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TMI BlogGENERAL PROVISIONS REGARDING EXPORTS AND IMPORTSX X X X Extracts X X X X X X X X Extracts X X X X ..... rejection. Such incomplete application may be re-opened on rectifying the deficiencies. 2.6 Profile of Importer/ Exporter ANF 1 contains the profile in of the importer / exporter. IEC Holder shall be responsible for updating the same as and when a change takes place or in any case at least once in a year. 2.7 Self Addressed Stamped Envelope Applicant shall furnish a self-addressed envelope of relevant size with required postal stamp affixed, in case where the applicant opts to avail the 'Speed Post' facility. 2.8 IEC Number Exempted Categories (a) IEC is compulsory for import and / or exports. However, the following categories of importers or exporters are exempted from obtaining IEC. Sl.No. Categories Exempted from obtaining IEC (i) Importers covered by clause 3(1) [except sub-clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and (k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993. (ii) Ministries / Departments of Central or State Government. (iii) Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture. (iv) Persons importing / exporting goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00169 Non-commercial imports and exports by entities who have been authorized by Reserve Bank of India. 2.9 Application for Grant of IEC (a) Exporters / Importers shall file an application in ANF 2A format for grant of IEC and submit the same to jurisdictional RA. List of RAs, along with their jurisdiction is given in Appendix 1. (b) Only one IEC would be issued against a single PAN. 2.9.1 IEC Format and Statements RA concerned shall issue an IEC in prescribed format (Appendix-18B). A copy of such IEC shall be endorsed to concerned banker (as per details given in ANF 2A). Such endorsement should ordinarily be done using emails. A consolidated statement (in Appendix 18 C) of IEC numbers issued by RA shall be sent to Exchange Control Department of RBI as given in Appendix-18D by EDI in DGFT Hqrs. 2.9.2 Validity of IEC An IEC number allotted to an applicant shall be valid for all its branches / divisions / units / factories. 2.9.3 Duplicate copy of the IEC If original IEC, issued in format Appendix 18B, is lost or misplaced, issuing RA may consider request for grant of a duplicate copy of the IEC in the same format Appendix 18B, based on an affidavit. 2.9.4 Surrender of IEC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an import certificate shall be made in ANF 2C. Import certificate in Appendix-31 may be issued by ICIA directly to importer with a copy to (i) Ministry of External Affairs (MEA) (AMS Section), New Delhi, (ii) DoE, New Delhi; and (iii) DGFT. (c) However, this import certificate will not be regarded as a substitute for an import authorisation in respect of items mentioned as restricted in ITC (HS) and an import authorisation will have to be obtained for such items. 2.11A End User Certificate In case of import of any freely importable item in India, if a foreign Government insists on certification of end user of the item, before permitting export of the same from their country, RA may issue such certificates as per Appendix 31A of HBPv1. The certificate shall be issued based on application made under ANF 2C-1 along with documents prescribed therein. 2.12 Validity of Export Authorisation and Import Licence / Certificate / Authorisation / Permissions / CCPs Validity of Import / Export Authorizations from the date of issue shall be as follows, unless specified otherwise: Sr.No Type of Authorisation Validity Period (i) Export Authorisation 12 months (However, EFC may decide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferable duty credit scrips (including DEPB), shall be deemed to have been revalidated till 30.09.2013. No further endorsement by the respective RA on such scrips shall be required. (ii.) If the consolidated certificate (Credit Note) has already been issued by Customs or gets issued by 30.06.2013, then the amount (4% SAD) indicated in the consolidated certificate by customs shall be deemed to have been re-credited in the scrips in such cases, without any further reference to any RA of DGFT.] 2.13.3 An application for revalidation (including for restricted items), may be made to RA concerned. RA would consider such application as per government rules / notifications. Where DGFT is concerned authority, original application shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT. 2.14 Duplicate Copies of Export-Import Licence / Certificate / Authorisation / Permissions / CCPs Where an Authorization is lost or misplaced, an application for issue of a duplicate may be made along with an affidavit, as given in Appendix-24, to issuing RA. RA concerned may, on merits to be recorded, issue a duplicate after issuing an order for cancellation of origina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may also be sought through E-mails. (b) Adjudicating Officers shall grant Personal Hearing to exporters or importers, including their authorized representatives, before passing final orders. 2.18 Export of Items Reserved for SSI Sector Units other than small scale units are permitted to expand or create new capacities in respect of items reserved for small scale sector, subject to condition that they obtain an Industrial licence under the Industries (Development and Regulation) Act, 1951, with export obligation as may be specified. Such licensee is required to furnish a LUT to RA and DGFT in this regard. DGFT / RA concerned shall monitor export obligation. 