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Circulars
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Export of Wheat and Wheat products during the Licensing year 1999-2000
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Export ceiling for wheat established with allocation by APEDA; wheat products allowed without quantitative limit.
A quantitative export ceiling on wheat for the 1999-2000 licensing year is placed at APEDA's disposal for allocation; wheat products may be exported without quantitative limits. APEDA must ensure total allocations do not exceed the ceiling and must report exhaustion to the Ministry of Commerce and this office. APEDA must submit monthly statements with exporter name, quantity allowed, FOB value and destination to the Ministry (EP(Agri.II) Section) and the Director of Statistics, and a trade notice must be issued with copies sent to the issuing office.
Import of Mulberry Raw Silk under Special Import Licence(SIL)
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Import clearance of mulberry raw silk: pre-notification shipments with foreign grade certificates cleared without CSB reference.
Consignments of mulberry raw silk shipped prior to 19 May 1999 that are accompanied by a grade certificate from any foreign certifying agency may be cleared on the basis of those certificates without reference to the Central Silk Board; as a one time measure such consignments shall be cleared even if samples had been drawn or the Central Silk Board has disputed the foreign gradation.
Clarification on Public Notice No. 5 (RE-99) dated 6.4.1999 in respect of regularisation cases
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Deemed export obligation compliance: exports completed before the notice are regularised without penalty, but prior payments are nonrefundable.
Where exports under advance licences were completed prior to the Public Notice date but outside the prescribed export obligation period, those exports are deemed to have been made within the prescribed export obligation period and no penalty is to be charged for regularisation or extension; however, any penalties already paid shall not be refunded.
Clarification on various provisions of Handbook (Vol.1)
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Classification of textile products: hemmed garments treated as madeups while unhemmed items treated as fabrics under DEPB.
Under the DEPB scheme, unhemmed or unstiched sarees, dhoties and lungies are classed as fabrics while hemmed or stitched items are classed as madeups. The confirmed irrevocable Letter of Credit requirement for newcomer duty free licences is waived for domestic supplies under Advance Intermediate Licence or Special Imprest Licence when payment is through normal banking channels or project authorities. Licences for goods from private bonded warehouses must be valid on the date of clearance, and golden status follows the last status in three successive terms.
Surrender of three times SIL for import under SIL
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Surrender of Special Import License required for imports under SIL; consignments shipped before the Handbook cut-off are exempt.
Surrender of a Special Import License equivalent to three times the c.i.f. value is required for imports under SIL, but that surrender requirement does not apply to consignments shipped or despatched before the Handbook cut-off (para 15.14, Vol. I), which are exempt from the three-times surrender provision.
Placement of quantity of 10,200MTs of Sugar from the Freesale Quota of 1998-99 Season (Oct, to Sept.) for export of preferential White Sugar quota (1999-2000) to EEC
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Preferential white sugar quota allocation assigns freesale sugar to a designated exporter subject to pre shipment certification.
A quantity of 10,200 MT of Free Sale sugar from the 1998-99 season is allocated for export under the 1999-2000 preferential white sugar quota to the EEC, placed with APEDA for issuance of the Registration cum allocation Certificate to the nominated exporter; M/S Indian Sugar and General Industry Export Import Corporation Ltd. is the sole authorised exporter and shipments are subject to prescribed pre shipment certification.
Green Card application
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Green Card eligibility expanded allowing qualifying exporters access to automatic licence entitlement and other administrative benefits.
Adds a new provision allowing exporters eligible under the Policy to apply for a Green Card using Appendix 56, filed with the Regional Licensing Authority where the Head/Registered Office is located. Green card holders qualify for automatic licences and other announced benefits. The Appendix prescribes required applicant details and mandatory enclosures: SSI/Industrial Licence/IEM or specified quality certification, a Chartered Accountant/Cost Accountant certificate certifying over fifty percent of production exported in the preceding year (or quality certification), and a Chartered Accountant/Cost Accountant certificate verifying FOB export value in the Appendix 26 format.
