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Chapter - 2 General Provisions Regarding Exports and Imports



2.00 Policy

Policy relating to general provisions regarding exports and imports is given in Chapter-2 of FTP.

2.01 Coverage

This chapter covers procedure for various applications including their complete documentation. Procedure for applications for authorisations/ license/ permissions/ certificates for import/export and applications for benefits under FTP are spelt out.

2.02 Countries of Imports / Exports

Unless otherwise specifically provided, international trade (i.e. import into India and /or export from India) can take place from/to any country. Country specific prohibitions/limitations, if any, are specified in the FTP/ITC (HS).


2.03 Filing of Application

(a) Applications seeking authorisation for import/export of “restricted” goods, for claiming benefits under the schemes in FTP or for seeking clarifications and for other purposes may be made to the Regional Authority (RA).

(b) Applicants may ensure while submitting documents that documents are either in English or Hindi. Documents in regional languages may be got translated into English or Hindi and the translated copy may be self-certified and submitted along with the Original copy.
2.04 Territorial Jurisdiction of RA

Territorial jurisdiction of RAs is given in Appendix 1A of Appendices and Aayat Niryat Forms. The address of applicant determines the jurisdiction of RA. Each application, unless otherwise specified, shall be submitted to jurisdictional RA .

2.05 Incomplete Application

(a) An incomplete or unauthorised application is liable to be rejected by the competent authority with specific reason for rejection. Such incomplete application may be re-opened on rectifying the deficiencies.

(b) If the deficiencies are not rectified by the applicant within a period of
90 days, the application will be deemed to have been withdrawn.

2.06 Application Fee

The scale of fee, mode of payment, procedure for refund of fee and categories of persons exempted from payment of fee are provided for in Appendix-2K.

Importer Exporter Code (IEC):

2.07 IEC Number Exempted Categories

(a) IEC is compulsory for import and /or exports. However, the following categories of importers or exporters are exempted from obtaining IEC.

Sl. No.Categories Exempted from obtaining IEC
(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. 1,00,000/-

Further, exemption from obtaining IEC 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.

(b) Following permanent IEC numbers shall be used by non – commercial PSUs and categories or importers / exporters mentioned against them for import / export purposes :

Sr.No. PermanentIEC Categories of Importer / Exporter
10100000011All Ministries / Departments of Central Government and agencies wholly or partially owned by them.
20100000029All Ministries / Departments of any State Government and agencies wholly or partially owned by them.
30100000037Diplomatic personnel, Counsellor officers in India and officials of UNO and its specialised
40100000045Indians returning from / going abroad and claiming benefit under Baggage Rules.
50100000053Persons /Institutions /Hospitals importing or exporting goods for personal use, not connected with trade or manufacture or
60100000061Persons importing/exporting goods from /to Nepal
70100000070Persons importing / exporting goods from / to Myanmar through Indo-Myanmar border
80100000088Ford Foundation.
90100000096Importers 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 Paragraph 2.63 of Handbook of Procedures
100100000100Director, National Blood Group
110100000126Individuals /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
120100000134Persons importing/exporting permissible goods as notified from time to time, from /to China through
130100000169Non-commercial imports and exports by entities who have been authorised by Reserve Bank of India.

2.08 Application for IEC

(a) Exporters / Importers shall file an application in ANF 2A format for grant of e-IEC. Those who have digital signatures can sign and submit the application online along with the requisite documents. Others may take a printout of the application, sign the undertaking/declaration, upload the same with other requisite documents and thereafter submit the signed copy of the online application form to concerned jurisdictional Regional Authorities (RA) either through post or by hand. List of RAs, along with their jurisdiction is given in Appendix 1A

(b) Deficiency in the application form has to be removed by re-loging onto “Online IEC application” on DGFT website and filling the form again by paying the requisite application processing charges.

2.09 IEC Format

An IEC will be issued in prescribed format (ANF 2(A) (II)). A copy of such IEC shall be endorsed to concerned banker (as per details given in ANF 2A). Such endorsement should ordinarily be done using emails.

2.10 Validity of IEC

An IEC allotted to an applicant shall have permanent validity unless cancelled by the competent authority. The IEC will cover all branches / divisions / units / factories of the applicant.

2.11 Validity of IEC for EOUs / SEZs

An IEC will remain valid irrespective of a firm’s status as a DTA unit or an EOU or a SEZ/ EHTP/STP/BTP unit and the procedure to be followed in case a firm/unit is de-bonded and converted to DTA is as under:

(a) An unit which is an EOU or in SEZ/EHTP/STP/BTP after de-bonding will not surrender the IEC obtained from its jurisdictional DC, SEZ.

(b) The jurisdictional DC, SEZ will send the original IEC file to concernedRA of DGFT after de-boding.

(c) RA becomes the custodian of such file and will allow de-bonded unit to make necessary modification in IEC.

(d) The de-bonded unit to be eligible for benefits from the RA as per FTP.

2.12 One PAN-One IEC

Only one IEC shall be issued against a single PAN. Multiple IECs against a single PAN stands deactivated suo-motu after 31.03.2015.

2.13 Surrender of IEC

If an IEC holder does not wish to operate allotted IEC, he may surrender the same to the issuing authority. On receipt, the issuing authority shall immediately cancel the IEC and electronically transmit it to DGFT and Customs authorities.

2.14 Modification of IEC

(a) An application for modification shall be filed with the concerned jurisdictional RA from where IEC was originally issued.

(b) An application for modification may be made for change in details like name, address, constitution, ownership in Proprietorship firms, change in nature of the firm e.g. from proprietorship to partnership etc. Change in constitution however, does not include change in Directors of Public Limited Company.

2.15 Profile of Importer / Exporter

(a) ANF-1 contains the profile of the importer/exporter. IEC Holder shall be responsible for updating the same as and when a change takes place immediately or in any case at least once in a year.

