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Claim of freely transferability duty credit scrip benefits under Chapter 3 FTP, clarification regarding eligibility of exports by EOU.
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Eligibility for duty credit scrips: EOUs/BTPs qualify only when not availing direct tax exemptions, with required evidence.
Eligibility for Chapter 3 duty credit scrips for EOUs/BTPs is limited to units that do not avail direct tax benefits or exemptions; eligibility applies prospectively from the date the exemption period ends or from the date a unit permanently waives direct tax exemption, and units must submit evidence from jurisdictional Income Tax Authorities to the Regional Authority to claim benefits under the specified Chapter 3 schemes.
Clarification on applicability of Public Notice No. 28 dated 9.6.2008
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Non-retrospective application of regulatory amendment clarifies earlier-filed applications remain governed by prior policy handbook provisions.
The amendment is not retrospective: applications filed before the Public Notice are governed by the policy and handbook provisions in force prior to the Notice, and those prior provisions continue to determine the legal regime applicable to earlier-filed cases.
Amendments in the Handbook of Procedures, Vol. I(RE-2008).
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Free Sale and Commerce Certificates for non drug medical devices authorised for issuance, valid one year and subject to prescribed application requirements.
RAs are authorised to issue Free Sale and Commerce Certificates for medical devices/instruments not covered by the Drugs & Cosmetics Act, 1940, which have usage in hospitals, nursing homes and clinics and are not prohibited for export; such certificates are valid for one year unless otherwise specified and must be issued in the Annexure 1 format based on applications made under the substituted Appendix 39 and Annexure A of HBP Vol. I with prescribed documents and declarations.
Return of Bank Guarantees submitted in lieu of Drug Manufacturing Licence (DML) in terms of Public Notice No. 109 dated 17.11.2008 - Regarding.
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Return of bank guarantees permitted when undertaking to submit Drug Manufacturing Licence within three years accompanies EPCG authorisation.
Regional Authorities may return bank guarantees or letters of undertaking submitted in lieu of a Drug Manufacturing Licence for EPCG authorisations when the pharmaceutical unit provides a written undertaking to submit the requisite DML within three years from the date of issue of the EPCG authorisation.
SION - Engineering Products amended
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Standard Input-Output Norms updated for aluminium cast exports; specifies aluminium scrap or ingot input requirements per unit export.
Amendment updates the Standard Input Output Norms for Aluminum/Aluminum Alloy Cast Articles: input entitlement per kilogram of aluminum content in the export product may be satisfied either by aluminum scrap or by aluminium/appropriate aluminium-alloy ingot, with specified alternative input allowances for each input type to be used for compliance under the Handbook of Procedures.
Duty Exemption/Remission Scheme - EO Period and its Extension amended. A new Appendix 30A also added
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Export Obligation Period revised: specified inputs now subject to fixed EOPs under new appendix, extensions disallowed.
Export Obligation (EO) under Advance Authorisation begins from the Authorisation issue date and is generally 24 months, except for deemed exports tied to project contracts. For inputs listed in Appendix 30A, EO periods are the specific durations stated against each input and extensions of EO periods are not permitted; the Regional Authority must endorse this restriction on the Advance Authorisation. Appendix 30A specifies varied EO periods measured from customs clearance of the first consignment for spices, certain drugs, penicillin and salts, tea and coconut oil.
LIST OF EXPORT ITEMS ALLOWED UNDER VISHESH KRISHI AND GRAM UDYOG YOJANA (VKGUY)
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Amendment to VKGUY export list updates Handbook of Procedures entries and renumbers VKGUY product codes accordingly.
Amendment to the Vishesh Krishi and Gram Udyog Yojana export items list under authority of Paragraph 2.4 of the Foreign Trade Policy: the Handbook of Procedures, Vol. I, is revised to renumber specified serial entries and to substitute the corresponding VKGUY product codes to align with the new sequence; the change is administrative and limited to listing and coding of permitted export items.
Market Linked Focus Products - Special Products/Sectors in Table 12 of Appendix 37D notified
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Market linked focus products designation for apparel exports linking specified foreign markets to eligible export procedures and incentives.
Appendix 37D is amended to add Table 12 designating Market Linked Focus Products: Articles of Apparel under Chapters 61 and 62 are linked to specified foreign markets and assigned an admissible export date, thereby bringing those apparel categories within the Market Linked Focus Products regime and its export procedural provisions under the Handbook of Procedures, Vol. I.
List of export items allowed under VKGUY enlarged
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Export benefits under VKGUY expanded to include worked vegetable carving materials, enabling eligibility for export incentive claims.
An entry has been added to Table 15 of Appendix 37A of the Handbook of Procedures, Vol. I, under the VKGUY scheme, designating worked vegetable carving material and related articles as eligible for export incentives and specifying the product code and customs classification for which benefits will be admissible.
Bank Certificate of export and realization (BRC)in appendix 22A and DEPB application form revised
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Bank Certificate of Export and Realisation revised forms prescribe verification and documentation requirements for DEPB claims.
The Public Notice replaces Appendix 22A (Bank Certificate of Export and Realisation) and ANF 4G (DEPB application form) in the Handbook of Procedures, prescribing revised templates and procedural requirements: applicant identification, exporter classification, application fee details, detailed export particulars, DEPB entitlement and capped value computations, and a mandatory Declaration/Undertaking. Appendix 22A mandates bank verification of invoices, shipping bills and realization of FOB values, prescribes exceptions where realization need not be given, and requires issuing banks to be authorised dealers with RBI permission.
