Policy

Policy relating to general provisions regarding exports and
imports is given in Chapter 2 of FTP.

Unless otherwise specifically provided, import / export will be valid from / to any country. Above provisions shall, however,be subject to all conditionality, or requirement of Authorisation as required under Schedule I and / or Schedule II of ITC (HS).

Application Fee

The scale of fee, mode of payment, procedure for refund of
fee and categories of persons exempted from payment of fee
are contained in Appendix-21B.

Applicant shall furnish a self addressed envelope of 40x15 cm with required postal stamp affixed, for all documents required to be sent by Speed Post.

Validity of IEC No.

An IEC number allotted to an applicant shall be valid for all its branches / divisions / units / factories.

Duplicate Copy of IEC Number

Surrender of IEC Number

To facilitate collection of Authorisation and other documents
from DGFT Head Quarters and RA, identity cards (as in
Appendix 20B, valid for 3 years) may be issued to proprietor/
partners / directors and authorised employees (not more than
three), of importers and exporters, upon application as in
Appendix 20A.
In addition, Identity Card may also be issued by the applicant
firms on their letterhead to the concerned employees. These Identity Cards may be countersigned by the concerned RA.
However, application for identity card in Appendix 20B will
require to be made by the applicant and all other parameters
would need to be met.
However, in case of limited companies, RA may approve
allotment of more than three identity cards per company.
In case of loss of an identity card, a duplicate card may be
issued on the basis of an affidavit.
For common directors / partners, of a group company or in
any other similar cases, RA may issue multiple identity cards
after recording reasons in writing.

Interviews with authorised Officers

Officers may grant interview at their discretion to  authorised Officers representative of importer / exporter. Interviews / clarifications
may also be sought through E-mails.

Warehousing Facility

Before clearance of goods through Customs, Authorisation  / holder shall execute a BG/LUT with customs authorities.
In such cases, RA shall endorse the following condition on  / the licence/ Authorisation:  "BG / LUT as applicable, to be executed with concerned Customs Authorities.”
In case of indigenous sourcing, Authorisation holder shall
furnish BG / LUT to RA as per Customs Circular No.58/2004
dated 31.10.04, as amended from time to time.
In case, the firm has already executed BG / LUT for the full
value of the licence/ certificate / authorization / permission
(covering the items indigenously procured) to the Customs and
furnishes proof of the same to Regional Authority (RA), no
BG / LUT shall be required to be executed with the RA. The
RA concerned shall endorse on the authorization that the
Customs Authority shall release / redeem BG / LUT only after
receipt of NOC or EODC from the RA concerned. RA shall
endorse a copy of the same along with a forwarding letter to
the Customs Authority at the Port of registration for their
information and record.

At the time of filing application for scrip(s) under DEPB Scheme/freely transferable incentive Scheme under Chapter 3 of FTP, without Bank Realisation Certificate (BRC), the applicant shall execute BG/LUT (as per Customs Circular no.58/2004) with the RA as per Appendix 25C or Appendix 25D respectively.

Corporate Guarantee

A status holder or a PSU may also submit Corporate Guarantee in lieu of Bank Guarantee/LUT in terms of the provisions of relevant Customs Circular in this regard. In case of a group company, if one company of a Group is a status holder, Corporate Guarantee may be given for another company by this company, which is not a status holder.

Certificate of  Origin (CoO)

Certificate of Origin (CoO) is an instrument to establish
Origin (CoO) evidence on origin of goods imported into any country. There are two categories of CoO viz. (1) Preferential and (2) Non preferential.

Preferential

Preferential arrangement / schemes under which India is
receiving tariff preferences for its exports are Generalised
System of Preferences (GSP), Global System Of Trade
Preferences (GSTP), SAARC Preferential Trading Agreement (SAPTA), Asia-Pacific Trade Agreement (APTA), India–Sri Lanka Free Trade Agreement (ISLFTA) and Indo-Thailand

Free Trade Agreement. These arrangements / agreements
prescribe Rules of Origin which have to be met for exports to be eligible for tariff preference. Authorised agencies shall provide services relating to issue of CoO, including details regarding rules of origin, list of items covered by an agreement, extent of tariff preference, verification and certification of eligibility. Export Inspection Council (EIC) is agency authorised to print blank certificates. Authorised agencies may charge a fee, as approved by DoC, for services rendered.

