SALC Circular No. 5 dated 11^th September 2000

Attention of all Export Promotion Councils/ Exporters is invited to paragraph 7.5 of Handbook of Procedures (HBP) relation to issue of advance licences on self-declaration basis. Attention is also invited to the provision under paragraph 7.5 of HBP as per which against the applications field on self-declaration basis, the norms are required to be finalised by ALC within six months failing which norms as applied for shall be treated as final.

2. For finalisation of norms against applications filed on self-declaration basis within the prescribed period of six months, it is necessary that each of the application is complete with all relevant technical information. In this regard it has generally been found that many applications which are placed before ALC do not contain necessary details / information, which in turn results in frequent correspondence with the firms both by this office and the concerned administrative Ministries. In order to avoid loss of time in correspondence, all export Promotion Councils are requested to kindly advise their member-exporters that henceforth while filing application under paragraph 7.5 of HBP, exporters/ applicants should see that they have enclosed all the technical information / details that are necessary for fixation of norms for the export product in question.

3. Some of the illustrative examples of information that are generally required by the Advance licensing Committee for fixation of norms for different sectors are as under: -

(i)     Engineering/ Textile products:

1. Detailed drawing for the items of manufacture i.e. export product;

2. Justification for wastages claimed in regard to the items to be imported;

3. Justification for import of particular grade / specification / dimension etc., of the raw material applied for; etc.

(ii)    Chemical Products:

1. Stepwise Manufacturing Process.

2.  Complete Chemical reactions with molecular and structural formula and molecular weights along with Stagewise % yields on molar basis.

3. Material balance (Stoichometric Balance Details) for the entire Manufacturing process.

4. Requirement and recovery of solvents used in the entire manufacturing process at each step.

5. Authentic technical literature / catalogue in support of percentage yield claimed in the entire manufacturing process.

6. Details of by product / co-products formed in the above process with their quantities and values and also details of recovery of solvents / by products / co-products, if any both in terms of quantities and values.

7. The quantities and values of indigenous inputs used for manufacture of export product.

8. Collaborators guaranteed norms, if any.

9. C.A. Certificate regarding past three years production of export product and corresponding consumption of different raw materials.

10. Percentage purity of finished product and raw materials and percentage of any diluent/ moisture etc. in export product.

11. End use of the export product.

(iii)   Plastic/ Rubber Products:

1. Detailed manufacturing process alongwith technical justification for wastages claimed at each stage of manufacturing process.

2. Technical descriptions/ specification including size, thickness and weight range of plastic / rubber etc. of the products to be exported along with small samples of export product.

3. Chemical name of Processing Aid, Blowing Agent & pigment proposed to be imported.

4. Whether the scrap generated in the process is being reused or not if not be the technical justification for its non-use may be furnished. If the scrap is being sold, the sale value / commercial value may be indicated.

5. Percentage of rubber compound in the export product.

6. Percentage composite of rubber compound.

(iv)   Pesticides:

1. Manufacturing process for pesticides for both technical grade as well as formulation, as the case may be.

2. Detailed chemical reactions and material balance along with molecular weight of the reactants, % yield and wastages at different stages of manufacturing process supported by authentic / printed technical literature.

3. Details of by-products, if any, formed during the reaction alongwith its recovery in terms of quantity and value.

4. Percentage purity of finished product and raw materials and percentage of any diluent / moisture etc. in the export product.

5. Registration Certificate issued from Central insecticides Board for the manufacture of pesticides (technical grade) and also pesticides formulations.

6. Data of production and corresponding consumption of all the raw material in the past three years duly certified by C.A.

(v)    Paints/ surface coatings/ printing inks:

1. Percentage solid content in the export products.

2. Percentage pigment content in the export product.

3. Percentage volatile content in the export product.

4.     While filing applications under paragraph 7.5 of HBP for issue of Advance Licences on self declaration or for fixation of Standard Input/Output Norms or its modification, applicants should ensure that these applications are complete with all relevant information required for fixation of norms particularly those which are indicated in above paragraphs.

5.     Further while filing applications for fixation of DEPB rates, applications, in addition to information required to be furnished in terms of Appendix 52 of the Handbook of Procedures, shall also submit duly filled worksheet for calculation of DEPB rates as per worksheet enclosed.

6.     All Export Promotion Councils are requested to give wide publicity to this circular amongst their member exporters so as to facilitate early disposal of applications for issue of Advance Licences/ Fixation of Input Output Norms or Modification thereof and/ or for Fixation of DEPB Rates.

WORKSHEET FOR CALCULATION OF DEPB RATES