9911796707
TMI BlogDUTY EXEMPTION / REMISSION SCHEMEX X X X Extracts X X X X X X X X Extracts X X X X ..... dization of norms, then only such documents 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 su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the status of norms fixation in respect of Authorisation obtained by them. (iv) Exporters / EPC shall provide data to the Norms Committee concerned for the fixation of SION/ Adhoc Norms for an export product. Norms Committee shall endeavour to fix SION or adhoc norms on receipt of complete data. Any adhoc norm fixed under this para, on the basis of an application made by an exporter shall be valid for one authorisation for which such application is made and no repeat authorisations shall be issued. However, Norms 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 Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vance Authorisation shall endorse a condition that before effecting imports of any of these inputs, Sanitary Import Permit shall be obtained from the Department of Animal Husbandry, Dairying and Fisheries (DAHDF). (ii) Regional Authority shall also endorse a copy of authorisation to DAHDF, Krishi Bhawan, New Delhi. 15 [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 company to another unit for manufacturing purpose shall be done with 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of two years reckoned from the date of ratification. The same applicant can avail repeat authorisations based on such adhoc norms. Another exporter, however, cannot be granted authorization by Regional Authority based on such adhoc norms. (vii) 16 [ Wherever an applicant has applied for components on net-to-net basis with accountability clause and such cases fall under paragraph 6 of General Note for all Export Products, the same need not be referred to Norms Committee for fixation of norms. However, exporters shall indicate clearly details of such components imported on net-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 provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paragraph 4.49(a)(ii). In case SION for the said product is notified, SION would be made applicable for deciding wastage norms and EO. (iii) 18 [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/_Tax invoice for supply prescribed under GST rules) showing 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 Regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty on unutilized imported material, along with interest thereon as notified by DOR, or effect additional export within the EO period to account for the export of the material remaining un utilized. However, for the Customs duty component, the authorisation holder has also the option to furnish valid duty credit scrip issued under Chapter 3 of FTP ] 4.21 Maintenance of Proper Accounts 20 [ Every Advance Authorisation holder shall maintain a true and proper account of consumption and utilization of duty free imported / domestically procured inputs against each authorisation as prescribed in Appendix 4-I . This record in Appendix 4-I format, duly verified and certified 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exported / supplied; (b) Quantity of each item to be imported or wherever quantity cannot be indicated, value of item shall be indicated. Wherever, quantity and value of individual inputs is a limiting factor in SION, same shall be applicable; (c) Aggregate CIF value of imports; and (d) FOB / FOR value and quantity of exports / supplies. 22 [4.27 Exports/Supplies in anticipation or subsequent to issue of an Authorisation. (a) Exports / supplies made from the date of EDI generated file number for an Advance Authorisation, may be accepted towards discharge of EO. Shipping /Supply document(s) should be endorsed with File Number or Authorisation Number to establish co-relation of exports / supplies with Authorisation issued. Export/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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on shall be filed online in ANF 4A to Regional Authority concerned for grant of ARO to procure inputs from indigenous sources / STEs. 4.32 Details to be given for issue of ARO (a) Application shall specify: (i) Name, description including specifications, where applicable, and quantity of items and (ii) Individual value of items to be procured. (b) An ARO may be issued along with Advance Authorisation / DFIA or subsequently, and its validity shall be co-terminus with validity of Advance Authorisation / DFIA. (c) An ARO issued for procurement of an individual item shall be automatically valid for procurement from one or more indigenous sources. 4.33 Back to Back Inland Letter of Credit (L/C) Exporter may alternatively avail facility of a back to back inland letter of credit 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) Exec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endorsement made by Regional Authority, authorisation holder and co-authorisation holder shall jointly and severally be liable for completion of EO. Any one of co-authorisation holders may import goods in his name or in joint names. BG/LUT shall also be furnished in their joint names. 