|
Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Public Notice No. 16/2015-2020
New Delhi: 4th June, 2015
In exercise of powers conferred under paragraph 1.03 of the Foreign Trade
Policy, 2015-2020, the Director General of Foreign Trade hereby notifies the
amendments to Handbook of Procedures of FTP 2015-20. These amendments shall be
deemed to have come into force with effect from 1st April, 2015.
- Amendment in paragraph 1.07
Amended heading of Para 1.07 shall read as under:-
“1.07. Separate applications from EDI and Non EDI ports”.
- Amendment in paragraph 2.47(A)(i) and (B)(i)
Amended paragraph 2.47(A)(i) shall read as under:-
“(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.21/2012 dated 17.3.2012, as amended from time to time) upto 25% of FOB value
of exports during preceding licensing year, shall be allowed.”
Amended paragraph 2.47(B)(i) shall read as under:-
“(B) Agro-Chemicals Sector
(i) Duty free imports of goods as specified in list 28A of Customs notification
No. 21/2012 dated 17.3.2012, 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.”
- Amendment in paragraph 2.59
Amended paragraph 2.59 shall read as under:-
“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 2 I of the Appendices and
Aayat Niryat Forms, for certifying residual life as well as valuation / purchase
price of capital goods.”
- Amendment in paragraph 2.108(d)
Amended paragraph 2.108(d) shall read as under:-
2.108 Rules of Origin (Non-Preferential)
“(d). The agency would ensure that goods are of Indian origin as per criteria
defined in (a) above 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 E to DGFT.“
- Amendment in paragraph 4.37(a)
In Paragraph 4.37(a), in the list of Sea Ports “Paragraphdeep” may be read as “Paradeep”.
- Amendment in paragraph 4.38
Amended paragraph 4.38 shall read as under:-
“4.38. Facility of Clubbing of Authorisations
(i) No clubbing of Authorisations issued on or before 31st March, 2009 shall be
allowed. Cases already considered by PRC shall not be re-examined by RA under
Para 4.38 of HBP for the purpose of clubbing. Applicant shall declare that he
has not included any Advance Authorisation in respect of which request for
clubbing has been considered earlier by PRC.
(ii) Request for clubbing shall be made in ANF - 4C to the concerned RA who has
issued the Authorisations.
(iii) Clubbing of authorisations covered under Appendix 4 J and authorisations
with EOP less than 18 months shall not be allowed.
(iv) Facility of clubbing of Advance Authorisations shall be available only for
redemption / regularisation of such authorisations and no further import or
export shall be allowed.
(v) Facility of clubbing shall not be available for Advance Authorisation for
Annual Requirement.
(vi) For clubbing, Authorisations are required to have been issued under similar
Customs notifications. Such Authorisations may pertain to different financial
years.
(vii) (a) Clubbing of Authorisations issued before 05.06.2012:
Only such Advance Authorisations shall be clubbed which have been issued within
36 months from the date of issue of the earliest Authorisation.
(b) Clubbing of Authorisations issued on or after 05.06.2012:
Only such Advance Authorisations shall be clubbed which have been issued within
18 months from the date of issue of earliest Authorisation.
(c) Clubbing of Authorisation issued before 5.6.2012 with authorisation issued
on or after 5.6.2012:
Only such Advance Authorisations shall be clubbed which have been issued within
18 months from the date of issue of the earliest Authorisation.
(viii) Accounting of exports made outside the export obligation period of
earliest Authorisation shall be regularized, on payment of composition fee, in
the following manner:
(a) Where Authorisations were issued with initial obligation period of 36 months
and last date of shipment is within 48 months:
In such cases, exports made upto 48 months from the date of issuance of earliest
authorization shall only be taken into
consideration for clubbing. Accounting of exports made shall be subject to
payment of a composition fee @ 0.5% of FOB value of exports made after 36 months
from the date of issue of earliest authorisation but upto 42 months. For the
exports effected after 42nd month till 48th month from the date of earliest
Authorisation, the composition fee will be @ 0.5% per month of FOB value of
exports made.
(b) Where Authorisations are issued with initial obligation period of 18 months
and last date of shipment is within 30 months:
In such cases, exports made upto 30 months from the date of issuance of earliest
authorization only will be taken into consideration for clubbing. Accounting of
exports shall be subject to payment of a composition fee @ 0.5% of FOB value of
exports made after 18 months from the date of earliest authorisation but upto 24
months. For the exports effected after 24th month till 30th month from the date
of earliest Authorisation, the composition fee will be @ 0.5% of FOB value of
exports made.
(c) Where Authorisation(s) with initial obligation period of 36 months is
clubbed with authorization(s) with initial obligation period of 18 months.
In such cases, exports made upto 30 months from the date of issuance of earliest
authorization only will be taken into consideration for clubbing. Accounting of
exports shall be subject to payment of a composition fee @ 0.5% of FOB value of
exports made after 18 months from the date of earliest authorisation but upto 24
months. For the exports effected after 24th month till 30th month from the date
of earliest Authorisation, the composition fee will be @ 0.5% of FOB value of
exports made.
