Streamlining of the procedure for licensing under para 4.7 of Handbook of Procedures Vol. 1 2002-2007 - DGFT - 20/2002

Streamlining of the procedure for licensing under para 4.7 of Handbook of Procedures Vol. 1 2002-2007 TRADE NOTICE NO. 20/2002 Dated 19/02/2003 ( corresponding to para 7.5 in Handbook of Procedures Vol. 1 1997-2002). As per para 4.7 of current Handbook of Procedures Vol-1, 2002-2007, RLAs may also issue advance licence where SION are not fixed, subject to conditions given in that para. The basic objective of this paragraph is to dispense with the requirement of prior approval by ALC of the Input Output norms of the licence so as to facilitate immediate issue of the licence for obtaining uninterrupted supplies of input required for export production. All other procedures and requirements applicable to the grant of Advance Licence are to remain unchanged and would continue to be applicable. It is considered expedient to consolidate the existing instructions and to streamline the procedure for licensing under the above category in the following manner: 2. Filing of Applications and issue of licences :- It has been decided that Procedure as given below shall be followed by the applicants for licensing under paragraph 4.7 of Handbook of Procedures, Vol.1, 2002-2007:- The exporters desirous of obtaining the licence under para 4.7 shall submit their application, in 7 sets, in the prescribed proforma, i.e., Appendix 10 B to the Handbook of Procedures Vol.1, 2002-2007, complete in all respect along with Check Sheet as annexed to this notice. The Check Sheet is designed to ensure submission of details on the technical aspects of the application so as to enable the Technical Authorities and the ALC to undertake technical scrutiny thereof for determining the input output requirements. Therefore, the applicant should ensure that the relevant details against each and every point (related to the appropriate Export Product Group) as listed in the said Check Sheet either in the appropriate column of the application (Appendix 10-B) itself or in a separate enclosure are furnished. Wherever any point is not applicable to the specific application, the applicant should state so with the remarks "not applicable for the reasons given below -------" After scrutinising the application and if no deficiency is found by the Licensing Authority, the licence would be issued within the prescribed time limit (3 working days). In terms of para 4.7.4 of Handbook of Procedures Vol. 1 the Licensing Authority shall forward 5 complete sets of application with prescribed documents, technical details (as per Check Sheet), and copy of the licence to ALC, New Delhi. 3. Implementation of ALC decisions:- On receipt of the minutes of the ALC by the RLA, the RLA within a week will be initiating necessary consequential action as enumerated below:- (a) In case the licence has been ratified by ALC as applied for, the relevant position will be communicated to the party for their information and record. (b) In case licence has been approved by ALC with modification, RLA shall immediately call for the licence from the firm (within 7 days) alongwith statement of imports already made for making necessary amendment therein as per the decision of the ALC. While issuing amendment sheet it may be made clear to the licensee that in case excess import has been made, they should immediately deposit the custom duty with prescribed interest thereon within a period of 30 days. This excess import as may be calculated by the RLA with reference to quantities approved by ALC and that actually imported by the licensee, may be conveyed to the licensee. In case of failure of the licensee to deposit the custom duty with interest on the excess import within the stipulated period, RLA should immediately initiate action under Foreign Trade (Development Regulation) Act, 1992 (within a period of 15 days after the expiry of the stipulated period) to recover the custom duty and interest unless the licensee has requested for pro-rata enhancement in the export quantity with a view to account for the excess imports. For this purpose, RLA may also deny grant of licences in future under the said Para 4.7. 4. Review of the cases (a) If the licensee so desires, he can make representation to the concerned ALC against the decision of the Committee rejecting or modifying his application alongwith full justification and requisite details. Such representations should, however, be submitted within a period of 30 days from the date of the communication of relevant decision by the RLAs/ HQrs. (b) These representations may normally be placed before the ALC within 15 days. However, in such cases the time limit as laid down in para 4.7 will not be applicable. Henceforth all Applicants who makes applications under para 4.7 of HB are required to follow the above instructions. S.S.Sandhu (Zonal Joint DGFT) ANNEXURE- I (To be furnished by Exporter - duly filled. One Copy) OFFICE OF THE JT. DIRECTOR GENERAL OF