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TMI BlogDUTY EXEMPTION / REMISSION SCHEMEX X X X Extracts X X X X X X X X Extracts X X X X ..... s may be submitted in physical form to the concerned Norms Committee in DGFT headquarters. 4.03 Applicant details Where applicant is a branch office or a manufacturing unit, name of branch office or manufacturing unit should appear in electronic RCMC and in IEC of the applicant. 4.04 Advance Authorisation Applicant shall file application online in ANF 4A. Same form is applicable where Standard Input Output Norms (SION) have been notified or on the basis of adhoc norms or on self declaration basis as per paragraph 4.07 of Hand Book of Procedures. 4.05 Advance Authorisation for items which are otherwise prohibited for export (i) Items covered under Chapter 7 and Chapter 15 of ITC (HS) Schedule 2, which is prohibited for export, may be allowed to be exported under the advance authorization scheme. Export shall be allowed subject to pre-import condition under notified SION/prior fixation of norms by Norms Committee in terms of paragraph 4.06 of Hand Book of Procedures. Import and Export would be permitted only through EDI enabled ports. (ii) The Export obligation period (EOP) of advance authorizations issued for such items shall be 90 days from the date of clearance of import c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms Committee can specify extended validity period of not more than two years from the date of fixation of such adhoc norms, for grant of further authorisations under such norm. (v) Norms Committees shall also function as recommendatory authority for notification of SION and DGFT may notify such norms from time to time. (vi) It is mandatory for industry / manufacturers/ EPCs to provide production and consumption data etc. for the past three years, as may be required by DGFT for fixation of SION. Otherwise, applicants shall not be allowed to take benefit of Advance Authorisation scheme for taking repeat Advance Authorisations on self-declared basis. Norms Committee may also seek data from Central Excise (CBEC). (vii) Experts may be invited from Scientific and Technological institutions as members of Norms Committee for fixation of Norms.] 4.07 Self Declared Authorisations where SION does not exist (i) Regional Authority may also issue Advance Authorisation where SION is not fixed, based on self declaration by applicant. Wastage so claimed shall be subject to wastage norms as decided by Norms Committee. The applicant shall submit an undertaking to abide by decision of Norms Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h prior intimation to jurisdictional Customs Authority. Benefit of CENVAT shall not be claimed on such transferred input. (ii) Deleted (iii) Deleted (iv) Deleted (v) Imported duty free inputs can be taken from the port / domestic supplier's premises to the factory or the premises of the authorization / co-authorisation holder or the factory of the supporting manufacturer (whose name is endorsed in the authorization or allowed by the Jurisdictional Customs authority). However, such duty free material imported or procured against advance authorization can also be taken from the port directly to the project site of the project authority, subject to furnishing a bond to the customs authority at the port of import and other documents / declaration and other provisions as per Department of Revenue guidelines.] 4.11 Advance Authorisation for Free of Cost and Paid Material Authorisations granted in terms of paragraph 4.19 of FTP, a specific endorsement by Regional Authority shall be made on exchange control copy of Advance Authorisation disallowing remittances for material being supplied free of cost. All imported inputs excluding wastage shall be utilised in manufacturing of exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et-to-net basis with accountability clause" in the export/supply documents namely Shipping Bills, Bill of Exports, Tax invoice for export/supplies prescribed under the GST rules evidencing that these imported inputs have been exported.] 4.13 Authorisation in Excess of Entitlement An applicant shall be entitled for authorisation in excess of entitlement of CIF mentioned in paragraph 4.12(a) above subject to furnishing of 100% Bank Guarantee to Customs authority to cover exemption from customs duties. Regional Authority shall made a specific endorsement to this effect on authorisation. This provisions shall also apply to Status Holders. 17[4.14 Application and On-line Inter-Ministerial Consultations for fixation of norms / adhoc norms (i) Application filed online by the applicant shall be forwarded electronically to the concerned Technical / Administrative Ministry / Department /Scientific and Technological institutions or any other agency by the respective Norms Committee in the DGFT headquarters within three days. (ii) The concerned Technical / Administrative Ministry / Department / Scientific and Technological institutions or any other agency as the case may be, may comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing fulfilment of export obligation in respect of previous authorisations. However, bond waiver / redemption shall not be allowed pending fixation of norms in such cases.] 4.17 Time limit for Representation Applicant may file representation against the decision of the Norms Committee with regard to the fixation of norms within a period of 90 days from the date of hosting of decision on DGFT website. Representation beyond 90 days shall be subject to payment of composition fee of ₹ 5000/-. 