23 [ (c). If authorisation holder is registered under GST Act, he has an option of getting names of jobber endorsed by jurisdictional Customs authority as per GST Rules in lieu of Regional Authority's endorsement. In case manufacturer exporter holding authorisation is not registered / not required to be registered under GST Act, job work may be allowed after endorsement of supporting manufacturer's name in the authorisation from RA concerned. However, authorisation holder shall be solely responsible for imported items and fulfilment of EO. ] 4.36 Acceptance 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 Ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udrapur (Nainital), Salem, Singanalur, Surajpur, Surat, Talegoan (District Pune), Thudiyalur (Tamil Nadu), Tirupur, Todiarpet (TNPM), Tuticorin, Udaipur, Vadodara, Varanasi, Veerapandi (Tamil Nadu), Waluj (Aurangabad) 9 [ Hosur (Tamil Nadu) and Nattakkam Village (Kottayam Taluk and District) ]. LCS: Agartala, Amritsar Rail Cargo, Atari, Chengrabanda, Dawki, Ghojadanga, Hilly, Jogbani, Mahadipur, Nautanva (Sonauli), Nepalganj Road, Petrapole, Ranaghat, Raxaul, Singhabad, Sutarkhandi. SEZ: As notified by Central Government any SEZ can be a specified port for import and export. (b) Commissioner of Customs may permit imports and exports from any other seaport / airport / ICD or LCS. (c) For imports from Airport / Seaport / ICD / LCS other than port of registration, a TRA shall be issued by the customs authority at the port of registration to customs authority at port of import. 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 b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed not be same. (xii) Minimum value addition as prescribed in FTP and Procedures for the export product will be required to be maintained on clubbing. Upon clubbing, if shortfall in value or quantity is noticed, the same shall be regularized under the provisions of Para 4.49 of HBP 2015-20. (xiii) After clubbing, Authorisations shall for all purposes, be deemed to be one Authorisation. The value addition would be calculated on the basis of total CIF and total FOB arrived at after clubbing the Authorisations. (xiv) No clubbing shall be permitted in respect of Authorisations where misrepresentation / fraud have come to the notice of RA. Further, no clubbing of Authorisations, where EODC/redemption letter has already been issued or adjudication orders have already been passed by RA/Customs Authority, shall be permitted. (xv) Additional provisions for clubbing of Authorisations covered under Appendix-30A (issued under FTP 2009-14) / 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000 for Advance Authorisation / DFIA. 4.41 Revalidation of Authorisation (a) Regional Authority may consider a request of original Authorisation holder and grant one revalidation for six months from expiry date. Request(s) for revalidation of Authorisation shall be filed online in ANF 4D. (b) In case of revalidation of advance authorization issued prior to 27.8.2009 (FTP 2004-2009) , it should be ensured that VA is maintained at 15% (and as per details mentioned in paragraph 4.09 of FTP) or as stipulated in the Advance Authorization, whichever is higher. However, for Advance Authorisations for products with VA as per Appendix 4D, the VA shall be as per the VA stated in Appendix 4D or as stated in Advance Authorisation, whichever is higher. 3 [ 4.42. Export Obligation (EO) Period and its Extension (a) Period of EO fulfilment under an Advance Authorisation shall commence from date of issue of Authorisation, unless otherwise specified. The period of EO fulfilment 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 perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods imported under Advance Authorisation Scheme Goods imported against Advance Authorisation Scheme, which are found defective or unfit for use, may be re-exported, as per Department of Revenue guidelines. The authorisation holder has to inform the RA who has issued the authorisation before re-export of such defective goods.] 4.44 Monitoring of Export Obligation (a) Regional Authority, with whom undertaking is executed by Advance Authorisation holder, shall maintain a proper record in a master register indicating starting and closing dates of obligation period and other particulars to monitor EO. In addition, this information may be generated from Computer System and maintained in a book form. (b) Within two months from the date of expiry of EO period, Authorisation holder shall file application online by linking details of shipping bills against the authorization. 