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Circulars
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Value adjustment under Duty Free Licences issued under Exim Policy, 1997-2002
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Value limit for duty free licences: item-wise values not required except where quantity is unspecified or norms limit inputs.
Duty free licences and the DEEC Book need not state a separate value limit for each input item; item-wise values are required only where an input's quantity cannot be specified or where Standard Input-Output Norms make an input's quantity or value a limiting factor.
Clarification on Exim Policy matters concerning Indian exports to Russia
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Advance licence eligibility: transferable L/Cs from Special Rupee Escrow Accounts can support licence issuance when transferred to the exporter.
An advance licence may be issued against a transferable Letter of Credit funded from a Special Rupee Escrow Account if the transferable L/C is transferred into the applicant exporter's name through proper banking channels prior to filing the advance licence application; export benefits accrue only to the transferee from the date of this circular. Exports paid through US dollar denominated Special Escrow Accounts held with the Reserve Bank or Indian commercial banks qualify for recognition weightage and for Special Import Licence on the same basis as freely convertible currency receipts, whereas rupee denominated receipts do not qualify.
HB Vol.1 - DEPB Rate list - Appendix 28A
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Export obligation extension for old advance licences extended under Exim Policy, subject to prior Public Notice terms.
The Director General of Foreign Trade, invoking authority under the Exim Policy, grants a further one-time extension of the export obligation period for old quantity-based advance licences for bonafide default, subject to the same terms and conditions set out in the earlier Public Notice; specified paragraphs of that Public Notice are amended to reflect the changed cut-off date and compliance with the original conditions remains mandatory.
HB Vol.1 - Regional offices of DGFT upgraded - App 27, 29 & 36
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Regional licensing authority jurisdictions updated to clarify export licensing, nominated agencies, and RBI exchange control coordination.
The Director General of Foreign Trade substituted Appendices 27, 29 and 36 of the Handbook of Procedures to update the list of Regional Licensing Authorities, their territorial jurisdictions, nominated agencies for gem and jewellery export promotion schemes, and the corresponding Reserve Bank of India Exchange Control department offices for administrative coordination.
Grant of IEC No. to Companies having non-resident interest
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RBI approval requirement for repatriation: IEC applications must include RBI approval for companies with non-resident interest.
Companies with non-resident interest seeking an Importer Exporter Code must furnish RBI approval detailing non-resident investment and proposed repatriation benefits when applying for IEC; RBI approval under Appendix 2A Note 1 is mandatory and not replaced by foreign collaboration approvals.
HB Vol.1 Amended - Appendix 41
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DEPB rate amendment updates export product descriptions and tariff entries, with revised textile and food product classifications effective immediately.
The public notice amends export benefit schedules and product descriptions: it adds a DEPB entry in Appendix 28A for a specified non alloy forged hammer and makes the new rates applicable to exports from the notice date; it revises textile product descriptions in the Annexure to Public Notice No.6 to redefine cotton fabric, processed cotton madeups, manmade filament madeups, and manmade-cotton blended fabrics by content and finish; and it amends the DEPB rate for a food product entry in Public Notice No.16. The amendments are issued under paragraph 4.11 of the Export and Import Policy.
Replenishment licences in cases where Bank Certificate or Customs attested invoice or Shipping bills is lost
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Replenishment licence procedure clarified: lost bank or customs documents still permit obtaining gold, silver, platinum via nominated agencies.
The circular directs that the procedure prescribed in the Handbook of Procedures, Vol. I, 1997-2002 for issuing replenishment licences where the original Bank certificate, customs attested invoice or shipping bill is lost shall also apply when obtaining gold, silver or platinum from nominated agencies, ensuring the same documentary and verification steps govern precious metal procurement in lost document cases.
HB Vol.1 Para 7.4(f) - Export of Electronic Product - Scheme Announced
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Special Advance Licensing Scheme for electronics enables production based advance licences with import first, actual user compliance requirements.
The Special Advance Licensing Scheme (Appendix 53) authorises eligible manufacturer exporters of electronic products to obtain Advance licences on a production programme basis, subject to positive value addition and the requirement that imports precede exports under Actual User non transferable conditions. Licence issuance is based on applicant declarations of inputs and quantities, with technical specifications furnished to Customs at clearance. Licence holders must execute BG/LUT, record imports in DEEC (Imports) for Customs certification, and submit six monthly import/export details to the designated officer of the Department of Electronics, whose verification of input utilisation and wastage governs Customs and DGFT certification and discharge procedures.
HB Vol.1 Amended
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Advance licence conditions expanded to allow issuance without fixed norms subject to later SALC fixation and duty adjustment.
DEPB credits filed after export realisation must have FOB foreign exchange converted to rupees at the authorised dealer's prevailing buying rate on the date of realisation; the DEPB rate applies to that rupee value. Applications for credit after realisation are permitted within a limited period from the date of realisation. Advance Licences may be issued where Standard Input Output Norms are not fixed, subject to final SALC fixation within six months, with the applicant's undertaking to accept norms, pay customs duty plus interest on unutilised inputs and surrender required security; if SALC does not finalise norms within six months, the applied norms are treated as final.
RC by CSB must for Silk Exports
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Registration requirement for silk waste exports: valid Central Silk Board certificate now mandatory for export eligibility.
