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Circulars
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SION - HB Vol II - Amended/ Added
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Standard Input Output Norms update prescribes targeted substitutions, additions and quantity rules for export input entitlement.
The Public Notice amends the Handbook of Procedure Vol. II by deleting, substituting and adding specified SION entries and notes. It prescribes corrected import input descriptions, alternative inputs, amended input quantities, net to net provisions and value based limits, organized across Chemicals, Electronics, Engineering, Food, Plastics, Textiles and Miscellaneous product categories. Annexures A-G enumerate the detailed operative changes and new SION entries with their constituent inputs, quantities and explanatory notes for implementation.
DEPB Scheme
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DEPB scheme credit rates prescribed for listed export products, with amended descriptions, caps and retrospective coverage applied.
Notification establishes DEPB credit percentages and specified value caps for listed export products, applicable to shipments from 1 4 1997 to 14 4 1998; it amends prior Public Notice references, modifies product descriptions and DEPB rates for specified chemical, engineering, plastic, textile and other product groups, and deletes particular serial entries as set out in the annexure and corrigendum.
DEPB Rate List, Appendix 28A
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DEPB credit rates schedule amended and clarified, setting product specific export entitlement rates and applicable value caps.
Notification fixes DEPB credit rates for specified export products and incorporates them into Appendix 28 A of the Handbook of Procedures, applying rates retroactively for the covered shipment period; it amends earlier notices, restores and revises specific engineering entries, assigns DEPB percentages and, where applicable, value caps for diverse product groups, and the appended corrigendum makes deletions, corrects rates and value caps, and standardises product descriptions to govern calculation of DEPB entitlements.
Amendment in Public Notice No. 26 dated 14.7.1997 and Public Notice No. 59 dated 11.12.1997
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Export date extensions for sandalwood and exotic bird exports under public notices; other conditions remain unchanged.
The Director General amends earlier public notices to extend the deadline for compliance with export conditions for sandalwood products (paragraph 8) and to amend the deadline for export conditions relating to listed exotic bird species (paragraph 7). All other conditions and procedures in the cited public notices remain unchanged.
Procedures & Conditions to be followed for export of Sandalwood De-oiled Spent Dust.
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Export licensing conditions: Sandalwood de oiled spent dust requires DGFT export licence and mandatory wildlife verification before shipment.
Export of Sandalwood De oiled Spent Dust is permitted only to eligible exporters and solely against an Export Licence issued by the Directorate General of Foreign Trade; applicants must submit the prescribed licence form together with a valid export order or irrevocable letter of credit, RCMC, IE Code and, as applicable, purchase documents or Sandalwood Oil authorisation showing quantities actually exported, and consignments require mandatory physical verification by the Regional Wildlife Warden before shipment through specified ports.
Export of Sandalwood & Species of Exotic Birds
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Export deadline amendment extends compliance dates for sandalwood and exotic bird exports under existing public notices.
An amendment revises the terminal compliance dates in earlier public notices: the deadline for exports of specified sandalwood forms is extended to a later date, and the deadline for exports of listed exotic bird species is extended to a later date; all other conditions and procedures in the referenced public notices remain unchanged.
Export of Sandalwood De-oiled Spent Dust
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Export licence requirement for sandalwood de-oiled spent dust; exports restricted, subject to documentation and wildlife verification.
The Director General of Foreign Trade requires that exports of Sandalwood De-oiled Spent Dust be effected only against an Export Licence issued by the Directorate, with the Export Licensing Committee empowered to grant licences on merits and subject to conditions. Eligible exporters comprise State Government undertakings and public sector enterprises producing the by product, direct purchasers from them, and exporters authorised to export sandalwood oil, with spent dust exports linked to quantities of oil actually exported. Applications must include prescribed documentation and shipments require physical verification by the Regional Wildlife Warden, limited to specified ports.
Eligibility for availing Special Import Licence and jurisdiction of Regional Licensing Authorities for grant of SIL
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Special Import Licence eligibility clarified; filing and jurisdiction rules require specific authority and declared combined applications.
The circular clarifies that Special Import Licence benefits under specified Handbook provisions are mutually exclusive and prescribes filing jurisdiction: EOU/EPZ units without DTA branches must apply to the Development Commissioner; entities with both EOU/EPZ and DTA offices must file a combined application with the Regional Licensing Authority and declare no prior SIL claim from the Development Commissioner; firms whose head office and branches fall under different Regional Licensing Authorities must aggregate export performance and apply to the Regional Licensing Authority of the registered/head office with a declaration of no parallel filings. It also confirms the temporal eligibility criteria introduced by the relevant Public Notice.
Supply of capital goods to the Power Projects in terms of Para 10.2(g) of EXIM Policy, 1997-2002
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Deemed export benefits not available to domestic suppliers for supply to power transmission projects under EXIM policy clarification.
The DGFT clarifies that the EXIM Policy deemed export concession for the power sector does not apply to supplies to power transmission projects, including transmission lines, substations, load dispatch and communication projects, and that domestic suppliers to such transmission projects are not entitled to the deemed export dispensation.
Grant of status as Trading House/Star Trading House/Super Star Trading House in terms of Notification No. 19 dated 22.10.97
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Trading House status conversion allowed for exporters meeting revised notification criteria, with application and entitlement to adjusted SIL.
Exporters recognised or renewed for the period commencing 1.4.97 who satisfy the revised criteria of Notification No.19/1997-2002 may be granted Trading House/Star Trading House/Super Star Trading House status upon application to DGFT HQ using Appendix 19 with prescribed documents and the original status certificate. They retain the NFE/FOB option and endorsement for the relevant licensing year as earlier exercised, and are entitled to SIL equal to the difference between the CIF value eligible under the new certificate and the CIF value of SIL already issued under the earlier certificate.
