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TMI BlogGENERAL PROVISIONS REGARDING IMPORTS AND EXPORTSX X X X Extracts X X X X X X X X Extracts X X X X ..... (b) ITC (HS) is aligned at 6 digit level with international Harmonized System goods nomenclature maintained by World Customs Organization (http://www.wcoomd.org). However, India maintains national Harmonized System of goods at 8 digit level which may be viewed by clicking on 'Downloads' at http://dgft.gov.in (c) The import/export policies for all goods are indicated against each item in ITC (HS).Schedule 1 of ITC (HS) lays down the Import Policy regime while Schedule 2 of ITC (HS) details the Export Policy regime. (d) Except where it is clearly specified, Schedule 1 of ITC (HS), Import Policy is for new goods and not for the Second Hand goods. For Second Hand goods, the Import Policy regime is given in Para 2.31 in this FTP. 2.03 Compliance of Imports with Domestic Laws (a) Domestic Laws/ Rules/ Orders/ Regulations/ technical specifications/ environmental/safety and health norms applicable to domestically produced goods shall apply, mutatis mutandis, to imports, unless specifically exempted. (b) However, Goods to be utilized/ consumed in manufacture of export products, as notified by DGFT, may be exempted from domestic standards/ quality specifications. 2.04 Authority to spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng List* 3. Shipping Bill/Bill of Export/ Postal Bill of Export (b) Mandatory documents required for import of goods into India 1. Bill of Lading/Airway Bill/Lorry Receipt/ Railway Receipt/Postal Receipt in form CN-22 or CN 23 as the case may be. 2. Commercial Invoice cum Packing List* 3. Bill of Entry [Note: *(i) As per CBEC Circulars issued under the Customs Act, 1962 (ii) Separate Commercial Invoice and Packing List would also be accepted.] (c) For export or import of specific goods or category of goods, which are subject to any restrictions/policy conditions or require NOC or product specific compliances under any statute, the regulatory authority concerned may notify additional documents for purposes of export or import. (d) In specific cases of export or import, the regulatory authority concerned may electronically or in writing seek additional documents or information, as deemed necessary to ensure legal compliance. (e) The above stipulations are effective from 1st April, 2015. 14[2.07 Principles of Restrictions and Prohibitions for Imports/Exports: DGFT may, through a Notification, impose 'Prohibition' or 'Restriction': - a. on export of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pendix-3 of Schedule 2 of ITC(HS) Classification of Export & Import Items, shall be governed by the specific provisions of (i) Chapter IV A of the FT(D&R) Act, 1992 as amended from time to time (ii) Sl. No. 4 & 5 of Table A and Appendix-3 of Schedule 2 of ITC(HS) Classification of Export & Import Items (iii) Para 2.16, Para 2.17, Para 2.18 of FTP and (iv) Para 2.73 -2.82 of Hand Book of Procedures, in addition to the other provisions of FTP and Handbook of Procedures governing export Authorisations. 2.10 Actual User Condition Goods which are importable freely without any 'Restriction' may be imported by any person. However, if such imports require an Authorisation, actual user alone may import such good(s) unless actual user condition is specifically dispensed with by DGFT. 2.11 Terms and Conditions of an Authorisation Every Authorisation shall, inter alia, include either all or some of the following terms and conditions (as applicable in terms of the para under which the Authorisation has been issued), in addition to such other conditions as may be specified: (a) Description, quantity and value of goods; (b) Actual User condition (as defined in Chapter 9); (c) Export Obliga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les, 1993. On issuance of such an order, for reasons to be recorded in writing, a firm may be refused grant or renewal of a license, certificate, scrip or any instrument bestowing financial or fiscal benefits. If a firm is placed under DEL all new licences, scrips, certificates, instruments etc will be blocked from printing/ issue/renewal. d) DEL orders may be placed in abeyance, for reasons to be recorded in writing by the concerned RA. DEL order can be placed in abeyance, for a period not more than 60 days at a time. e) A firm's name can be removed from DEL, by the concerned RA for reasons to be recorded in writing, if the firm completes Export Obligation/ pays penalty/ fulfils requirement of Demand Notice(s) issued by the RA/submits documents required by the RA. 7[2.15 A Any firm / company coming under the adjudication proceedings before the National Company Law Tribunal (NCLT) shall inform the concerned Regional Authority (RA) and NCLT of any outstanding export obligations/liabilities under any of the schemes under FTP. The total outstanding duty saved amount / dues along with interest, and any penalty imposed under FTD & R Act, or any other dues, shall be counted as part of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Part2 (IAEA document); 8. S/2014/253; 9. S/2016/308; 10. Annex III of Resolution 2321 (2016); and 11. other items, materials, equipment, goods and technology, as determined by the Central Government, which could contribute to DPRK's nuclear related, ballistic missile-related or other weapons of mass destruction related programmes; (iv) luxury goods, including, but not limited to, the items specified in Annex IV of Resolution 2094 (2013), Annex IV of Resolution 2270 (2016) and Annex IV of Resolution 2321 (2016); (v) items as determined by the Central Government, except food or medicine, that could directly contribute to the development of the Democratic People's Republic of Korea's operational capabilities of its armed forces. This measure is subject to the exemptions set out in paragraph 8 (a) and (b) of Resolution 2270 (2016); Prohibition on import (B) The direct or indirect procurement or import from DPRK, of items, whether or not originating in DPRK, covered in sub-paragraphs (A)(i), (A)(ii), (A)(iii) and (A)(v) above is prohibited. Sectoral prohibitions (export) (C) The direct or indirect supply, sale, transfer or export of the following items to DPR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s set out in paragraph 6 of Resolution 2397(2017). Explanation.- a) UNSC means the United Nations Security Council; b) IAEA means the International Atomic Energy Agency; c) Committee means the Committee of the UNSC set up in terms of paragraph 12 of Resolution 1718 (2006); d) Resolution, as the case may be, means the UNSC Resolutions under Chapter VII of the Charter of the United Nations on Democratic People's Republic of Korea, namely, 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013), 2270 (2016), 2231 (2016), 2356 (2017), 2371 (2017), 2375 (2017) and 2397(2017)] 2.18 Direct or Indirect Export/Import to/from Iran (a) Direct or indirect export to Iran or import from Iran of any item, material, equipment, goods and technology mentioned in the following documents would be permitted subject to the provisions contained in Annex-B to the United Nations Security Council Resolution 2231 (2015): (i) Items listed in INFCIRC/254/Rev.9/Part 1 and INFCIRC /254/Rev.7 /Part 2 (IAEA Documents) as updated by the IAEA from time to time. (ii) Items listed in S/2006/263 (UN Security Council document) as updated by the Security Council from time to time. (b) All the UN Security Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is inconsistent with such instructions or schemes, shall not apply. Import of Specific Categories of Goods: 2.24 Import of Samples Import of samples shall be governed by Para 2.65 of Handbook of Procedures. 2.25 Import of Gifts 11[Import of goods, including those purchased from e-commerce portals, through post or courier, where Customs clearance is sought as gifts, is prohibited except for life saving drugs / medicines/ oxygen concentrators and Rakhi (but not gifts related to Rakhi). The exemption for oxygen concentrators is allowed only for a period till 31 July 2021 for personal use. Explanation: 1 .Rakhi (but not gifts related to Rakhi) will be covered under Section 25(6) of Customs Act. 1962 that reads " …..no duty shall be collected if the amount of duty leviable is equal to or less than ₹ 100/-" 2. Import of goods as gifts with payment of full applicable duties is allowed] 2.26 Passenger Baggage (a) Bona-fide household goods and personal effects may be imported as part of passenger baggage as per limits, terms and conditions thereof in Baggage Rules notified by Ministry of Finance. (b) Samples of such items that are otherwise freely importab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liant notified products as in CRO, 2012, as amended from time to time is prohibited.] (c) All other second hand capital goods {other than (a) & (b) above} Free II Second Hand Goods other than capital goods Restricted Importable against Authorisation 2[III Second Hand Goods imported for the purpose of repair / refurbishing / re - conditioning or re - engineering. Free Subject to condition that waste generated during the repair / refurbishing of imported items is treated as per domestic Laws/ Rules/ Orders / Regulations/ technical specifications/ Environmental /safety and health norms and the imported item is re - exported back as per the Customs Notification.] Import Policy for Metallic Waste and Scraps: 2. 