2.19 Warehousing Facility (a) Public / Private Customs Bonded Warehouses may be set up in DTA as per Chapter-IX of Customs Act, 1962, to import items in terms of paragraph 2.28 of FTP. On receipt of goods, such warehouses shall keep these goods for one year without payment of applicable customs duties. Goods can be cleared against Bill of Entry for home consumption, on payment of applicable custom duty and on submission of Authorisation wherever required, after an order for clearance of such goods for home consumption is is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany by this company, which is not a status holder. 2.21 Certificate of Origin (CoO) (a) Certificate of Origin (CoO) is an instrument to establish evidence on origin of goods imported into any country. (b) There are two categories of CoO viz. (i) Preferential and (ii) Non preferential. 2.21.1 Preferential (a) Preferential arrangement / schemes under which India is receiving tariff preferences for its exports are Generalised System of Preferences (GSP), Global System Of Trade Preferences (GSTP), SAARC Preferential Trading Agreement (SAPTA), Asia-Pacific Trade Agreement (APTA), India-Sri Lanka Free Trade Agreement (ISLFTA) and Indo- Thailand Free Trade Agreement. These arrangements / agreements prescribe Rules of Origin which have to be met for exports to be eligible for tariff preference. (b) Authorised agencies shall provide services relating to issue of CoO, including details regarding rules of origin, list of items covered by an agreement, extent of tariff preference, verification and certification of eligibility. Export Inspection Council (EIC) is the agency authorised to print blank certificates. (c) The fee for issuance of Certificate of Origin (Preferential) for In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sri Lanka, South Korea, India and China are exchanging tariff concessions under APTA. Agencies authorised to issue CoO under APTA are listed in Appendix - 4B. India-Sri Lanka Free Trade Agreement (ISLFTA) (e) Free Trade Agreement (FTA) between India and Sri Lanka was signed on 20.12.1998 and was operationalised in March, 2000 following notification of required Customs tariff concessions by Government of Sri Lanka and India. EIC issole agency to issue CoO under ISLFTA. India Afghanistan Preferential Trade Agreement (f) A Preferential Trade Agreement between Transitional Islamic State of Afghanistan and Republic of India was signed on 6.3.2003 and was operationalised with issuance of Customs Notification No 76/2003 dated 13.5.2003. EIC is sole agency to issue CoO under India Afghanistan Preferential Trade Agreement. Indo - Thailand Framework Agreement for Free Trade Area (g) India and Thailand have signed protocol to implement Early Harvest Scheme under India- Thailand Free Trade Agreement on 01.09.2004.Tariff preferences for imports on items of Early Harvest Scheme would be available only to those products, which satisfy Rules of Origin Criteria, notified by Department of Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce Payment In case, payment is received in advance and export / deemed exports takes place subsequently, application for an Authorisation shall be filed within specific period following the month during which exports / deemed exports are made, unless otherwise specified. 2.25.1 Payment through ECGC cover Payment through ECGC cover would count for benefits under FTP. 2.25.2 Payment through General/Private Insurance Companies Amount of Insurance Cover for transit loss by General Insurance and Private Approved Insurance Companies in India would be treated as payment realized for exports under various export promotion schemes. 2.25.3 Irrevocable Letter of Credit In case where applicant applies for duty credit scrip / DEPB / DFIA / discharge of EO against confirmed irrevocable letter of credit (or bill of exchange which is unconditionally Avalised / Co-Accepted / Guaranteed by a bank) and this is confirmed and certified by exporter's bank in relevant Bank Certificate of Export and Realization, payment of export proceeds shall be deemed to be realized. For Status Holders, irrevocable letter of credit would suffice. 2.25.4 RBI write-off on export proceeds realization Realization ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefits of deemed exports as in paragraph 8.3 of FTP, even in cases where supplies are under lease financing. 2.29 Exhibits Required for National and International Exhibitions or Fairs and Demonstration (a) Import / export of exhibits, including construction and decorative materials required for the temporary stands of foreign / Indian exhibitors at exhibitions, fair or similar show or display for a period of six months on re-export / re-import basis, shall be allowed without an Authorisation on submission of a certificate from an officer of a rank not belowthat of an Under Secretary / Deputy DGFT in DoC / DGFT or an officer of Indian Trade Promotion Organization (ITPO) duly authorised by its Chairman in this behalf, to effect that such exhibition, fair or similar show or display. (i) has been approved or sponsored by DoC or ITPO; and (ii) is being held in public interest. (b) Extension beyond six months for re-export / re-import will be considered by Customs authorities on merits. Consumables such as paints, printed material, pamphlets, literature etc. pertaining to exhibits need not be re-exported / re-imported. 