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Circulars
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Issue of Advance licenses for Deemed Exports for supplies to EOUs/ EPZs/ EHTPs/ STPs
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Advance licence scope clarified: restriction applies only to procurements under para 7.2(a), preserving capital goods supplies.
Trade notices restricting misuse of advance licences for deemed exports apply only to procurements of the type in para 7.2(a) of Appendix 14 I, Handbook of Procedures Vol I. Supplies of capital goods, raw materials for making capital goods for use within the unit, and items specified in sub paras (d), (e) and (f) of para 7.2 remain eligible under the existing policy and are not affected by Trade Notice No.11.
Condition on import of textile and textile articles
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Import exemption for non-body-contact textiles permits imports without pre-shipment certificate, subject to customs undertaking requirement.
Certain textile consignments are exempt from the pre-shipment certificate requirement: grey or raw textile products usable as raw white, and industrial textile products not coming into direct contact with the human body (e.g., transmission belts, pressure belts, lining for luggage). Importers must provide an undertaking to the customs authorities at the time of import.
Indian Rupee value for the special currency basket
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Special currency basket valuation revised, affecting deferred payment contracts under India-USSR protocols and effective from the announced revision.
DGFT public notice records a Reserve Bank of India revision of the Indian Rupee value of the Special Currency Basket, to be applied to deferred payment contracts concluded under the Deferred Payments Protocols dated 30 April 1981 and 23 December 1985; the revision takes effect from the date stated in the notice and governs valuation for settlement and accounting of those contracts.
Amendment in the export import policy
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Deemed export benefits to project supplies remain available for contracts issued before suspension, within contracted delivery schedules.
Entitlement to deemed export benefits is continued for Turbine and Motor Generator Set supplies to the Sardar Sarovar project where contracts or Letters of Intent issued prior to the OECF suspension date are concerned; benefits apply during the contracted delivery period including authorised extensions, while completed contracts as of the Public Notice date are not eligible for Advance Licence for deemed export unless an application for such licence was filed before supplies were effected.
Fixation and modification of input and output norms
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Input-output norms revised: amendments update SIONs to specify allowed import items, component lists and accounting requirements.
The Director General of Foreign Trade amends the Handbook of Procedures, Vol. II by fixing and modifying Standard Input Output Norms (SIONs). The Public Notice prescribes substitutions, corrections, deletions and additions to SION entries across Chemicals and Allied Products, Engineering Products, Food Products, Plastic Products and Miscellaneous Products; inserts new entries; and sets detailed import item lists, alternate inputs and allowable quantities with net-to-net/component accounting requirements as specified in Annexures A-F.
Revised DEPB Rate
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DEPB rate revision: revised export benefit schedule effective, prescribing applicability, value cap and calculation rules.
Public Notice No. 02(RE-03) dated 31 March 2003 revises the Schedule of DEPB rates effective 1 April 2003, updating percentage rates and value caps across product groups and prescribing that entitlement is calculated by applying the notified DEPB rate to the FOB value or to the value cap, whichever is lower. The notice sets exclusions (bonded warehouse manufacture, Advance Licence/DFRC exports, 100% EOUs, FTZ/EPZ/SEZ/EHTP units, foreign-origin goods without substantial Indian processing), CKD/SKD and composite product rules, and documentation and formulation calculation requirements.
Revised Handbook of Procedures (Vol. I) Notified
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Notification of Revised Handbook of Procedures sets revised Vol I under export import policy, establishing operative procedural guidance for trade compliance.
Notification under the export import regulatory framework invokes paragraph 2.4 of the Export and Import Policy, 2002-07 to notify the Revised Handbook of Procedures (Vol. I, March 2003 edition) as the operative procedural instrument for exports and imports, effective 1 April 2003, with the Annexure containing the full revised text.
Retrospective effect of the criteria permitting 25% BG for manufacturer exporters having an export turnover of less than Rs 1 crore
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Bank Guarantee reduction for eligible manufacturer and domestic exporters granted retrospective effect to earlier advance licences.
DGFT permits manufacturer exporters registered with state sales tax authorities to furnish a Bank Guarantee at 25% of duties saved for Advance Licences upon CA-certified past exports, tax/ excise registration proof and a declaration of no penalisation, and directs that this facility, together with endorsed bond/BG terms for qualifying established domestic companies, applies retrospectively to licences issued before the Public Notices.
Procedure relating to import of Plastic Waste/Scrap
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Import licensing for plastic waste: entitlement and environmental compliance required before authorization to import.
Import of plastic waste/scrap requires an import licence based on submission of industrial approval, valid pollution control clearances, certified details of recycling process and production equipment, and past consumption records. Entitlement is determined by capacity rules: generally 50% of installed machinery capacity (on a 20 hrs/day, 330 days/year basis) for non-acrylic wastes, while acrylic entitlement is based on best historical consumption; units set up after the policy cut-off are ineligible. Environment Ministry comments and all public notice conditions remain mandatory.
Amendments/ Corrections in the Schedule of DEPB Rates
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DEPB rate amendments update export incentive rates and value caps for specified engineering and chemical products.
Correction and amendment to the Schedule of DEPB rates revises DEPB entitlement rates and value caps for specified exports in Engineering Product Code 61 and Chemicals Product Code 62, and corrects the effective commencement date for the DEPB rate on brass agricultural sprinklers as shown in Annexure II of a prior public notice.
