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TMI BlogGENERAL PROVISIONS REGARDING IMPORTS AND EXPORTSX X X X Extracts X X X X X X X X Extracts X X X X ..... up at 2/4/6/8 digits. (b) ITC (HS) is aligned at 6 digit level with international Harmonized System goods nomenclature maintained by World Customs Organization (http://www. wcoomd.org). However, India maintains national Harmonized System of goods at 8 digit level which may be viewed by clicking on Downloads at http://dgft.gov.in. (c) The import/export policies for all goods are indicated against each item in ITC (HS). Schedule 1 of ITC (HS) lays down the Import Policy regime while Schedule 2 of ITC (HS) details the Export Policy regime. (d) Except where it is clearly specified, Schedule 1 of ITC (HS), Import Policy is for new goods and not for the Second Hand goods. For Second Hand goods, the Import Policy regime is given in Para 2.31 in this FTP. 2.03 Compliance of Imports with Domestic Laws (a) Domestic Laws/ Rules/ Orders/ Regulations / Technical specifications/ environmental/ safety and health norms applicable to domestically produced goods shall apply, mutatis mutandis, to imports, unless specifically exempted. (b) However, goods to be utilized/ consumed in manufacture of export products, as notified by DGFT, may be exempted from domestic standards/qualit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. (ii) Exempt categories and corresponding permanent IEC numbers are given in Para 2.07 of Handbook of Procedures. (III) Only one IEC against one Permanent Account Number (PAN) Only one IEC is permitted against on Permanent Account Number (PAN). If any PAN card holder has more than one IEC, the extra IECs shall be disabled. [2.06 Mandatory documents for export / import of goods from / into India (a) Mandatory documents required for export of goods from India: 1. Bill of Lading/ Airway Bill / Lorry Receipt / Railway Receipt / Postal Receipt. 2. Commercial Invoice cum Packing List* 3. Shipping Bill/Bill of Export (b) Mandatory documents required for import of goods into India 1. Bill of Lading / Airway Bill / Lorry Receipt / Railway Receipt / Postal Receipt. 2. Commercial Invoice cum Packing List* 3. Bill of Entry [Note:* (i) As per CBEC Circular No. 01/15-Customs dated 12/01/2015 . (ii) Separate Commercial Invoice and Packing List would also be accepted.] (c) For export or import of specific goods or category of goods, which are subject to any restrictions/policy conditions or require NOC or product specific compliances under any st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rms and Conditions of an Authorisation Every Authorisation shall, inter alia, include following terms and conditions (as applicable), in addition to such other conditions as may be specified: (a) Description, quantity and value of goods; (b) Actual User condition (as defined in Chapter 9); (c) Export Obligation; (d) Minimum Value addition to be achieved; (e) Minimum export/import price; (f) Bank guarantee/ Legal undertaking / Bond with Customs Authority / RA (as in para 2. 35 of FTP ). (g) Validity period of import/export as specified in Handbook of Procedures.] 2.12 Application Fee Application for IEC/ Authorisation / License / Scrips must be accompanied by application fees as indicated in the Appendix 2K of Appendices and Aayat Niryat Forms. 2.13 Clearance of Goods from Customs against Authorization Goods already imported / shipped / arrived, in advance, but not cleared from Customs may also be cleared against an Authorisation issued subsequently. This facility will however be not available to restricted items or items traded through STEs. 2.14 Authorisation - not a Right No person can claim an Authorisat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, export of Arms and related material to Government of Iraq shall be permitted subject to No Objection Certificate from the Department of Defence Production. 5 [ 2.16A: Prohibition on Trade with the Islamic State in Iraq and the Levant [ISIL, also known as Daesh], Al Nusrah Front [ANF] and other individuals, groups, undertakings and entities associated with Al Qaida. In compliance with United Nations Security Council Resolution No. 2199 [2015] (full text of the Resolution is available at http://www.un.org/press/en/2015/sc11775.doc.htm), trade in oil and refined oil products, modular refineries and related materials, besides items of cultural (including antiquities), scientific and religious importance is prohibited with the Islamic State in Iraq and the Levant [ISIL], Al Nusrah Front [ANF] and other individuals, groups, undertakings and entities associated, directly or indirectly, with Al Qaida.] 11 [ 2.17 Prohibition on direct or indirect import and export from/to Democratic People's Republic of Korea (DPRK) Prohibition on export: (A) The direct or indirect supply, sale, transfer or export of the following items to Democratic People's Republ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 of Resolution 2270 (2016) and paragraph 20 of Resolution of 2321 (2016); (iii) condensates and natural gas liquids; (iv) refined petroleum products. This measure is subject to the exemptions and procedures set out in paragraph 14 of Resolution 2375 (2017); (v) crude oil. This measure is subject to the exemptions and procedures set out in paragraph 15 of Resolution 2375 (2017); Sectoral prohibitions (import) (D) The direct or indirect procurement or import from DPRK, of the following items is prohibited: (i) coal, iron and iron ore. This measure is subject to the exemptions and procedures set out in