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Circulars
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Notification for deletion of minimum value additions in H.B. Vol.II
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Deletion of minimum value addition: Handbook procedural references removed under export policy powers, issued as a public notice.
Deletion of references to minimum value addition from the Handbook of Procedures, Vol. II, effected under powers conferred by the Export and Import Policy; any reference to minimum value addition wherever occurring in the Handbook, Vol. II, shall be deleted as an administrative amendment issued in the public interest.
Electronic Filing of Applications
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On-line filing requirement for status holders makes electronic submission mandatory for DEPB and Advance Licence applications; manual filings excluded.
On-line filing is made compulsory for all status holders submitting DEPB and Advance Licence applications effective 16 August 2000. Status holders must obtain passwords per earlier trade notices and prepare to file electronically; manual applications from status holders will not be accepted from the effective date.
Amendments/modifications & additions in SION
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Standard Input Output Norms amendments update import-export input allowances and add chemical, engineering and textile entries.
The Public Notice amends the Standard Input Output Norms in the Handbook of Procedures Vol.2 by making corrections to existing entries and adding new SION entries in Chemicals and Allied Products, Engineering Products and Textile Products. Annexure A contains specific amendments, substitutions and deletions to current norms; Annexures B, C and D provide the detailed input-output specifications for the newly added entries, including permitted import inputs, quantities and conditional notes governing allowances.
DEPB rates for formulations consisting of more than one bulk drug where some of the constituent drugs are having specified DEPB rates while others are non-specified ones
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DEPB rate calculation for mixed specified and non-specified drug formulations clarified; methodology defines weight-based apportionment and applicability.
For formulations with both specified and non specified bulk drugs, calculate each specified constituent's DEPB contribution as 75% of its bulk DEPB rate times its weight percentage divided by 100, sum those contributions, then compute the non specified contribution by multiplying the combined weight percentage of all non specified constituents by the applicable DEPB rate for non specified drugs divided by 100; the formulation's DEPB rate is the sum of specified and non specified contributions. The method applies only to exports on or after the circular date.
Clarification regarding the admissibility of DEPB against the export of some Products Group: Engineering
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DEPB admissibility: MS galvanized sheets follow entry S.N.363; stainless steel circles follow entry S.N.433 for uniformity.
DEPB benefits for exports prior to 01.04.2000: MS galvanized sheets/strips shall be allowed DEPB under entry S.N. 363 because S.N. 91 covers only inputs that are both galvanized and coated; stainless steel circles exported prior to that date may be allowed DEPB under entry S.N. 433 to maintain uniformity where Customs Houses have cleared them under that entry.
Amendments in the H.B. of procedures Vol. I
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Use of UN location codes mandated for specified sea ports, airports and ICDs; apply listed codes where required.
A new note and S.No.11 in Appendix 1 of the Handbook of Procedures mandate the use of the listed UN location codes for specified sea ports, air ports and ICDs; the Director General of Foreign Trade directs that these location codes be used wherever required in export-import documentation, with the Appendix providing the prescribed codes for each named location.
Amendments in the H.B. of procedures Vol. I
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Advance licence tie up rules permit intermediate supply or direct export, and clarify licence validity and port registration conditions.
Amendments correct cross references and revise advance licence provisions to allow advance licences for intermediate supply based on tie up agreements with holders of Advance Licences and permit licensees either to supply the intermediate product to that Advance Licence holder or to export directly. Licence validity is specified (12 months for imports, 18 months for exports), one port of registration applies for imports, exports may use ports in paragraph 7.19, and multiple licence issuance is restricted so no two licences for the same major export product group are issued for one port at the same time; entitlement revival, third year issuance conditional on SION settlement, proof of fulfillment after 18 months, and regularization for bonafide default are required. Appendix amendments add Major Export Product Group codes and correct administrative entries and numbering.
Amendments in the H.B. of procedures Vol. I
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Deletion of DTA sale guidelines for EOU/FTZ/EPZ/EHTP/STP units affects compliance under DGFT procedural amendment framework.
The Director General of Foreign Trade amended the Handbook of Procedures (Vol I) by deleting paragraphs 1(m) and 1(n) of Appendix 42, thereby removing the specified guidelines governing sale of goods in the Domestic Tariff Area by EOU/FTZ/EPZ/EHTP/STP units; the amendment was issued by public notice dated 20 July 2000 under authority of the Export and Import Policy and is stated to be in the public interest.
Related to postage stamps
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Postage stamp requirement: self-addressed envelopes must carry prescribed stamps loose; affixed stamps are not accepted.
Applicants requesting delivery of documents by Registered Post or Speed Post must provide a self-addressed envelope bearing the prescribed postage value for the chosen service, and the envelope and postage must be submitted in loose form; envelopes with postage stamps already affixed will not be accepted at counters.
Amendments in Schedule 2 Appendix 1 of the book ITC (HS) classification of Export & Import Items 1997-2002
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Export control for ephedrine and pseudo ephedrine requires a No Objection Certificate before export under export policy.
Amendment to Schedule 2 Appendix 1 of the ITC(HS) classification permits exports of ephedrine and its salts and pseudo ephedrine and its salts only upon production of a No Objection Certificate from the Narcotics Commissioner of India, Gwalior, as required under paragraph 4.11 of the Export & Import Policy, 1997-2002.
Clarification on Import of PCBs
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Import exemption for PCBs permits consignments in the transition period to be cleared without surrender of Special Import Licence.
