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Circulars
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Amendments in Schedule 2, Appendix 6 of ITC (HS) Classifications of Export and Imports items 1997-2002
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Export controls for high performance digital computers updated; licensing required for computers or parallelising software that breach the performance threshold.
Amendment reclassifies "Parallel processing Super Computers" as "Digital Computers and Software," covering (i) digital computers exceeding a specified Composite Theoretical Performance (CTP) threshold and (ii) software or interconnection schemes that parallelise computers to exceed that CTP. The CTP is to be calculated under a separately notified scheme; individual computers at or below the threshold do not require an export licence unless supplied with parallelising software or interconnections. The definition includes various advanced processor types and certain image enhancement equipment, excluding integral medical imaging adjuncts.
Special Imprest and Intermediate Licences
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Special Imprest and Intermediate Licences prohibited for exports lacking fixed norms; existing licences must be surrendered immediately.
Issuance of Special Imprest and Intermediate Licences is prohibited for export products without fixed norms; all such licences issued from 1 April 1999 to the notice date must be immediately surrendered to the issuing office.
Clarification regarding grant of EPCG Licence on debonding
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EPCG debonding permitted for EOUs with second hand capital goods under specified Exim Policy and procedure.
EPCG debonding may be permitted as a one time option for EOU, EPZ, EHTP or STP units that had imported second hand capital goods, notwithstanding the general exclusion of second hand imports under the Exim Policy, provided debonding is allowed in accordance with paragraph 9.27 of the Exim Policy and paragraph 6.7 of the Handbook of Procedures and subject to the concerned Development Commissioner's approval.
Amendment in Schedule 2 of ITC (HS) Classification of Export & Import items 1997-2002
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Export registration requirement for shellac and lac updated; sample export procedures and sandalwood export deadline also revised under trade policy.
Amendments to Schedule 2 Appendix I of the ITC(HS) Classification under the Export-Import Policy 1997-2002 require registration for export of shellac and all forms of lac with the Tribal Cooperative Marketing Development Federation of India Ltd. or the Shellac Export Promotion Council, delete the entry at S.No.17(I), clarify that export of samples is governed by paragraph 4.32 of the Handbook of Procedure, and extend the cutoff date specified for sandalwood export conditions in Public Notice No.26/97-2002 while leaving other conditions unchanged.
Exim Policy - DES/ PassBook Scheme/ EPCG Scheme - Kar Vivad Samadhan Scheme
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Kar Vivad Samadhan settlement absolves customs duty and grants immunity from customs prosecution; it excludes relief from trade law actions.
Settlement under the Kar Vivad Samadhan Scheme relieves the licence holder solely of customs duty liability and grants immunity from prosecution under the Customs Act, 1962; it does not bar or otherwise affect actions by the foreign trade regulator under the Foreign Trade (Development and Regulation) Act, Exim Policy, or Handbook of Procedures, and licence holders remain subject to DGFT proceedings including regularisation.
Amendments in Public Notice No.25 dated 1.8.1998
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Tariff classification update: cardamom subheading retained with revised description, adjacent subcode deleted under trade rules.
The Director General of Foreign Trade amends Public Notice No.25 under paragraph 4.11 of the Export and Import Policy, 1997-2002 by revising EXIM code entries: 090830 02 is described as "Cardamoms small green" and 090830 03 is deleted, effecting an update to the trade classification schedule issued in the public interest.
Export of sugar - Canalised items
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Preferential sugar endorsement required for EU exports, with specified quota allocation and exclusions for jaggery and non designated exporters.
For preferential export to the EU, exporters must add an endorsement identifying the consignment as preferential sugar and referencing the common sugar code; this applies only to raw cane sugar and white cane sugar and excludes jaggery and consignments exported by parties other than the designated industry grading/inspection authority. The circular also places specified quantities of raw and white sugar from the 1998-99 free sale quota for preferential export quotas to the European Community, without changing existing GSP certification.
DEPB/ PassBook Scheme/ HB Vol.1
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Classification of odhanies clarified as fabric or madeups; Passbook credit deadlines and ITC(HS) filing requirements updated.
Classification of odhanies is settled: unhemmed/unstitched odhanies are classifiable as fabric and hemmed/stitched odhanies as madeups for DEPB purposes. The deadline for grant of Passbook credit is extended to 30th September, 1999 and utilisation by debit extended to 31st December, 1999. Applicants must fill the ITC(HS) code in the prescribed application columns; incomplete applications will not be accepted, and counter assistance at DGFT offices is available to help mention the ITC(HS) code.
Deemed export benefits for Talcher-II and Talcher-II Transmission Projects under Paragraph 10.2 (d) of the EXIM Policy 1997-2002
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Deemed export benefits available for supplies to specified power projects as if World Bank financed; repayment required if loan fails.
Supply of goods to the Talcher II, Talcher II Transmission and Sasaram HVDC projects shall attract deemed export benefits as if financed by the World Bank, confirmed after consultation with the Ministry of Finance; if World Bank financing fails to materialize, the Power Grid Corporation must return the cash equivalent of deemed export benefits availed by suppliers.
ITC (HS) Classification - Export of Uranium etc. by Atomic Energy Dept.
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Export licensing: specified nuclear-related materials allowed only against licence from Department of Atomic Energy for export control.
Appendix 8 is added to Schedule 2 of the ITC(HS) Classification, prescribing that specified nuclear- and atomic-related materials may be exported only against licence issued by the Department of Atomic Energy. The listed controlled items include uranium and its compounds and concentrates; thorium and its compounds and minerals; zirconium and related concentrates; beryllium and its compounds (with a stated exclusion); lithium and its compounds; deuterium; plutonium; neptunium; columbite and tantalite; titanium ores and concentrates; nuclear-grade graphite; and tritium and its compounds.
