,000 MTs   15%
    0402.10 or 0402.21
    Skimmed and whole
    Milk Powder. Milk
    Food for babies etc.
    2   Tariff Code No.   1005.90 5,00,000 MTs   15%
    Maize (Corn): other
    3   Tariff Code No.   1512.11 150,000 MTs   50%
    Crude Sunflower seed
    or safflower oil or
    fractions thereof
    4   Tariff Code No.   150,000 MTs   45%
    1514.19 & 1514.99
    Rape, Colza, Canola or
    Mustard Oil, Other (Refined)
    Eligible entities for
    allocation of quota
    2.59.1 (a) Milk Powder (Tariff Code No. 0402.10 or 0402.21):
    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)

    (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.
    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.
    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.
    Export Promotion
    Council (EPC)/
    Commodity
    Boards (CB)
    2.61 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
    2.62 EPCs are non-profit organizations registered under Companies
    Act or Societies Registration Act.
    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) A status holder has an option to obtain RCMC from Federation of Indian Exporters' Organisation (FIEIO). (This para is amended by DGFT PUBLIC NOTICE No 16/2009-14, Dated 10-11-2009.)

    [Old - Irrespective of para (i) above, a status holder has to
    obtain RCMC from Federation of Indian Exporters’
    Organisation (FIEO).]

    (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).
    (This para is amended  by DGFT Public Notice No. 44/2009-2014, Date: 22-02-2010.)

    [ Old - (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. ]

    (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)
    2.64 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 Registrationcum-
    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 .
    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.
    Intimation Regarding
    Change In Constitution
    2.65 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.
    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.
    De-Registration 2.67 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.
    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 2.69 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.
    2.70 Electronic Data Interchange
    Eligibility 2.70.1 Facility of electronic filing of applications shall be available to
    all exporters.
    Procedure 2.70.2 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 2.70.3 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)
    Sr. No. Mode of Application Fee Deduction (as a % of normal application fee)
    1 Digitally signed 25%
    2 Application fee payment vide EFT 25%
    3 Both digitally signed as well as use of EFT for payment of application fee. 50%
    Benefits 2.70.4 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 2.70.6 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.

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    What is New?

    Date: 26-08-2016
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    Seeks to further amend Notification No. 96/2008-Customs dated 13.08.2008 so as to include 'Republic of Guinea-Bissau' in the list of countries eligible for preferential tariff under the said notification.



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