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    Circulars
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    ITC (HS) Classification - Sandalwood Exports
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    Export deadline extension for sandalwood processing exports extends compliance timeframe under licensing regime for existing export conditions.
    The notice amends Paragraph 8 of Public Notice No. 26/97-2002 by replacing the previously specified deadline with a later date, thereby extending the compliance timeline for exports of sandalwood in the specified forms (heartwood chips, mixed chips, flakes, sapwood chips/powder and manufacturing waste dust); all other conditions of the original notice remain unchanged.
    SION - HB Vol.2 Added/ Amended
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    Amendment to Standard Input Output Norms alters allowable import inputs and product descriptions for export licensing under the Handbook.
    The Director General of Foreign Trade amends the Handbook of Procedures, Vol.2 by substituting, correcting and adding Standard Input Output Norms across multiple sectors. The Public Notice revises export product descriptions, input output ratios, permits alternative import items and consumables (often as percentages of FOB), inserts new entries (Annexures A-H) with precise import requirements, and adds procedural notes restricting substitutions and invoking licensing checks in Vol.I.
    HB Vol.1 - Appendix 28A - DEPB rate list
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    DEPB rate amendment updates coverage periods and corrects export product descriptions, clarifying DEPB entitlement and refill treatment.
    Amendment to DEPB rates and Appendix 28A revises applicable DEPB rates and coverage periods for specified export items, provides a transitional DEPB rate for refills exported in the interim between deletion and re introduction of parts/components coverage, and corrects multiple product descriptions across Electronics, Engineering and Chemicals product groups to ensure accurate classification and DEPB entitlement under the Handbook of Procedures.
    HB Vol.1 amended - EH, Hotel/ Travel agent
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    Recognition of service exporters: hotels and travel providers may elect gross forex or NFE basis for certification and SIL claims.
    Hotels, travel agents, tour operators and tourist transport operators may apply for recognition as Export/Trading Houses using Appendix-19B and elect an irrevocable option to receive certification on either gross foreign exchange earnings or NFE basis; this option must be endorsed on the certificate. Recognised entities claim Special Import Licence benefits by filing Appendix-20G semiannually for specified earning periods, within prescribed post-period filing windows. Applications and SIL claims require certification by a Chartered Accountant/Cost and Works Accountant/Company Secretary and specified documentary enclosures.
    Various categories of rupee payments, which would be regarded as foreign exchange earned for the purpose of EPCG scheme
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    Rupee payments treated as foreign exchange for EPCG enabling rupee receipts and CA certificates to discharge export obligations.
    Specified categories of rupee payments-including encashment certificate receipts, rupee payments via travel agents for foreign tourist hotel stays, rupee receipts by air/flight catering units and hotels for foreign airline crew from repatriable earnings, and rupee payments from diplomatic missions out of convertible foreign exchange-are to be treated as foreign exchange earned for EPCG export obligation discharge; money changer receipts (not against hotel bills) are excluded. For these services a Chartered Accountant certificate may be submitted in lieu of a bank certificate. Licensing authorities may grant further pre export DEPB to the extent exports are already completed, subject to the maximum entitlement in the Exim Policy.
    HB Vol.1 amended - Deemed Export
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    Deemed export qualification: main and subcontractors must present certified banking-channel payments to claim benefits.
    Deemed export benefits are apportioned between main contractors and subcontractors: main contractors receive benefits only for goods they manufacture and supply as indicated in the main contract and project authority certificate, while subcontractors receive benefits only for goods they manufacture and supply as reflected in Appendix 14-A. Subcontractor claims require submission of the project authority payment certificate, the main contractor's payment certificate evidencing receipt through banking channels, and other prescribed documents. The notice incorporates Form 1-C into Appendix 14B and amends Appendix 14A and Form 1-A wording regarding payment certification and eligible power and oil and gas procurements.