ITC (HS) Classification - Chrome Core Export
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Export restriction on chrome ore requires licence for exports, except specified beneficiated ores and canalised categories.
The ITC HS classification for chrome ore (code 2610(a)) is amended to exclude beneficiated chrome ore fines/concentrates (average feed grade below 33% Cr2O3) and canalised categories in (b) and (c); the remaining chrome ore is classified as Restricted and export is permitted only under licence pursuant to powers under paragraph 4.11 of the Export & Import Policy 1997-2002.
E-Mail & Electronic Filing
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Electronic filing and two-way e-mail communication to be enabled, temporary processing delays may occur during system conversion.
Conversion to a new integrated computer system may cause initial delays in application processing; exporters with serious problems may approach the concerned DDG/JDG for assistance. The office expects improved counter service and quicker processing within a month with enablement of two-way e-mail communication and electronic filing, and planned connectivity between DGFT offices and Customs to enhance facilitation and monitoring of trade transactions.
ITC (HS) Classification - Export of Sandalwood - Negative list of Export
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Export licence requirement for sandalwood: exports allowed only under DGFT licence with procurement and verification conditions.
Exports of specified sandalwood items are allowed only against an Export License from the DGFT. Applications must follow the prescribed form and include an export order/irrevocable letter of credit, valid RCMC, I.E. Code, and Certificate(s) of Origin and Legal Procurement issued by the Principal Chief Conservator of Forests in the exporter's name, with stocks purchased directly at State Government auctions. Licences are subject to conditions including quantitative ceilings, minimum export price and size/weight limits, and require a certificate of physical verification of stock from designated wildlife or divisional/district forest officers.
ITC (HS) Classification - Export to USSR - Deferred Payment Contract
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Special Currency Basket valuation revised, affecting deferred payment contracts under Indo-USSR protocols for machinery imports.
The Reserve Bank of India has revised the Indian Rupee value of the Special Currency Basket, effective from 8.6.99 with a rupee value of 50.3297, for application to deferred payment contracts concluded under the Deferred Payments Protocol dated 30.4.1981 and the Deferred Payments Protocol dated 23.12.1985 between the Government of India and the erstwhile USSR covering deliveries of machinery and equipment on deferred payment terms.
Import of cinematograph Feature Films and Video Films
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Import of cinematograph feature films: amendment adds Directorate of Film Festivals to authorised import entities
Amendment to a public notice under the Export and Import Policy modifies paragraph (i) by deleting a conjunction before the named institute and inserting the Directorate of Film Festivals, thereby adding that Directorate to the list of entities referenced for the import of cinematograph feature films and video films.
HB Vol.1 - Deemed Export - Power Project
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Deemed export eligibility for specified mega hydel power projects upon capacity certification by senior ministry official.
Supplies for setting up listed mega power projects qualify for deemed export benefits under paragraph 10.33(a)-(d) of the Exim Policy where the project is an inter-state hydel power plant meeting the prescribed capacity thresholds and where such capacity is certified by an officer not below the rank of Joint Secretary in the central ministry.
Classification of various products under ITC(HS) Classfications of Export and Import Items (1997-2002)- Clarifications regarding
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Tariff classification guidance clarifies applicable ITC(HS) Exim Codes for specified products to aid consistent trade classification.
Clarification of tariff classification under the ITC(HS) Exim Code was issued after committee review of item specific representations; the circular lists items with assigned Exim Codes and brief remarks where classification depends on composition or use, providing administrative guidance to apply the ITC(HS) headings consistently for export/import purposes.
HB Vol.1 - DEPB Rate list - Appendix 28A
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DEPB rate amendments update export entitlements and impose certification or AR 4 documentation for certain electronic exports.
Amendments to Appendix 28A revise DEPB rates, add and correct product entries, adjust value caps, and impose a documentation rule for certain electronic exports requiring a Department of Electronics or Central Excise certificate, or alternatively an AR 4 form; specific electronic and engineering items receive revised DEPB rates, a single phase motor entry is added, a chemical product value cap is corrected, a food product serial number is renumbered, and a miscellaneous product description is amended to "Black/ Red Iron oxide pigments."
HB Vol.1 Amended
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Export Processing Zone private development permitted; EPZ units entitled to EOU/EPZ benefits subject to prescribed compliance.
Amendments permit DTA sale of instant tea up to 20% of FOB exports, limit levy exemptions for EOU/EPZ rice mills to exported quantities, and correct cross references and terminology across appendices. Private/joint sector EPZs are authorised under published guidelines with EPZ policy benefits for units, leasing and transfer conditions for infrastructure, and promoter compliance obligations. DEPB imports are limited to the FOB value of the issuing export, licensing endorsements must record FOB in domestic currency, and export obligation extensions are allowable in limited circumstances subject to a maximum one year extension and prescribed terms.
Export of value added Sugar in consumer packs upto 2 kgs. during 1999-2000
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Export ceiling for value-added sugar in consumer packs triggers APEDA allocation and mandatory reporting to Commerce and statistics.
A ceiling of 25,000 metric tonnes for export of value-added sugar in consumer packs up to 2 kg for the licensing year 1999-2000 is placed at the disposal of APEDA for allocation; APEDA must allocate per its procedures, ensure the ceiling is not exceeded, report exhaustion to the Ministry of Commerce EP(Agri.II) Section and DGFT, issue a Trade Notice for trade, and furnish monthly statements with exporter name, quantity allowed, FOB value and destination to the Ministry and Director of Statistics.

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