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Government of India
Ministry of Commerce & Industry
Department of
Commerce
Directorate General of Foreign Trade
Udyog Bhawan
Public
Notice No. 11/2015-20
New Delhi, Dated the 26th July, 2017
Subject: Amendment in paras 2.16, 2.20, 2.51, 2.74, 2.79 and 2.80 of the
Handbook of Procedures (HBP) of Foreign Trade Policy (FTP) 2015- 20 – regarding.
In exercise of the powers conferred under Paragraph 1.03 of the Foreign Trade
Policy (FTP), 2015-20, the Director General of Foreign Trade, hereby makes
amendments i n paras 2.16, 2.20, 2.51, 2.74, 2.79 and 2.80 of the Handbook of
Procedures (HBP) of FTP 2015-20, with immediate effect (changes made are in bold
letters).
2. The revised paras 2.16, 2.20, 2.51, 2.74, 2.79 and 2.80 of the HBP of FTI’
2015-20 would be substituted to read as under [including addition of sub para
2.51(c) and 2.74(IX)] :
“2.16 Validity period of Authorisation/ Licence/ Certificate/ Authorisation
Permissions/ CCPs
a) Validity period of Import / Export Authorizations from the date o issue
shall be as follows, unless specified otherwise:
| Sr. No |
Type of Authorisation |
Validity Period |
| (i) |
Export Authorisation for restricted (Non SCOMET) goods |
12 months |
| (ii) |
Export Authorisation for SCOMET items |
24 months.
|
| (iii) |
Import Authorisation for restricted items and CCP |
18 months.
|
| (iv) |
EPCG Authorisation |
18 months.
|
| (v) |
Advance Authorisation (AA) for Deemed Export |
Coterminous with contracted duration of project execution or 12 months, which giver is more. |
| (vi) |
AA {except (v) above}, DFIA, Replenishment Authorisation for Gems & Jewellery as per Chapter 4 of FTP. |
12 months from issue date.
|
b) However, EXIM Facilitation Committee (EFC) (for non-SCOMET items) and
Inter Ministerial Working Group (IMWG) (for SCOMET items) may approve the grant
of Export Authorisation for a shorter / longer duration in specific cases to
meet contractual obligations/delivery schedule or on specific recommendation of
the concerned Technical / Administrative Ministry / Department / or any other
agency.
2.20 Revalidation of Import/ Export Licence
Certificate/Authorisation/ Permissions for Non-SCOMET and SCOMET items
a)
RA concerned may revalidate import authorisation on merits for si K months from
date of expiry of validity.
b) Export Authorisation, including for SCOMET
items, may be revalidated, on merits, for a period of six months at a time and
maximum upto 12 months by the RA concerned. However, any extension /
revalidation shall be allowed only by DGFT in cases where shorter / longer
duration of export authorisation has been permitted under Paragraph 2.16(b) of
Handbook of Procedures.
c) However, revalidation of freely transferable
authorization / duty crt dit scrips and stock and sale authorization shall not
be permitted unless validity has expired while in custody of Customs Authority /
RA / or any other Government Authority.
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
authorization. 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 /Mini ;tries concerned.
(b) Import authorizations for a restricted item, if so directed by the
competent authority, shall be issued for import through one of the sea ports or
air ports or ICDs or LCS, as per the option indicated, in writing, by the
applicant. Authorization colder shall register the import authorisation at the
port specified in the Authorizatior and thereafter all imports against said
authorization shall be made only through that port, unless the authorization
holder obtains permission from customs authority concerned to import through any
other specified port.
(c) EXIM Facilitation Committee (EFC) shall
normally meet once every month. Where a case has been deferred in EFC for want
of comments from the Technical Authorities and Departments /Ministries concerned
but subsequently, NOC(s) has / have been received from the concerned agency(ies)
with no divergence in views, authorisation shall be issued with the approval of
Chairman, EFC and the case shall be brought before EFC in its subsequent meeting
for approval on ex-post facto basis.
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 g .sidelines :
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, or India’s
obligations under International treaties/Agreements to which it is a State
party.
b. Assessed risk that exported items will fall into hands of
terrorists, terrorist groups, and non-State actors;
c. Export control
measures instituted by 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 and Arrangements,
to which India is a party, or adherent, including b it not limited to the
guidelines and control lists of the Nuclear Suppliers Group, I Missile
Technology Control Regime, Australia Group and Wassenaar Arrangement (and its
Sensitive List and Very Sensitive List) as updated from time to time.
II.
Application shall be accompanied by an end user certificate (EUC) in the
prescribed proforma, as applicable [Appendix 2S(i), 2S(ii) or 2S(iii)],
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 by
Government 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. (a) Licensing authority for items in Category 0 and Note 2 o f the
‘Commodity Identification Note’ 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, formal assurances from the recipient State will include non-use in
an 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.
(b) Licensing authority for items in Category 6 in Appendix 3 to
Schedule 2 of ITC (HS) is Department of Defence Production. Export of items in
Catego y 6 is governed by the extant Standard Operating Procedure issued by the
Department of Defence Production in the Ministry of Defence. Export of items
covered in Note 3 of the ‘Commodity Identification Note’ in Appendix 3 to
Schedule 2 of ITC (HS) is prohibited.
VII. 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 o ‘mass destruction.
VII.
Authorisations for export of items in SCOMET List(other than those under
Category 0, 1, 2 & 6) solely for purposes of display or exhibition shall riot
require any end-use or end-user certification. However, no export Authorisation
for d splay or exhibition shall be issued for`Technology’ in any category. IMWG
would seek comments from technical agencies as deemed necessary.
VIII.
Authorization for export of items in Categories 0, 3 (other than 3I)), 4, 5 and
7 of the SCOMET list to Iran would be subject to the relevant provisions
contained in Annex B to the UN Security Council resolution 2231 (2015). The
licensing authority, i.e. DGFT or Department of Atomic Energy, as the case may
be, on completion of th IMWG process or the applicable internal process, shall
seek the concurrence of Disarmament and International Security Affairs (D&ISA)
Division in the Ministry of External Affairs, a: required.
IX. The Inter
Ministerial Working Group shall normally meet once every month. Where a case has
been deferred in the IMWG and subsequently, NOC(s) has / have been received from
all concerned agencies with no divergence in vi ews, authorisation shall be
issued with the approval of Chairman, IMWG and the case shall be brought before
IMWG in its subsequent meeting for approval on ex-post facto basis. Case(s),
where a decision could not be arrived in IMWG, shall be placed before Director
General of Foreign Trade for appropriate decision on grant of authorization.
2.79 Issue of authorization for repeat orders
Applications for grant
of authorizations for repeat orders for export of S 17,0MET items shall be
approved by Chairman IMWG on automatic basis and the case shall be brought
before IMWG in its subsequent meeting for approval on ex-pot t facto basis. The
approval will be subject to the fulfillment of the following criteria:
(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 authorizations shall not be
more than 2 times of the quantity in original authorization, 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 d ate of approval by IMWG of the original
SCOMET authorization will be eligible for repeat authorization.
(iv)
There shall be a cap of two repeat authorizations against the original
authorization.
(v) A declaration by the authorized 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 authorization
Revalidation of export authorisation
for SCOMET items will be governed in terms of Paragraph 2.20(b) .
3.
Effect of this Public Notice:
Para No. 2.16, 2.20, 2.51, 2.74, 2.79 and
2.80 of the Handbook of Procedures of FTP 2015- 20 have been amended.
(Alok Vardhan Chaturvedi)
Director General of Foreign Trade
E-mail:
[email protected]
(Issued from F. No.01/91/180/ 18/AM17/EC)
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