Additions/amendments in Schedule of DEPB Rates
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Amendments to DEPB rates revise export entitlement rates and value caps for specified engineering, chemical and plastics products.
Amendments to the DEPB rates update export entitlement entries for specified product groups by modifying existing rates and adding new schedule items. The Director General of Foreign Trade, exercising powers under Paragraph 2.4 of the Foreign Trade Policy and Paragraph 1.1 of the Handbook of Procedures (Vol. I), directs immediate amendments to DEPB entries for Engineering Products, adds an entry for Epichlorohydrine under Chemical Products, and revises entries for Plastics, thereby changing entitlement rates and specified value caps for the listed products.
Import of Restricted items under Advance Authorization Scheme - regarding
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Import of restricted items under Advance Authorisation Scheme permitted for export production; prohibited or STE-reserved items remain barred.
Imports of restricted items are permitted under the Advance Authorisation Scheme when brought as inputs for export production, provided such inputs remain under actual user condition until completion of the export obligation; prohibited items and items reserved for import by State Trading Enterprises are not eligible for import under Advance Authorisation.
Guidelines for import of Rough / unprocessed Blocks and Slabs of agglomerated / artificial stones for the year 2008-09
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Import floor price for rough agglomerated stone set by origin; licences must carry endorsed price and port registration.
Minimum import prices for rough/unprocessed blocks and slabs of agglomerated/artificial stones for 2008-09 are mandated and must be endorsed on all licences, with distinct floor prices for goods of Chinese origin and for goods of other origins; licences must also indicate the port of registration as per the option exercised.
Food Products in SION (Vegetable Pickles in Oil/Mixed Pickles in Oil)
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Standard Input Output Norms amended for vegetable pickles in oil, specifying allowable input categories and fuel valuation rules.
Amendment to the Standard Input Output Norms revises the SION entry for Vegetable Pickles in Oil to specify permitted import inputs for each kilogram of export: specified edible oils as relevant fats and oils; food additives approved for pickles; sanitation and cleaning chemicals including acids, alkalis, surfactants and biocides; and fuel for heating/boiling measured as a percentage of the FOB value.
Food Products in SION (Biscuits (with or without dry fruits))
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Standard Input-Output Norms update for biscuits clarifies permitted imported inputs and packing policy for exports.
Amendment to the Standard Input-Output Norms for biscuits revises permitted imported inputs and their allocated quantities for the Handbook of Procedures. Specified inputs include flour, sugar or liquid sugar, vegetable shortenings/creams/fats, skimmed milk powder, defined bakery additives, packing materials subject to packing policy, and relevant dry fruits, each linked to the exported product quantity and incorporated as a correction to the Food Products SION entry.
Requirement of NOC before clearance of Ozone Depleting Substance (ODS) against Advance Authorizations.
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No Objection Certificate requirement for import of ozone depleting substances restricts clearance under advance authorizations and mandates export only use.
Import clearance for Ozone Depleting Substances under Advance Authorisation schemes requires production of a No Objection Certificate issued by the central export licensing authority, to be considered by the norms committee in consultation with the environment ministry; customs will allow import against Advance Authorisations only upon presentation of that NOC. Such imports are conditional on the entire ODS quantity being exported with the manufactured product and not used in the domestic market, with imports disallowed from 2010 even against valid Advance Authorisations.
FOB value of export for Schemes under Chapter 3 of FTP, clarification regarding commission
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FOB valuation: include commissions and discounts when computing entitlement under export incentive schemes, as clarified by DGFT.
The FOB value of exports for entitlement computation under the Chapter 3 incentive schemes of the Foreign Trade Policy 2004-09 is to be taken inclusive of commissions and discounts, making such amounts part of the FOB base for calculating benefits.
Correlation of inputs with the export product under DFIA Scheme-regarding.
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Input-product nexus clarified under DFIA: correlation required only for sensitive inputs where SION prescribes specifications.
Clarification that under the DFIA scheme, nexus between imported inputs and the exported product must be demonstrated only where SION or the specified HBP provision requires it; designated sensitive inputs require specification of technical specification, quality and characteristics to establish correlation, while other inputs do not necessitate such correlation unless expressly prescribed by SION.
Amendments in Handbook of Procedures, Vol. I RE 2008.
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VKGUY benefits restricted to Handicraft products; kitchenware and tableware excluded and certification required for exports.
The amendment deletes VKGUY product codes 15.2, 15.4, 15.5 and 15.6 and confines VKGUY benefits under Table 15 of Appendix 37A to bona fide Handicraft products; cooking and dining items, including tableware and kitchenware, are excluded. Eligibility requires certification where doubt arises, and the change applies to exports made from 1.4.2008.
Amendments in the Handbook of Procedures (Vol.I) (RE-2008)
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Extension of export obligation: first extension available by composition fee or by increasing the obligation, at exporter's choice.
Regional Authorities may grant the first extension of an export obligation period on the exporter's choice of either payment of a composition fee based on the proportionate duty saved on the unfulfilled obligation or an increase in the export obligation by a specified proportion of the total obligation; this choice applies per year of extension and the first extension is limited to a prescribed multi year term, with other existing provisions remaining unchanged.

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