TaxTMI 
TaxTMI 
GENERAL PROVISIONS REGARDING EXPORTS AND IMPORTS
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....the application in MS word format. Profile of Importer/Exporter 2.6 Each importer / exporter shall be required to file importer / exporter profile once with RA in ANF 1. RA shall enter such information in database so as to dispense with need for asking information again. In case of any change in information given in ANF 1, importer / exporter shall intimate same to RA. Self-Addressed Stamped Envelope 2.7 Applicant shall furnish a self-addressed envelope of 40 x 15 cm with required postal stamp affixed for all documents required to be sent by Speed Post. IEC No: Exempted Categories 2.8 Following categories of importers or exporters are exempted from obtaining IEC number: (i) Importers covered by clause 3(1) [except sub-clauses (e) and (l)] and exporters covered by clause 3(2) [except subclauses (i) and (k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993. (ii) Ministries / Departments of Central or State Government. (iii) Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture. (iv) Persons importing / exporting goods from / to Nepal, Myanmar through Indo-Myanmar border areas and ....
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....of India 3(v.a) Persons importing / exporting permissible goods as notified from time to time, from/to China through Gunji and Namgaya Shipkila ports, provided the CIF value of a single consignment does not exceed Indian Rs.25,000. In case of Nathula port the applicable value ceiling will be Rs.100,000. Application for Grant of IEC Number 2.9 An application for grant of IEC number shall be made by Registered / Head Office of applicant, except EOUs and SEZ units to concerned RA in ANF 2A with documents prescribed therein. Only one IEC would be issued / allowed against a single PAN number. IEC Format and Statements 2.9.1 RA concerned shall issue an IEC number in prescribed format (Appendix 18B). A copy of such IEC number shall be endorsed to concerned banker (as per details given in ANF 2A). A consolidated statement (in Appendix 18 C) of IEC numbers issued by RA shall be sent to Exchange Control Department of RBI as given in Appendix 18D. Validity of IEC No. 2.9.2 An IEC number allotted to an applicant shall be valid for all its branches / divisions / units / factories. Duplicate Copy of IEC Number 2.9.3 Where an IEC Number is lost or misplaced, issuing authorit....
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....4 of FTP 24 months (ii) EPCG Authorisation (other than spares) 36 months (iii) EPCG Authorisation for Spares, refractories, catalyst and consumables Co- terminus withEOP of EPCG Authorisation. (iv) Others including CCP and DEPB, unless otherwise specified 24 months (v) Advance Authorisation / DFIA for deemed export (including Advance Authorisation for annual requirement) 24 months or Co- terminus with contracted duration of project execution whichever is later. (vi) 13Export Licence / Authorisation (However, EFC may decide to issue Export Authorisation for a longer duration in case of R&D studies based on recommendation of technical authority). 12 months 2.12.1 Where an Authorisation expires during the month, such Authorisation shall be deemed to be valid until last day of concerned month. This proviso would be applicable even for a revalidated Authorisation. 2.12.2 Validity of an import Authorisation is decided with reference to date of shipment / dispatch of goods from supplying country as given in Paragraph 9.11 A of HBP v1 and not the date of arrival of goods at an Indian port. 2.12.3 Provisions of paragraph 2.12.2 above shall not be applicable to DEPB....
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.... In such cases, revalidation shall be for six months from date of endorsement. 2.15.2 RA concerned shall obtain a report regarding utilization of such Authorisation from Custom authority at port of registration before issuing duplicate, for balance unutilized. 2.15.3 Validity of duplicate Authorisation shall be co-terminus with original period. No request shall be entertained if validity has expired. 2.15.4 Deleted 2.15.5 Provision of paragraph 2.15.2 and 2.15.3 shall be applicable both for cases covered under paragraph 2.14 and 2.15. Identity Cards 2.16 To facilitate collection of Authorisation and other documents from DGFT Head Quarters and RA, identity cards (as in Appendix 20B, valid for 3 years) may be issued to proprietor / partners / directors and authorised employees (not more than three), of importers and exporters, upon application as in Appendix 20A. However, in case of limited companies, RA may approve allotment of more than three identity cards per company. In case of loss of an identity card, a duplicate card may be issued on the basis of an affidavit. Common directors / partners, of a group company or in any other similar cases, RA may issue multi....