paragraph 8 of Resolution 2371 (2017); (ii) gold, titanium ore, vanadium ore, and rare earth minerals; (iii) copper, nickel, silver and zinc; (iv) statues, unless the Committee approves on a case-by-case basis in advance; (v) seafood (including fish, crustaceans, mollusks, and other aquatic invertebrates in all forms). This measure is subject to the exemptions and procedures set out in paragraph 9 of Resolution 2371 (2017); (vi) lead and lead ore. This measure is subject to the exemptions and procedures set out in paragraph 10 of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted or exported by the concerned STE as per conditions specified in ITC (HS). The list of STEs notified by DGFT is in Appendix 2J. (b) Such STE (s) shall make any such purchases or sales involving imports or exports solely in accordance with commercial considerations, including price, quality, availability, marketability, transportation and other conditions of purchase or sale in a non discriminatory manner and shall afford enterprises of other countries adequate opportunity, in accordance with customary business practices, to compete for participation in such purchases or sales. (c) DGFT may, however, grant an authorization to any other person to import or export any of the goods notified for exclusive trading through STEs. Trade with Specific Countries: 2.21 Trade with neighbouring Countries DGFT may issue instructions or frame schemes as may be required to promote trade and strengthen economic ties with neighbouring countries. 2.22 Transit Facility Transit of goods through India from/ or to countries adjacent to India shall be regulated in accordance with bilateral treaties between India and those countries and will be subject to such restrictions as m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ier service Imports through a registered courier service are permitted as per Notifications issued by DoR. However, importability / exportability of such items shall be regulated in accordance with this FTP/ ITC(HS). Import Policy for Second Hand Goods : 2.31 Second Hand Goods S. No. Categories of Second Hand Goods Import Policy Conditions, if any I Second Hand Capital Goods (a) i. Personal computers/ laptops including their refurbished / re-conditioned spares ii. Photocopier machines/ Digital multifunction Print Copying Machines iii. Air conditioners iv. Diesel generating sets. Restricted Importable against authorization (b) Refurbished / re-conditioned spares of Capital Goods Free Subject to production of Chartered Engineer certificate to the effect that such spares have at least 80% residual life of original spare. (c) All other second hand capital goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. Customs duty as applicable shall be paid at the time of clearance of such goods. (c) If such goods are not cleared for home consumption within a period of one year or such extended period as the customs authorities may permit, importer of such goods shall re-export the goods. 2.37 Special provision for Hides Skins and semi-finished goods Hides, Skins and semi-finished leather may be imported in the Public Bonded warehouse for the purpose of DTA sale and the unsold items thereof can be re-exported from such bonded warehouses at 50% of the applicable export duty. However, this facility shall not be allowed for import under Private Bonded warehouse. 2.38 Sale on High Seas Sale of goods on high seas for import into India may be made subject to FTP or any other law in force. Exports: 2.39 Free Exports All goods may be exported without any restriction except to the extent that such exports are regulated by ITC (HS) or any other provision of FTP or any other law for the time being in force. DGFT may, however, specify through a public notice such terms and conditions according to which any goods, not included in ITC (HS), may be exported without an Autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported is not restricted for import or export in ITC (HS). (b) Goods, including capital goods (both new and second hand), may be imported for export provided: (i) Importer clears goods under Customs Bond; (ii) Goods are freely exportable, i.e., are not Restricted / Prohibited / subject to exclusive trading through State Trading Enterprises or any conditionality/ requirement as may be required under Schedule 2 - Export Policy of the ITC (HS); (iii) Export is against freely Convertible currency. (c) Goods in (b) above will include Restricted goods for import (except Prohibited items). (d) Capital goods, which are freely importable and freely exportable, may be imported for export on execution of LUT/BG with Customs Authority. II. (a) Goods imported against payment in freely convertible currency would be permitted for export only against payment in freely convertible currency, unless otherwise notified by DGFT. (b) Export of such goods to the notified countries (presently only Iran) would be permitted against payment in Indian Rupees, subject to minimum 15% value addition. (c) However, re-export of food, medicine and medical equipments, namely, items ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturers without payment of duty. Supplies made by a domestic supplier to such notified warehouses shall be treated as physical exports provided payments are made in free foreign exchange. Payments and Receipts on Imports / Exports 2.52 Denomination of Export Contracts (a) All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realized in freely convertible currency. (b) However, export proceeds against specific exports may also be