Gold/Silver etc. Replenishment - Last Date Extended for Obtaining Supplies from Nominated Agencies
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Replenishment procurement deadline extended under EXIM policy, final extension permitting nominated-agency supplies for pre-policy exports.
The Director General of Foreign Trade has exercised powers under paragraph 2.4 to permit exporters who effected exports on or before 31.3.2002 under para 8.37 of the EXIM Policy 1997-2002 to obtain replenishment of gold, silver and platinum from nominated agencies by 31st March, 2003; this is the last and final extension and no further extensions will be considered.
Procedure for filing supplementary DEPBs
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Supplementary DEPB filing procedure: single consolidated application and single option selection required; declare manual corrections and comply with fee rules.
Procedure mandates a single consolidated application for all supplementary DEPB claims, selection of exactly one option, and itemised disclosure in the covering letter of any manual corrections made after issuance of the original DEPBs. The system will handle port-wise and transferability allocation when the proper option is chosen. Fee remittance requirements for lower-value claims are reiterated and multiple applications will be returned without processing.
Classification of Mefloquine Hcl under ITS HS Classification for export of import items
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HS classification of Mefloquine HCl affirmed, designating it under chemical preparations and permitting its free import.
The Directorate General of Foreign Trade, after consultation with the Department of Chemicals and Petrochemicals and considering the molecular structure, determined that Mefloquine HCl is classifiable under HS Code 29333990 and is freely importable under the policy entry applicable to that classification, issued with DGFT approval.
Release of Quota for export of onion
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Export quota release for onions authorises additional allocation from unutilised quota under export policy, subject to existing conditions.
An additional export quota for onions is authorised under the Export & Import Policy, allocated to specified marketing agencies and reallocated from the unutilised quota of a national cooperative federation; the release is subject to the general conditions set out in a prior notification and effected as a public interest measure.
Amendments/ Addition in SION
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Standard Input Output Norms amended - updates to input entitlements and new SION entries under trade policy changes.
The Director General of Foreign Trade, exercising delegated powers under the export-import policy, amends the Standard Input Output Norms in Handbook of Procedures, Vol.2 by substituting, correcting and adding SION entries. The Notice revises export and import item descriptions, replaces specific input entitlement tables, introduces alternative import items and establishes quantitative input allowances, net to net provisions and CIF/FOB linked consumable caps. Annexures A-E set out the detailed operative substitutions and new entries across chemicals, engineering, plastics and sports goods.
Addition/ Amendment in AEZs, data for DEPB rate fixation, certification of SEB for import of fuel
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SEB certification for captive power plant: documentary requirement introduced for Advance Licence under Duty Exemption Scheme.
Amendments revise the worksheet for computation of DEPB rates to clarify FOB/CIF and duty calculation steps, require a copy of permission under Section 44 of the Electricity (Supply) Act from the State Electricity Board for installation of captive power plants as a documentary condition for grant of an Advance Licence under the Duty Exemption Scheme (unless waived), and add specified products and districts to Appendix 15 listing of Agri Export Zones.
Procedure for filing supplementary DEPBs as per Public Notices 62 & 63
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Supplementary DEPB filing: revised-rate claims allowed with consolidated fee, portwise consolidation options, eligibility limited to original licence holders.
Supplementary DEPB claims allow exporters with shipping bills dated on or after 1 April 2002 to claim additional credit reflecting revised rates; fresh applications under Appendix 10C are permitted where no prior DEPB was sought, revised applications with differential fee where applied but not issued, and single supplementary DEPBs where licences were already issued. Only the original DEPB licence holder may apply; applicants may irrevocably opt to consolidate claims by DEPB type or port, pay a consolidated licence fee as per Appendix-29 with the application, file within the prescribed window, and receive supplementary DEPBs valid for twelve months.
Amendments in the provisions pertaining to newcomers, amendments/ additions in agencies under Appendix 28 A and 35B
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Newcomer status clarified: qualifying domestic manufacturing companies exempted from newcomer classification subject to compliance and licensing conditions.
Certain domestic manufacturing companies (excluding proprietorships and partnerships) will not be treated as newcomers if registered with Central Excise and State sales tax authorities (and having paid duties/taxes unless exempted), furnish audited balance sheets, and meet the minimum plant and machinery investment threshold. When these conditions are satisfied, the licensing authority shall endorse export licences to require bond or bank guarantee as per Department of Revenue terms; the change has retrospective effect.
Procedure for filing Supplementary DEPBs as per DGFT Public Notices 62 and 63
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Supplementary DEPB filing requires manual applications with verified export details and corrections for issuance within seven days.
Applicants must submit manual supplementary DEPB applications in the prescribed format at Advance licensing/FAS counters, verify DEPB details on the office website against their documents, disclose any discrepancies in a file wise covering letter so the office can correct records, and the office will issue corrected supplementary DEPBs promptly, targeting issuance within seven days of submission.
Streamlining of the procedure for licensing under para 4.7 of Handbook of Procedures Vol. 1 2002-2007
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Advance licence issuance streamlined to allow RLA grant pending technical ratification, with amendment and duty recovery mechanisms enforced.
Permits RLAs to issue Advance Licences where SIONs are not fixed, contingent on submission of Appendix 10B in seven sets plus a technical Check Sheet; RLAs must forward specified sets and licence copies to ALC. If ALC ratifies, the position is communicated; if ALC modifies, RLAs recall licences, obtain import statements, amend licences, require deposit of customs duty with interest for excess imports and may initiate recovery action or deny future licences for non compliance. Aggrieved licensees may represent to ALC within the prescribed period for review.

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