32 Import of Metallic waste and Scrap (a) Import of any form of metallic waste, scrap will be subject to the condition that it will not contain hazardous, toxic waste, radioactive contaminated waste/scrap containing radioactive material, any types of arms, ammunition, mines, shells, live or used cartridge or any other explosive material in any form either used or otherwise as detailed in Para 2.54 of Handbook of Procedures. (b) The types of metallic waste and scr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision of FTP or any other law for the time being in force. DGFT may, however, specify through a public notice such terms and conditions according to which any goods, not included in ITC (HS), may be exported without an Authorisation. 2.40 Deleted 2.41 Benefits for Supporting Manufacturers For any benefit to accrue to the supporting manufacturer (as defined in Para 9.58 of FTP), the names of both supporting manufacturer as well as the merchant exporter must figure in the concerned export documents, especially in ARE-1 / ARE-3 / Shipping Bill / Bill of Export/ Airway Bill. 2.42 Third Party Exports Third party exports (except Deemed Export) as defined in Chapter 9 shall be allowed under FTP. In such cases, export documents such as shipping bill shall indicate name of both manufacturing exporter/manufacturer and third party exporter(s). Bank Realization Certificate (BRC), Export Order and Invoice should be in the name of third party exporter. . Exports of Specific Categories: 2.43 Export of Samples Export of Samples and Free of charge goods shall be governed by provisions given in Para 2.66 of Handbook of Procedures. 2.44 Export of Gifts Goods including edible items, of valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e consumption; (iv) Export of goods shall be subjected to Section 69 of Customs Act, 1962. 17[II. (a) Goods imported against payment in freely convertible currency would be permitted for export only against payment in freely convertible currency, unless otherwise notified by DGFT. Goods imported under Para 2.52(d)(i) would be permitted for exports only against payments as per Para 2.52(d)(ii), unless otherwise notified by DGFT.] (b) Export of such goods to the notified countries (presently only Iran) would be permitted against payment in Indian Rupees, subject to minimum 15% value addition. (c) However, re-export of food, medicine and medical equipments, namely, items covered under ITC(HS) Chapters 2 to 4, 7 to 11, 15 to 21, 23, 30 and items under headings 9018, 9019, 9020, 9021 & 9022 of Chapter-90 of ITC(HS) will not be subject to minimum value addition requirement for export to Iran. Exports of these items to Iran shall, however, be subject to all other conditions of FTP 2015-20 and ITC (HS) 2017, as applicable. Bird's eggs covered under ITC (HS) 0407 & 0408 and Rice covered under ITC (HS) 1006 are not covered under this dispensation, as at II (a) above. (d) Exports under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DoR. (b) Such warehouses shall be entitled to procure goods from domestic manufacturers without payment of duty. Supplies made by a domestic supplier to such notified warehouses shall be treated as physical exports provided payments are made in free foreign exchange. Payments and Receipts on Imports / Exports: 2.52 Denomination of Export Contracts (a) All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realized in freely convertible currency. (b) However, export proceeds against specific exports may also be realized in rupees, provided it is through a freely convertible Vostro account of a non resident bank situated in any country other than a member country of Asian Clearing Union (ACU) or Nepal or Bhutan. Additionally, rupee payment through Vostro account must be against payment in free foreign currency by buyer in his non- resident bank account. Free foreign exchange remitted by buyer to his nonresident bank (after deducting bank service charges) on account of this transaction would be taken as export realization under export promotion schemes of FTP. (c) Contracts (for which payments a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asons beyond his control (force-majeure), he may approach RBI for writing off the unrealised amount as laid down in Para 2.87 of Handbook of Procedures. (c) The payment realized through insurance cover, would be eligible for benefits under FTP as per Procedures laid down in Para 2.85 of Handbook of Procedures. 