2.30 Import Policy Policy relating to general provisions re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Hodaideh, Yemen and Bandar Abbas, Iran will be in shredded form only. Procedure for import in unshredded compressed and loose form (c) Import of metallic waste, scrap listed in para 2.32.2 above in unshredded compressed and loose form shall be subject to the following conditions:- a. Importer shall furnish the following documents to the Customs at the time of clearance of goods: I) Pre-shipment inspection certificate as per the format in Annexure-I to Appendix 5 from any of the Inspection & Certification agencies given in Appendix-5 to the effect that: i) The consignment does not contain any type of arms, ammunition, mines, shells, cartridges, or any other explosive material in any form either used or otherwise, and that the consignment was checked for radiation level and it does not contain radiation level (gamma and neutron) in excess of natural background. The certificate shall give the value of background radiation level at that place as also the maximum radiation level on the scrap. ii) The imported item (s) is actually a metallic waste/scrap/seconds/defective as per the internationally accepted parameters for such a classification. II) Copy of the contract between the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs or any other Central or State Government authority may avail of services of Inspection and Certification Agencies in Appendix 5 of the HBP v1, for certifying residual life as well as valuation / purchase price of capital goods. 2.34 Import of Ammunition by Licensed Arms Dealers (a) Import of following types of ammunition are allowed against an Authorisation by licensed arms dealers subject to conditions as may be specified: (i) Shotgun Cartridges 28 bore; (ii) Revolver Cartridges of .450, .455 and .45 bores; (iii) Pistol Cartridges of .25, .30 Mauser, .450 and .45 bores; (iv) Rifle Cartridges of 6.5 mm, .22 savage, .22 Hornet, 300 Sherwood, 32/40, .256, .275, .280, 7m/m Mauser, 7 m/m Man Schoener, 9m/m Mauser, 9 m/m Man Schoener, 8x57, 8x57S, 9.3 m/m, 9.5 m/m, .375 Magnum, .405, .30.06, .270, .30/30 Winch, .318, .33 Winch,.275 Mag., .350 Mag., 400/350, .369 Purdey, .450/400, .470, .32 Win, .458 Win, .380 Rook, .220 Swift and .44 Win. bores. (b) An import Authorisation shall be issued at 5% of value of annual average sales turnover of ammunition (whether indigenous or imported) during preceding three licensing years subject to a minimum of Rs. 2000. (c) An applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d therein. Original application along with Treasury Receipt (TR) / Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA. 2.37 EXIM Facilitation Committee Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf. DGFT / RA may take assistance and advice of a Facilitation Committee. The Assistance of technical authorities may also be taken by seeking their comments in writing. Facilitation Committee will consist of representatives of Technical Authorities and Departments / Ministries concerned. 2.37A Import authorizations for a restricted item, if so directed by the competent authority, shall be issued for import through one of the sea ports or air ports or ICDs or LCS, as per the option indicated, in writing, by the applicant. However, for import of rough marble, port of registration is mandatory and the applicant must indicate the same in the application itself. Authorization holder shall register the import authorisation at the port specified in the Authorization and thereafter allimports against said author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eight charges where replacement of goods by foreign suppliers is subject to payment of insurance and / or freight by importer and documentary evidence to this effect is produced while making remittance. 2.42.1 (a) In case of short-shipment, short-landing or loss in transit, import of replacement goods will be permitted based on certificate issued by customs authorities without an import Authorisation. (b) This procedure shall also apply to cases in which short shipment of goods is certified by foreign supplier, who has agreed to replace free of cost. 2.42.2 Cases not covered by above provisions will be considered on merits by DGFT for grant of Authorisation for replacement of goods for which an application may be made. 2.43 Transfer of Imported Goods Freely importable goods can be transferred by sale or otherwise by importer freely. Transfer of imported goods, which are subject to Actual User condition and have become surplus to needs of Actual User, shall be made only with prior permission of RA concerned. Following information alongwith supporting documents shall be furnished with request for grant of permission for transfer, to RA concerned: (i) Reasons for transfer of imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old within bond period due to circumstances beyond control of importer, customs authorities may allow extension of bond period on merits. 2.45 Import of Overseas Office Equipment On winding up of overseas offices, set up with approval of RBI, used office equipment and other items may be imported without Authorisation. 