Government of India
Ministry of Commerce & Industry
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi
New Delhi, Dated the 10th February, 2016
Trade Notice No. 17/2016
To
- All IEC holders/applicants
- All EPCs / All Chambers of Trade and Industries
- FIEO/ASSOCHAM/CII
- All RA’s of DGFT
- All Customs/Port Authorities
Sub: Clarification on the Notification No 38 dated 5.2.2016 regarding
Minimum Import Price (MIP) on Iron & Steel under Chapter 72 of ITC (HS) 2012 –
Schedule 1 Import Policy
This Directorate has received various queries for clarification on the
Notification No. 38 dated 5th February, 2016 regarding MIP on Iron and Steel
under Chapter 72 of ITC (HS) 2012. The following queries raised are clarified
point-wise as under:-
Question1: Whether imports below the USD unit value specified in the
Notification are restricted for imports?
Answer: Imports effected on or after 5.2.2016 below the USD unit value specified
in the Notification will be restricted from entry into India.
Question 2: What must be the landed unit cost of the Importer?
Answer: Landed unit cost must not be below the specified MIP.
Question 3: Whether it is possible to import items covered under
Notification
No. 38 (2015-2020) having a unit CIF import price below the MIP by paying custom
duty on the MIP unit value specified in the Notification?
Answer: No. It is not possible to import items covered under
Notification No. 38
(2015-2020) whose unit CIF import price is below the stipulated MIP by paying
custom duty on the MIP specified in the Notification. The imported items must
have a unit CIF value equal to or above the MIP.
Question 4: Import shipments are in Transit and shipped(B/L Date) before 5th
February, 2016 from China. As the Notification facilitates only LC holders, what
happens to importers doing business on DA/TT basis?
Answer: Imports are governed by provisions as in Para 2.17 of Handbook of
Procedure (2015-20) which inter-alia lays down that the date of reckoning of
“import” is decided with reference to date of shipment/dispatch of goods from
supplying country as given in Para 9.11 of Handbook of Procedure: and not the
date of arrival of goods at an Indian port. Accordingly, imports effected on
5.2.2016 and thereafter will be governed by the
Notification No. 38 dated 5th
February, 2016.
Question 5: Whether imports on letter of credit issued on 5th February, 2016
will be permitted for clearance?
Answer: No. In the Notification it is clearly stated that import shipments under
letter of credit entered into before the date of the Notification shall be
exempted from the Minimum Import Price condition subject to Para 1.05(b) of the
Foreign Trade Policy 2015-20.
Question 6: Will the letter of credit required to be registered? If so, with
which authority?
Answer: As per Para 1.05(b) of the Foreign Trade Policy 2015-20, for operationalising irrevocable letter of credit, the applicant/importer will have
to register the Letter of Credit with jurisdictional Regional Authority(RA)
against computerized receipt, within 15 days of the imposition of any such
restriction or regulation.
(S.P. Roy)
Joint Director General of Foreign Trade
Email: [email protected]
No. 01/89/180Moni-5852/AVI-03/PC-2(A)Vol.VI
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