2.54A Export Credit Agencies (ECAs) (i) Export Credit Agencies (ECAs) are policy instrument for Government to support exports. ECAs support exports by insurance, guarantee and also direct lending. Export Credit Agencies (ECAs) like Export Credit Guarantee Corporation of India Ltd. (ECGC) provides credit insurance support to exports and export credit lending. Covers issued by ECGC to exporters, protect against losses arising out of payment failures due to insolvency or default of the buyers or due to political risks. Exporters can diversify their markets in addition to protecting existing markets through such covers. ECGC also supports Medium and Long term (MLT) exports including project exports. Exim Bank is the other ECA in the business of lending for MLT exports and fronting the government's line of credit. (ii) ECGC indemnifies losses of exporters in export trade due to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icy matters: Members (iv) Joint DGFT (PRC/PIC): Member Secretary (v) Any other person / representative of the concerned Ministry / Department, to be co-opted by the Chairman. 2.58 Exemption from Policy/Procedures DGFT may in public interest pass such orders or grant such exemption, relaxation or relief, as he may deem fit and proper, on grounds of genuine hardship and adverse impact on trade to any person or class or category of persons from any provision of FTP or any Procedures. While granting such exemption, DGFT may impose such conditions as he may deem fit after consulting the Committees as under: Sl.No. Description Committee (a) Fixation / modification of product norms Norms Committees (b) Nexus with Capital Goods (CG) and benefits under EPCG Schemes EPCG Committee (c) All other issues Policy Relaxation Committee (PRC) 2.59 Personal Hearing by DGFT for Grievance Redressal (a) Government is committed to easy and speedy redressal of grievances from Trade and Industry. Paragraph 2.58 of FTP provides for relaxation of Policy and Procedures on grounds of genuine hardship and adverse impact on trade. If an importer/exporter is aggrieved by any decision taken by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capacity and trained manpower as per the details in Para 2.109 of Handbook of Procedures 2015-20 read with Appendix 2F of Appendices & Aayaat Niryat Forms. (iv) The details of the Scheme, along with the penalty provisions, are provided in Appendix 2F of Appendices and Aayaat Niryat Forms and will come into effect only when India incorporates the scheme into a specific agreement with its partner/s and the same is appropriately notified by DGFT. 2.62 Certification of Origin of Goods EU-GSP Exporters can self-certify the Statement on Origin of their goods, as per the self-certification scheme , Certification of Origin of Goods for European Union Generalised System of Preferences (EU-GSP) , of the European Union (EU) under the Registered Exporter System (REX) as in Para 2.104 (c) of the Handbook of Procedures. ******************** Notes:- 1. Substituted vide Notification No. 52/2015-20 - Dated 07-03-2018, before it was read as, "2.17 Prohibition on direct or indirect import and export from/to DPRK Direct or Indirect export and import of items, whether or not originating in Democratic People's Republic of Korea (DPRK) to/from DPRK is detailed in Appendix - I of FTP." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... courier service and Post shall be ₹ 5,00,000 per consignment.]" 6. Substituted vide Notification No. 5/2015-2020 dated 07-05-2019 before it was read as "S.No. Categories of Second Hand Goods Import Policy Conditions, if any I Second Hand Capital Goods Restricted Importable against Authorisation (a) i. Personal computers/ laptops including their refurbished/ re-conditioned spares ii. Photocopier machines/ Digital multifunction Print & Copying Machines iii. Air conditioners iv. Diesel generating sets. (b) Refurbished / re-conditioned spares of Capital Goods Free Subject to production of Chartered Engineer certificate to the effect that such spares have "at least 80% residual life of original spare." 7. Inserted vide Notification No. 25/2015-2020 dated 18-10-2019 8. Substituted vide Notification No. 35/2015-2020 dated 12-12-2019 before it was read as "Import of gifts shall be 'free' where such goods are otherwise freely importable under ITC (HS). In other cases, such imports shall be permitted against an Authorisation issued by DGFT." 9. Substituted vide NOTIFICATION NO. 58/2015-2020 dated 12-02-2021 before it was read as "Importer-Expo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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