(ix) Minimum value addition as prescribed in FTP and Procedures for the export
product will be required to be maintained. Upon clubbing, if shortfall in value
or quantity is noticed, the same shall be regularized under the provisions of
Para 4.49 of HBP. However, clubbing of authorisations issued with different
minimum value addition criteria shall not be allowed by RA.
(x) After clubbing, authorisations shall for all purposes, be deemed to be one
Authorisation. The value addition would be calculated on the basis of total CIF
and total FOB arrived at after clubbing the Authorisations.”
- Amendment in paragraph 4.42
Amended paragraph 4.42 shall read as under:-
“4.42. Export Obligation (EO) Period and its Extension
(a) Period of EO fulfilment under an Advance Authorisation shall commence from
date of issue of Authorisation, unless otherwise specified. The period of EO
fulfilment is given in paragraph 4.22 of FTP.
(b) Regional Authority may consider a request of Advance Authorisation holder
for one extension of EO period upto six months from the date of expiry of EO
period subject to payment of composition fee of 0.5% of the shortfall in EO.
Authorisation holder will have to submit a self declaration to RA stating that
unutilised imported/domestically procured inputs are available with the
applicant.
(c) Request for further extension of six months after first extension as in (b)
above can be considered by Regional Authority, provided Authorisation holder has
fulfilled minimum 50% export obligation in quantity as well as in value, on
pro-rata basis. This will be subject to payment of composition fee @ 0.5% per
month on unfulfilled FOB value of export obligation. No further extension shall
be allowed by Regional Authority. This provision shall also be applicable to
Advance Authorisations issued during FTP 2009-2014. However, only two extensions
of six months each as given in sub-para (c) and in this sub-para can be allowed
subject to payment of composition fee and under no circumstance Regional
Authority shall allow any extension beyond 12 months from date of expiry of EO
period. At the time of filing application for second extension, authorisation
holder will have to submit a certificate to RA from an independent Chartered
Accountant/Chartered Engineer certifying that unutilised imported/domestically
procured inputs are available with the applicant.
(d) However, extension in EO period in respect of an Advance Authorization
issued for import of an input listed under Appendix 4J of HBP 2015-2020 or
Appendix 30A of Hand Book of Procedures 2009-14 shall not be permitted by RA.
(e) Whenever a ban / restriction is imposed on export of any product, export
obligation period in respect of Advance Authorisation already issued prior
to imposition of ban, would stand automatically extended for a period equivalent
to the duration of ban, without any composition fee.”
- Amendment in paragraph 4.85
Amended paragraph 4.85 shall read as under:-
“4.85 Exports against Advance Authorisation
(a) Procedure applicable to Advance Authorisations under Chapter 4 of Hand Book
of Procedures shall generally apply to this scheme except norms for value
addition, EO period and regularization of default. Value addition for Gems and
Jewellery items shall be as per paragraph 4.61 of this Handbook of Procedures.
(b) EO will be required to be fulfilled within 120 days from date of import of
each consignment against Authorisation. However EO period shall be 180 days from
date of import of findings, mountings made of gold, platinum and silver and
export of jewellery. No further extension in EO period will be allowed.
(c) Advance Authorisation holder may obtain gold /silver / platinum from
nominated agencies in lieu of direct imports. In such a case, nominated agency
shall make, both exchange control copy and customs purpose copy of Authorisation
invalid for direct imports.”
- Amendment in paragraph 7.02(c)
Amended paragraph 7.02(c) shall read as under:-
7.02. Criteria for claiming benefits
“(c) In respect of supply of goods to an EPCG Authorisation holder, against
Invalidation Letter, application for Advance Authorisation / DFIA shall be made
as per procedures given in Chapter 4 of HBP. Since supply of goods to an EPCG
Authorization holder is not exempted from payment of TED, claim for such TED
refund may be made to the RA concerned, as per the invalidation letter. In
respect of supply of goods to EPCG Authorisation holder against ARO, issued as
per Paragraph 5.08 of HBP, refund of TED shall be allowed. If Advance
Authorisation / DFIA is not obtained for duty free inputs, Duty drawback shall
be allowed on duty paid inputs used in the resultant product.”
10. Amendment in paragraph 9.10 Time Bound Disposal of Applications.
In the table under this paragraph, time limit for disposal of applications under
category at Sl. No. vii is being modified and a new category at Sl. No. xv is
being added as per details below:
| S. No. |
Category of Application |
Time Limit For Disposal (in working days) |
| vii |
Acceptance of BG/LUT |
3 |
| xv |
Schemes of Chapter 3 |
3 |
Effect of this Public Notice: Amendments to the Handbook of Procedures of FTP
2015-2020, are hereby notified which shall be deemed to have come into effect
from 1st April, 2015.
[Pravir Kumar]
Director General of Foreign Trade
Email: [email protected]
[Issued from File No.01/94/180/333/AM15/PC4]
|