Import of Mulberry Raw Silk under Special Import Licenece (SIL)
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Import of Mulberry Raw Silk: consignments with notified agency grade certificates may clear customs without further reference.
Consignments of mulberry raw silk imported under Special Import Licence pending customs clearance and accompanied by grade certificates from notified agencies may be cleared by customs on the strength of those certificates without further reference to the Central Silk Board, except where samples have already been drawn and the Central Silk Board has disputed the gradation certified by a foreign inspection agency.
Placement of quantity of 10,500 MTs of Sugar from the Free sale Quota of 1998-99 Season (Oct, to Sept.) for export of preferential raw Sugar quota (1999-2000) to EEC
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Preferential raw sugar export quota allocated for EEC exports, placed with APEDA and subject to pre shipment certification.
A portion of 1998-99 free sale raw sugar production is allocated for preferential export to the EEC for 1999-2000 and placed with APEDA for issuance of Registration cum allocation Certificates to the nominated exporter; M/S Indian Sugar and General Industry Export Import Corporation Ltd. is appointed sole agency to export under this preferential arrangement, subject to prescribed pre shipment certification by the Export Inspection Council.
HB Vol.1 - DEPB Rate list - Appendix 28A
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DEPB rate amendments: revised export entitlement rates and value caps for specified product groups under export policy.
Public Notice amends Appendix 28A DEPB schedule by adding specified DEPB rates and monetary value caps for products in Plastic, Chemical, Engineering and Food groups, and revises certain product descriptions and the textile DEPB table to clarify rates and caps for dyed/printed fabrics, madeups, hosiery, and acrylic fur fabrics, as an update to the Handbook of Procedures under the Export and Import Policy.
SION - HB Vol.2 Amended/ Added
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Input Output norms amended: permitted import items and quantities under SION entries updated for export linked licences.
The Director General of Foreign Trade amends Standard Input Output Norms in the Handbook of Procedures, Vol. 2 by replacing descriptions, deleting specified import items and adjusting permitted quantities and CIF ceilings across numerous SION entries. The annexed schedule lists sectoral, entry by entry textual amendments-substituting precise permissible items, removing certain entitlements and restating CIF limits-so that import admissibility against export licences must conform to the revised item descriptions and deletions.
HB Vol.1 Classification - DES/DEPB/EPCG
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Conversion option for pending classification applications allows election under paragraph 7.5 before June 30, 1999.
Applicants with classification matters pending in ZALC/RALC may opt for conversion under paragraph 7.5 read with Customs notification 30/97 before 30th June, 1999, or have cases transferred to SALC. Production programme licences are allowed only until 30th June, 1999 subject to average FOB export value of preceding three licensing years. DEPB claims for lost Shipping Bills/Bank Certificates that would be time barred may be filed on or before 30th June, 1999. Licences issued before 1.4.99 permitting second hand capital goods under EPCG remain valid under paragraph 5.4. Newcomer Advance Licences may be issued post export on proof of Shipping Bills and Bank Certificates. Central Silk Board pre shipment inspection is not required for silk madeups and fabrics under DEPB.
HB Vol.1 Amended
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EPCG licence validity aligned with export obligation period, requiring co terminus endorsement, affecting import of spares under export policy.
Amendments reallocate security and documentation: eligible large exporters and designated houses must furnish a Legal Undertaking; other manufacturers must post a bond with bank guarantee for 25% of excise duty saved; merchant exporters (excluding specified categories) must post a bond with bank guarantee for 100% of excise duty saved on indigenous procurements in lieu of imports. EPCG licence validity for spares is made co terminus with the export obligation period and must be endorsed on the licence; deemed export benefits are conditioned on certification, procurement under international competitive bidding or specified customs notifications, with restricted benefit categories for domestic suppliers.
Export of products under DEPB scheme
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DEPB classification guidance clarifies which engineering and textile exports qualify for specified DEPB rates.