(b) Documents which are uploaded in the Importer-Exporter Profile are not required to be filed each time the importer/exporter applies for authorisations/scrips under different schemes of this FTP.

Issue of Authorisation:

2.16 Validity period of Authorisation/ Licence / Certificate / Authorisation / Permissions / CCPs

Validity period of Import / Export Authorisations from the date of issue shall be as follows, unless specified otherwise:

Sr. NoType of AuthorisationValidity Period
(i)Export Authorisation for restricted (Non SCOMET) goods 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)
(ii)Export Authorisation for SCOMET items24 months
(iii)Import Authorisations for restricted items and CCP 18 months
(iv)EPCG Authorisation18 months
(v)Advance Authorisations (AA) for Deemed ExportCoterminous with contracted duration of project execution or 12 months, whichever is more.
(vi)AA {except (v) above}, DFIA, Replenishment Authorisation for Gems & Jewellery as per Chapter 4 of FTP.12 months from issue date.

However, DGFT may decide to issue specific authorisation/ class of authorisations for a longer/shorter validity period.

2.17 Date of reckoning of Import / Export

(a) Date of reckoning of import is decided with reference to date of shipment / dispatch of goods from supplying country as given in Paragraph 9.11 of Handbook of Procedures and not the date of arrival of goods at an Indian port.

(b) Date of reckoning of export is decided with reference to date of shipment / dispatch of goods from India as given in Paragraph 9.12 of Handbook of Procedures. However, for benefit under FTP, Let Export Order (LEO) date shall be the date of reckoning of export.

2.18 Validity of Authorisation/ Licence for import/export

(a) Authorisations must be valid on the date of import.

(b) Similarly, export obligation period of an Authorization must be valid on the date of export.

2.19 Validity of Scrips

Scrips under Chapter 3 and 5 must be valid on the date on which actual debit of duty is made.

2.20 Revalidation of Import / Export Licence Certificate/ Authorisation / Permissions for Non-SCOMET items

(a) RA concerned may revalidate import authorisation on merits for six months from date of expiry of validity.

(b) Export authorisation may be revalidated by RA concerned only on approval of DGFT for six months at a time and maximum upto 12 months from date of expiry of validity.

(c) 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.

2.21 Authority to Revalidate

Such revalidation under Paragraph 2.20 above would be permitted under specific orders of Head of concerned Office and such revalidation would be maximum up to the extent of custody period.

2.22 Application for Revalidation

An application for revalidation of authorisation (other than SCOMET Authorisation), may be made to RA concerned. RA would consider such application as per FTP. Where DGFT is concerned authority, original application shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT.

Procedure for issuing Duplicate copies:

2.23 Duplicate copies of Export / Import Authorisation

Where an Authorisation/ Permissions/ CCPs / Licence / Certificate / is lost or misplaced, an application for issue of a duplicate may be made along with Self declaration, as given in Appendix 2M, to concerned RA where the original license was issued.

2.24 Documents required for duplicate copy of freely transferable Authorisation

Duplicate copy of freely transferable Authorisation may be issued against an application accompanied with following documents:

(i) An application with fee equivalent to 10% of duty saved or duty credit (of unutilized balance).

(ii) A copy of FIR reporting loss.

(iii) Self- declaration to indemnify revenue loss, which may be caused on account of issue of such duplicate.

2.25 Exception

When an Authorisation is lost by a Government agency and a proof to this effect is submitted, documents at serial nos. (i) to (iii) of Paragraph 2.24 above shall not be required. In such cases, revalidation shall be for six months from date of endorsement.

2.26 Mechanism for issuing duplicates

RA concerned shall obtain a report regarding utilization of such Authorisation from Custom authority at port of registration before issuing duplicate, for balance unutilized.

2.27 Validity of duplicate Authorisation

Validity of duplicate Authorisation shall be co-terminus with original period. No request shall be entertained if validity has expired.

2.28 Applicability of the provision

Provision of Paragraph 2.26 and 2.27 shall be applicable for cases covered under both Paragraph 2.23 and 2.24

Bank Guarantee /LUT:

2.29 Execution of BG/Legal undertaking for Advance Authorisation/ EPCG Authorisation

(a) 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.

(b) 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/ authorisation/ 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 authorisation 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.

2.30 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.

2.31 Advance Payment

In case, payment is received in advance and export / deemed export takes place subsequently, application for an Authorisation shall be filed within specific period following the month during which exports/ deemed export is made, unless otherwise specified.

2.32 Import under Lease Financing

Import under lease financing shall be available under EOU/ SEZ scheme. Domestic supply of capital goods to eligible categories of deemed exports shall be eligible for benefits of deemed export as in paragraph 7.03 of FTP, even in cases where supplies are under lease financing.

In case of loss of Documents:

2.33 Issuance of scrips against lost EP copy of the Shipping Bills and / or original Bank Realisation Certificate

Where EP copy of Shipping Bill / original BRC is lost, claim for Scrips under Chapter 3 and Chapter 5 can be considered subject to submission of following documents:

(i) A duplicate /certified copy of relevant document issued by Customs Authority / Bank in lieu of original;

(ii) 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

(iii) Self-declaration by exporter about loss of document and an undertaking to surrender it immediately to concerned RA, if found subsequently

(iv) Self-declaration 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.

2.34 Claims against lost copy of shipping bill

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 / date of realization of export proceeds. Any application received thereafter shall be rejected.

2.35 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.

Warehousing Facility:

2.36 Warehousing Facility

(a) 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 2.36 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 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.

(b) Goods can be re-exported without payment of customs duty provided shipping bill or a bill of export is presented in respect of such goods; and order for export of such goods has been made by competent customs authorities.


2.37 Free Sale and Commerce Certificate

(a) (i) RAs may 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.