FOREIGN TRADE, MUMBAI CHECK SHEET TO BE USED BY THE COUNTER ASSISTANCE IN THE OFFICE OF THE RLA FOR SCRUTINY OF THE APPLICATION FILED UNDER PARA 4.7 OF Handbook of Procedures VOL.1 2002-2007 FOR GRANT OF SELF DECLARED ADVANCE LICENCE FOR THE EXPORT PRODUCT FOR WHICH SION DO NOT EXIST____ PART I Particular of the applicant 1. Name and address of the applicant:- 2. CIF value of the licence applied for:- 3. Description of Export Product :- PART II - GENERAL REQUIREMENT Whether the applicant has furnished the following in the application:- 1. Bank receipt Yes/NO 2. Project Authority Certificate in case Yes/No/NA of Advance Licence for Deemed Exports 2(A) Certificate from the Ministry of of Power (duly signed by an officer of and above the level of Joint Secretary) in the case of Advance Yes/No/NA Licence for Deemed Exports for supply to Thermal Power Plant as per para 8.6.6.1 of Handbook of Procedures Vol.1 3. Copy of invalidation letter in the Yes/No/NA case of Advance Licence for intermediate supply 4. All the columns of the application Yes/No in appendix 10B have been filled in 5. Annexure to Appendix 10B duly Yes/No filled in has been furnished 6. Chartered Engineer Certificate Yes/No/NA (for products other than chemical Allied Product) Chemical Engineer Certificate certifying the import requirement in the case of "Chemical and Allied Products". 7. Declaration/ undertaking in appendix Yes/No 10B as well as in annexure to appendix 10B has been signed. PART III - TECHNICAL DETAILS Whether the applicant has furnished the following technical details/ information/documents for the export product falling under the respective export product group listed below:- PART-III CHEMICAL PRODUCTS, DRUGS AND PHARMACEUTICALS: a) Step-wise manufacturing process. Yes/No b) Complete Chemical reactions with molecular and structural formula and molecular weights along with stage - wise % yields on molar basis. Yes/No c) Material balance (stoichiometric Balance details) for the entire manufacturing process. Yes/No d) Requirement and recovery of solvents used in the entire manufacturing process at each step. Yes/No e) Authentic technical literature/catalogue in support of percentage yield claimed in the entire manufacturing process. Yes/No f) Details of by- product/co-products formed in the above process with their quantities and values. Yes/No g) Details of solvents charged, recovered and consumed in each step of the manufacturing process in terms of quantity. Yes/No h) Collaborator's guaranteed norms, if any. Yes/No i) Percentage purity of finished product and raw materials and percentage of any diluent/moisture etc. in the export product. Yes/No j) End use of the chemical intermediates being exported. In case of the drug intermediate, the name of the bulk drug where the same is to be used should be indicated. Yes/No k) Copy of the valid drug manufacturing licence, wherever applicable. Yes/No l) Standard technical literature pertaining to the process as well as yields in case of new drug molecules being exported. This technical material can be by way of standard references- chemical abstracts, Journal of Organic Chemistry and the like or copy of the relevant patent. Yes/No m) Pharmaceutical references whether the export product is of USP, BP etc. Yes/No Part III B - PLASTIC/ RUBBER PRODUCTS; a) Detailed manufacturing process along with technical justification for wastages claimed at each stage of manufacturing process. Yes/No b) Technical descriptions/specifications including size, thickness and weight range of plastic/rubber etc. of the products to be exported along with small samples of export products. Yes/No c) Chemical name of Processing Aid, Blowing Agent pigment proposed to be imported. Yes/No d) Whether the scrap generated in the process is being reused or not. If not the technical justification for its non-use may be furnished. If the scrap is being sold, the sale value/commercial value may be indicated. Yes/No e) Percentage of rubber compound in the export product. Yes/No f) Percentage composition of rubber compound in terms of different constituents. Yes/No g) Percentage composition by weight of constituents in formulated/blended products. Yes/No Part III C- PESTICIDES; a) Manufacturing process for pesticides for both technical grade as well as formulation, as the case may be. Yes/No b) Detailed chemical reactions and material balance alongwith molecular weight of the reactions, % yield and wastages at different stages of manufacturing process supported by authentic/ printed technical literature. Yes/No c) Details of by-products, if any, formed during the reaction along with its recovery in terms of quantity and value. Yes/No d) Percentage purity of finished product and raw materials and percentage of any diluent/moisture etc. in the export product. Yes/No e) Registration Certificate issued from Central Insecticides Board for the manufacture of pesticides (technical grade) and also pesticides formulations. Yes/No Part III- D PAINTS/ SURFACE COSTINGS/ PRINTING INKS: a) Percentage solid resin content in the export product. Yes/No b) Percentage pigment content in the export product. Yes/No c) Percentage volatile content in the export product. Yes/No Part III E - DYES DYE INTERMEDIATES: a) Manufacturing process, material balance and flow chart. Yes/No b) Balanced chemical reaction showing all the reactants, product and by-products(s) with their molecular formulas and molecular weights Yes/No c) Stage wise % yield in respect of each reactant along with justification. Yes/No d) Authentic/printed technical literature in support of yield or quantity of items applied for import. Yes/No e) Details of solvents charged during the process, quantity recovered and loss in process and recovery. Yes/No f) Details of by products formed during the process and their recovery in terms of quantity and value. Yes/No g) details of standardization and % dye content of export item. Yes/No h) Colour Index No. and Hue No. of Dyes. Yes/No PART III -F - ENGINEERING ELECTRONIC PRODUCT Part III - F -I Details on Export Product a) model number (if any), technical specification and specific quantity of each export product under column 15 of Appendix 10B. Yes/No b) weight of each export product (if the inputs includes raw material) under column 15 of the application Yes/No c) Drawing/ catalogue of each export product Yes/No d) Detailed technical note on the manufacturing process with flow chart with reference to column 4 of annexure to appendix 10B Yes/No Part III -F. 2 FOR IMPORT OF COMPONENTS a) Technical characteristics/ part numbers, if any Yes/No b) Assembly drawings/ diagrams of the resultant product highlighting the placement of imported components. Yes/No c) Export Product wise details of components requirements and their values. Yes/No d) Weight of components (for material balancing) Yes/No e) Bifurcated quantities of components to be accounted for in the resultant product and the requirement of components as spares and their values. Yes/No PART III - F.3 FOR IMPORT OF RAW MATERIALS/ CONSUMABLES a) Grade/composition/ range/thickness, etc. (whichever is applicable) Yes/No b) Detailed calculation sheet indicating the requirement of each raw material for one unit of resultant product, supporting Dimensional Drawing; and net weight of each item/ component to be manufactured from the said raw material. Yes/No c) Stage wise wastage details as the percentage of the net content in the resultant product with complete justification thereof. Yes/No d) Net weight of relevant material to be welded in case of welding consumable (Electrode/ Flax etc.) is sought for. Yes/No e) Net weight of other inputs (raw material, components) for material balancing. Yes/No PART III- F.4 - FOR EXPORT OF POWER/ COMMUNICATIONS CABLE a) Cable data sheet including weight in Kg./Km. Yes/No b) Cross sectional diagram with dimensions. Yes/No c) Detailed calculations giving the basis of arriving at the requirement of raw materials per KM of cable length for each export product. Yes/No Part III F.5 FOR IMPORT OF PAINTS/ SURFACE COATING/ PRINTING INKS a) Percentage solid resin content in the export product. Yes/No b) Percentage pigment content in the export product. Yes/No c) Percentage volatile content in the export product. Yes/No PART III-G TEXTILE PRODUCTS a) Detailed drawing/CADCAM of the export product (whichever is applicable); Yes/No b) Step-wise manufacturing process with flow chart; Yes/No c) Justification for wastages claimed in regard to the items to be imported; Yes/No d) Wastages at different stages of manufacturing of the export product; Yes/No e) Justification for import of particular grade/specification/dimension etc. of the raw materials etc. applied for; Yes/No f) GSM of the fabric; Yes/No g) Weight of the knitted fabric to be imported and the net weight of the knitted fabric (excluding the wastage claimed) in the export product. Yes/No PART III- H Food Products/ Marine Products/ Leather Products/ Sports Goods/ Handicrafts/ Misc. Products a) Step-wise manufacturing process with flow chart; (wherever applicable) Yes/No b) Justification for wastages claimed in regard to the items to the imported; Yes/No c) Wastages at different stages of manufacturing of the export product; Yes/No d) Justification for import of particular grade/ specification/dimension etc. of the raw materials etc. applied for. Yes/No For Official Use NOTE:- Wherever the answer to the above relevant columns is found to be "NO" or Not applicable whether the applicant has given Yes/No reasons for not furnishing the relevant details/ documents/ information. PART - IV - SUMMARY OF THE RESULTS OF SCRUTINY The application is returned (in original) to the applicant for rectifying the deficiencies indicated against the relevant columns above (column numbers…………………………………………….). OR The application has been found to be complete in all respects and may be accepted for allotment of file number. Initial of dealing hand with date Signature of FTDO/ADGFT