4.18 Provision for Pharmaceutical Products Regional Authority may issue Advance Authorisation for pharmaceutical products manufactured through Non-Infringing (NI) process. A manufacturer exporter can avail the benefit of this provision whether the SION or the adhoc norms (under self declared basis in terms of paragraph 4.07 of the Hand Book of Procedures) for the said product is available or not. "Input combination permitted under NI process, as approved by the concerned agency of the regulated markets", shall be exporter specific and country specific and shall be available only when the exports are destined for the same country. 4.19 Application & Processing (i) An application for gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the jurisdictional Customs Authority, shall be submitted to the concerned Regional Authority at the time of filing application for redemption / bond waiver. Regional Authority shall compare the details of Appendix 4-I, with that of the inputs allowed in the authorisation, before allowing redemption or bond waiver against individual authorization. Such records shall be preserved for a period of at least three years from the date of redemption.] 4.22 Standardisation of Adhoc Norms (a) For standardization of norms, an application in ANF 4B shall be filed online along with complete data. Such applications shall be made to concerned Norms Committee in DGFT headquarters. (b) Import of fuel may also be allowed with actual user condition under SION by Norms Committee subject to following: (i) Facility of import of fuel shall be allowed only to manufacturer having captive power plant. (ii) In cases where SION specifically allows fuel, same shall be permitted under Advance Authorisation. However, if fuel is not covered specifically under SION, it may be allowed as per general fuel Policy for products covered under SION or under paragraph 4.07 above. (iii) Applications for fixation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supply document(s) should also contain details of exempted materials/inputs consumed.] (b) If application is approved, authorisation shall be issued based on input / output norms in force on the date of receipt of application by Regional Authority. If in the intervening period (i.e from date of filing of application and date of issue of authorisation) the norms get changed, the authorization will be issued in proportion to provisional exports / supplies already made till any amendment in norms is notified. For remaining exports, Policy / Procedures in force on date of issue of authorisation shall be applicable. (c) The export of SCOMET items shall not be permitted against an Authorisation until and unless the requisite SCOMET Authorisation is obtained by the applicant. 4.28 Exporters Risk Exports / supplies made in anticipation of grant of an Advance Authorisation shall be entirely on risk and responsibility of exporter. 4.29 Admissibility of drawback in case of rejection of application Customs authorities in terms of DoR rules against shipping bills filed and processed under an Advance Authorisation, in case application for an Advance Authorisation is rejected or modified b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it from banks. An Advance Authorisation / DFIA holder may approach a bank for opening an inland letter of credit (L/C) in favour of an indigenous supplier. 4.34 Endorsement by Banks under Back to Back LC (a) Before opening the L/C, bank will ensure that Advance Authorisation holder has executed BG/LUT and an endorsement to that effect has been made on the Authorisation. (b) Execution of BG / LUT shall not be required against transferable DFIA. After opening inland L/C, bank shall make following endorsement on Exchange Control and Customs copy of Advance Authorisation / DFIA: "Value of this Advance Authorization / DFIA stands reduced by a sum of Rs. ___, being value of inland L/C No.___ opened today by authorization holder in favour of M/s ____ (name and address of indigenous supplier)." (c) Authorisation shall be invalidated by bank for direct import only in respect of full quantity and value of an item being sourced indigenously. (d) Original Letter of credit (L/C) may be retained by bank for negotiation and only non-negotiable copy of L/C may be given to indigenous supplier. (e) Responsibility of bank shall be confined to making endorsement. Bank shall not be liable for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ptance of BG/LUT (a) Regional Authority concerned will endorse on the reverse of Advance Authorisation at the time of issue of authorisation about acceptance of undertaking given by applicant in relevant ANF. Authorisation holder shall execute Bank Guarantee / Legal Undertaking, as the case may be, in terms of paragraph 2.29 of Hand Book of Procedures. (b) 24[In case BG / LUT has been redeemed, Advance Authorization holder can get duty free inputs processed from any manufacturer under Actual User condition as per job work regulations prescribed in terms of provisions of GST Acts under intimation to the Customs authority. However, such restriction shall not be applicable in case of transferable DFIA holder.] 4.37 Port of Registration (a) Advance Authorisation shall be issued for purpose of import and export through one of sea ports or airports or ICDs or LCS specified below. Authorisation holder shall register authorisation at the port specified in authorisation and thereafter all imports against said authorisation shall be made only through that port, unless the authorisation holder obtains permission from customs authority concerned to import through any other specified port. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. However, this requirement of TRA shall not be required if the port of registration and port(s) of imports are EDI enabled and the authorisation holder has registered its authorization. 