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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 ..... rmonized System goods nomenclature maintained by World Customs Organization (http://www.wcoomd. org). However, India maintains national Harmonized System of goods at 8-digit level notified under First Schedule of the Customs Tariff Act,1975 which may be viewed under Regulatory Updates at http://dgft. gov.in and at https://www.cbic.gov.in (c) The import/export policies for all goods are indicated against each item as per its ITC (HS). Schedule 1 of ITC (HS) lays down the Import Policy regime while Schedule II of ITC(HS) lays down 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 Second Hand goods. For Second Hand goods, the Import Policy regime is given under Para 2.31 of 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 may be exempted by DGFT from domestic standards/ quality specifications. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all not be available. (g) 7 [ The Export Obligation period for such authorizations shall be as per 4.40 of Handbook of Procedures. However, EO period is restricted to 180 days from the date of clearance of import consignments in respect of QCO exemption for textile and chemical Products, notified by Ministry of Textiles and Department of Chemicals Petro-chemicals (DCPC) respectively. ] (h) Import of Inputs without compliance to the mandatory QCOs under DFIA scheme is not allowed. (i) This exemption is further subject to para 2.03 (c) of FTP. ii) For EOUs (i) Exemption from applicability of mandatory QCOs issued under the BIS Act, 2016, shall be provided to EOU on import of inputs which are required for export production. No DTA clearance of such inputs or goods manufactured made out of such inputs, are allowed. An undertaking to that effect will be submitted to the Customs authorities by the EOU at the time of importation and a copy of the same shall also be submitted to the Development Commissioner concerned. The exemption from QCO will be available for physical exports only and such exemption will not be allowed for deemed exports. This exemption is further subject to para 2.03 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) An IEC may also be flagged for scrutiny. IEC holder(s) are required to ensure that any risks flagged by the system are timely addressed; failing which the IEC shall be de-activated. 2.06 Mandatory documents for export/ import of goods from/into India (a) Mandatory documents required for export of goods from India: 1. Bill of Lading/ Airway Bill/ Lorry Receipt/ Railway Receipt/Postal Receipt 2. Commercial Invoice cum Packing List* 3. Shipping Bill/Bill of Export/ 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 CBIC 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Permission or in accordance with the Procedures prescribed in a Notification / Public Notice issued in this regard. 2.09 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. 2.10 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 11); (c) Export Obligation; (d) Minimum Value addition to be achieved; (e) Minimum export/import price; (f) Bank guarantee/ Legal undertaking / Bond with Customs Authority/RA (as in para 2.35 of FTP). (g) Validity period of import/export as specified in Handbook of Procedures. 2.11 Application Fee (a) Application for IEC/Authorisation/License/Scrips/ Registration must be accompanied by application fees as indicated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strument bestowing financial or fiscal benefits. If a firm is placed under DEL, all new licences, authorisations, 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. 2.15 Firm/company under adjudication proceeding before the National Company Law Tribunal (NCLT) Any firm/company coming under the adjudication proceeding 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 FT (D R) Act, or any other dues, shall be counted as part of the dues to the government against the said firm/company. Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [United Nations Security Council Resolution 2036(2012)]. Importers of Charcoal shall submit a declaration to Customs that the consignment has not originated in Somalia. Import / Export through State Trading Enterprises: 2.21 State Trading Enterprises (STEs) (a) State Trading Enterprises (STEs) are governmental and non-governmental enterprises, including marketing boards, which deal with goods for export and /or import. Any good, import or export of which is governed through exclusive or special privilege granted to State Trading Enterprise (STE), may be imported or exported by the concerned STE as per conditions specified in ITC (HS). The list of STEs notified by DGFT is in Appendix-2J. (b) Such STE(s) shall make any such purchases or sales involving imports or exports solely in accordance with commercial considerations, including price, quality, availability, marketability, transportation and other conditions of purchase or sale in a non-discriminatory manner and shall afford enterprises of other countries adequate