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....ate Guarantee in lieu of Bank Guarantee/LUT in terms of the provisions of relevant Customs Circular in this regard. In case of a group company, if one company of a Group is a status holder, Corporate Guarantee may be given for another company by this company, which is not a status holder. Certificate of Origin (CoO) 2.21 Certificate of Origin (CoO) is an instrument to establish evidence on origin of goods imported into any country. There are two categories of CoO viz. (1) Preferential and (2) Non preferential. Preferential 2.21.1 Preferential arrangement / schemes under which India is receiving tariff preferences for its exports are Generalised System of Preferences (GSP), Global System Of Trade Preferences (GSTP), SAARC Preferential Trading Agreement (SAPTA), Asia-Pacific Trade Agreement (APTA), India-Sri Lanka Free Trade Agreement (ISLFTA) and Indo- Thailand Free Trade Agreement. These arrangements / agreements prescribe Rules of Origin which have to be met for exports to be eligible for tariff preference. Authorised agencies shall provide services relating to issue of CoO, including details regarding rules of origin, list of items covered by an agreement, extent of tar....
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....ies authorised to issue CoO under APTA are listed in Appendix 4B. India-Sri Lanka Free Trade Agreement (ISLFTA) (e) Free Trade Agreement (FTA) between India and Sri Lanka was signed on 20.12.1998 and was operationalised in March, 2000 following notification of required Customs tariff concessions by Government of Sri Lanka and India. EIC is sole agency to issue CoO under ISLFTA. India Afghanistan Preferential Trade Agreement (f) A Preferential Trade Agreement between Transitional Islamic State of Afghanistan and Republic of India was signed on 6.3.2003 and was operationalised with issuance of Customs Notification No 76/2003 dated 13.5.2003. EIC is sole agency to issue CoO under India Afghanistan Preferential Trade Agreement. Indo - Thailand Framework Agreement for Free Trade Area (g) India and Thailand have signed protocol to implement Early Harvest Scheme under India- Thailand Free Trade Agreement on 01.09.2004.Tariff preferences for imports on items of Early Harvest Scheme would be available only to those products, which satisfy Rules of Origin Criteria, notified by Department of Revenue, Ministry of Finance, vide notification No.101/2004-Customs dated 31.08.2004. EIC would ....
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....ion for an Authorisation shall be filed within specific period following the month during which exports / deemed exports are made, unless otherwise specified Payment through ECGC cover 2.25.1 Payment through ECGC cover would count for benefits under FTP. Payment through General Insurance 2.25.2 Amount of General Insurance Cover for transit loss would be treated as payment realized for exports under various export promotion schemes. Irrevocable Letter of Credit 2.25.3 In case where applicant applies for duty credit scrip / DEPB / DFIA / discharge of EO against confirmed irrevocable letter of credit (or bill of exchange which is unconditionally Avalised / Co-Accepted / Guaranteed by a bank) and this is confirmed and certified by exporter's bank in relevant Bank Certificate of Export and Realization, payment of export proceeds shall be deemed to be realized. For status holders, irrevocable letter of credit would suffice. Export by post 2.26 In case of export by post, exporter shall submit following documents in lieu of documents prescribed for export by sea / air: 1) Bank Certificate of Export and Realisation as in Appendix 22A. 2) Relevant postal receipt 3) Invoice d....
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....y its Chairman in this behalf, to effect that such exhibition, fair or similar show or display (i) has been approved or sponsored by DoC or ITPO; and (ii) is being held in public interest. Extension beyond six months for re-export / re-import will be considered by Customs authorities on merits. Consumables such as paints, printed material, pamphlets, literature etc. pertaining to exhibits need not be re-exported / re-imported. Import Policy 2.30 Policy relating to general provisions regarding import of capital goods, raw materials, intermediates, components, consumables, spares, parts, accessories, instruments and other goods is given in Chapter 2 of FTP. General Procedure for Licensing of Restricted Goods 2.31 Wherever an import Authorisation, including CCP, is required under FTP, procedure contained in this chapter shall be applicable. 2.32 Import of Metallic Waste and Scrap 2.32.1 Import of any form of metallic waste, scrap will be subject to the condition that it will not contain hazardous, toxic waste, radioactive contaminated waste / scrap containing radioactive material, any type of arms, ammunition, mines, shells, live or used cartridge or any other explos....