realized in rupees, provided it is through a freely convertible Vostro account of a non resident bank situated in any country other than a member country of Asian Clearing Union (ACU) or Nepal or Bhutan. Additionally, rupee payment through Vostro account must be against payment in free foreign currency by buyer in his non-resident bank account. Free foreign exchange remitted by buyer to his non-resident bank (after deducting bank service charges) on account of this transaction would be taken as export realization under export promotion schemes of FTP. (c) Contracts (for which payments are received through Asian Clearing Union (ACU) shall be denominated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urnish or upload on DGFT s website in the Importer Exporter Profile, the RCMC granted by competent authority in accordance with procedure specified in HBP, unless specifically exempted under FTP. Certificate of Registration as Exporter of Spices (CRES) issued by Spices Board shall be treated as Registration-Cum-Membership Certificate (RCMC) for the purposes under this Policy. Policy Interpretation and Relaxations: 2.57 Interpretation of Policy (a) The decision of DGFT shall be final and binding on all matters relating to interpretation of Policy, or provision in Handbook of Procedures, Appendices and Aayat Niryat Forms or classification of any item for import / export in the ITC (HS). (b) A Policy Interpretation Committee (PIC) may be constituted to aid and advise DGFT. The composition of the PIC would be as follows: (i) DGFT: Chairman (ii) All Additional DGFTs in Headquarters : Members (iii) All Joint DGFTs in Headquarters looking after Policy matters : Members (iv) Joint DGFT (PRC/PIC) : Member Secretary (v) Any other person / representative of the concerned Ministry / Department, to be co-opted by the Chairman. 2.58 Exemption from Policy/ Proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.60 Regularization of EO default and settlement of Customs duty and interest through Settlement Commission With a view to providing assistance to firms who have defaulted under FTP for reasons beyond their control as also facilitating merger, acquisition and rehabilitation of sick units, it has been decided to empower Settlement Commission in Central Board of Excise and Customs to decide such cases also with effect from 01.04.2005. Self Certification of Originating Goods 2.61 Approved Exporter Scheme for Self Certification of Certificate of Origin. (i) Currently, Certificates of Origin under various Preferential Trade Agreements [PTA], Free Trade Agreements [FTAs], Comprehensive Economic Cooperation Agreements [CECA] and Comprehensive Economic Partnerships Agreements [CEPA] are issued by designated agencies as per Appendix 2B of Appendices and Aayat and Niryat Forms. A new optional system of self certification is being introduced with a view to reducing transaction cost. (ii) The Manufacturers who are also Status Holders shall be eligible for Approved Exporter Scheme. Approved Exporters will be entitled to self-certify their manufactured goods as originating f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conditions as may be specified by RA along with the following: (a) Description, quantity and value of goods; (b) Actual User condition (as defined in Chapter 9); (c) Export Obligation; (d) Minimum Value addition to be achieved; (e) Minimum export/import price; (f) Bank guarantee/ Legal undertaking / Bond with Customs Authority/RA (as in para 2. 35 of FTP). (g) Validity period of import/export as specified in Handbook of Procedures. 3. Substituted vide Not. 08/2015-2020 - Dated 4-6-2015 w.e.f. 1 st April 2015 (d) Exports under this dispensation, as at II(b) and (c) above shall not be eligible for any export incentives. 4. Substituted vide Not. 14/2015-2020 - Dated 30-6-2015 , before it was read as, Prohibitions (Country and Product Specific) 5. Inserted vide Not. 14/2015-2020 - Dated 30-6-2015 , 6. Substituted vide Not. 34/2015-2020 - Dated 29-1-2016 , before it was read as, (c) Briefly, following are the requisite details /documents (scanned copies) to be submitted/ uploaded along with the application for IEC: (i) Details of the entity seeking the IEC: (1) PAN of the business entity in whose name Import/Export would be do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lists in documents INFCIRC/254/Rev.11/Part 1 and INFCIRC/254/ Rev.8/Part 2 (IAEA documents), S/2012/947, S/2009/364 and S/2006/853 (UN Security Council documents) and Annex III to UN Security Council resolution 2094 (2013) which could contribute to DPRK s nuclear-related, ballistic missile-related or other weapons of mass destruction-related programmes; Luxury goods, including but not limited to the items specified in Annex IV to UN Security Council resolution 2094 (2013). 10. Inserted vide notification no. 24/2015-2020 dated 25-8-2017 11. Substituted vide Notification No.35/2015-2020 dated 18-10-2017 , before it was read as, 9 [ 2.17 Prohibition on Direct or Indirect Import and Export from/to Democratic People's Republic of Korea A. Direct or indirect export and import of following items, whether or not originating in Democratic People's Republic of Korea (DPRK), to/from, DPRK is 'prohibited': (i) All items, materials, equipment, goods and technology as set out in the following UNSC and IAEA documents: a) S/2006/853* and S/2006/853/Corr.1; b) S/2009/364; c) Annex- III of S/RES/2094(2013); d) Committee decision of July ..... X X X X Extracts X X X X X X X X Extracts X X X X
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