(ii) An application for grant of Free Sale and Commerce Certificate may be made to RA concerned as per format in ANF 2 H of Appendices and Aayat Niryat Forms with Annexure A therein. RA shall issue Free Sale and Commerce Certificate as per Annexure B of ANF2H.

(b) (i) 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.

(ii) An application for grant of Free Sale and Commerce Certificate for these items may be made to RA concerned as per format in ANF 2H of Appendices and Aayat Niryat Forms along with Annexure A therein. RA shall issue Free Sale and Commerce Certificate as per Annexure B of ANF 2H.

2.38 End User Certificate

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 2Q of Appendices and Aayat Niryat Forms. The certificate shall be issued based on application made under ANF 2 J along with documents prescribed therein.

2.39 Imports under Indo-US Memorandum of Understanding

(a) 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.
(b) Application for an import certificate shall be made in ANF 2K(i).
Import certificate in Appendix-2P(Ia) 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.

(c) 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.

(d) India’s import and export with regard to USA’s unilateral exportcontrol items [Crime Control (CC) Items as listed in Appendix2P(iia) and Regional Security (RS) items as listed in Appendix2P(iib)] will be governed by the following regulations:

Items listed at both Appendix 2P (iia) and Appendix 2P(iib) will be allowed by DGFT for import from USA provided the importer submits the following documents in ANF 2K(i) :

(i) documentary proof of Bill of Lading indicating Port of USA,
(ii) legal undertaking that goods shall not be exported/ alienated;
(iii) Import is with Actual User condition.

(e) In case the importer wants to subsequently export the imported items from USA,, or any part thereof, such export will require an authorisation from DGFT as per ANF 2K(ii) and Export certificate will be issued in the format Appendix-2P(ib).
(f) Import /export of such items shall be allowed only through EDI enabled ports of India.


2.40 Import of Consumer or Other goods as Gifts

(a) In terms of provisions contained in Paragraph 2.25 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 2M along with documents prescribed therein.

(b) 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.

2.41 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.

2.42 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).

2.43 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 marine-cum-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.

2.44 Other Conditions for Import of Replacement Goods

(a) 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.

(b) 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.

(c) 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 as per paragraph 2.50 of HBP.

2.45 Import of Overseas Office Equipment

On winding up of overseas offices, set up with approval of RBI, used office equipments and other items may be imported without Authorisation.

2.46 Import of Ammunition by Licensed /Authorised Arms Dealers

(a) 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.

(b) 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.

(c) An application for grant of an Authorisation for items listed above may be made to RA in ANF 2M along with documents prescribed therein.

2.47 Duty Free Imports for specific Sectors:

(A) R&D Equipment for Pharmaceuticals and Bio- technology Sector

(i) 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.

(ii) The eligible unit may furnish an application given in Appendix-8A to RA concerned duly countersigned by Chartered Accountant.

(iii) 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.

(B) Agro-Chemicals Sector :

(i) 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.

(ii) The eligible unit shall apply in form given in Appendix-8B to RA concerned duly countersigned by Chartered Accountant.

(iii) 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.

2.48 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.

2.49 Transfer of Imported Goods

(a) Cases where prior permission is required:

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.

(b) Cases where prior permission is not required

(i) in case of sale or otherwise by importer of freely importable goods;

(ii) for goods imported with Actual User condition, provided such good is freely importable without Actual User condition on date of transfer
(iii) for goods with AU Condition after a period of two years from the date of import.

(iv) for transfer of Imported Firearms (a) after 10 years of import or (b) on attaining the age of 60 years by such importer.

(v) for transfer of weapon/s (firearm/s) imported by a Renowned Shooter (as defined in Policy Condition 3 of Chapter 93 of ITC (HS) 2012) for the purpose of his/her pursuing shooting as a sport to any upcoming shooter as certified either by the National Rifle Association of India (NRAI) or the Department of Sports, Ministry of Youth Affairs & Sports after two years from the date of import. The transferee can subsequently transfer/resell to any buyer as certified by the NRAI or Department of Sports for the sole purpose of pursuing shooting as a sport after one year from the date of its first sale. Such transfer/sale is subject to the provisions of the Arms Act, 1959 and other rules/regulations by state/local police. NRAI/Department of Sports will maintain the required records.

Import of Restricted Items:

2.50 Import 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, with a copy to DGFT Hqrs in ANF 2M 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.

2.51 EXIM Facilitation Committee

(a) Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf. DGFT / RA may take assistance and advice of a Facilitation Committee while granting authorisation. 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.

(b) Import authorisations 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. Authorisation holder shall register the import authorisation at the port specified in the 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.

2.52 Import of 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.

(a) 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.

(b) 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.

(c) Import entitlement under paragraphs 2.52 (a) and 2.52 (b) 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.

(d) 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).

(e) An application for grant of an Authorisation under paragraphs 2.52 (a) and 2.52 (b) may be made in ANF 2 M to DGFT through Director of Tourism, Government of India who will forward application to RA concerned along with their recommendations.

2.53 Import of Restricted items for R&D by units of Government

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.

2.54 Import of Metallic Waste and Scrap

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.

(a) Import of following types of metallic waste and scrap will be free subject to conditions detailed below:

Sl.Exim CodeItem description
1.720410 00Waste and scrap of cast iron
3.72042920Of High speed steel
5.72043000Waste and scrap of tinned iron or Steel
6.72044100Turnings, shavings, chips, milling waste, saw dust, fillings, trimmings and stampings, whether or not in bundles.
8.72045000Re-melting scrap ingots
9.74040010Copper scrap
10.74040022Brass scrap
11.75030010Nickel scrap
12.76020010Aluminium scrap
13.79020010Zinc scrap
14.80020010Tin scrap
15.81042010Magnesium scrap

(b) ‘Freely’ Importable metallic waste and scraps (shredded) as listed above shall be permitted through all ports of India subject to following conditions:

(i) At the time of the clearance of goods, importer shall furnish to the Customs pre-shipment inspection certificate as per the format to Appendix 2H from any of the Inspection & Certification agencies given in Appendix-2G, 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) Importer shall also furnish copy of the contract with the exporter stipulating that the consignment does not contain any radioactive contaminated material in any form.