opportunity, in accordance with customary business practices, to compete for participation in such purchases or sales. (c) DGFT may, however, grant an authorisation to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to import drawings, patterns, labels, price tags, buttons, belts, trimming and embellishments required for export, as part of their passenger baggage, without an Authorization subject to value limit as laid down in FTP or as per the relevant Customs notification(s) in this regard. (d) Any item(s) including Samples or Prototypes of items whose import policy is restricted or prohibited or is canalised through STEs are not permitted as part of passenger baggage except with a valid authorization/ permission issued by DGFT. 2.28 Re import of goods repaired abroad Capital goods, equipment, components, parts and accessories, whether imported or indigenous, except those restricted under ITC (HS) may be sent abroad for repairs, testing, quality improvement or upgradation or standardization of technology and re-imported without an Authorisation. 2.29 Import of goods used in projects abroad Project contractors after completion of projects abroad, may import without an Authorisation, goods including capital goods used in the project, provided they have been used for at least one year. 2.30 Import of Prototypes Import of new / second hand prototypes / second hand samples may be allowed on paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hand/used/old condition and have been used in the SEZ area for less than 2 years are not covered. 3. The relaxation for import from SEZ to DTA under condition 1 2 above, shall be applicable given that no exemption from any regulatory requirements (i.e., CRO, WPC, RoHS) was availed at the time of import of the Used IT Assets into the SEZ. 4. Import of any Used IT Assets which do not fulfill the above-mentioned criteria shall be subject to a licence for Restricted Import. ] II. Second Hand Goods other than capital goods Restricted Importable against Authorisation III. Second Hand Goods imported for the purpose of repair/refurbishing / reconditioning 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. 2.38 Sale on High Seas Sale of goods on high seas for import into India may be made subject to FTP or any other law in force. 2.39 Merchanting Trade 2 [ Merchanting trade involving shipment of goods from one foreign country to another foreign country without touching Indian ports, or shipment of goods within one specific foreign country , involving an Indian intermediary is allowed subject to compliance with RBI guidelines, except for goods in the CITES, or under SCOMET. ] Exports: 2.40 Free Exports All goods may be exported without any restriction except to the extent that such exports are regulated by ITC(HS) or any other provision of FTP or any other law for the time being in force. DGFT may, however, specify through a Public Notice such terms and conditions according to which any goods, not included in ITC(HS), may be exported without an Authorisation. 2.41 Benefits for Supporting Manufacturers For any benefit to accrue to the supporting manufacturer (as defined in Para 11.59 of FTP), the names of both supporting manufacturer as well as the merchant exporter must figure in the concerned export documents, especially in Tax Invoice / Shipping Bill / Bill of Export/ Airway Bill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Export Policy of the ITC (HS); (iii) Export is against freely convertible currency or as per para 2.52(d)(ii) of FTP. (c) Goods in (b) above will include Restricted goods for import (except Prohibited items). (d) Capital goods, which are freely importable and freely exportable, may be imported for export on execution of LUT/BG with the Customs Authority. (e) Notwithstanding the above, goods which are freely importable may be re-exported except items as in the Prohibited or SCOMET List of exports, in same or substantially same form even though such goods are under Restricted list for export, subject to the following conditions: (i) Goods are not of Indian Origin; (ii) Goods imported shall be kept in bonded warehouse under supervision of Customs; (iii) Goods to be exported have never been cleared for home consumption; (iv) Export of goods shall be subjected to Section 69 of Customs Act, 1962. II. (a) G oods 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with main equipment or subsequently but within contracted warranty period of such goods, subject to approval of RBI. 2.50 Re-export of imported Goods found defective and unsuitable for use Imported goods found defective after Customs clearance, or not found as per specifications or requirements may be re-exported back as per Customs Act, 1962. 2.51 Private Bonded Warehouses for Exports (a) Private bonded warehouses exclusively for exports may be set up in DTA as per terms and conditions of notifications issued by Department of Revenue. (b) Such warehouses shall be entitled to procure goods from domestic manufacturers for manufacturing and other operations in accordance with Section 65 of the Customs Act, 1962. 