Clarification determines DEPB rate applicability where product descriptions differ: non-alloy skelp is covered under engineering-product entry Serial No. 391; non-alloy steel rails and sleepers under Serial No. 381; stainless steel in coil form under Serial No. 389; items under Serial Nos. 69, 113 and 244 shall be covered under Serial Nos. 178, 466, 508 and 517 with DEPB rates extending to ungalvanised form; and garments from netted fabrics shall be treated as knitted garments for DEPB benefits as per Appendix 28A.
Issue of free Sale and Commerce Certificate for Medical devices/Equipments etc
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Free Sale/Commerce Certificate: exporters apply to DGFT; non Drugs items cleared by DGFT, regulated devices sent for health ministry endorsement.
Exporters must apply to designated DGFT officers in a prescribed form with required documents; DGFT will issue Free Sale/Commerce Certificates for items not covered by the Drugs and Cosmetics Act and not prohibited for export. For medical devices regulated under the Drugs and Cosmetics Act, DGFT will forward applications to the Ministry of Health for endorsement, and the Ministry may demand supporting documents such as a GMP licence.
Export of bulk drugs- attestation thereof
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Attestation requirement for approved bulk drugs removed; prior DCGI or pharmacopeia approval suffices to avoid port-level attestation delays.
Export consignments of bulk drugs need not be routed for port-level attestation by Drug Controller officers where the bulk drug is an approved drug, including those listed in the Indian Pharmacopoeia or those approved by the office of the Drug Controller General of India; customs and licensing authorities should not insist on separate attestations at ports, to prevent shipment delays where Drug Controller officers are not stationed.
Applying Of Registration Certificate for Advanced Licence
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Advance licence application procedures require SALC fixation of adhoc input output norms before final adjustment or regularisation.
Procedural framework requires applicants for Advance Licences where Input Output norms are unfixed to file applications in triplicate with registration certificates, consent letters where applicable, a self declaration accepting final adjustment to adhoc/standard Input Output norms fixed by SALC, and accountant certificates of export performance. File numbers are generated and copies forwarded to SALC for norm fixation; applicants must submit required sets to SALC quoting file numbers. Licences with actual user condition may be issued adhoc subject to later adjustment and possible surrender for regularisation; licences without actual user condition are issued only after SALC norms are received.
Policy Guidelines
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Extension of export obligation: bank guarantee covering customs duty plus interest enables time-limited regularisation of Advance and EPCG licences.
Extension of export obligation periods for Advance and EPCG licences is allowed on submission of a bank guarantee covering customs duty in proportion to the unfulfilled obligation together with 24% simple interest for the specified interest period; guarantees must be valid to 31.3.2002 and are forfeitable if the extended export obligation is not met. Applications must be filed with the original licensing authority within 60 days of the Public Notice; no extension is permitted where misrepresentation, fraud, or prior adjudication exists, and exports completed before the Public Notice but outside the original period are regularised as within the prescribed period.
DEPB Rates for Cathode Ray Tubes, TV Picture Tubes, etc
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DEPB rate adjustment for cathode ray tubes establishes export entitlement and an effective public notice date.
Amendment establishes a DEPB rate of 19.00 for cathode ray tubes, television picture tubes and monitor tubes, vacuum interrupter tubes and gas discharge tubes under Product Group: Electronics (Product Code: 83) in Appendix-28A of the Handbook of Procedures; the amendment is effective from 1 April 1999 and published as a public notice under the Export and Import Policy framework.
SION - HB Vol.2 Amended
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Standard Input-Output Norms amended: additions and substitutions to Handbook Vol.2 affecting import-entitlement rules and wastage formulas for exporters.
The Director General of Foreign Trade amends the Handbook of Procedures, Vol.2 by substituting, deleting and adding Standard Input Output Norms across product sectors (Chemicals, Engineering, Food, Plastics, Textiles, Handicrafts, Leather, Miscellaneous). New SION entries and detailed input lists (including wastage and conversion rules) are introduced, notably a comprehensive formula and entitlement rules for printed flexible packaging material (H404). Certain norms' validity is extended to 30 June 1999; exporters must follow prescribed procedures for regularisation thereafter.

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