Generalised System of Preferences (GSP)

Global System of  Trade Preference (GSTP)

SAARC Preferential Trading Agreement (SAPTA)

Asia-Pacific  Trade Agreement (APTA)

India-Sri Lanka Free Trade Agreement (ISLFTA)

India-Afghanistan Preferential Trade Agreement

Indo-Thailand Framework Agreement for Free Trade Area

Non Preferential

The agency would ensure that goods are of Indian origin as
per general principles governing rules of origin before granting CoO (non preferential). Certificate would be issued as per Format given in Annexure-II to Appendix–4C. It should be ensured that no correction/re-type is made on certificate. Any agency desirous of enlistment in Appendix–4C may submit their application as per Annexure I to Appendix 4C to the concerned RA.
In case of tea, all exporters who are required to submit
CoO (Non-Preferential) shall apply to Tea Board or any
Inspection Agency authorized by Tea Board and enlisted in
Appendix-4C of HBP v1 with documents listed above.

Automatic Licence / Certificate / Authorisation /Permission

Status holders shall be issued Authorisation automatically within stipulated time period. Deficiency, if any, informed through covering letter, shall be required to be rectified by status holders within 10 days from date of communication of deficiency.

Submission of certified copies of documents

Wherever original documents have been submitted to a
certified copies different RA / nominated agencies or to a different division of documents same RA, applicant can furnish photocopy of documents duly certified by him in lieu of original.

Advance Payment

In case, payment is received in advance and export / deemed exports takes place subsequently, application for an Authorisation shall be filed within specific period following the month during which exports / deemed exports are made, unless
otherwise specified.

Payment through General /Private Insurance Companies

Irrevocable Letter of Credit

Realization of export proceeds shall not be insisted under any of the Export Promotion Schemes under this Foreign Trade Policy, if the Reserve Bank of India (RBI) writes off the requirement of realization of export proceeds on merits and
the exporter produces a certificate from the concerned Foreign Mission of India about the fact of non-recovery of export proceeds from the buyer. However, this would not be applicable in self-write off cases.

2.26

Import/ Export through Courier Service

2.26.1

Imports / Exports through a registered courier service is permitted as per Notification issued by DoR. However, importability / exportability of such items shall be regulated in accordance with FTP.

Direct negotiation of export documents

c. Statement giving details of shipping bills / invoice against which FIRC was issued.

2.27

Exports of bonafide trade and technical samples of freely exportable item shall be allowed without any limit.

Import under lease financing shall be available under EPCG  Scheme, EOU / SEZ scheme. Domestic supplier of capital goods to eligible categories of deemed exports shall be eligible for benefits of deemed exports as in paragraph 8.3 of FTP, even in cases where supplies are under lease financing.

Exhibits Required for National and International Exhibitions or Fairs and Demonstration

(i) has been approved or sponsored by DoC or ITPO; and

Extension beyond six months for re-export / re-import will be considered by Customs authorities on merits. Consumables such as paints, printed material, pamphlets, literature etc. pertaining to exhibits need not be re-exported / re-imported.

Import Policy

2.30

General Procedure for Licensing of Restricted Goods

Wherever an import Authorisation, including CCP, is required under FTP, procedure contained in this chapter shall be applicable.

 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 type of arms, ammunition, mines, shells, live or used cartridge or any other explosive material in any form either used or otherwise.

2.32.2

“1.Chennai, 2.Cochin, 3.Ennore, 4.JNPT, 5.Kandla, 6.Mormugao, 7.Mumbai, 8.New Mangalore, 9.Paradip, 10.Tuticorin, 11.Vishakhapatnam, 12. ICD Loni, Ghaziabad, 13.Pipava, 14.Mundra, 15.Kolkata, 16.ICD Ludhiana, 17.ICD Dadri (Greater Noida), 18.ICD Nagpur, 19.ICD Jodhpur, 20.ICD Jaipur, 21.ICD Udaipur, 22.CFS Mulund, 23.ICD Kanpur, 24.ICD Ahmedabad, 25.ICD Pitampur and 26.ICD Malanpur”.

In case any agency wishes to be enlisted under Appendix-5, they may furnish an application to the office of Director General of Foreign Trade in the format in Appendix-5A, which will be considered by an Inter-Ministerial Committee

2.32.3

However, import of other kinds of metallic waste and scrap will be allowed in terms of conditions of ITC (HS).

