Standard Input Output Norms updated to revise and add input quantities for quinine and related pharmaceutical export products.
The Director General of Foreign Trade, under Paragraph 2.4 of the Foreign Trade Policy and Paragraph 1.1 of the Handbook of Procedures, issues a public notice revising and adding entries to the Standard Input Output Norms (SION) in the Handbook of Procedures (Vol.2). The amendments, set out in Annexure A, list specified export products (notably quinine salts and a pharmaceutical salt), state unit export quantities, and prescribe corresponding import items with revised input quantities per unit of export, including both revisions of existing SIONs and a new SION insertion.

ITC(HS) code endorsement: Customs may determine correct code at clearance while RAs can allow post issuance corrections.
Regional Authorities will endorse the ITC(HS) Code against each input on Advance Authorization, DFIA and DFRC scrips and exporters are responsible for declaring the correct code. Corrections after issuance can be examined and allowed by the Regional Authority on representation. Customs, during examination, may determine the correct ITC(HS) Code and either clear goods after assessment or require the importer to get the endorsed code corrected by the concerned Regional Authority.

VKGUY product code expansion: frozen fish exports qualify for export benefits from specified effective date with extended filing deadline.
A new VKGUY Product Code 10.38 is added to Appendix 37A to include specified frozen fish products under designated ITC HS codes, making exports of those items eligible for benefits from 1.4.2007. The deadline to file applications for these items is extended to 30.1.2009 or to the later period permitted under the Handbook of Procedures.

Export obligation timelines for spice imports: shorter period for value addition of pepper, cardamom and chillies, longer period for other spices.
Amendment imposes time bound export obligations on spice imports used for value addition. For spices imported for crushing, grinding, sterilization or for manufacture of pepper, cardamom and chillies oils and oleoresins (excluding simple cleaning, grading or repacking), the export obligation must be fulfilled within a shorter period from the date of importation of the first consignment. For other spices imported for manufacture of spice oils and oleoresins, the export obligation must be met within a longer period from importation.

Acceptance of domestic currency payments for EPCG export obligation: specified domestic receipts may count to discharge export obligations.
Payments received in Indian rupees by a Tourist Transport Operator may discharge EPCG export obligation where they are: (a) payments from foreigners in rupees with encashment certificates; (b) rupee receipts from travel agents/tour operators earned for services used by foreign tourists (treated as foreign exchange for the service provider), which travel agents/tour operators may not count for their own EPCG EO; (c) rupee payments from foreign airlines against repatriable earnings; and (d) rupee receipts from diplomats, embassies or UN organisations out of convertible foreign exchange.

Eligibility documentation for import entitlement clarified; units must submit certifications and turnover evidence covering equipment and tax returns.
Applicants for import entitlement must submit a State Industry Department certificate confirming gang saw establishment and number of gang saws; an SSI/SIA registration certificate certified by State Industry Department evidencing prior operation; a CA-certified list of pre-cutting equipment as per the balance sheet; the income tax return for the reference year certified by a CA showing marble processing; and a CA certificate of indigenous sales turnover supported by certified income tax and VAT/Sales Tax returns. Turnover is net of returns and excludes group concerns; incomplete applications will be rejected.

Import entitlement calculation limited to SION or Appendix 23 declaration, applied only to exports after the Public Notice.
The Directorate General of Foreign Trade clarifies that the restriction in Public Notice No. 52 (limiting fabric import by reference to actual utilization or SION quantity, whichever is lower) is effective only for exports on or after the Public Notice's issuance; Regional Authorities shall process pending cases accordingly and prior shipments should be considered under the SION and Appendix 23 Declaration methodology rather than the Public Notice formula.

Export prohibition exception: consignments handed to Customs before notice remain allowed under existing procedural safeguard, clarified.
Notification No.22 prohibited maize exports until 15 October 2008 and barred Transitional Arrangements. The Handbook procedural safeguard provides that adverse procedural or policy changes do not apply to consignments already handed to Customs for examination and subsequent export up to the Notification date. Under that safeguard, maize exports covered by the Handbook provision and already handed to Customs before the Notification date are allowed.

Chartered Engineer certification must match the engineering branch for EPCG and Advance Authorisation applications; mismatched certificates rejected.
A Chartered Engineer's certificate must be issued by a professional from the same field or branch of engineering relevant to the items and technical requirements in EPCG and Advance Authorisation applications; certificates from a different or irrelevant engineering branch will not be accepted when determining entitlement under these schemes.