    HB Vol.1 amended - Duplicate Advance Licence, Loss of EP copy of S/B
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    Duplicate Advance Licence issuance requires indemnity, Customs certification, and a fee; DEPB on lost shipping bills needs strict documentation.
    Duplicate freely transferable Advance Licences and DEPB may be issued on application accompanied by a fee equal to ten percent of duty saved, an FIR copy, a notarised affidavit, and an indemnity bond supported by a bank guarantee; issuance is limited to the unutilised balance as certified by Customs at the port of registration and is coterminous with the original licence. For lost EP copies of Shipping Bills, DEPB claims require a duplicate Shipping Bill from Customs, original prescribed documents, an affidavit to surrender originals if found, an indemnity bond, a Customs certificate that no clearance occurred against the lost original, and an application fee equal to ten percent of entitlement, with claims confined to six months from export.
    IMPORT OF PLASTIC WASTES / SCRAP BY EPZs.
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    Import of plastic scrap by EPZs limited to certified virgin material; breaches attract environmental and trade penalties.
    Imports of plastic waste and scrap are permitted for Export Processing Zone units only if the material is virgin/new plastic scrap as defined, in specified physical forms, and used solely for physical exports. Only existing EPZ units with recycling capacity, registration, pollution clearance, and capacity assessment may import; no new units allowed. Each consignment must have factory and importer certificates, and all consignments are subject to Customs sampling and testing. Misdeclaration triggers environmental and trade law penalties.
    Export of Wheat to Bangladesh during 1998-99
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    Export authorisation for wheat permits shipment to Bangladesh via specified border points; APEDA to issue RCACs under government circular.
    Authorisation permits M/S Karnataka State Cooperative Marketing Federation Ltd. (KSCMF), Bangalore to export a specified quantity of wheat to Bangladesh C&F to Gede for Darsana by rail and/or C&F to Sonamasjid/Hilli by truck. The allocation is placed at the disposal of APEDA for issuance of RCACs in favour of M/S KSCMF, and customs and licensing authorities are instructed to implement the allocation under the export control framework.
    Revalidation of Special Imprest licence
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    Revalidation of Special Imprest licence extended for turnkey projects to contracted supply period under policy circular modification.
    Special Imprest licences issued prior to 12.11.97 were eligible for revalidation under paragraph 7.23 of the Handbook of Procedures (Vol. I, RE 98) with a maximum period as under Advance Licence practice; this circular partially modifies that position by permitting licences for turnkey projects issued prior to 12.11.97 to be revalidated up to the contracted period of supply.
    Clarification on deemed export benefits
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    Deemed export benefits limited to manufacturer exporters for goods manufactured in India; contractor and subcontractor entitlements clarified.
    Deemed export benefits - refund of duty drawback, refund of terminal excise duty and Special Import License - are available only to Manufacturer Exporters for goods manufactured in India. Where main contractor and subcontractor arrangements exist, each party may claim benefits only to the extent of goods they manufacture and supply. Special Imprest Licences are similarly restricted to Manufacturer Exporters and subcontractors for their manufactured supplies. The clarification applies to supplies effected from the date of this circular.
    Enrolment for Exporters
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    Enrolment requirement for DEPB applications: exporters must enrol and quote issued enrolment number before DEPB processing.
    A mandatory enrolment regime is instituted for all exporters under the DEPB Scheme requiring submission of the Appendix I A exporter profile, IEC and RCMC copies, tax returns, central excise/industrial registration, passport photocopies of principals, identity card details with photographs and address proofs; reasons must be given for any non submission. Applications will be scrutinised and an enrolment number issued which must be quoted on all DEPB applications; no DEPB will be issued without enrolment.
    Export of sands and soils
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    Export exemption for garnet sands and natural abrasives affirmed; such minerals are freely exportable under current rules.
    The DGFT circular clarifies that natural garnets, natural abrasives, garnet sands and other minerals and mineral products are outside the scope of the export ban on sands and soils and are freely exportable.
