Registration procedure that is being followed for import of all types of approved and unapproved drugs under the Advance Licensing Scheme - DGFT - 12 (RE-2005)/2004-2009

Registration procedure that is being followed for import of all types of approved and unapproved drugs under the Advance Licensing Scheme GOVERNMENT OF INDIA MINISTRY OF COMMERCE INDUSTRY DEPARTMENT OF COMMERCE DIRECTORATE GENERAL OF FOREIGN TRADE POLICY CIR NO. 12 (RE-2005)/2004-2009, DT. 27/06/2005 Attention is invited to this office's Policy Circular No.9 (RE-2004)/2002-2007 dt. 30.6.2003 and Policy Circular No.15 (RE-2004)/2002-2007 dt. 17.9.2003. Certain problems have been pointed out by various exporters and the Licencing authorities in implementing the above Policy circulars. The issues are clarified as under. 2) In case where Advance Licence holders are exporting the goods which are manufactured from the raw materials procured from local sources, then they are not allowed to import from unregistered sources. In case exporters intend to procure the material either from registered sources or from local sources through ARO and Invalidation then the exemption facility given on the Advance Licences for importing from unregistered sources may be withdrawn and shall be modified to import from registered sources only. Once the imports are from registered sources, conditions governing normal Advance Licences are applicable in these cases-which include normal validity period and normal EO period. 3) In any case if the material is imported from unregistered sources and the licence holder has failed to export the goods, then the advance licence cannot be regularized even on payment of applicable customs duty etc. It is reiterated that unregistered raw material under any circumstances shall not allowed to be diverted for domestic consumption within India. However, the licensee has the option either to use the imported raw material for production of other export products for export or to re-export the imported raw material and the advance licence obligation shall be deemed to have discharged to that extent. The Customs Authorities shall ensure that the raw material so exported should be the same raw material, which was imported earlier against the particular licence. In addition, the aforesaid facility would be available irrespective of the foreign buyer and can be exported to any other foreign buyer. If the export obligation period is not valid at the time of export of other finished product/re-export of raw material, then the licensee shall be required to pay necessary composition fee for extension in export obligation period as per provisions of Policy and the Procedure laid there under. This issues with the approval of the DGFT. File No-01/94/180/EODC-SVIZERA LABS/AM05/PC-IV) (S.B.S.Reddy) JT. DIRECTOR GENERAL OF FOREIGN TRADE