Amendment to Schedule 2 Appendix 1 of the ITC(HS) Classification makes exports of "Mulberry Silk Waste Not Carded or Combed" permissible only against a valid registration certificate issued by the Member Secretary, Central Silk Board or authorised representatives, pursuant to Paragraph 4.11 of the Export & Import Policy, thereby imposing an administrative eligibility condition for exporters.
General Notes for all export product Groups
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Deletion of export general note modifies the Handbook of Procedures under Exim Policy, removing the specified entry in public interest.
Deletion of Sr. No. 4 from the General Notes for all export product groups amends the Handbook of Procedures, Vol. II (1997-2002) under authority conferred by the Export and Import Policy; the Director General of Foreign Trade issued this administrative amendment in the public interest by Public Notice dated 15-9-1998.
SION - HB Vol.2 Amended/ Added
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Standard Input Output Norms amendment: Handbook of Procedures Vol.2 updated with corrected, substituted and new export input entries.
Amendment of Standard Input Output Norms in the Handbook of Procedures Vol.2: the Director General of Foreign Trade issues a Public Notice under policy powers to correct, substitute and add SION entries. The Notice prescribes textual corrections, revised input lists and quantities, alternative inputs, CIF/FOB value limits and new serial entries across Chemicals and Allied, Engineering, Plastic, Sports Goods, Textile and Miscellaneous product schedules, with detailed line by line norms set out in Annexures A-G.
Condonation of delay in filing the applications for grant of DEPB, Special Import License etc. during the pen down strike from 2.7.1998 to 13.7.1998 - Regional Offices
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Exclusion of strike period from filing deadlines allows late DEPB and import license applications subject to late cut.
DGFT directs that the strike period shall not be counted when calculating filing time limits for DEPB and Special Import License applications; applications otherwise delayed may be considered under Paragraph 15.17 of the Handbook of Procedures, permitting late submissions within an extended period subject to a late cut on entitlement.
Issue of Special Import Licences --- Furnishing of documents
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Special Import Licence documentation: RBI waiver allows substitute evidence instead of shipping bill for periodical exports.
Clarifies documentary requirements for issuance of Special Import Licence under Paragraph 11.11: where an RBI permission waives G.R./PP form formalities for exports of newspapers and periodicals, acceptance of a copy of that RBI permission in lieu of the original Shipping Bill is permitted. Where remittances are received by foreign money orders or postal orders, prescribed details of country, amounts in rupees, paying/encashing post office, dates, and postal order numbers must be submitted as evidence.
Attempts to obtain double benefits under DEPB / Advance Licensing Scheme in respect of goods being manufactured / processed by 100% Export Oriented Units (EOU) / Units in Export Processing Zones (EPZs)
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Brand Rate Duty Drawback applied to duty-paid inputs supplied for EOU job work, enabling refund on direct exports
Exports by 100% EOUs/EPZs are not eligible for DEPB or discharge against Advance Licences; however, where DTA units supply duty paid inputs to EOUs for job work and the EOU directly exports the processed goods, the duty paid on those inputs will be refunded by way of Brand Rate Duty Drawback, following consultation with the Department of Revenue and DGFT approval.
ITC (HS) Classification - Export of Silk waste
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Export permission for mulberry silk waste restricted to uncarded/uncombed material under a valid registration certificate.
The ITC (HS) classification was amended to add Mulberry Silk Waste as an exportable item only if the material is Not Carded or Combed and only against a valid registration certificate issued by the Member Secretary, Central Silk Board or authorised representatives, creating a conditional export permission within Schedule 2 Appendix I under Paragraph 4.11 of the Export and Import Policy.
ITC (HS) Classification of Export & Import Items 1997-2002
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Precursor control: new chemical entries added to import-export schedule, requiring Narcotics Commissioner no-objection certificate for those substances.
The Director General of Foreign Trade adds specified chemical precursors to Schedule 2 Appendix I of the ITC (HS) Classification 1997-2002 and, under Paragraph 4.11 of the Export & Import Policy, amends the condition at Sl. No. 2(ii) to require a No-Objection Certificate from the Narcotics Commissioner, Gwalior in respect of items 2(i), 2(viii), 2(ix) and 2(x).
SION - HB Vol.2 notified effective 31-08-98
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Standard Input Output Norms notified in Handbook of Procedures to operationalize the Duty Exemption Scheme and Annexure inclusion.
Standard Input Output Norms for the Duty Exemption Scheme are incorporated into the Handbook of Procedures, 1997-2002 Vol. 2 and notified in Annexure I to the Public Notice, aligning with Chapter 7 of the Export and Import Policy as the operative source of approved norms for duty exemption claims.
Import of Canalised items
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Import restriction on canalised items: only canalising agencies may import; individuals must obtain an import licence under paragraph 4.8.
Importation of canalised items is permitted only through the designated Canalising Agency; individual importers cannot import canalised commodities by selling them on the high seas to the canalising agency to circumvent rules. Individuals who wish to import canalised items must obtain an Import licence under Paragraph 4.8 of the Export and Import Policy.
HB Vol.1 Para 4.22 - Exports by SSI units - EO monitoring
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Industrial licence requirement: non-SSI units expanding reserved-item capacity must undertake export obligations subject to monitoring.
Non-SSI units may expand or create capacity in respect of items reserved for the SSI sector only upon obtaining an Industrial licence under the Industries (Development and Regulation) Act; the licence requires the manufacturer to undertake an export obligation as specified by the Ministry and to furnish a Legal Undertaking to the Directorate General of Foreign Trade, which will monitor the export obligation.

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