Licence issued with accountability condition - DGFT - Trade Notice No. 10/AM16

GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY OFFICE OF THE JOINT DIRECTOR GENERAL OF FOREIGN TRADE C BLOCK, PMT COMMERCIAL COMPLEX SHANKARSETH ROAD, SWARGATE, PUNE 411037 Tele No. 020-24442783/24449598 Fax No. 020-24441577 Email : [email protected] Trade Notice No. 10/AM16 dated 29.03.2016 Trade is hereby informed that in Advance Authorization both the consumption ratio and nexus matters. Wherever the licence is issued with accountability condition the net content of the input present in the exported product should be declared in the export documents duly certified by Customs/Excise and not the input used. Similarly for specifying nexus the type and technical specification should match both import and export documents. For instance, if norms say relevant fabric then the export description should be appropriately modified showing the nature of input used/present in the product exported. For instance, if polyester fabric is imported and export product is shirt, then the shirt should be defined as Polyester Shirt . The same applies to strength, concentration, GSM etc. The net content and the specifications should be duly certified by Customs or Central Excise in export documents at the time of export and it cannot be substituted with Chartered Engineer or Chartered Accountant Certificate, at a later date. Similarly as per General Note 2 of SION under product code 'A' unless otherwise specifically mentioned, the quantity of inputs allowed is based on 100% strength/concentration. If the input (or) product exported is of a lesser strength then it should be declared in export/import documents so that customs can allow it on the face of it (or) draw sample and test to counter check. Suppliers test report will not be accepted since there is no provision under customs laws to accept it. For export consignments alone for certain categories like ISO units self-tested lab reports are acceptable as per CBEC Circular No. 57/97 r/w 25/2005 . It does not enable similar facility for import consignment. Similarly, Central Excise certificates which are not based on 57/97 r/w 25/2005 will not be accepted. (S. SASIKUMAR) JOINT DIRECTOR GENERAL OF FOREIGN TRADE PUNE