Policy Circular No. 25 dated 3^rd August 1999

Attention is invited to Paragraph 11.5 of Chapter 11 of Export and Import Policy 1997-2002. This paragraph permits export of warranty spares whether indigenous or imported of plant, equipment, machinery, automobiles or any other goods upto 7.5% of the FOB value of the exports of such goods alongwith the main equipment or subsequently but within the contracted warranty period of such goods.

2.     Clarification has been sought whether these spares can be exported free of cost or not. It is reiterated that the export of warranty spares permitted vide paragraph 11.5 of the Policy may be made free of cost and without any remittance obligation.

3.     This issues with the approval of Director General of Foreign Trade