26 [(c) In case of online filing of EODC application, Exporters shall link all exports on line on DGFT system by linking file number / authorisation number with the relevant shipping bill numbers / bill of exports / invoices in case of deemed exports/Tax invoices for supplies prescribed under GST ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent against the authorisation, exporter shall mention technical characteristics, quality and specifications which shall be endorsed in the Bill of Entry / invoice, duly attested by the Customs authority, in respect of following inputs: Alloy steel including stainless steel, copper alloy, synthetic rubber, bearings, solvents, perfumes/ essential oils/aromatic chemicals, surfactants, relevant fabrics and marble. 12 [ 4.45A Special Advance Authorisation for export of Articles of Apparel and Clothing Accessories covered under Chapter 61 and 62 of ITC(HS) Classification of Export and Import (i) Policy relating to Special Advance Authorisation for export of Articles of Apparel and Clothing Accessories covered under Chapter 61 and 62 of ITC(HS) Classification of Export and Import is prescribed in Para 4.04A of Foreign Trade Policy . (ii) Provisions of Para 4.05 , 4.06 , 4.10, 4.11 , 4.12 (v) (vi) , 4.21 , 4.24 , 4.25 , 4.26 , 4.29 , 4.35 , 4.36 , 4.37 , 4.39 , 4.40 , 4.41 , 4.42 , 4.43 , 4.44 , 4.46 , 4.47(b) , 4.49, 4.50, 4.51 , 4.52 of Hand Book of Procedures shall be applicable to this scheme in so far as they are not inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itting these through EDI mode under message exchange is introduced between DGFT and CBEC. (b) Export Obligation Discharge Certificate (EODC): (i) In case Authorisation holder imports / procures inputs first and exports later, the Authorisation holder shall submit online application in ANF-4F as in (a) (i) above. In such cases, if EO has been fulfilled, the Regional Authority may issue EODC / Redemption Certificate to Authorisation holder and forward a copy to the Customs authority at the port of registration of Authorisation indicating the same details of proof of fulfilment of EO as stated in paragraph (a) above evidencing fulfilment of Export Obligation. (ii) Copy of EODC will also be endorsed by Regional Authority to Customs at the Port of Registration by post till system of transmitting these through EDI under message exchange between DGFT and CBEC is introduced. (c) Ordinarily, redemption of BG / LUT shall not preclude customs authority from conducting random checks and from taking action against Authorisation holder for any misrepresentation, mis-declaration and default detected subsequently as per the Customs Act. 27 [(d) Authenticity of such Certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s fulfilled in quantity but there is shortfall in value, no penalty shall be imposed if Authorisation holder has achieved minimum VA prescribed. However, if VA falls below the minimum VA prescribed, Authorisation holder shall be required to deposit an amount equal to 1% of shortfall in FOB value in Indian Rupee through TR in authorised branch of Central Bank of India as above or through EFT mode or through credit card. (c) Value wise shortfall shall be calculated with reference to actual quantity of exports and FOB value of realisation with reference to pro-rata quantity of imports and CIF value. For example, if export performance is only 50% quantity wise but import has been for complete CIF value permitted, then VA would be calculated on a pro-rata basis, i.e. with reference to 50% of CIF value of imports. This would, accordingly, imply that where Authorisation holder is unable to export , no penalty on value wise shortfall shall be imposed. (d) If EO is not fulfilled both in terms of quantity and value, the Authorisation holder shall, for the regularisation, pay as per a), b) and c) above. (e) In case an exporter is unable to complete EO undertaken in full and he has no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r waiver of liability of applicable duties and interest.] 4.50 Payment of Customs Duty and Interest in case of bonafide default in EO (a) Customs duty with interest as notified by DoR to be recovered from Authorisation holder on account of regularisation or enforcement of BG / LUT, shall be deposited by Authorisation holder in relevant Head of Account of Customs Revenue i.e., Major Head 0037 - Customs and minor head 001-Import Duties in prescribed T.R. Challan within 30 days of demand raised by Regional / Customs Authority and documentary evidence shall be produced to this effect to Regional Authority / Customs Authority immediately. Exporter can also make suo motu payment of customs duty and interest based on self/own calculation as per procedure laid down by DoR. (b) Mode of payment: Following modes of payment are available: (i) Payment in cash through TR Challan to Customs Authority. (ii) Payment of customs duty through debit of valid duty credit scrips issued under Chapter 3 (excluding SHIS, SFIS and AIIS scrips) in terms of FTP (2009-14) or Chapter 3 of this FTP or post-export EPCG duty remission scheme scrip, in respect of goods which are permitted under the resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iginal EP copy of Shipping Bill / original BRC / e-BRC has been lost, request for EODC, No BG / LUT condition under Advance Authorisation / DFIA scheme or endorsement of