40[4.38 Facility of Clubbing of Authorisations (i) No clubbing of Authorisations issued on or before 31st March, 2009 shall be allowed. (ii) Request for clubbing shall be made in ANF - 4C to the concerned RA who has issued the Authorisations. (iii) Facility of clubbing of Advance Authorisations shall be available only for redemption / regularisation of such Authorisations and no further import or export shall be allowed. (iv) Facility of clubbing shall also be available for Advance Authorisations for Annual Requirement issued during Foreign Trade Policy period 2009- I4 and 20 I5-20, wherever exports and imports have taken place as per Standard Input Output Norms (SION) notified. (v) Only Authorisations under which similar duty exemption has been availed shall only be allowed to be clubbed. Such Authorisations may pertain to different financial years. (vi) In case, exports are made outside EO period of any Authorisation, EO extension may be allowed before clubbing of such authorisation, as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 09-14) / Appendix-4J (issued under FTP 2015-20) and Authorisations issued with EOP less than 18 months: (a) Export obligation period of clubbed Authorisations shall be reckoned from the date of earliest import in any of the Authorisations proposed to be clubbed. (b) Clubbing of such Authorisations shall be allowed provided all exports are completed within initial/extended Export Obligation period reckoned from date of earliest import in any of the Authorisations proposed to be clubbed.] 4.39 Enhancement/ Reduction in the value of Advance Authorisation (a) In respect of an Advance Authorisation, Regional Authority concerned (as per their financial powers) may consider a request: (i) for enhancement / reduction in CIF value of Advance Authorisation; (ii) enhancement / reduction in CIF value, quantity of inputs, FOB value and quantity of exports of an Advance Authorization. However, VA after such enhancement does not fall below minimum VA stipulated (for the export product) in FTP and Hand Book of Procedures laid thereunder and there is no change in input-output norms and FTP under which Advance Authorisation was issued. (b) However, in case of Advance Authorisation (s) iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lment is given in paragraph 4.22 of FTP. (b) Regional Authority may consider a request of Advance Authorisation holder for one extension of EO period upto six months from the date of expiry of EO period subject to payment of composition fee of 0.5% of the shortfall in EO. Authorisation holder will have to submit a self declaration to RA stating that unutilised imported/domestically procured inputs are available with the applicant. 6[(c) Request for further extension of six months after first extension as in (b) above can be considered by Regional Authority, provided Authorisation holder has fulfilled minimum 50% export obligation in quantity as well as in value, on pro-rata basis. This will be subject to payment of composition fee @ 0.5% per month on unfulfilled FOB value of export obligation. No further extension shall be allowed by Regional Authority. This provision shall also be applicable to Advance Authorisations issued during FTP 2009-2014. However, only two extensions of six months each as given in sub-para (b) and in this sub-para can be allowed subject to payment of composition fee and under no circumstance Regional Authority shall allow any extension beyond 12 months fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sation number with the relevant shipping bill numbers / bill of exports / invoices in case of deemed exports/Tax invoices for supplies prescribed under GST rules on quarterly basis.] (d) In case of non EDI shipping bills and supplies under deemed export, exporter shall file relevant details manually on the website of the DGFT within two months from the date of expiry of EO period. Copies of shipping bills shall be submitted to concerned Regional Authority for verification within two months from date of expiry of export obligation period. (e) e-BRC shall be linked with these shipping bills within six months from the date of expiry of export obligation/realisation or as per the time period prescribed for realization of foreign exchange by RBI. Regional Authority shall not take action for non linking / submission of e-BRC before expiry of said period, provided other documents substantiating fulfilment of EO have been furnished by the exporter (f) In case Authorisation holder fails to complete EO or fails to submit relevant information / documents, Regional Authority shall enforce condition of Authorisation and Undertaking and also initiate penal action as per law including refusal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be applicable to this scheme in so far as they are not inconsistent with this scheme.] 4.46 Fulfilment of Export Obligation Authorisation holder shall file online application in ANF 4F to concerned Regional Authority and upload prescribed documents in support of fulfilment of EO. 4.47 Redemption / No Bond Certificate (a) Bond Waiver: In case Authorisation holder exports first (before effecting imports) by using imported inputs / indigenously procured raw material, in that case the Authorisation holder can seek waiver of Bond condition by submitting evidence of export made and payment realised to that extent. If exports made are less than the export obligation stipulated in the Authorisation, request for waiver of bond condition, on pro-rata basis, can also be made. (i) For such a request, an applicant has to file online application attaching Shipping Bills and e-BRC. Scanned copy of other documents as prescribed in the ANF 4F shall also be uploaded. In case of