(c) Import from Hodaideh, Yemen and Bandar Abbas, Iran will be in shredded form only.

(d) Import of un-shredded compressed and loose form of metallic waste, scrap listed in paragraph 2.54(a) above in shall be subject to the following conditions:-
(i) At the time of the clearance of goods, importer shall furnish to the Customs pre-shipment inspection certificate as per the format in Appendix 2H from any of the Inspection& Certification agencies given in Appendix-2G to the effect that 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 (s) is actually a metallic waste/ scrap /seconds /defective as per the internationally accepted parameters for such a classification.

(iii) 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.

(iv) 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. Paragraphdip, 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. ICDAhmedabad, 25. ICD Pitampur and 26. ICD Malanpur”.

2.55 Recognition as Pre-shipment Inspection Agency (PSIA) and issuance of Pre- shipment Certificate (PSIC)

(a) Application for recognition in respect of PSIAs have to be made in proforma prescribed in ANF 2L.

(b) For applicants based in India application fee will be Rs. 7500/- and for applicants based abroad the application fee will be US $200. The fees may be amended from time to time by DGFT.

(c) The applications will be considered by an Inter- Ministerial Committee.

(d) The PSIAs will be issued a recognition certificate valid for three years. However, DGFT has the right to suspend/cancel such a certificate at any time during the 3 year term. At the end of 3 years PSIA has to make a fresh application for further recognition.

(e) PSIA shall issue Pre-Shipment Inspection Certificate (PSIC) in the format given in Appendix 2H.

(f) A PSIA can carry out inspections in countries within its area of operation, where it does not have a full time equipped branch office, by deputing its Inspectors. However, for such inspections, the PSIA will be required to give prior intimation to DGFT by sending an email (at address [email protected]) and furnishing details of visit / inspection done by the Inspector in PSIC.

2.56 Responsibility and Liability of PSIA and Importer

(a) In case of any mis-declaration in PSIC, PSIA would be liable to pay a penalty upto Rs. 10 Lakh (if the agency is based in India) or up to US
$20,000/- (if the agency is based in a foreign country), in addition to suspension/ cancellation of recognition.

(b) The importer and exporter would be jointly and severally responsible for ensuring that the material imported is in accordance with the declaration given in paragraph 2.55 of Handbook of Procedures. They shall also be responsible for import of any material in contravention of the declaration as required under Paragraph
2.55 of Handbook of Procedures and would be liable to pay penalty up to Rs 10 Lakh.

(c) The scanned copy of the PSIC (in pdf format) shall be uploaded by the PSIA on DGFT website. The certificate shall be issued in prescribed form Appendix 2H.

(d) The PSIA will make a video clip of 3-5 minutes of the inspection carried out in mp3/mp4/flv/wav format, duly capturing the following activities/details:

(i) the time, date, place of the inspection

(ii) photographs of the exporter and representative of the importer
(if available)

(iii) the name and identity number of inspector

(iv) instrument number

(v) the container number

(vi) the event of stuffing of container and sealing of the same

(vii) the carriage and its registration number on which the container is loaded

(viii) the process of signing of the PSIA certificate by the authorised person.

(e) The video clip and PSIC will be uploaded on DGFT website by PSIA, through digital signatures. These would be available to the concerned customs authorities to view & verify the same. Till such time the DGFT website link is operationalised, the PSIC and video clip will be e-mailed ([email protected]) to the DGFT and the concerned customs authorities by the Authorised Signatory of PSIA.

2.57 Import of other kinds of metallic waste and scraps

Import of other kinds of metallic waste and scrap will be allowed in terms of conditions of ITC (HS).

2.58 Imports of seconds and defectives

Import policy for second and defective, rags, PET bottles /waste, and ships is given in ITC (HS).

2.59 Services of Inspection and Certification Agencies

Customs or any other Central or State Government authority may avail of services of Inspection and Certification Agencies in Appendix 2G of the Appendices and Aayat Niryat Forms, for certifying residual life as well as valuation / purchase price of capital goods.

Tariff Rate Quota Scheme:

2.60 Procedure for import under the Tariff Rate Quota Scheme

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:

DescripionHS No.In/out of quota rate (%) as per WTOIn/out of quota rate (%) As per Indian TariffNotificationTRQ

Skimmed Milk powder/ whole milk powder




12/12-Cus Sl. No. 7

10,000M T




12/12-Cus Sl. No. 7

Maize (corn), other than

seed quality




12/12-Cus Sl. No.




Crude sunflower seed oil and safflower seed oil




12/12-Cus Sl. No.




Rape, colza or mustard oil




12/12-Cus Sl. No.







12/12-Cus Sl. No.


Butter and other fats




12/12-Cus Sl. No. 9

15,000M T




12/12-Cus Sl. No. 9




12/12-Cus Sl. No. 9

Butter and other fats




12/12-Cus Sl. No. 9

15,000M T




12/12-Cus Sl. No. 9

2.61 Eligible entities for allocation of quota

(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).

(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.

2.62 Conditions applicable on availing quotas

All eligible entities are eligible to avail quotas subject to the conditions as detailed below:

(i) All eligible entities desiring availment of quota as mentioned above, may make application to EFC in ANF 2M 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

(ii) Imports have to be completed before 31st March of financial year i.e. consignments must be cleared by customs authorities before this date.