2.46 Prototypes Import of new / second hand prototypes / second hand samples may be allowed on payment of duty without an Authorisation to an Actual User (industrial) engaged in production of or having industrial licence / letter of intent for research in item for which prototype is sought for product development or research, as the case may be, upon a self-declaration to that effect, to satisfaction of customs authorities. 2.47 Restricted items for R&D All restricted items and items permitted to be imported by STEs, except live animals, required for R&D purpose may be imported without an Authorisation by Government recognized Research and Development units. 2.48 Export Policy Policy relating to Exports is given in Chapter-2 of FTP. Further, Schedule 2, Appendix-1 of ITC (HS) specifies list of items, which may be exported without an Authorisation but subject t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... items nor replicas nor derivatives thereof will be re-transferred without consent of Government of India; c. End-user shall facilitate such verifications as are required by Government of India. III. The end-user certificate will indicate the name of the item to be exported, the name of the importer, the specific end-use of the subject goods and details of Purchase Order/Contract. IV. Government of India may also require additional formal assurances, as deemed appropriate, including those on end-use and non-retransfer, from the State of the recipient. V. Licensing authority for items in Category 0 in Appendix 3 to Schedule 2 of ITC (HS) is Department of Atomic Energy. Applicable guidelines are notified by the Department of Atomic Energy under Atomic Energy Act, 1962. For certain items in Category 0, formal assurances from the recipient State will include non-use in any nuclear explosive device. Authorisations for export of certain items in Category 0 will not be granted unless transfer is additionally under adequate physical protection and is covered by appropriate International Atomic Energy Agency (IAEA) safeguards, or any other mutually agreed controls on transferred items. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom DTA to SEZ shall be sent to SCOMET Cell, DGFT (Hqrs), Department of Commerce, Udyog Bhawan, Maulana Azad Road, New Delhi-110011, by the Development Commissioner (DC), SEZ in the prescribed proforma [Annexure 2 to Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items]. Report by the DC, SEZ is to be filed by 15th May of every financial year for the supplies effected during the preceding financial year. Export Authorisation is, however, required if the SCOMET items are to be physically exported outside the country from SEZ i.e. to another country (Refer Rule 26 of the SEZ Rules, 2006). 2.49 A.4 DGFT in association with Administrative Ministries/ Departments and Trade Associations will organize Industry Outreach Programme on regular basis for an effective awareness among the exporters/ importers dealing with trade, in particular, in SCOMET items. 2.49 A.5 Procedure/ Guidelines for filing/ Evaluation of Applications for Entering into an Arrangement or Understanding for Site Visits, On-site Verification and Access to Records / Documentation An application for entering into an arrangement or understanding involving site visit, on-site verification or acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Permission for arrangement or understanding involving site visit, on-site verification or access to records / documentation will be subject to the following conditions: (a) Site visit, on-site verification or access to records /documentation will be confined to the purpose, sites and activity for which permission given/which have been mentioned in the authorization. (b) Site visit, on-site verification or access to records/documentation will be allowed only to individuals mentioned in the authorization. (c) Site visit, on-site verification or access to records/documentation shall be concluded during the period mentioned in the authorization. (d) Exporter/Importer will keep a record of site visit, on site verification or access to records/documentation alongwith detail of individuals who visited the premises during this visit and produce the same as and when required to do so by the Government of India. (e) No exchange of goods, services and technologies and any documentation including drawings, specification sheets etc. will take place during the visit. (f) Exporter/importer may be required to give any additional assurance that the Government of India may require. (g) Any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Returns in respect of Exports in non-Physical form (a) All exports made in non-physical form by using communication links including high speed data communication links, internet, telephone line or any other channel which do not involve Customs authorities has to be compulsorily reported on quarterly basis to concerned EPC (Para 3.12 of FTP) as given in Appendix 19C. (b) These provisions shall be applicable to all exporting units located anywhere in country including those located in STP, SEZ, EHTP and under 100% EOU scheme. 