transferability under DFIA scheme can be considered subject to submission of following documents in lieu of those original documents: (i) A duplicate / Customs Certified / Self-attested copy of the shipping Bill in lieu of the original; Duplicate / Bank certified copy of BRC in lieu of original; (ii) An application fee equivalent to 1% of duty saved amount. However, no fee shall be charged when such document is lost by Government agencies and a documentary proof to this effect is submitted; (iii) Self declaration by exporter about loss of document and an undertaking to surrender it immediately to concerned Regional Authority, if found subsequently; (iv) An indemnity bond by exporter to the effect that he would indemnify Government for financial loss, if any, on account of duty free import entitlement availed / allowed against lost Shipping Bills / BRC. (b) Customs Authority, before allowing redemption of BG / LUT or clearance after endorsement of No BG / LUT condition or endorsement of transferabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.57 Maintenance of proper accounts of import and its utilisation Original DFIA holder shall maintain a true and proper account of consumption and utilisation of duty free imported / domestically procured goods against each authorisation as prescribed in Appendix 4H. These records are required to be sent to concerned Regional Authority along with request for bond waiver / redemption / discharge of export obligation / transferability. Such records should be preserved for a period of at least three years from date of redemption. GEMS AND JEWELLERY SECTOR 4.58 General Provision Policy relating to Gem Replenishment Authorisation and scheme for gold/ silver/platinum jewellery is given in FTP. Application in respect of export promotion scheme for gems jewellery sector including those of Nominated Agency Certificate shall be made to concerned Regional Authority as per Appendix 4A. 4.59 Application for Replenishment Authorisation (a) Application for REP Authorisation shall be filed online in ANF 4H and upload the documents prescribed therein to concerned Regional Authority as per Appendix 4A. (b) Application shall be filed within six months following the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f legal tender) 0.2% 0.2% g) Findings and mountings manufactured by mechanized process 0.9% 0.9% 4.61 Value Addition Under scheme for export of jewellery, value addition shall be calculated as per paragraph 4.38 of FTP. Minimum value addition shall be: 13 [Sl No Items of export Minimum Value Addition a) Plain gold / Platinum/ Silver Jewellery and Articles and ornaments like Mangalsutra containing gold and black beads / imitation stones, except in studded form of jewellery. 3.5 % b) All types of Studded gold / platinum / silver Jewellery and articles thereof. 6.0% (for those studded with coloured Gem stones) and 7.0% (for those studded with diamonds). c) Any jewellery / articles manufactured by fully mechanized process 2.0 % d) Gold / silver / platinum medallions coin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .999 fineness for gold / silver and in terms of 0.9999 fineness for platinum and its value, FOB value of exports and value addition achieved. If purity of gold/silver/platinum used is same in respect of all or some of items made out from each of these metals for export, exporter may give total weight of gold/silver/platinum and other details of such similar items which are of same purity. In case of studded items, shipping bill shall also contain description, weight and value of precious / semi-precious stones / diamonds / pearls used in manufacture and weight / value of any other precious metal used for alloying gold/silver. 4.67 Conditions of Exports Exports shall be allowed by customs authorities provided endorsement made on shipping bill and invoice are correct and value addition achieved is not below minimum prescribed in FTP. 4.68 Proof of Exports 32 [(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 Tax invoice for export/supplies as prescribed under GST rules; (iii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of shall be against irrevocable letter of credit, payment of cash on delivery basis, Documents Against Acceptance (DA) basis or advance payment in foreign exchange or replenishment of gold/silver/platinum content in exported jewellery / articles. 4.72 Port of Export Exports under schemes of gold /silver/platinum jewellery and articles thereof shall be allowed by airfreight and Foreign Post Office through the Customs House at Mumbai, Kolkata, Chennai, Delhi, Jaipur, Bangaluru, Kochi, Coimbatore, Ahmedabad, Dabolin Airport, Goa, Hyderabad and Surat (Surat Hira Bourse). Export by courier shall also be allowed through Custom Houses at Mumbai, Kolkata, Chennai, Kochi, Coimbatore, Delhi, Jaipur, Bangaluru, Ahmedabad and Hyderabad upto FOB value of ₹ 20 lakh per consignment. 