2.32.4

Import policy for seconds and defective, rags, PET bottles /waste, and ships is given in ITC (HS).

Import of Second Hand Capital Goods

 

2.33

Import of refurbished / reconditioned spares of capital goods, other than those of personal computers/laptops will be allowed on production of a Chartered Engineer certificate that such spares have atleast 80% residual life of original spare.

2.33.1

Imports under this sub Para would be subject to the condition that goods shall not be used for any commercial purpose, is non transferable and complies with all terms and conditions of relevant Customs Rules and Regulations.

2.33A

Customs or any other Central or State Government authority may avail of services of Inspection and Certification Agencies in Appendix 5 of the HBP v1, for certifying residual life as well as valuation / purchase price of capital good.

Import of Ammunition by Licensed Arms Dealers

2.34

An import Authorisation shall be issued at 5% of value of annual average sales turnover of ammunition (whether indigenous or imported) during preceding three licensing years subject to a minimum of Rs. 2000.An application for grant of an Authorisation for items listed above may be made to RA in ANF 2B along with documents prescribed therein.

Restricted Items Required By Hotels, Restaurants, Travel Agents, Tour Operators and other Specified Categories

2.35.1

Hotels, including tourist hotels, recognised by Director General of Tourism, Government of India or a State Government shall be entitled to import Authorisation upto a value of 25% of foreign exchange earned by them from foreign tourists during preceding licensing year, for import of essential goods related to hotel and tourism industry.

2.35.2

Travel agents, tour operators, restaurants, and tourist transport operators and other units for tourism, like adventure / wildlife and convention units, recognized by Director General of Tourism, Government of India, shall be entitled to import authorisation up to a value of 10% of foreign exchange earned by them during preceding licensing year, for import of essential goods which are restricted for imports related to travel and tourism industry, including office and other equipment required for their own professional use.

2.35.3

Import entitlement under paragraphs 2.35.1 and 2.35.2 of any one licensing year can be carried forward, either in full or in part, and added to import entitlement of two succeeding licensing years and shall not be transferable except within the group company or to managed hotels.

2.35.4

No permission for transfer will be required in case the imported goods are re- exported. However, re-export shall be subject to all conditionality, or requirement of licence, or permission, as may be required under Schedule II of ITC (HS).

2.35.5

An application for grant of an Authorisation under paragraphs 2.35.1 and 2.35.2 may be made in ANF 2B to DGFT through Director of Tourism, Government of India who will forward application to RA concerned along with their recommendations.

Import of Other Restricted Items

2.36

ITC (HS) contains list of restricted items. An application for import of such items may be made, in ANF 2B along with documents prescribed therein. Original application along with Treasury Receipt (TR) / Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA.

EXIM Facilitation Committee

2.37

Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf. DGFT / RA may take assistance and advice of a Facilitation Committee. The Assistance of technical authorities may also be taken by seeking their comments in writing. Facilitation Committee will consist of representatives of Technical Authorities and Departments / Ministries concerned.

2.37A

Import authorizations for a restricted item if so directed by the competent authority, shall be issued for import through one of the sea ports or air ports or ICDs or LCS, as per the option indicated, in writing, by the applicant. Authorization holder shall register the same at the port specified in the authorization and thereafter all imports against said authorization shall be made only through that port, unless the authorization holder obtains permission from customs authority concerned to import through any other specified port.

Gifts of Consumer or Other Goods

2.38

In terms of provisions contained in paragraph 2.19 of FTP, an application for grant of CCP for import as gifts of items appearing as restricted for imports in ITC (HS) shall be made to the DGFT as in ANF 2B along with documents prescribed therein. Where recipient of a gift is a charitable, religious or an educational institution registered under any law in force, and gift sought to be imported has been exempted from payment of customs duty, such import shall be allowed by customs authorities without a CCP.

Import under Govt. to Govt. Agreements

2.39

Import of goods under Government to Government agreements may be allowed without an Authorisation or CCP on production of necessary evidence to satisfaction of Customs authorities

Import of Cheque Books / Ticket Forms etc.