2.55 Duty Free Import of R&D Equipment for Pharmaceuticals and Bio-technology Sector (a) Duty free import of goods (as specified in list 28 of Customs notification No.21/2002 dated 1.3.2002, as amended from time to time) upto 25% of FOB value of exports during preceding licensing year, shall be allowed. (b) The eligible unit may furnish an application given in Appendix-15A to RA concerned duly countersigned by Chartered Accountant. (c) In respect of duty free import of R&D equipment, units not registered with Central excise shall be allowed to give Installation Certificate issued by an independent Chartered Engineer. 2.55.1 (a) Duty free imports of goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation as per Annexure I to Appendix 6 to concerned RA. 2.59 Procedure for import under the Tariff Rate Quota Scheme Attention is invited to Government of India, Ministry of Finance (Department of Revenue), Notification No. 21/2002- Customs dated 01.03 2002 and Notification No. 33/2010- Customs dated 12.03.2010. As per these, import of four items viz., (1) Skimmed and whole milk powder, milk food for babies etc. (0402.10 or 0402.21) and White Butter, Butter oil, Anhydrous Milk Fat (0405) (2) Maize (corn): other (1005.90) (3) Crude sunflower seed or safflower oil or fractions thereof (1512.11) and (4) Refined rape, colza or mustard oil, other (1514.19 or 1514.99) is allowed in a financial year, up to quantities as well as such concessional rates of customs duty as indicated below: List of items covered under Tariff Rate Quota Scheme S.No ITC Code No. & Item Quantity of Quota Concessional Duty 1(i) Tariff Code No. 0402.10 or 0402.21 Skimmed and whole Milk Powder. Milk Food for babies etc. 50,000 MTs 0% (ii) Tariff Code No. 0405 White Butter, Butter oil, Anhydrous Milk Fat 15,000 MTs 0% 2 Tariff Code No. 1005.90 Maize (Corn): other 5,00,000 MTs 0% 3 Tariff Code ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification No. 21/2002 dated 1.3.2002 in terms of para 2.11 of FTP, 2004-2009, if they do not wish to make imports through FCI. Application fee for these applications shall be paid according to procedure contained in Appendix 21B to HBP v1. EFC in DGFT will evaluate and allot quota among applicants by 31st March of each financial year preceding to year of quota [e.g. for 2011-2012, EFC will allot quota by 31st March 2011]. 2.60 Issuance of scrips against lost EP copy of the Shipping Bills and / or original Bank Realisation Certificate In case where EP copy of Shipping Bill / original BRC has been lost, claim under VKGUY/ FMS/ FPS can be considered subject to submission of following documents: (a) A duplicate /certified copy of concerned document issued by Customs Authority / Bank in lieu of original; (b) An application fee equivalent to 2% of relevant entitlement. However, no fee shall be charged when such document is lost by Government agencies and a documentary proof to this effect is submitted; (c) An affidavit by exporter about loss of document and an undertaking to surrender it immediately to concerned RA, if found subsequently; (d) An indemnity bond by exporter to eff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pendix-2 of HBP v1, are required to register themselves with Services EPC. Other service exporters shall register themselves with FIEO. (f) In respect of exporters having their head office / registered office in State of Orissa, RCMC may be obtained from FIEO office in Bhubaneswar irrespective of product being exported by them. However, exporters of minor forest product from the State can also obtain RCMC from SHEFEXIL, EPC. (g) In respect of multi product exporters having their head office/ registered office in the North Eastern States, RCMC may be obtained from Shellac & Forest Products Export Promotion Council (except for the products looked after by APEDA, Spices Board and Tea Board). (h) In respect of exporters of handicrafts and handloom products from the State of Jammu & Kashmir, Director, Handicrafts, Government of Jammu & Kashmir is authorized to issue Registration Cum Membership Certificate (RCMC) 2.64 Registration- cum-Membership Certificate (RCMC) (a) An exporter may, on application given in Appendix 19A, register and become a member of EPC. On being admitted to membership, applicant shall be granted forthwith Registration-cum-Membership Certificate (RCMC) of EPC c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FT (D&R) Act, Rules and Orders made there under, FTP or this Handbook. 2.70 Electronic Data Interchange 2.70.1 Eligibility Facility of electronic filing of applications shall be available to all exporters. 2.70.2 Procedure (a) An exporter would be able to file his application on DGFT website at http://dgft.gov.in/. Application will then be processed in accordance with prevalent rules and regulations. (b) Applicant will have to visit concerned office to hand-over hard copy of application along with requisite documents including application fee. Authorisation shall be issued on receipt of hard copies of documents as mentioned above after due scrutiny as prescribed in HBP v1. 2.70.3 Fiscal Incentives for EDI Following deductions in Application Fee would be admissible for applications signed digitally and / or where application fee is paid electronically through EFT (electronic fund transfer): Sr. No. Mode of Application Fee Deduction (as a % of normal application fee) 1 Digitally signed 25% 2 Application fee payment vide EFT 25% 3 Both digitally signed as well as use of EFT for payment of application fee 50% 2.70.4 Benefits Facility will reduce unnecessary physic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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