4.73 Export by Post 33 [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 Tax invoice for export/supplies as prescribed under GST rules presented at foreign Post Office; (ii) Certificate from nominated agencies indicating price at which gold/ silver/platinum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be completed within a maximum time period of 3 months from the date of import(s). At the time of import, the agency shall give an undertaking to the customs to this effect. GIA (or any other agency approved in this regard) shall furnish a quarterly report to the customs authority at the port of import by 25th of the month, succeeding the end of the quarterly period, to ensure that the exports are effected within the stipulated time period. 4.76 Enlistment /Authorisation of Laboratories for Certification/ Grading of Diamonds of 0.25 carat and above Applications for enlistment of laboratories should be submitted to Gems and Jewellery Promotion Council (GJEPC) for scrutiny of the application for fulfilment of the norms prescribed. GJEPC will forward the application after verification of bona fides with their clear recommendation for in principle approval of DGFT. After in principle approval of DGFT is granted, GJEPC will conduct inspection of the facility to verify the availability of equipments, technical manpower as well as other infrastructure required for the Laboratory, to function as Authorised Laboratory for certification/ grading of diamonds of 0.25 carat and above. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c) At the time of export, shipping bill presented to Customs shall also contain the following: (i) Name and address of associate/ Status Holder having Nominated Agency Certificate /exporter; (ii) An endorsement by Nominated Agency / Status Holder having Nominated Agency Certificate that export is made against an order received by concerned associate, its date of registration with nominated agency. In case of exports by Status Holder having Nominated Agency Certificate /exporter, a self declaration shall be provided to this effect; (iii) Name of Customs House through which gold/ silver/ platinum/plain semi-finished gold/ silver/ platinum jewellery was imported and corresponding Bill of Entry No. and date and date of import. (d) Each shipping bill shall be valid for exports only through Customs House located at the place where office of Nominated Agency/ Status Holder having Nominated Agency Certificate / exporter concerned is situated. It shall be valid for shipment for a period of seven days including the date on which endorsement was made by nominated agency in case of exports through nominated agency. If exports cannot be made within this period, exporter shall file a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, 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 Exhibitions / Export Promotion Tours / Export of Branded Jewellery (A) Nominated Agencies shall produce to Customs Authorities letter in original or its certified copy, containing Government s approval for holding exhibition/export of branded jewellery. Any other person shall produce to the Asst. Commissioner, customs letter in original or its certified copy containing GJEPC s approval for holding exhibitions/ export promotion tour/export of branded jewellery. (B) In case of re-import, such items, on arrival, shall be verified along with export documents before clearance. (C) Exports under this scheme shall be subject to following conditions for following modes of export: (i) Export of Gems and Jewellery for holding/participating in overseas exhibition. (a) Items not sold abroad shall be re- imported within 60 days of close of exhibition. However in case exporter is participating in more than one exhibition within 45 days of close of first exhibition, then 60 days shall be counted from date of close of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cate 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 agencies within 60 days from close of exhibition. (F) Nominated Agencies shall maintain a complete account of exports made, goods sold abroad, goods re-imported, and metals purchased abroad and imported into India. Such account shall be maintained for a minimum period of three years from date of close of exhibition. 4.81 Export against supply by Nominated Agencies Exporter may obtain gold/silver/ platinum on following basis: (i) Replenishment basis after completion of exports; (ii) Outright purchase basis in advance; (iii) Loan basis. 