2.40

Indian branches of foreign banks, insurance companies and travel agencies may import chequebooks, bank draft forms and travellers cheque forms without a CCP. Similarly, airlines/shipping companies operating in India, including persons authorised by such airlines / shipping companies, may import passenger ticket forms without a CCP.

Import of Reconditioned/ Second Hand Aircraft Spares

Import Authorisation for reconditioned / second hand aircraft spares is not needed on recommendation of Director General of Civil Aviation, Government of India (DGCA).

Import of Replacement Goods

2.42

(b) No remittance shall be allowed except for payment of insurance and freight charges where replacement of goods by foreign suppliers is subject to payment of insurance and / or freight by importer and documentary evidence to this effect is produced while making remittance.

2.42.1

This procedure shall also apply to cases in which short-shipment of goods is certified by foreign supplier, who has agreed to replace free of cost.

2.42.2

Cases not covered by above provisions will be considered on merits by DGFT for grant of Authorisation for replacement of goods for which an application may be made.

Transfer of Imported Goods

2.43

(v) Terms and conditions of transfer as agreed upon between buyer and seller.

2.43.1

Prior permission of RA shall not, however, be necessary for transfer or disposal of goods, which were imported with Actual User condition, provided such goods are freely importable without Actual User condition on date of transfer.

2.43.2

“Renowned Shooters” for 3 consecutive years are allowed to sell their imported weapons after three years from date of import of the respective weapon. Other “Renowned Shooters” are allowed to sell their weapons after 5 years from the date of import. The sale shall be subject to approval from DGFT.

Sale of Exhibits

2.44

(ii) If goods brought for exhibition are not re-exported or sold within bond period due to circumstances beyond control of importer, customs authorities may allow extension of bond period on merits.

Import of Overseas Office Equipment

2.45

On winding up of overseas offices, set up with approval of RBI, used office equipment and other items may be imported without Authorisation.

Prototypes

2.46

Import of new / second hand prototypes / second hand samples may be allowed on payment of duty without an Authorisation to an Actual User (industrial) engaged in production of or having industrial licence / letter of intent for research in item for which prototype is sought for product development or research, as the case may be, upon a self-declaration to that effect, to satisfaction of customs authorities.

Restricted items for R&D

2.47

All restricted items and items permitted to be imported by STEs, except live animals, required for R&D purpose may be imported without an Authorisation by Government recognized Research and Development units.

Export Policy

2.48

Policy relating to Exports is given in Chapter-2 of FTP. Further, Schedule 2, Appendix-1 of ITC (HS) specifies list of items, which may be exported without an Authorisation but subject to terms and conditions specified.

Application for Grant of Export Licence/Certificate / Permission

Export of Items under State Trading Regime (STR)

An application for export of items mentioned in ITC (HS) under STR regime may be made to DGFT.

Exports of Samples /Exhibits

2.51

An application for export of samples or exhibits, which are restricted for export, may be made to DGFT.

Free of Cost Exports

2.52

Status holders shall be entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of Rs.10 lakh or 2% of average annual export realisation during preceding three licensing years whichever is higher.

Gifts / Spares /Replacement Goods

2.53

For export of gifts, indigenous / imported warranty spares and replacement goods in excess of ceiling / period prescribed in paragraphs 2.32, 2.33 and 2.37 respectively of FTP, an application may be made to DGFT.

Furnishing of Returns in respect of Exports in non Physical form

Duty Free Import of R&D Equipment for Pharmaceuticals and Bio-technology Sector

In respect of duty free import of R&D equipment, units not registered with Central excise shall be allowed to give Installation Certificate issued by an independent Chartered Engineer.

2.55.1

In respect of duty free import of R&D equipment, units not registered with Central excise shall be allowed to give Installation Certificate issued by an independent Chartered Engineer.

Conversion of E.P. copy of shipping bill from one Scheme To Another

If Customs Authorities, after recording reasons in writing, permit conversion of an E.P. copy of any scheme-shipping bill on which benefit of that scheme has not been availed, exporter would be entitled to benefit under scheme in which shipment is subsequently converted.

Offsetting of Export Proceeds

2.57

2.58

It has been a constant endeavor to promote quality standards in export product / units manufacturing export product.

2.58.1

One of salient features incorporated in FTP as per paragraph 3.10.3 for promotion of quality standards is grant of Export / Trading House status on achievement of a lower threshold limit for units having ISO-9000 (series), ISO-14000 (Series) or HACCP certification or WHOGMP or SEI CMM level-2 & above status / certification.