(iii) Since import of maize (corn) is through STEs, the allottees of quota i.e. designated agencies in paragraph 2.61 (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 paragraph 2.20 of FTP, 2015-2020.

(iv) Application fee for these applications shall be paid according to procedure contained in Appendix 2K of Appendices & Aayat Niryat Forms.

(v) EFC in DGFT will evaluate and allot quota among applicants by 31st
March of each financial year preceding to year of quota.

Exhibits and Samples:

2.63 Exhibits Required for National and International Exhibitions or Fairs and Demonstration

(a) Import / export of exhibits, which are freely importable/exportable, 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 bond/ security to Customs and ATA Carnet.

(b) 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.

2.64 Sale of Exhibits

(a) Restricted Items: Sale of exhibits of restricted items, mentioned in ITC (HS), imported for an international exhibition / fair 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 lakh (CIF) for such exhibits for each exhibitor.

(b) Freely importable items: However, sale of exhibits of items which are freely importable shall be allowed within bond period allowed for re- export on payment of applicable customs duties.

(c) 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.

2.65 Import of Samples

(a) 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 exceedingRs.2000 (CIF) in one consignment shall be allowed without anAuthorisation by any person connected with Tea industry.

(b) Duty free import of samples upto Rs.3,00,000 for all exporters shall be allowed as per terms and conditions of Customs Notification.

2.66 Exports of Samples / Exhibits

(a) Exports of bonafide trade and technical samples of freely exportable item shall be allowed without any limit.

(b) An application for export of samples/exhibits, which are restricted for export, may be made to DGFT as per ANF-2Q.

Exports :

2.67 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.

2.68 Gifts / Spares / Replacement Goods

For export of gifts, indigenous / imported warranty spares and replacement goods in excess of ceiling / period prescribed for exports of Gifts; export of Spares and export of replacement goods in FTP, an application may be made to DGFT in ANF 2Q.

2.69 Export of Items Reserved for MSME 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.

2.70 Export by post

In case of export by post, exporter shall submit following documents in lieu of documents prescribed for export by sea/air:

(a) Bank Certificate of Export and Realisation as in e-BRC in Appendix2U (b) Relevant postal receipt
(c) Invoice duly attested by Customs Authorities.

2.71 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.


2.72 Application for Grant of Export Authorisation/Certificate/ Permission for non-SCOMET Items

An application for grant of Export Authorisation in respect of restricted items [other than Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET)] mentioned in Schedule 2 of ITC (HS) Classifications of Export and Import Items may be made in ANF 2 N to DGFT (Headquarters) along with documents prescribed therein. EFC shall consider applications on merits for issue of export Authorisation.

2.73 Application for SCOMET Authorisation

(a) An application for grant of Export Authorisation in respect of SCOMET items mentioned in Appendix 3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items may be made in ANF 2 O to DGFT (Hqrs) along with documents prescribed therein.

(b) However, such applications are mandatorily to be filed through online system under the Icon E-COM on the website of DGFT. The Uniform Resource Locator [URL] for online application is http://dgft.gov.in/CallModule.asp?sch =SCOMET. While submitting the online application, all the required documents including End User Certificates (EUCs) are to be uploaded as PDF files. Manual submission of application is dispensed with except the original End User Certificate(s) in Appendix 2 S from all entities in the chain of supply viz. the foreign buyer, end user and intermediary/consignee (if they are different from the foreign buyer & end user), which is/are to be submitted in hard copy to SCOMET Section of DGFT (HQ), besides electronic submission.

2.74 Inter Ministerial Working Group

An Inter-Ministerial Working Group (IMWG) in DGFT (Hqrs.) shall consider applications for export of SCOMET items as specified in Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items based on following guidelines:

I. Applications for Authorisation to export items or technology on SCOMET List are considered on the basis of following general criteria:

(a) Credential of end-user, credibility of declaration of end-use of the item or technology, integrity of chain of transmission of item from supplier to end-user, and on potential of the 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, goals and objectives of global non-proliferation, orIndia’s obligations under International treaties/Agreements to whichit 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 the recipient State;

(d) Capabilities and objectives of programmes of the recipient State relating to weapons and their delivery;

(e) Assessment of end-use(s) of item(s);

(f) Applicability of provisions of relevant bilateral or multilateral agreements, to which India is a party, to the case under consideration.

II. Application shall be accompanied by an end user certificate as perAppendix 2S, certifying 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 byGovernment of India.

III. The end-user certificate will indicate the name of the item to be exported, the name of the importer, the specific end-use of the subject goods and details of Purchase Order/Contract.

IV. Government of India may also require additional formal assurances, as deemed appropriate, including those on end-use and non- retransfer, from the State of the recipient.

V. 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 the Department of Atomic Energy under Atomic Energy Act,1962. For certain items in Category 0, formalassurances from the recipient State will include non-use in any nuclear explosive device. Authorisations 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.

VI. Additional end-use conditions may be stipulated in Authorisations 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.

VII. Authorisations for export of items in SCOMET 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 certification. However, no export Authorisation for display or exhibition shall be issued for ‘Technology’ in any category

2.75 Applicability of WMD Act

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 ofAuthorisation shall invite civil and/or criminal prosecution.

Note 2: Authorisations for export of items in SCOMET 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 authorisation 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 Authorisation.

Note 3: Export of items in Category 2 of SCOMET list may also be controlled by other applicable guidelines issued from time-to time.
Note 4: 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 5: ‘Technology’ (see also entry ‘Technology’ in glossary in Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items): 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.