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 co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Proceeds (a) If an exporter fails to realize export proceeds within time specified by RBI, he shall, without prejudice to any liability or penalty under any law in force, be liable to return all benefits / incentives availed against such exports and action in accordance with provisions of FT (D R) Act, Rules and Orders made thereunder and the FTP. (b) In case an Exporter is unable to realize the export proceeds for reasons beyond his control (forcemajeure), he may approach RBI for writing off the unrealized amount as laid down in Para 2.72 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 2.71 of Handbook of Procedures. 2.55 Export Credit Agencies (ECAs) (i) Export Credit Agencies (ECAs) are policy instruments 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 insolve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lassification of any item for import / export in the ITC (HS). (b) A Policy Interpretation Committee (PIC) may be constituted to aid and advice DGFT. The composition of the PIC would be as follows: (i) DGFT: Chairman (ii) All Additional DGFTs in Headquarters: Members (iii) All Joint DGFTs in Headquarters looking after Policy matters: Members (iv) Joint DGFT (PRC/PIC): Member Secretary (v) Any other person / representative of the concerned Ministry / Department, to be co-opted by the Chairman. 2.59 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 under all schemes Norms Committees (b) Nexus with Capital Goods (CG) and benefits under EPCG Schemes EPCG Committee (c) All other issues Policy Relaxation Committee (PRC) 2.60 Personal Hearing by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder different PTAs/FTAs/CECAs/CEPAs which are in operation. Self-certification will be permitted only for the goods that are manufactured as per the Industrial Entrepreneurs Memorandum (IEM) / Industrial License (IL) /Letter of Intent (LOI) issued to manufacturers. (iii) Status Holders will be recognized by DGFT as Approved Exporters for self-certification based on availability of required infrastructure, capacity and trained manpower as per the details in Para 2.94 of Handbook of Procedures 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. Further the entities to whom such self-certification will be extended bilaterally under FTA/PTA will be subject to the provisions and conditions of that FTA. 2.63 Certification of Origin of Goods EUGSP Exporters can self-certify the Statement on Origin of their goods, as per the self-certification scheme, Certification of Origin of Goods for European ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her 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 DPRK is prohibited: (i) new helicopters and new or used vessels, except as approved in advance by the Committee on a case-by-case basis; (ii) aviation fuel, including aviation gasoline, naptha-type jet fuel, kerosene type jet fuel, and kerosene-type rocket fuel. This measure is subject to the provisions of paragraph 31 of Resolution 2270 (2016) and paragraph 20 of Resolution of 2321 (2016); (iii) condensates and natural gas liquids; (iv) refined petroleum products. This measure is subject to the limits, exceptions and procedures set out in paragraph 5 of Resolution 2397 (2017); (v) crude oil. This measure is subject to the limits, exemptions and procedures set out in paragraph 4 of Resolution 2397 (2017); (vi) all industrial machinery [Chapter 84 and 85 of ITC(HS)], transportation vehicles [Chapter 86 to 89 of ITC(HS)], and iron, steel, and other metals [Chapter 72 to 83 of ITC(HS)]. This measure is subject to the exemptions set out in paragraph 7 of Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and SCOMET list. 3. Inserted vide Notification No. 69/2023 dated 07-03-2024 4. Inserted vide Notification No. 71/2023 dated 11-03-2024 5. Substituted vide Notification No. 71/2023 dated 11-03-2024 before it was read as, 3 [ (c) The list of Ministries/Departments whose notifications on mandatory QCOs, that are exempted by the DGFT for goods to be utilised/consumed in manufacture of export products, are given in Appendix-2Y of FTP 2023 . ] 6. Substituted vide Notification No. 13/2024-25 dated 20-05-2024 before it was read as, I(b) All electronics and IT Goods notified under the Electronics and IT Goods (Requirements of Compulsory Registration) Order, 2012 as amended from time to time Restricted (i) Importable against an authorization subject to conditions laid down under Electronics and IT Goods (Requirements of Compulsory Registration) Order, 2012 as amended from time to time. (ii) Import of unregistered/non-compliant notified products as in CRO, 2012 as amended from time to time is Prohibited 7. Substituted vide Notification No. 16/2024-25 dated 06-06-2024 before it was read as, (g) The Export Obligation period for such authorizations shall be as per para 4.40 of Handbook of Proce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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