X-ray apparatus for baggage export to Russia allowed under Relaxed Value Addition Norms
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Relaxed value addition norms permit export of X-ray baggage and cargo inspection apparatus to the Russian Federation under specified ITC classification.
The Director General of Foreign Trade, under Export and Import Policy, 1997-2002 (paragraphs 4.11 and 7.10), has included "X-ray apparatus for baggage and cargo inspection (Exim Code No. 90.22)" in Annexure-1 to Appendix-39, permitting its export to the Russian Federation under relaxed value addition norms and in accordance with its ITC (HS) classification in the Handbook of Procedures, Vol. I.
Clarification regarding validity of exports made by using ineffective IEC number
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Ineffective IEC numbers render exports and imports ineligible, prompting invalidity and recovery proceedings for any benefits claimed.
Exports and imports effected under an ineffective IEC-arising when changes in name, constitution or ownership are not endorsed within sixty days under Para 15.4-are invalid; the IEC holder ceases to be eligible to export/import, RLAs must circulate details of such ineffective IECs to other RLAs, Customs and the banking authority, and any benefits claimed for transactions during the interlude are subject to recovery. A fresh IEC may be applied for and decided by the RLA under policy.
Rupee vis-a-vis Russian Rouble
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Special Currency Basket value revised under Indo USSR deferred payments protocols, affecting computation of Rupee equivalents for deferred contracts.
The Reserve Bank of India revised the Indian Rupee valuation of the Special Currency Basket, effective 23 January 1998, for application to deferred payment contracts concluded under the Indo USSR Deferred Payments Protocols dated 30 April 1981 and 23 December 1985, and the revision applies to all contracts entered into under those protocols for computing Rupee equivalents for payments.
Gems & Jewellary Scheme
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LUT limit for overseas companies: amended eligibility ties entitlement to preceding three years' average diamond turnover.
An amendment to Para 8.14(a), Chapter 8, HBP Vol. I adds a new entry establishing that an overseas company with a branch office in India which meets the specified annual average turnover in diamonds during the preceding three licensing years is entitled to claim an LUT benefit calculated as a proportion of that annual average turnover for the preceding three licensing years.
Trade with Fiji Permitted
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Trade permission: amendment allows imports and exports with Fiji, permitting trade with all countries except Iraq.
Amendment under Paragraph 4.11 revises Handbook of Procedures (Vol. 1) Paragraph 4.2 to permit imports and exports to and from any country except Iraq, making trade with Fiji permissible unless otherwise specifically provided; issued as a Public Notice by the Director General of Foreign Trade.
HB Vol.1 - DEPB Rate - Appendix 28A
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DEPB amendment: product descriptions and entitlements revised, with minimum-purity rule preserving credit eligibility for higher-purity exports.
Amendment to the DEPB schedule revises multiple export product descriptions, deletes specified DEPB rates for certain engineering and electronics items, and changes the phrase "Formulation of bulk drug" to "Formulation or bulk drug." A general note provides that any purity specified in a DEPB rate is a minimum and exporters of higher-purity product are entitled to the same DEPB rate; these changes adjust classification and entitlement for DEPB benefits under the Handbook of Procedures.
SION - HB Vol.2 amended/ Added
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Standard Input Output Norms updated: additions and amendments altering permitted import inputs, quantities and licensing conditions for export production.
The Public Notice amends Handbook of Procedure, Vol.2 by correcting and substituting multiple Standard Input Output Norms and adding new entries across Chemicals, Electronics, Engineering, Plastics, Textiles and Miscellaneous products. Each amended or new SION specifies permitted import items, quantities or formulae (including net-to-net, kg/kg content, and wastage allowances), introduces component-level allowances and consumable limits, and sets limited validity for certain norms. Textile licences for Sl. Nos. J270-J297 carry an Actual User condition restricting post-obligation transfer and requiring customs acceptance on licensing authority certification.
Rupee value of Russian Rouble under Deferred Payment Protocols
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Rupee value adjustment of Special Currency Basket applies to deferred payment contracts under Indo USSR protocols, revising contract valuation.
The Reserve Bank of India revised the Rupee Value of the Special Currency Basket, and that revision, as announced in Public Notice No. 70(RE-97), applies as the valuation basis for all deferred payment contracts concluded under the Deferred Payments Protocols dated 30 April 1981 and 23 December 1985 between the Government of India and the erstwhile USSR.
Imports under Duty Exemption Scheme - Amount of BG will be for excise duty saved
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Excise Duty saved: BG requirement under the Duty Exemption Scheme tied to excise duty saved rather than customs.
The Handbook of Procedures is amended to replace the expression 'Customs duty saved' with 'Excise Duty saved', so that bank guarantees and related security requirements under the Duty Exemption Scheme are calculated with reference to excise duty saved rather than customs duty, thereby aligning terminology and compliance calculations in the Handbook.
DEPB Claim against Export of Bulk Drugs -Exporters to give an Affidavit
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DEPB affidavit requirement: exporters must declare specified exports are not derived from listed bulk drugs or face refund.
Exporters claiming DEPB credit for the specified chemical export item must submit a stamped-paper affidavit in the prescribed format declaring that the exported product is not derived from bulk drugs, raw materials, or intermediates listed elsewhere in the Public Notice; licensing authorities will finalise DEPB claims on this basis, a false declaration obliges immediate refund, and the affidavit must be signed by the proprietor/partner/director or a board-authorised person.

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