2.76 Supply of SCOMET Items from DTA to SEZ

No export authorisation is required for supply of SCOMET items from DTA to SEZ. However, all supplies of SCOMET items from DTA to SEZ will be reported to the Development Commissioner of the respective SEZ by the supplier in the prescribed proforma [Annexure 1 to Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items] within one week of the supplies getting effected. An annual report of such supplies from DTA to SEZ shall be sent to SCOMET Section, DGFT (Hqrs), Department of Commerce, Udyog Bhawan, Maulana Azad Road, New Delhi-110011, by the Development Commissioner (DC), SEZ in the prescribed proforma [Annexure 2 to Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items]. Report by the DC, SEZ is to be filed by 15th May of every financial year for the supplies effected during the preceding financial year. Export Authorisation is, however, required if the SCOMET items are to be physically exported outside the country from SEZ i.e. to another country (Refer Rule 26 of the SEZ Rules, 2006).

2.77 Outreach Programmes on SCOMET Export Control System

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.

2.78 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) Classifications of Export and Import Items shall be made in ANF 2 P to DGFT (Hqrs.), New Delhi along with documents prescribed therein. These applications shall be considered by an Inter-Ministerial Working Group (IMWG) in DGFT (Hqrs.) 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 governmentor 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 authorisation.

(b) Site visit, on-site verification or access to records/ documentation will be allowed only to individuals mentioned in the authorisation.

(c) Site visit, on-site verification or access to records/ documentation shall be concluded during the period mentioned in the authorisation.

(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 visitand produce the same as and when required to do so by theGovernment of India.

(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.

2.79 Issue of authorisation for repeat orders

Applications for grant of authorisations for repeat orders for export of SCOMET items shall be considered by IMWG on automatic basis, subject to the following conditions:

(i) (a) the product along with the technical specification (b) the exporter (c) the foreign buyer (d) the consignee or the intermediaries, if any (e) the end user (f) the end use and (g) the country of destination; shall be same.

(ii) The permitted quantity against repeat export authorisations shall not be more than 2 times of the quantity in original authorisation, subject to the annual manufacturing capacity of the end user in respect of the relevant product , as certified by the end user.

(iii) Only the applications submitted within two years from the date of approval by IMWG of the original SCOMET authorisation will be eligible for repeat authorisation.

(iv) There shall be a cap of two repeat authorisations against the original authorisation.

(v) A declaration by the authorised signatory on the qualifying conditions as per (i) to (iv) above shall be submitted along with the application for consideration under the repeat order route.

2.80 Revalidation of SCOMET authorisation

Export license for SCOMET items may be revalidated by RA concerned only on approval of DGFT for six months at a time and maximum upto 12 months from date of expiry of validity.

2.81 Export of Military Stores

Export of Military Stores will be permitted against No Objection Certificate (NOC) from Department of Defence Production. The grant of NOC will be governed by the Standard Operating Procedure (SOP) issued for the purpose by Department of Defence Production.

2.82 Time-line for comments/NOC

The members of IMWG will endeavour to furnish their written comments/views/No Objection to DGFT within 45 days from the date of forwarding of applications by DGFT (Hqrs.). If no comments/views/No Objection is received within the stipulated period, the cases will be placed before IMWG for taking a decision, as deemed appropriate.

Export through State Trading Enterprises (STE):

2.83 Export of Items under (STE)

An application under ANF 2N for export of items mentioned in ITC (HS),2012 under STE regime may be made to DGFT as per paragraph 2.20 ofFTP.

Provisions for exporters/other provisions for doing trade and business:

2.84 Free of Cost Exports for status holders

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 or2% of average annual export realisation during preceding three licensingyears whichever is higher.

2.85 Admissibility of benefits on payment through insurance cover

(I) Payment through ECGC cover would count for benefits under FTP.

(II ) 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.

(a) An applicant realizing export proceeds through Insurance Agency will approach the concerned RA with the proof of payment issued by the concerned Insurance Agency. RA after satisfying itself of the bona fide of the claim, will obtain approval of Additional DGFT (EDI) and then will upload the value (in lieu of e BRC value) in EDI system of DGFT for processing of the case.

(b) If the proof of payment issued by the Insurance Agency mentions claim value both in foreign exchange and INR, RA will use the foreign exchange value for processing. If the claim value is mentioned only in equivalent INR, RA will convert this INR value in equivalent US$ using the exchange rate (published by CBEC) applicable on the date of settlement of insurance claim”.

2.86 Irrevocable Letter of Credit

In case where applicant applies for duty credit scrip / discharge of EOagainst confirmed irrevocable letter of credit (or bill of exchange which isunconditionally 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 have been realized. For Status Holders, irrevocable letter of credit would suffice.

2.87 RBI write-off on export proceeds realization

Realization of export proceeds shall not be insisted under Foreign Trade Policy, if the Reserve Bank of India (RBI) or any “Authorised Bank” (authorised by RBI for this purpose) 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.

2.88 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.

2.89 Offsetting of Export Proceeds

Subject to specific approval of RBI, any payables, or equity investment made by an Authorisation 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-2L in lieu of Bank Realisation Certificate. (b) Specific permission of RBI.

Provisions related to Quality Certification:

2.90 Quality Certification

It has been a constant endeavour to promote quality standards in export product / units manufacturing export product.

Agencies authorised to grant Quality Certification:

(a) List of such agencies authorised to grant quality certification is given in Appendix-2I

(b) 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 authorised under this Policy. List of such accredited agencies is available on the web site www.qcin.org and also provided under Appendix 2I

(c) The agencies for ISO (9000) Series & ISO 14000 Series have been accredited on further classification of:

(i) Quality Management System(QMS)- http://www.qcin.org/nabcb/accreditation/reg.bod qms.php for Quality Management Systems
(ii) Environmental Management System(EMS) -http://www.qcin.org/nabcb/accreditation/reg bod ems.php for Environmental Management system .
These agencies are listed in Appendix 2I of the AANF.

(d) Any agency desirous of enlistment in Appendix 2I may submit their application as per Annexure I to Appendix 2I to concerned RA.
Export Promotion Council (EPC)/ Commodity Boards:

2.91 Registering Authorities

(a) Registering Authority is a body notified by DGFT in this regard to register importers/ exporters as its members by issuing RCMC.

