Government of India
Department of Commerce
Directorate General of IForeign Trade
Policy Circular No- 10 /2018-19
Udyog Bhavan, New Delhi Dated:13.07.2018
Sub: Accountability of inputs where Advance Authorisations are issued on
net to net basis for parts/ components- req
1. Attention is invited towards SI.No-6 of General Note for all products of Standard
Input Output Norms which reads as under:
"Unless speatied, otherwise/ the import of components wherever allowed shall be
permitted on net to net basis/ i.e./ without any wastage/ with accountability clause
and the type/ technical specifications (including part No. if any) etc., of the
components sought for import should conform to those utilized in the manufacture of
the resultant product. which should be reflected in export documents (Shipping Bills)
also. A condition to this effect shall be imposed on the licence.
2. Attention is also invited towards SI.No-4 of Genera! Note for Engineering products
which reads as under:
"For Import of components/ in respect of Export product (a) where norms have not
been standardized and published and the applicant seeks to import only Components
(without any raw meter/st. consumables etc.) or (b) where SIGN do not provide
import of Components or (c) where additional Components in addition to those
allowed in norms are souqht: the Components as an input may be allowed for import
017 net-te-net basis/ without any wastage/ by the Licensing Authority. Import of
components sought as Spares shall be governed by the Policy for Spares. In such
cases; the import of Components allowed shall be permitted with accountability
clause and the; type/ technical spectticetions (including part No. if any) etc. of the
Components sought for import should conform to those utilized in the manufacturing
of the resultant product. which should be reflected in export documents (Shipping
Bills) also. A condition to this effect shall be imposed 017 the licence."
3. Representations have been received from Trade and Industry informing the
difficulties being faced by them in getting EODes where inputs have been obtained
on net to net basis subject to accountability clause in terms of SI. No-4 of General
Notes for Engineering Products and SI No-6 of General Notes for All Export Products
Groups. Exporters have declared the inputs in the shipping bill. However, doubts
have been raised whether declaring inputs in the shipping bill amounts to fulfilment
of accountability clause as mentioned in the above general notes. Some exporters
have not indicated model/part numbers of inputs imported duty free while making
shipments.
4. In order to improve ease of doing business and to facilitate issuance of EODC,
it has been decided that EODC shall be issued on the basis of the following:
a. Exporter should invariably declare input quantities used in the export product
in the relevant part of the shipping bill.
b. Authorisation holder shall submit an accountability statement showing
description and quantity of exported products and inputs consumed therein as
per the annexed format.
e. A certificate, as per annexed format, from independent Chartered Engineer
having domain knowledge, certifying that inputs imported are actually
required for manufacturing of the resultant product and as per inventory; all
imported inputs have been used in the resultant products. He shall also
certify the quantity exported and item wise input quantity consumed.
5. This will also be applicable for Advance Authorisations where EODC are
pending irrespective of policy period.
This issues with the approval of DGFT in public interest
(Issued from F.No- 01/94/180/145/ AM19/PC-4)
(Jay karan Singh) Joint Director General of Foreign Trade
Format of Accountability statement for grant of EODC
(For cases covered under 51. No-4 of General Notes for Engineering Products and 51 No-6
of General Notes for All Export Products Groups)
Name of the applicant: IEC number: Advance Authorisation No: Date of issue:
Table A: Export item details:
SI.No of export item |
Export Item Description |
Total Qty exported |
(1) |
(@) |
(3) |
|
|
|
Table B: Import Item details
SI.No. of export item (as per table A) |
Corresponding SI.No of Input as per authorisation. |
Description of input as per Bill of Entry (including technical
specifications /part nos etc) |
Description of input actually used in the resultant product.
(including technical specifications /part nos etc) |
Total Qty imported as per B/E for Qty exported as per Column (3) of
Table A |
Qty consumed in the resultant product for Qty exported as per Column
(3) of Table A |
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
|
|
|
|
|
|
Note: Contents in column (3) and (4) as well as in column (5) and (6) should be same for grant of EODC
Declaration
I/we hereby declare that information furnished as above are true and correct as per records
maintained by us. Information furnished above if found to be incorrect or false or
misleading in future, I/we shall be liable for penal action under the provisions of FTDR Act
and rules made thereunder.
Place: Date:
Signature of the Applicant
Name:
Designation:
Telephone number:
Email Address:
Certificate of Charted Engineer
1. I am a Chartered Engineer having Registration No. dated
____________ (copy enclosed). My domain competence is in the field of (example
mechanical, electrical etc.) ___________________.
2. I have examined the details of requirements of parts/components imported
under Authorisation ___________________ No dated ___________ by M/s ____________
_____________ (Name applicant/manufacturer and address of factory where
goods are manufactured). I have examined accountability statement furnished by
Authorisation holder along with technical details thereof and requirements of
parts/components etc. with regard to their technical description/ specification and
the quantity against each item of export and having due regard to proper technical
norms of consumption and after technical scrutiny of relevant process, designs and
drawings of the export product, I do hereby certify that they are correct in all
respects and are actually used in the manufacturing of the export product for which
the EODC application is made.
Information furnished above if found to be incorrect or false or misleading in future,
I shall be liable for penal action under the provisions of FTDR Act and rules made
thereunder in addition to any other action that may be taken as per any other law,
including cancellation of membership with 'the Institution of Engineers (India)'.
Place: Date:
Signature of the Applicant
Name:
Designation:
Telephone number:
Email Address:
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