2.58.2

Procedure for import under the Tariff Rate Quota Scheme

Eligible entities for allocation of quota

2.59.1

EFC in DGFT will evaluate and allot quota among applicants by 31st March of each financial year preceding to year of quota e.g. for 2010-11, EFC will allot quota by 31st March 2010.

Issuance of scrips against lost EP copy of the Shipping Bills and / or original Bank Realisation Certificate

d) An indemnity bond by exporter to effect that he would indemnify Government for financial loss if any on account of duty credit issued against lost Shipping Bills/BRC. Customs Authority, before allowing clearance, shall ensure that benefit / duty credit against such shipping bill has not been availed.

2.60.1

Claim against lost Shipping Bill / BRC shall be preferred within a period of six months from date of release of duplicate copy of Shipping Bill / on date of realization of export proceeds. Any application received thereafter shall be rejected.

Export Promotion Council (EPC)/Commodity Boards (CB)

A list and product category of EPCs, including CB is given in Appendix-2. Commodity Boards function as EPCs for products allotted to them. EPC is authority issuing RCMC.

Non-Profit, Autonomous and Professional Bodies

EPCs are non-profit organizations registered under Companies Act or Societies Registration Act.

2.62.1

Concerned Administrative Ministry would interact with Managing Committee of EPC concerned at least twice a year.

2.63

(vii) In respect of multi product exporters having their head office/ registered office in the North Eastern States, RCMC may be obtained from Shellac & Forest Products Export Promotion Council (except for the products looked after by APEDA, Spices Board and Tea Board).

Registration cum Membership Certificate (RCMC)

Prospective / potential exporters may also, on application, register and become an associate member of an EPC .

Validity Period of RCMC

2.64.1

RCMC shall be deemed to be valid from 1st April of licensing year in which it was issued and shall be valid for five years ending 31st March of licensing year, unless otherwise specified.

Intimation Regarding Change In Constitution

2.65

In case of change in ownership, constitution, name or address of an exporter, it shall be obligatory on part of RCMC holder to intimate such change to registering authority within a period of one month from date of such change. Registering authority, however, may condone delays on merits.

Furnishing Of Returns

2.66

Exporter shall furnish quarterly returns / details of his exports of different commodities to concerned registering authority. However, status holders shall also send quarterly returns to FIEO in format specified by FIEO.

De-Registration

2.67

Registering authority may de-register an RCMC holder for a specified period for violation of conditions of registration. Before such de-registration, RCMC holder shall be given a show cause notice by registering authority, and an adequate and reasonable opportunity to make a representation against the proposed de-registration. Upon de–registration, concerned EPC shall intimate the same to all RAs.

Appeal Against De-registration

2.68

A person aggrieved by a decision of registering authority in respect of any matter connected with issue of RCMC may prefer an appeal to DGFT or an officer designated in this behalf within 45 days against said decision and decision of appellate authority shall be final.

Directives of DGFT

DGFT may direct any registering authority to register or deregister an exporter or otherwise issue such other directions to them consistent with and in order to implement provisions of FT (D&R) Act, Rules and Orders made there under, FTP or this Handbook.

2.70

Electronic Data Interchange

Eligibility

2.70.1

Facility of electronic filing of applications shall be available to all exporters.

Procedure

2.70.2

Applicant will have to visit concerned office to hand-over hard copy of application along with requisite documents including application fee. Authorisation shall be issued on receipt of hard copies of documents as mentioned above after due scrutiny as prescribed in HBP v1.

Fiscal Incentives for EDI

2.70.3

Benefits

2.70.4

Facility will reduce unnecessary physical interface with DGFT. It will enable faster processing, speedier communication of deficiencies, if any, and on-line availability of application processing status.

2.70.5

Authorisation issued using DGFT Electronic Application System shall be transmitted electronically to Customs through EDI Mode. This shall also obviate need for verification of Authorisations before allowing clearance.

New EDI Initiatives

2.70.6

To further improve quality of services some new EDI initiatives are being taken by DGFT: Electronic Message Exchange between Customs and DGFT in respect of incentive schemes under Chapter 3 will become operational by 31st December, 2009.