deemed exports or export from non-EDI ports, the documents evidencing proof of export/supply shall be submitted at the counter of Regional Authority concerned giving reference of online application in physical form exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch Certificate may be verified by referring to DGFT website (dgft.gov.in) or from the websites of Zonal offices of DGFT. Zonal offices of DGFT may publish details of such EODC certificates issued by them and by all RAs coming under their jurisdiction on their official websites every month.] (e) Regional Authority shall take action against Authorisation holder in case of non-submission of Appendix 4H & 4-I duly filled in, as stipulated in paragraph 4.51 below or for any misrepresentation, mis-declaration and default detected subsequently in details declared and furnished in Appendix 4H & 4-I. An endorsement to this effect shall be made by Regional Authority in the redemption certificate. 4.48 Transitional Arrangement for Authorisations issued upto 26.08.2009 (a) Advance Licences including Advance Licence for Annual Requirement issued up to 26.08.2009 shall be governed by provisions contained in Chapter-7 of HBP v1(RE-2001), Chapter 4 of HBP v1 (2002-2007) as Notified on 31.3.2002 and Chapter 4 of HBP v1 (2004-2009) as notified on 31.8.2004 respectively as amended from time to time, excepting provisions relating to clubbing and extension in E.O. period which shall be governed by p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade any import under Authorisation, Authorisation holder will also have an option to get the Authorisation cancelled and apply for drawback after obtaining permission from Customs authorities for conversion of shipping bills to Drawback Shipping Bills. (f) Regional Authority shall compare relevant portion of Appendix 4H duly verified and certified by Chartered Accountant/Cost Accountants with that of norms allowed in Authorisation(s) and actual quantity imported against Authorisation(s) in the beginning of licensing year for all such Authorisations redeemed in preceding licensing year. In this verification process, in case it is found that Authorisation holder has consumed lesser quantity of inputs than imported, Authorisation holder shall be liable to pay customs duty on unutilized value of imported material, along with interest thereon as notified, or affect additional export within the EO period. 42[(g) Regularization of Bonafide default in the cases where Authorisation was issued for import of drugs from unregistered sources with pre import condition: Import of drugs from unregistered sources issued with pre import condition shall be regularised in the following manner: (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emission scrip. (c) Exporter shall obtain an endorsement from Customs authorities on the TR Challan 006 or on the back of the duty credit scrip(s) against which payment of customs duties have been accepted/debited and produce the same to RA along with duty calculation sheet at the time of regularization of their case. (d) Regional Authority shall verify the quantity of excess import before redeeming the case. RA may direct licence holders to pay balance amount of customs duty after informing the reasons of the difference in the liability worked out by Authorisation holder and the calculations by Regional Authority. In such case, the balance amount of duty and interest, if any shall be paid by Authorisation holder within 30 days, for regularization of the matter. (e) The interest shall be paid in cash through TR Challan 006 at the rate applicable on the date of payment of delayed duty amount to the Customs Authority. 28[(f) On receipt of said documentary evidence from Authorisation holder, Regional Authority shall redeem the case, shall endorse details of duty paid on the EODC/Redemption Letter and inform details of recovery/ deposits made to the Customs Authority at the port of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill (s) and ensure that no double benefit against such shipping bill has been availed. This specific condition shall be endorsed by Regional Authority concerned on the EODC. DUTY FREE IMPORT AUTHORISATION SCHEME (DFIA) 4.53 Policy Policy relating to the Duty Free Import Authorisation (DFIA) Scheme is prescribed in Chapter 4 of FTP. 29[4.54 Application (a) Application in ANF 4G along with documents therein, shall be filed online to concerned Regional Authority. (b) Provisions of paragraphs 4.26, 4.27, 4.28, 4.48, 4.49(e) & 4.49 (f) and 4.52 of this Handbook of Procedures shall also be applicable for DFIA Scheme. (c) After completion of exports and realization of proceeds, request for issuance of transferable Duty Free Import Authorisation may be made to concerned Regional Authority within a period of twelve months from the date of export or six months (or additional time allowed by RBI for realization) from the date of realization of export proceeds, whichever is later. (d) Applicant shall be allowed to file application beyond 24 months from the date of generation of file number as per paragraph 9.02 of Hand Book of Procedures.] 4.55 Facility for Split DFIA Split Autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntire month shall be filed. (c) In case E.P Copy of Shipping Bill and Customs attested invoice is submitted to nominated agencies, exporter shall furnish a self certified photo copy of same along with a certificate from nominated agencies certifying carat / value of studdings in case of studded jewellery and excess value addition achieved in case of plain jewellery and articles. (d) In cases where payment is received in advance and exports take place subsequently, application for REP Authorisation shall be filed within six months following the month during which exports are made. (e) It is clarified that the month in which the export has been made in case of advance payment and the month in which export proceeds have been realised in part or full after making of exports, shall be excluded while calculating period of six months for filing of application for REP Authorisation. 