(b) The list of notified Registering Authorities is at Appendix-2 T.

(c) EPCs acting as the Registering Authorities for RCMC at present will continue to act as Registering Authorities and issue RCMC to their members till 31st March, 2016. EPCs wishing to continue as Registering Authority for their product group thereafter shall have to comply and fulfil the conditions as specified in Paragraph 2.92 below before 31st March, 2016.

2.92 Criteria for EPCs as Registering Authorities

In order to make the EPCs truly democratic and participative in nature and for better governance and transparency, the criteria for them to function as Registering Authority are being laid down as under:

(a) e-Voting: Electronic Voting would be mandatory for election to the posts of Vice Chairman/Vice President and Executive Committee members with a view to ensuring wider participation.

(b) Tenure of Elected Heads: The tenure of an elected head shall not be for more than two years. The election of Chairman/President of the EPC shall be via Vice Chairman/Vice President route. However, any member having held the post of Chairman/President and/or Vice Chairman/Vice President may come back as Vice Chairman/Vice President in the same council after a gap of not less than 4 years.

(c) Directions of the Central Government: EPCs acting as the Registering Authorities shall abide by all directions of the Central Government in respect of promotion and development of international trade.
2.93 Registration- cum- Membership Certificate (RCMC)

(a) An exporter may, on application given in ANF 2C 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
2R, . In case an exporter desires to get registration as a manufacturer
exporter, he shall furnish evidence to that effect.

(b) Prospective / potential exporters may also, on application, register and become an associate member of an EPC.

2.94 Applying for RCMC

(a) While applying for 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.

(b) 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 yet to be settled, the exporter has an option to obtain RCMC from Federation of Indian Exporters Organization (FIEO).

(c) 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).

(d) In respect of exporters of handicrafts and handloom products from the State of Jammu & Kashmir, Director, Handicrafts, Government of Jammu & Kashmir is authorised to issue Registration Cum Membership Certificate (RCMC).

2.95 Validity Period of RCMC

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 the licensing year, unless otherwise specified.

2.96 Intimation Regarding Change in Constitution of Business ofRCMC holder

(a) 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.

(b) Exporter shall furnish quarterly return /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.

2.97 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.

2.98 Appeal Against De-registration

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.

2.99 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.

Other General Provisions:

2.100 Identity Cards for Importers /Exporters

(a) To facilitate collection of Authorisation and other documents from DGFT Head Quarters and RA, identity cards (as in Appendix 2W valid for 3 years) may be issued to proprietor/ partners / directors and authorised employees (not more than three), of importers and exporters, upon application in ANF 2B

(b) 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 ANF 2 B will require to be made by the applicant and all other parameters would need to be met.

(c) 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 self-declaration . RA may issue multiple identity cards, after recording reasons in writing, in cases of Directors/Partners of companies.

2.101 Interview with authorised Officers

Officers may grant interview at their discretion to authorised representative of importer / exporter. Interviews /clarifications may also be sought through E-mails.

2.102 Authorised signatory

 Any communication from the Exporter/Importer to DGFT’s office including the RA’s must have the name, signature, email id of the person duly authorised by the firm/company to send such communications.

Preferential Trade Agreements:

2.103 Free Trade Agreements (FTAs) / Preferential TradeAgreements (PTAs)

(a) India has always stood for a transparent, equitable, inclusive, predictable, non-discriminatory and rules based international trading system. In this context, India’s trade agreements may be seen as a measured and calibrated exposure of the Indian economy to international competition. As of October, 2014; India has signed 10
FTAs and 6 limited Preferential Trade Agreements (PTAs). India is also negotiating around 18 other FTAs.

(b) The list of the FTAs that have been signed by India are:

(i) India - Sri Lanka FTA
(ii) Agreement on South Asian Free Trade Agreement (SAFTA)
(iii) Revised Agreement of Cooperation between Government of
India and Nepal to control unauthorised trade
(iv) India - Bhutan Agreement on Trade Commerce and Transit
(v) India - Thailand FTA - Early Harvest Scheme (EHS)
(vi) India - Singapore Comprehensive Economic Cooperation
Agreement (CECA)
(vii) India – ASEAN CECA (Goods, Services and Investment)
(viii) India - South Korea Comprehensive Economic Partnership
Agreement (CEPA)
(ix) India - Japan CEPA
(x) India - Malaysia CECA

(c) The list of Preferential Trade Agreements (PTAs) signed by India are:
(i) Asia Pacific Trade Agreement (APTA)
(ii) Global System of Trade Preferences (GSTP)
(iii) India - Afghanistan PTA (iv) India - MERCOSUR PTA (v) India - Chile PTA
(vi) SAARC Preferential Trading Arrangement (SAPTA)

(d) The list of these agreements with the participating countries as well as their entry into force is given in Appendix 2A.

2.104 Unilateral Tariff Preferences

Under these schemes, both developed and developing countries grant unilateral tariff preferences to exports from developing countries including Least Developed Countries (LDCs). Some of these schemes are:

(A) 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 of America (ii) New Zealand (iii) Belarus (iv) European Union (v) Japan (vi) Russia (vii) Canada (viii) Norway (ix) Australia (only to LDCs) and (x) Switzerland

(b) 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-2 C.

(B) Duty Free Tariff Preference (DFTP) Scheme for LDCs:

(a) The mandate for Duty Free Quota Free (DFQF) access to Least
Developed Countries (LDCs) came from Paragraph 47 of the
Hong Kong Ministerial Declaration of December 2005. India became the first developing country to extend this facility to LDCs through its Duty Free Tariff Preference (DFTP) Scheme for LDCs which came into effect in August, 2008 with tariff reductions spread over five years. The Scheme provided preferential market access on tariff lines that comprise 92.5% of global exports of all LDCs.