4.82 Replenishment Basis (a) Exporter may apply to Nominated Agency / Status Holder having Nominated Agency Certificate for booking of precious metal gold/silver/platinum. Quantity of precious metal booked with nominated agency shall be equivalent to precious metal content in the export product and admissible wastage. (b) Applicant shall at the time of booking deposit an earnest money for a minimum amount of 20% of notional price of preciou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 notified by |DoR on gold taken on loan basis at the rate as may be specified. (c) Export has to be completed within a maximum period of 90 days from date of release of gold on loan basis. No extension for fulfilment of EO shall be allowed. (d) (i) Exporter shall be permitted to export jewellery on the basis of a notional rate certificate to be issued by nominated agency / GJEPC. This rate will be based on prevailing Gold/US$ rate and the US$/INR rate in notional rate certificate. Certificate issued by nominated agency/GJEPC should not be older than 7 working days of date of shipment. (ii) VA will have to be achieved on rate as may be got fixed with buyer and Nominated Agency. (iii) Exporter shall have flexibility to fix the price and repay Gold Loan within 180 days from date of export. This price shall be communicated to nominated agencies who will issue a certificate showing final confirmation of the rate to the bank negotiat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 Carriage of Exports by Foreign Bound passenger, documents shall be same as mentioned under paragraph 4.82(c) above. Authorised Courier Companies are also permitted to operate on the above lines. 4.89 Personal Carriage of Gems Jewellery Import Parcels Personal carriage of gems jewellery import parcels by an Indian importer/ Foreign National may be permitted into all EOUs/SEZ units and all firms in DTA through airports in Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad Jaipur. Procedure will be same as for import of goods by air-freight except that parcels shall be brought to Customs by Importer / Foreign National for examination and release. Clearance of imports under this scheme shall be as per normal customs clearance procedure. 4.90 Duty free import of samples Duty free import of gems and jewellery samples upto ₹ 3 lakh or 0.25% of the average of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ems 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 per format given in Appendix 4-M of Hand Book of Procedures, to the Gems Jewellery Export Promotion Council (GJEPC), Mumbai within 15 days of every completed half year. In turn, G J EPC shall compile the half yearly return and the figures submitted by the Nominated Agency and check the performance of the Nominated Agency. Thereafter, GJEPC shall forward the compiled half yearly returns along with its observation on performance of Nominated Agency to DGFT headquarters within one month of every completed half year. In case of delay in filing or non-submission of half yearly return within 15 days of every completed half year, GJEPC shall seek comments of defaulting Nominated Agencies. GJEPC will also forward the particulars of defaulting Nominated Agency to DGFT headquarters for taking appropriate action against defaulting Nominated Agenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Thereafter, shortfall if any, shall be regularized in terms of this paragraph. (x) After clubbing, authorisations shall for all purposes, be deemed to be one Authorisation. The value addition would be calculated on the basis of total CIF and total FOB arrived at after clubbing the Authorisations. 3. Substituted vide PUBLIC NOTICE NO 16/2015-2020 dt. 04th June, 2015 before it was read as, 4.42 Export Obligation (EO) Period and its Extension (a) Fulfilment Period of EO under an Advance Authorisation shall commence from date of issue of Authorisation, unless otherwise specified. (b) Regional Authority may consider a request of Adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 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 authorization only will be taken into consideration for clubbing. Accounting of exports shall be subject to payment of a composition fee @ 0.5% of FOB value of exports made after 18 months from the date of earliest authorisation but upto 24 months. For the exports effected after 24th month till 30th month from the date of earliest Authorisation, the comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TICE NO 17/2015-2020 DATED THE 08 th 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 1 st JULY, 2016 10. Substituted vide PUBLIC NOTICE No. 24/2015-2020, DATED THE 04 th 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 Annual Requirement / Duty Free Import Authorisation (DFIA) shall be filed online (digitally signed) by IEC holder to the concerned jurisdictional Regional Authority as per Appendix 1A. Applicant could be either Registered office or Head office or a branch office or a manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in NC-2 72 to 76, 78 to 80, 85 [email protected] NC-3 29, 30 [email protected] NC-4 27, 28, 31 to 38, 44 to 49, 68 to 71 [email protected] NC-5 41 to 43, 50 to 67 [email protected] NC-6 1 to 26, 94 to 98 [email protected] NC-7 39, 40 [email protected] (ii) An applicant shall indicate a valid email address for communication purpose and to ensure that this email address is active. (iii) The decisions of Norms Committees shall be available on the website of DGFT (http://dgft.gov.in) periodically and the applicants shall update themselves the status of norms fixation in respect of Authorisation obtained by them. (iv) Norms C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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. 16. Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017 , before it was read as, (vii) Wherever an applicant has applied for input on net-to-net basis with accountability clause and such cases fall under paragraph 4 of General Note for Engineering Products (Product Code - C), the same need not be referred to Norms Committee for fixation of norms. However, exporters shall indicate clearly details of such inputs imported on net-to-net basis with accountability clause in the export/supply documents namely Shipping Bills, Bill of Exports, ARE-1, ARE-3 evidencing that these imported inputs have been exported. 17. Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017 , before it was read as, 4.14 Application and On-line Inter-Ministerial Consultations for f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, for the Customs duty component, the authorisation holder has also the option to furnish valid duty credit scrip issued under Chapter 3 of FTP 20. Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017 , before it was read as, Every Advance Authoritsation holder shall maintain a true and proper account of consumption and utilization of duty free imported / domestically procured inputs against each authorisation as prescribed in Appendix 4-I. This record in Appendix 4-I format, duly verified and certified by the jurisdictional Excise 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. 21. Inserted vide Public Notice no. 26/2015-2020 dated 20-9-2017 22. Substituted vide Public Noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017 , before it was read as, (f) On receipt of said documentary evidence from Authorisation holder, Regional Authority shall redeem the case and inform details of recovery/ deposits made to the Customs Authority at the port of registration or the Commissioner of Central Excise having jurisdiction over the factory of the Authorisation holder, as the case may be. 29. Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017 , before it was read as, 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 4.53 of this Handbook of Procedures shall also be applicable for DFIA Scheme. 30. Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017 , before it was read as, Entitlement of quantity of gold / silver / platinum against the export of articles made out of these metals shall be quantity of gold / silver / platinum in item of export plus admissible wastage / manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 35. Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017 , before it was read as, (ii) Three copies of invoice; 36. Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017 , before it was read as, (h) Exporter may also obtain, in advance, gold/ silver/ platinum etc. supplied by foreign buyer by furnishing a BG /LUT for an amount equal to international price of such items plus customs duty payable thereon. 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. 37. Substituted vide Public Notice no. 26/2015-2020 dated 20-9-2017 , before it was read as, (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. On failure to effect exports within the period prescribed, the nominated agencies shall enforce the BG / LUT. 38. Substituted vide Publ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s) / 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 applicant, may grant Nominated Agency Certificate to the eligible applicant as per format given in Appendix 4N of Hand Book of Procedures. The Nominated Agency Certificate / Renewal of Nominated Agency Certificate shall be issued by the Head of Office. (iv) The existing Nominated Agency Certificate issued under FTP (2009-2014) shall be valid upto 31st March 2015. Thereafter, Nominated Agency Certificate issued under FTP 2015-2020 shall be valid for a period of one year from the date of issue. 40. Substituted vide PUBLIC NOTICE No. 32/2015-2020 dated 18-10-2017 , before it was read as , 2 [ 4.38. Facility of Clubbing of Authorisations (i) No clubbing of Authorisations issued on or before 31st March, 2009 shall be allowed. Cases already considered by PRC shall not be re-examined by RA under Para 4.38 of HBP for the purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 authorization only will be taken into consideration for clubbing. Accounting of exports shall be subject to payment of a composition fee @ 0.5% of FOB value of exports made after 18 months from the date of earliest authorisation but upto 24 months. For the exports effected after 24th month till 30th month from the date of earliest Authorisation, the composition fee will be @ 0.5% per month of FOB value of exports made. (c) Where Authorisation(s) with initial obligation period of 36 months is clubbed with authorization(s) with initial obligation period of 18 months. In such cases, exports made upto 30 months from the date of issuance of earliest authorization only will be taken into consideration for clubbing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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