4.60 Wastage Norms Maximum wastage or manufacturing loss on gold/silver/ platinum jewellery and articles thereof is as follows: Sl No Items of export Percentage of wastage by weight with reference to Gold/ Platinum / Silver content in export item Gold / platinum Silver a) Plain jewellery, artic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... export of Gems and Jewellery products. In addition, Authorisation shall also be valid for import of empty jewellery boxes up to 5% of value of Authorisation within its overall CIF value. Gem REP Authorisations issued against export of studded gold / silver platinum jewellery articles, shall also be valid for import of cut and polished precious / semi- precious stones other than emerald up to 10% of CIF value of Authorisation within its overall CIF value. (b) Gem REP Authorisation will be as per the replenishment rate prescribed in Appendix -4F and the scale of replenishment on the remaining FOB value in the case of studded jewellery shall be as given in Appendix-4G.] 4.65 Agency Commission Exporter availing scheme of gold / silver / platinum jewellery are allowed to pay agency commission subject to the guidelines laid down by RBI. VA shall be calculated after deducting agency commission. 4.66 Endorsement on shipping Bill and Invoice. During export of jewellery, shipping bill and invoice presented to customs authorities shall contain description of item, its purity, weight of gold/ silver/ platinum content, wastage claimed thereon, total weight of gold/ silver/ platinum content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall be multiplied by number of carat of gold exported, divided by 24 and thereafter again divided by 0.995/0.999/0.900 to arrive at equivalent quantity of gold in terms of fineness of 0.995/0.999/0.900 respectively; and (ii) Wherever purity of item of export is expressed in terms of fineness, the quantity of gold/silver/platinum shall be multiplied by fineness of gold/silver/platinum exported and thereafter divided by 0.995 / 0.999 / 0.900 to arrive at equivalent quantity of gold/ silver/platinum in terms of 0.995 / 0.999 / 0.900 fineness respectively. 4.70 Release of Gold/Silver/ Platinum by Nominated Agencies Gold / silver / platinum shall be released to exporter of jewellery by nominated agencies/RBI authorised banks in multiples of 10 gms or in Ten Tola Bars in respect of gold. However, silver shall be released to exporters in multiples of 1 Kg only. Any balance of gold/ silver/ platinum shall be available to exporter along with his future entitlement. Gold/ silver shall be released by the nominated agencies in terms of 0.995 fineness or more and platinum in terms of 0.900 fineness or more. 4.71 Terms of payment Export of gold / silver / platinum jewellery and articles th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Belgium; (16) International Gemological Institute (IG) - Antwerp, Belgium; 4.75 Import of Diamonds for Certification/Grading & re-export (a) This facility has been stated in Paragraph 4.42 of FTP. At the time of imports of diamonds, the bill of entry shall have the detailed description, including the dimensions / specifications of the diamonds. At the time of re-export after grading/certification, the Bill of Entry details should be endorsed in the shipping bill, so far as the dimensions and other specifications/ details of the diamonds are concerned, so as to establish a clear correlation between the imported diamonds and the diamonds being re-exported. In addition, a separate self certificate shall be attached by GIA (or any other approved agency) along with the shipping bill at the time of shipment, for matching of the imports to that of the exports as per the documents and GIA (or any other approved agency) certificate. (b) GIA (or any other agency approved in this regard) shall obtain GR waiver as per the procedure laid down by RBI, in all such cases. (c) Re-export of the imported diamonds shall be completed within a maximum time period of 3 months from the date of impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orts.] (c) BG /LUT, executed with Customs shall be valid for one year. In case of direct supply to Status Holder/exporter, exports shall be completed within 90 days. In case of non-fulfillment of EO / non- achievement of stipulated value addition, Customs Authority shall proceed to recover custom duty alongwith interest as notified by DoR which may include enforcement of BG/LUT. Besides, importer will be liable to penal action under Customs Act. 4.78 Export Procedure / Payment of Customs Duty (a) Nominated Agency / Status Holder having Nominated Agency Certificate / exporter shall be liable to pay customs duty leviable on that quantity which is proved to have not been exported. (b) Goods shall be cleared through Customs by Nominated Agency/ Status Holder having Nominated Agency Certificate / exporter. Even where export order is received by an Associate, goods shall be cleared through Customs by nominated agency only and not by Associate. Associate shall, in such cases, authorise Nominated Agency to act as its agent to file Bill of Entry and shipping bill. (c) At the time of export, shipping bill presented to Customs shall also contain the following: (i) Name and address of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Services tax and Compensation Cess leviable under Section 