(b) Subsequently in 2014, the Scheme was modified both with reference to increase in coverage as well as its simplification. This was in response to requests from several LDCs for additional product coverage on lines of of their export interest and simplification of the Rules of Origin procedures. Under the new expanded DFTP Scheme, India is granting duty free access on 96.4% of the total tariff lines, thereby retaining only about
3.6% of lines in the Exclusion and Positive Lists.For details
Department of Commerce’s website: http://commerce.gov.in/ trade/ international _tpp _DFTP.pdf. and Customs’ Notification No.8/2014 dated 1st April, 2014 may also be referred to in this regard.

2.105 Certificates of Origin (CoO)

(a) Certificate of Origin (CoO) is an instrument to establish evidence on origin of goods imported into any country.
(b) There are two categories of CoO viz. (i) Preferential and
(ii) Non preferential

2.106 Rules of Origin (Preferential)

(a) The rules of origin are the rules that determine the origin of a good for the purpose of exports to a trading partner. Under an FTA, PTA or a unilateral tariff concession, the tariff concessions are granted by an importing country only when these prescribed rules of origin are
adhered to. Rules of origin also facilitate in computation of trade statistics and for determination and imposition of trade remedial measures.

(b) Some of the key criteria used in the determination of the rules of origin are:

(i) Wholly obtained
(ii) Change in tariff classification
(iii) Value addition
(iv) Non minimal operations

(c) For exports under India’s FTAs, PTAs and GSP, specified agencies are authorised to issue the certificates of origin, They shall also 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. The list of these agencies authorised under the various FTAs/ PTAs is given in Appendix 2B

(d) Export Inspection Council (EIC) is the agency authorised to print blank certificates. The website of the EIC (www.eicindia.gov.in) provides procedural details (including fee) for issuance of the certificate of origin.

2.107 TRQ under FTA/CECA

Government, from time to time, undertakes commitments for import under Tariff Rate Quota (TRQ) in various FTA/CECA. Accordingly, DGFT notifies the procedure for administration of TRQ from time to time. The Tariff Rate Quotas as existing is as under:


HS No.

In/outof quota rate (%)as perWTO

In/outof quota rate (%)As per Indian Tariff



Vanaspati, bakery shortening

and margarine from Sri Lanka

1516, 1517 or 1518 (other than



15179030 and

15180040 which are prohibited

for import)



No.2/2007- Customs dated 5th






Pepper from Sri Lanka




No.2/2007- Customs dated 5th January




Desiccated Coconut from Sri Lanka




No.2/2007- Customs dated 5th January


*500 MT

Articles of apparel and clothing accessories


from Sri


61, 62





List 3

8 million pieces

Tea and preparagrap


thereof imported from Sri






List 4

15 million



Vegetable fats (Vanaspati) from Nepal


5th June 2007

1 Lakh


Acrylic Yarn from Nepal




Copper products from Nepal

Chapter 74 of ITC(HS) and 8544




Zinc Oxidefrom Nepal


2500 MT

* Imports will be permitted subject to the arrangements / Procedure as laid down in Annexure-I of Appendix-2A.

2.108 Rules of Origin (Non-Preferential)

(a) Rules of Origin (Non-Preferential) criteria are as under:

(I) Goods are to be manufactured by the exporting entity as perthe definition of “Manufacture” in Paragraph 9.31 of FTP; and

(II) If imported inputs (Duty Paid or Duty Free) have been used for the production of export product, the export product can be considered to be originating in India (Non Preferential) only if the imported inputs undergo the processing/ operations that exceed the following:

(i) simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making-up of sets of articles), washing, painting, cutting;

(ii) changes of packing and breaking up and assembly of consignments;

(iii) simple cutting, slicing and repacking or placing in bottles, flasks, bags, boxes, fixing on cards or boards, and all other simple packing operations;

(iv) operations to ensure the preservation of products in good condition during transport and storage (such as drying, freezing, keeping in brine, ventilation, spreading out, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations);

(v) affixing of marks, labels or other like distinguishing signs on products or their packaging;

(vi) simple mixing of products ;

(vii) simple assembly of parts of products to constitute a complete product;

(viii) disassembly;

(ix) slaughter which means the mere killing of animals; and

(x) mere dilution with water or another substance that does not materially alter the characteristics of the products.

(b) Government has also nominated certain agencies to issue Non- Preferential Certificate of Origin (CoO). These CoOs evidence origin of goods and do not bestow any right to preferential tariffs. List of notified agencies is provided in Appendix–2 E. In addition, agencies authorised to issue Preferential CoO are also authorised to issue Non- Preferential CoO.

(c) All exporters who are required to submit CoO (Non Preferential) would have to apply to any of agencies enlisted in Appendix–2 E with following documents:

(i) Details of quantum / origin of inputs / consumables used in export product.
(ii) Two copies of invoices.
(iii) Packing list in duplicate for concerned invoice.
(iv) Fee not exceeding Rs.100 per certificate as may be prescribed by concerned agency.

(d) The agency would ensure that goods are of Indian origin as per criteria defined in (d) below before granting CoO (non preferential). Certificate would be issued as per format given in Annexure-II to Appendix 2 E. It should be ensured that no correction/re-type is made on certificate. Any agency desirous of enlistment in Appendix–2 E may submit their application as per Annexure-I to Appendix 2 Eto DGFT.

(e) Non-preferential -Self Certification: Manufacturer exporters who are also Status Holders shall be eligible to self-certify their goods as originating from India, if goods qualify the criteria, as laid down in (a) above, as per Annexure –III to Appendix 2 E.

2.109 Approved Exporter Scheme (AES) for self -certification

Details of the Scheme are provided in Appendix 2F of AANF.


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