Printed circuit boards were made free for import effective 31 March 2000; although certain ITC licensing notes were deleted only on 10 May 2000, consignments imported between those dates shall be cleared without surrender of a Special Import Licence, and any ITC bonds taken at Customs in respect of such releases shall be redeemed without insisting on SIL surrender.
Importability of cars, microbuses etc. by travel agents, tour operators or tourist transport operators under 5% EPCG Scheme
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Importability of passenger vehicles: EPCG licences require a bank guarantee for tourism-sector applicants regardless of status.
Travel agents, tour operators and tourist transport operators certified as eligible under notifications may import motor cars, SUVs and all-purpose vehicles under the EPCG Scheme only if any licence issued is secured by a bank guarantee covering the full duty saved amount; for zero duty EPCG licences, CIF value increases are not permitted though item substitutions, additions or deletions may be allowed provided the licence's CIF value is not exceeded.
DEPB rates for chemical formulations
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DEPB credit calculation clarified: uniform credit for non specified constituents and exemption from bulk drug value caps for formulations.
DEPB credit for chemical formulations depends on whether constituent bulk drugs are specified or non specified in the DEPB appendix: where all constituents are non specified a uniform credit applies irrespective of constituent weight; where all constituents are specified the credit is calculated per the note attached to the DEPB entry for specified formulations. Value caps applicable to bulk drugs do not apply to chemical formulations and customs must not impose those caps on such formulations.
Modification/Issuance of IEC Certificate
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Modification of IEC certificate requires full procedural compliance, while PAN-only incorporation is permitted without fees.
Applicants seeking fresh IECs or modifications must follow the Handbook procedure and submit all relevant documents with applicable fees or penalties; modifications will not be available on the web. However, incorporation of PAN alone into the IEC is not treated as a modification for fee or documentary purposes and may be effected on submission of Appendices 1A and 2A with a copy of the PAN.
Amendments in Schedule 2 Appendix 1 of the book ITC (HS) classification of Export & Import Items 1997-2002
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Export controls on bones and bone products require CAPEXIL certification and health certificate for shipments to specified foreign markets.
Exports of bones and specified bone-derived products to the European Union require a CAPEXIL certificate validating the production process for the exporting establishment, and exports of bones and bone products intended for human consumption (including ossein and gelatine) require establishment approval and a Health Certificate issued by CAPEXIL.
Amendments/Additions to SION
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Amendments to Standard Input-Output Norms update SION entries, adding, deleting and revising chemical, engineering and misc. items.
The Public Notice amends the Standard Input-Output Norms in the Handbook of Procedures, Volume II by deleting, substituting and correcting specified SION entries and by adding new entries in the Chemicals and Allied Products, Engineering Products and Miscellaneous Products sections; it prescribes amended import-item descriptions, alternative inputs and quantities, and, where applicable, content- or FOB-value-based limits for permitted inputs.
Registration of the societies or trusts
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Charitable import eligibility clarified: registration, community-benefit function and Foreign Contribution clearance required for imports.
Charitable, missionary and religious institutions registered under societies or trusts law or approved by Central or State Government may import under the Export and Import Policy, 1997-2002 provided the importer is an established institution functioning for the common benefit of the community and produces necessary clearance under the Foreign Contribution (Regulation) Act, 1976, as amending paragraph 2(g) of Public Notice No. 3(RE-2000)/97-2002.
Categories of importers/exporters exempted from obtaining Importers-Exporters code (IEC) number
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IEC validation requirement now mandates permanent IEC codes for specified exempt importer-exporter categories to enable customs clearance.
From 1 July 2000, a validated Importers-Exporters Code (IEC) is required for customs clearance; the DGFT amended the Handbook of Procedures to add sub paragraph (vi) to paragraph 4.6, prescribing permanent IEC numbers to be used as operative identifiers by specified non-trade categories, including central and state government departments and agencies, diplomatic personnel and UN officials, baggage claimants, hospitals and institutions importing for personnel use, limited-value Nepal/Myanmar border consignments, Ford Foundation, ATA carnet users for exhibitions, and the Director, National Blood Group Reference Laboratory.
Public Notice No. 16(RE-00)/1997-2002
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DEPB re-export rules: defective imports may be re-exported with a certificate enabling near-full DEPB credit restoration and reissuance.
A new DEPB provision permits re-export of imported goods found defective or unfit: Customs will issue a Certificate generating 98% of the DEPB credit debited on export, and the Licensing Authority will issue a fresh DEPB with the same port of registration and validity equal to the remaining period of the original DEPB, subject to Department of Revenue guidelines. Additionally, claim filing timelines are revised and multiple DEPB rates, value caps, product descriptions, and agency listings in appendices are amended or corrected.
Classification of various Products under ITC(HS) Classifications of Export & Imports Items (1997-2002) - Clarifications regarding
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Product classification under ITC(HS) clarified: DGFT issued specific Exim codes for listed export import items following committee decisions.
The Directorate General of Foreign Trade issued Policy Circular No. 14(RE-2000)/97-02 clarifying ITC(HS) classifications for specific export and import items under the 1997-2002 schedule. A committee examined requests submitted under the policy, assigned Exim codes and notified applicants of the decisions. The circular publishes the itemised list with assigned Exim codes and any remarks, and states the classifications are issued with the approval of the Director General for use by exporters, importers and customs authorities.

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