3(7) and 3(9) of Customs Tariff Act shall be payable separately on imports. BG /LUT shall be redeemed only when the exporter has furnished proof of exports to nominated agency and accounted for the use of items supplied in advance in export product.] (i) For redemption of bond/ BG /LUT executed with Customs, Nominated Agency/ Status Holder having Nominated Agency Certificate /exporter shall furnish a statement indicating items, its quantity and value supplied by foreign buyer, corresponding Bill of Entry number and date, number of each of shipping bills against which corresponding exports was made. 4.79 Maintenance of Accounts Nominated Agency / Status Holder having Nominated Agency Certificate shall maintain complete account, consignment-wise, of the gold, silver, platinum, mountings, findings/ plain semi-finished gold/silver/ platinum jewellery etc. imported for execution of each export order, exports effected and quantity of gold, silver, platinum mountings, findings etc. released against such exports. Such accounts shall be maintained for a minimum period of three years from date of exports. 4.80 Export Through Exhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs while leaving country and obtain necessary endorsement on Export Certificate issued by Jewellery Appraiser of Customs. In such cases exporter shall book with nominated agency, within 120 days after export promotion tour or expiry of stipulated period of 45 days, whichever is earlier, gold/silver/ platinum for replenishment content against items sold abroad. (E) Export of branded jewellery. (i) Export of branded jewellery is also permitted with approval of Gem & Jewellery EPC for display/sale in permitted shops set up abroad or in showroom of their distributors/ agents. Items not sold abroad within 365 days shall be re-imported. Exporter shall book with nominated agency within 120 days after the end of stipulated period of 365 days, gold/silver/platinum for replenishment content against items sold abroad. (ii) Following documents shall be submitted for claiming such replenishment: (a) Customs attested invoice; (b) Copy of the approval letter issued by Government/GJEPC; (c) Certificate from Nominated Agency/GJEPC as in Appendix 4-O. In case of exhibitions organised by nominated agencies, gold/silver/ platinum shall be imported as replenishment by nominated agenci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ys from date of booking and drawal of precious metal shall be completed within a period of 150 days from date of booking or within 30 days from date of export whichever is later. 4.83 Outright Purchase Basis in Advance (a) Exporter may obtain required quantity of precious metal in advance on outright purchase basis subject to furnishing of BG / LUT to nominated agencies for an amount as may be prescribed by nominated agency. On failure to effect exports within period prescribed, the nominated agencies shall enforce BG / LUT, as the case may be. (b) Exports shall be effected within a maximum period of 90 days from date of outright purchase of precious metal. 4.84 Loan Basis 37[(a) Exporter may obtain required quantity of precious metal on loan basis subject to furnishing of BG / LUT, for customs duty to nominated agencies for an amount as may be prescribed by nominated agencies. Integrated Goods and Services tax and Compensation Cess leviable under Section 3(7) and 3(9) of Customs Tariff Act shall be payable separately on imports. On failure to effect exports within the period prescribed, the nominated agencies shall enforce the BG / LUT.] (b) Exporter has to pay interest as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid customs duty alongwith interest thereon as notified by DoR. Exporter will have the option to pay customs duty through valid duty credit scrips issued under FTP. The interest / penalty shall be required to be paid in cash. In case of Advance Authorisation, the provisions as given in paragraph 4.49 above shall apply. This shall be without prejudice to any action that may be taken against exporter under FT(D&R) Act, Order or Rules Issued hereunder as amended from time to time. 4.87 Replenishment Authorisation for Import of Consumables etc. Application for import of consumables etc., as given in paragraph 4.36 of FTP shall be filed online to the concerned Regional Authority in ANF 4H. 4.88 Personal Carriage of Gems & Jewellery Export Parcels (a) Personal Carriage of gems & jewellery parcels by Foreign Bound Passengers from all EOU/SEZ units and all firms in DTA through Airports in Delhi, Mumbai, Kolkata, Chennai, Kochi, Coimbatore, Bangalore, Hyderabad, Jaipur is permitted. Procedure for Personal Carriage of exports shall be as prescribed by Customs. Export proceeds shall, however, be realised through normal banking channel. (b) For claiming Replenishment in case of Personal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) Following guidelines for monitoring the import of precious metal and its distribution and / or own use by the Nominated Agencies will be followed, (other than the Banks nominated by RBI for this purpose): (i) Every Nominated Agency is required to maintain records of imports of precious metal (both quantity and value) and its distribution for the purpose of exports of value added product as well as for the purpose of domestic consumption as per the format given in Appendix 4-M of Hand Book of Procedures. Nominated Agencies will also have to follow the guidelines/ rules/procedures /directions as prescribed by RBI and DGFT. Failure to comply will render Nominated Agency Certificate liable to be cancelled in addition to action under FT (DR) Act 1992, as amended, after affording opportunity of personal hearing. (ii) Monitoring by Gems & Jewellery