End user certification: Regional Authorities may issue prescribed certificates on application to secure import compliance and prevent redirection.
Regional Authorities may issue End User Certificates in the Appendix 31A format where a foreign government requires certification before export, on receipt of an ANF 2C 1 application with prescribed documents and fees. The certificate and application impose undertakings that the importer will not redirect, retransfer within India, or re export the goods without written approval of the Certificate Issuing Authority, will allow verification of possession, and will obtain prior written consent before any change of end user; the certificate does not replace any import licence required for restricted items.

Electronic submission requirement removed, altering export monitoring reporting and clarifying application itemisation in trade procedures.
Amendment removes the sentence requiring reports to be submitted electronically on the DGFT website in para 5.9.1, and para 5.3.4(iii) is corrected by inserting a comma between "spares" and "tools," clarifying the item enumeration in the Handbook of Procedures under powers of the Foreign Trade Policy.

Change of port of registration permitted when Duty Credit Scrip issued, allowing alteration before Customs registration.
Amendment permits alteration of the designated port of registration for an applicant's Duty Credit Scrip after the scrip has been issued but before registration with Customs, allowing change away from the originally concerned RA as a procedural flexibility authorised under the Foreign Trade Policy and implemented by Public Notice in the Handbook of Procedures.

Classification of handmade carpets revised to include synthetic and related wool and silk textile materials, altering export descriptions.
The description of VKGUY entry No 9.25 in the Handbook of Procedures is corrected to specify that all handmade carpets (other than those of jute, coir and cotton) and other textile floor coverings (other than those of jute, coir and cotton) covered under Chapter 57 - including wool, silk, other textile materials and synthetic handmade carpets, whether or not made up - are included for export classification.

Late submission penalty for export-import applications: graded late cut applied based on duration of delay.
Amends the Handbook of Procedures to permit consideration of applications received after the prescribed receipt date subject to a graded late cut: 2% for filings within six months after the last date, 5% for filings after six months but within one year, and 10% for filings after one year but within two years; enacted under Paragraph 2.4 of the Foreign Trade Policy as a public interest procedural amendment.

Revalidation of Duty Free Import Authorisations allowed for transferable authorisations subject to application and fraud exclusion.
Transferable Duty Free Import Authorisations issued for the period May 2006-March 2007 may be revalidated for six months beyond the original 24 month import validity if an application is submitted to the concerned Regional Authority within the prescribed filing window; revalidation is precluded where misrepresentation or fraud is found. Administrative clarifications include a filing window extension, waiver of application fees, and acceptance of revalidation requests by letter with the original DFIA and amendment sheets.

FOB value exclusion of agency commission affects valuation for export authorizations under advance authorisation procedures.
A provision added to ANF application guidelines clarifies that FOB value of export for valuation adjustment purposes is to be calculated after excluding agency commission; this procedural amendment applies to the processing of Advance Authorisation clubbing, redemption/no-bond certificate applications, and DFIA applications for authorisations issued on or after the effective date.

Import of fuel under Advance Authorisation now requires specified fuel type and limits transfer to licensed fuel marketers.
Amendment requires applicants under the Advance Authorisation scheme to specify the exact fuel type sought, permits fuel imports under Advance Authorisation, Paragraph 4.7 or Adhoc Norms, restricts transfer of DFIA/DFRC SION-based fuel entitlement to companies licensed to market fuel, excludes fuel from DEPB rate calculations, and allows exporters to seek fixation of a DEPB brand rate for the customs duty component on fuel via ANF 4C.

Additional duty credit entitlement for flakes of potatoes exports gains extra scrip benefit from specified export date.
The amendment to Table 13 of Appendix 37A adds flakes of potatoes (ITC HS Code 110520) to the Flower, Fruit & Vegetables category, making that product eligible for an additional duty credit scrip of 2.5% over the normal VKGUY entitlement for exports made from 1.4.2008, pursuant to changes in the Handbook of Procedures, Vol. I (RE 2008) under Paragraph 2.4 of the Foreign Trade Policy 2004-09.

Sub-contracting abroad: exports from subcontractor premises allowed with declared values and ensured repatriation of foreign exchange.
Where an EOU/EHTP/BTP/STP exports goods from a foreign sub-contractor's premises it must declare at clearance the transaction value of finished goods, job-work charges payable to the sub-contractor, and the value of intermediate goods, supported by the sale price contract/invoice for finished goods, the job-work contract and the basis of valuation of intermediate goods, and ensure full repatriation of foreign exchange corresponding to the declared transaction value.

EPCG export credits exclusion: unredeemed exports cannot be counted toward average export performance for later authorizations.
Specifies that unredeemed exports made against an EPCG licence/authorization shall not be added for calculating average export performance for the purpose of subsequent EPCG authorization; the amendment to the Handbook of Procedures is issued under paragraph 2.4 of the Foreign Trade Policy and applies to EPCG licences issued on or after the effective date specified in the notice.