    HB Vol.1 amended para 5.3(a) - Import of Metallic waste
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    Import of metallic waste: amendment limits permissible imports, excluding hazardous and radioactive contaminated material rules.
    The Director General of Foreign Trade substitutes sub paragraph (i) of paragraph 5.3(a) in the Handbook of Procedures (Vol.1) to permit import of metallic waste, scrap, seconds and defectives except where items are below a value specified by notification and excluding hazardous, toxic, or radioactive contaminated waste/scrap containing radioactive material.
    Inclusion of commission in the FOB value for calculation of DEPB entitlement
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    Inclusion of foreign agents' commission in FOB value affects DEPB entitlement calculation, subject to the RBI-prescribed limit.
    Exporters' DEPB credit shall be calculated on the FOB value inclusive of foreign agents' commission, up to the specified limit prescribed by the RBI, aligning DEPB valuation with the practice applied for drawback entitlement.
    Policy issues relating to EPCG Scheme - issue of clarification reg
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    EPCG eligibility: processed and frozen meat qualifies under zero duty, and export obligation calculation excludes prior EPCG exports.
    Processed and frozen meat products are covered under the Food Processing Sector and thus eligible for the Zero Duty EPCG Scheme subject to the EXIM Policy value threshold. The Notification No.17 amendment provides that, for calculation of average export obligation under EPCG, exports effected to fulfil obligations against any EPCG licence shall be excluded; that exclusion applies to licences redeemed or to be redeemed on or after the amendment.
    Placement of 60.00 MT (Sixty) of Sugar out of free sale quota of 1997-98 Season (October to September) for export to Jakarta, Indonesia as a donation From Govt. of India, through Ministry of External Affairs
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    Allocation of sugar quota for government donation placed with APEDA to facilitate export to Jakarta under MEA direction.
    Allocation of 60 MT of sugar from the 1997-98 free sale quota is authorised as a government donation for export to Jakarta and placed at the disposal of APEDA for issuance of Registration Cum Allocation Certificate (RCAC) in the name of the mill or intending exporters, to be implemented under APEDA-specified procedure.
    Determination of date of export under Passbook Scheme 1992-97 EXIM Policy. Last date for grant of credit under Passbook Scheme
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    Determination of export date under Passbook Scheme - adverse policy changes not applied to consignments handed to Customs; credit deadline extended.
    Where EXIM Policy amendments disadvantage exporters, those changes shall not apply to consignments already handed over to Customs for examination and export up to the date of the public notice; designated authorities and the Commissioner of Customs are directed to finalise and grant all admissible credits under the Passbook Scheme within the extended cut-off timeframe.
    Classification of Handbags and silk garments under DEPB
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    Madeups classification: handbags must be treated as textile madeups; silk garments must be placed under the specified textile serial.
    Handbags composed of textile materials are to be classified as madeups and placed in the relevant DEPB rate-list serial for the product group "Textile" according to their material; all garments made of silk must be classified under S.No. 74 of the "Textile" product group and not under other garment serial numbers.
    HB Vol.1 amended para 5.3(b) - Import of Plastic waste/ Scrape
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    Import of plastic waste: DGFT removes specific exclusion wording from a Handbook provision, altering import regulation.
    The Director General of Foreign Trade amended Chapter 5 of the Handbook of Procedures, Vol. 1 by deleting the words "All types of plastic wastes / scrap (except PET bottle waste / scrap) and" from para 5.3(b), under authority of the Export and Import Policy and by Public Notice No. 56(RE-98)/1997-2002 dated 13 November 1998.

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      HB Vol.1 amended - Deemed Export

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      Deemed export qualification: main and subcontractors must present certified banking-channel payments to claim benefits.
      Deemed export benefits are apportioned between main contractors and subcontractors: main contractors receive benefits only for goods they manufacture and ... Summary

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