Export Promotion Council: Monitoring in respect of Nominated Agencies MMTC Ltd, Handicraft and Handlooms Exports Corporation Ltd, The State Trading Corporation Ltd, PEC Ltd, STCL Ltd, MSTC Ltd, Diamond India Limited will be by Gems & Jewellery Export Promotion Council (G&J EPC). Nominated Agencies shall file half yearly return as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n can be considered provided imported inputs are common and properly accounted for as per norms. (iii) Clubbing of authorisations covered under Appendix 4 J and authorisations with EOP less than 18 months shall not be allowed. (iv) Facility of clubbing of Advance Authorisations shall be available only for redemption / regularisation of such authorisations and no further import or export shall be allowed. (v) Facility of clubbing shall not be available for Advance Authorisation for Annual Requirement. (vi) For clubbing, Authorisations are required to have been issued under similar Customs notifications. Such Authorisations may pertain to different financial years. (vii) Only such Advance Authorisations shall be clubbed which have been issued within 18 months from the date of issue of the earliest authorisation that is sought to be clubbed, whether such authorisations are valid or not. (viii) Upon clubbing wherever exports are accounted beyond the EO period of the earlier Authorisation, a composition fee of 0.5% of the shortfall in EO shall be levied. (ix) Minimum value addition as prescribed in FTP and Procedures for the export product will be required to be maintained. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dure applicable to Advance Authorisations under Chapter 4 of Hand Book of Procedures shall generally apply to this scheme except norms for value addition, EO period and regularization of default. Value addition for Gems and Jewellery items shall be as per paragraph 4.73 of this Handbook of Procedures. (b) EO will be required to be fulfilled within 120 days from date of import of each consignment against Authorisation. However EO period shall be 180 days from date of import of findings, mountings made of gold, platinum and silver and export of jewellery. No further extension in EO period will be allowed. Advance Authorisation holder may also import gold as replenishment after completion of exports. (c) Advance Authorisation holder may obtain gold /silver / platinum from nominated agencies in lieu of direct imports. In such a case, nominated agency shall make, both exchange control copy and customs purpose copy of Authorisation invalid for direct imports." 5. Corrected vide Public Notice No. 20 /2015-2020 dt. 9th June, 2015 w.e.f. 1st April, 2015 . Earlier substituted vide PUBLIC NOTICE NO 16/2015-2020 dt. 04th June, 2015 "(b) Where Authorisations are issued with init ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ised imported/domestically procured inputs are available with the applicant. " 7. Substituted vide Public Notice No.48/2015-20, Dated the 16th December, 2015 before it was read as, " Based on the Inspection Report and recommendations of the GJEPC, the concerned laboratory would be considered for inclusion in paragraph 4.43 of FTP. " 8. Substituted vide PUBLIC NOTICE NO 17/2015-2020 DATED THE 08th JUNE, 2016 before it was read as, " While allowing waiver of Bond, Regional Authority may revalidate the Authorisation in continuation for further six month from the date of endorsement provided applicant has made a specific request and paid requisite fee for revalidation. " 9. Inserted vide PUBLIC NOTICE NO. 20/2015-2020, NEW DELHI, DATED THE 1st JULY, 2016 10. Substituted vide PUBLIC NOTICE No. 24/2015-2020, DATED THE 04th AUGUST, 2016 before it was read as, " Facility of clubbing shall not be available for Advance Authorization for Annual Requirement. " 11. Substituted vide PUBLIC NOTICE No. 27/2015-2020 DATED THE 31st AUGUST, 2016, before it was read was, "(i) Application for grant of Advance Authorisation / Advance Authorisation for A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... norms fixation in respect of Authorisation obtained by them. (iv) Norms Committees shall also function as recommendatory authority for notification of SION and DGFT may notify such norms from time to time. (v) Exporters / EPC shall provide data to the Norms Committee for the fixation of SION for the export product within three months of such request made by Norms Committee. Norms Committee shall endeavour to notify such adhoc norm(s), if not notified already, within six months of the ratification of such adhoc norm (s). (vi) It is mandatory for industry / manufacturers/ EPCs to provide production and consumption data etc for the past three years, as may be required by DGFT for fixation of SION. Otherwise, applicants shall not be allowed to take benefit of Advance Authorisation scheme for taking repeat Advance Authorisations on self-declared basis. Norms Committee may also seek data from Central Excise (CBEC)." 15. Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017, before it was read as, "4.10 Advance Authorisation for applicants with multiple units (i) Transfer of any duty free material imported or procured against Advance Authorisation from one unit of a compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be forwarded electronically to the concerned Technical / Administrative Ministry / Department / or any other agency by the respective Norms Committee in the DGFT headquarters within three days. (ii) The concerned Technical / Administrative Ministry / Department / or any other agency as the case may be, may communicate its views / comments / recommendations within 45 days electronically/online. In case no comments are received within 90 days, Norms Committee may take a view based on the facts available on record." 18. Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017, before it was read as, "In cases where entitlement of the applicant for grant of Advance Authorisation as per paragraph 4.12 was lower than the quantity of input applied by the applicant under Advance Authorisation and export obligation is completed pending fixation of norms by Norms Committee, entitlement for authorisation as given in paragraph 4.12 may be re-credited upon production of documentary evidence (copies of Shipping bill / bill of export / Central Excise certified copies of invoices) showing fulfilment of export obligation in respect of previous authorisations. However, bond waiver / redemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsed with File Number or Authorisation Number to establish co-relation of exports / supplies with Authorisation issued." 23. Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017, before it was read as, "(c) If authorisation holder is registered with Central Excise, he has an option of getting names of jobber endorsed by Central Excise as per Central Excise Rules in lieu of Regional Authority's endorsement. In case manufacturer exporter holding authorisation is not registered / not required to be registered with Central Excise authority, job work may be allowed as per Central Excise Rules and regulations without insisting for endorsement of supporting manufacturer's name. However, authorisation holder shall be solely responsible for imported items and fulfilment of EO." 24. Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017, before it was read as, "(b) In case BG / LUT has been redeemed, Advance Authorization holder can get duty free inputs processed from any manufacturer under Actual User condition as per job work regulations prescribed under Central Excise Rules. However, such restriction shall not be applicable in case of transferable DFIA holder." 25 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erall CIF value. (b) Gem REP Authorisation will be as per scale given in Appendix-4G." 32. Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017, before it was read as, "(a) Exporter has to furnish the proof of exports, wherever required for export of gold / silver / platinum jewellery and articles thereof, by furnishing following documents: (i) E.P copy of the shipping bill; (ii) Customs attested invoice; (iii) Bank certificate/e-BRC of realisation in Appendix 2U." 33. Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017, before it was read as, "Policy for export of gems and jewellery parcel by post is in paragraph 4.48 of FTP. At the time of exports, exporter shall submit following documents: (i) Shipping bills or invoice presented at foreign Post Office; (ii) Certificate from nominated agencies indicating price at which gold/ silver/platinum was booked or given on outright sale basis or loan basis; (iii) Three copies of invoice." 34. Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017, before it was read as, "(b) In case of direct supply of gold/silver/platinum, alloys, findings and mountings of gold/silver/platinum and plain semi-fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ok of Procedures. No such Certificate for such applicants. 3. IEC holder having DTA unit only Regional Authority concerned as per Appendix 1A of Hand Book of Procedures. Regional Authority concerned as per Appendix 4A of Hand Book of Procedures. (i) Four Star Export House (status on the basis of exports made only of Gems & Jewellery Sector items) and Five Star Export House may apply to the concerned Regional Authority online in ANF 4-I for issue of Nominated Agency Certificate. Applicant shall upload a self-attested copy of the valid Status Holder Certificate issued under FTP 2015-2020. (ii) On the date of application for renewal of Nominated Agency Certificate, the Status Certificate must be valid for next financial year also. Secondly, applicant should also be eligible to qualify to be recognized as Four Star Export House (based on the export of gems and jewellery sector items) / Five Star Export House on the date of application. In other words, Regional Authority shall reassess the eligibility of status holder based on export performance before issuing / renewing the Nominated Agency Certificate. (iii) Regional Authority after scrutiny of details given by the applican ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 5.6.2012: Only such Advance Authorisations shall be clubbed which have been issued within 18 months from the date of issue of the earliest Authorisation. (viii) Accounting of exports made outside the export obligation period of earliest Authorisation shall be regularized, on payment of composition fee, in the following manner: (a) Where Authorisations were issued with initial obligation period of 36 months and last date of shipment is within 48 months: In such cases, exports made upto 48 months from the date of issuance of earliest authorization shall only be taken into consideration for clubbing. Accounting of exports made shall be subject to payment of a composition fee @ 0.5% of FOB value of exports made after 36 months from the date of issue of earliest authorisation but upto 42 months. For the exports effected after 42nd month till 48th month from the date of earliest Authorisation, the composition fee will be @ 0.5% per month of FOB value of exports made. 5[ (b) Where Authorisations are issued with initial obligation period of 18 months and last date of shipment is within 30 months: In such cases, exports made upto 30 months from the date of issuance of earliest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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