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.....ICD Dadri (Greater Noida), 18.ICD Nagpur, 19.ICD Jodhpur, 20.ICD Jaipur, 21.ICD Udaipur, 22.CFS Mulund, 23.ICD Kanpur, 24.ICD Ahmedabad, 25.ICD Pitampur and 26.ICD Malanpur. 72.32.2.A In case any agency wishes to be enlisted under Appendix 5, they may furnish an application to the office of Director General of Foreign Trade with the following documents:- (a) A brief on the activities of the agency, its history, membership, organizational stricture, manpower, etc. (b) Infrastructural setup, logistics, testing labs etc. for carrying out the inspection of metallic scrap. (c) List of companies/agencies for which testing has been carried out. 2.32.3 However, import of other kinds of metallic waste and scrap will be allowed in terms of conditions of ITC (HS). 2.32.4 Import policy for seconds and defective, rags, PET bottles / waste, and ships is given in ITC (HS). Import of Second Hand Capital Goods 2.33 Import of second hand capital goods including refurbished / reconditioned spares, shall be allowed freely, subject to conditions for following categories: Import of second hand computers including personal computers and laptops is restricted. Import of refurbished / r....
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....bove may be made to RA in ANF 2B along with documents prescribed therein. Restricted Items Required By Hotels, Restaurants, Travel Agents, Tour Operators And Other Specified Categories 2.35 Items mentioned as restricted for imports in ITC (HS) required by hotels, restaurants, travel agents and tour operators may be allowed against an Authorisation, based on recommendation of Director General, Tourism, Government of India. 2.35.1 Hotels, including tourist hotels, recognised by Director General of Tourism, Government of India or a State Government shall be entitled to import Authorisation upto a value of 25% of foreign exchange earned by them from foreign tourists during preceding licensing year, for import of essential goods related to hotel and tourism industry. 2.35.2 Travel agents, tour operators, restaurants, and tourist transport operators and other units for tourism, like adventure / wildlife and convention units, recognized by Director General of Tourism, Government of India, shall be entitled to import authorisation up to a value of 10% of foreign exchange earned by them during preceding licensing year, for import of essential goods which are restricted for imports....
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.... without a CCP. Import under Govt. to Govt. Agreements 2.39 Import of goods under Government to Government agreements may be allowed without an Authorisation or CCP on production of necessary evidence to satisfaction of Customs authorities Import of Cheque Books/ Ticket Forms etc. 2.40 Indian branches of foreign banks, insurance companies and travel agencies may import chequebooks, bank draft forms and travellers cheque forms without a CCP. Similarly, airlines / shipping companies operating in India, including persons authorised by such airlines / shipping companies, may import passenger ticket forms without a CCP. Import of Reconditioned/ Second Hand Aircraft Spares 2.41 Import Authorisation for reconditioned / second hand aircraft spares is not needed on recommendation of Director General of Civil Aviation, Government of India (DGCA). Import of Replacement Goods 2.42 Goods or parts thereof on being imported and found defective or otherwise unfit for use or which have been damaged after import may be exported without an Authorisation, and goods in replacement thereof may be supplied free of charge by foreign suppliers or imported against a marine insurance or marin....
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....oods after a period of two years from the date of import. However, transfer of imported firearms by the importer / Authorisation holder shall be permitted only after 10 years of import with approval of DGFT. 9"Renowned Shooters" for 3 consecutive years are allowed to sell their imported weapons after 3 years from date of import of the respective weapon. Other "Renowned Shooters" are allowed to sell their weapons after 5 years from date of import. The sale shall be subject to approval from DGFT. Sale of Exhibits 2.44 (i) Sale of exhibits of restricted items, mentioned in ITC (HS), imported for an international exhibition / fair organized / approved / sponsored by ITPO may also be made, without an Authorisation within bond period allowed for re-export, on payment of applicable customs duties, subject to a ceiling limit of Rs.5 lakhs (CIF) for such exhibits for each exhibitor. However, sale of exhibits of items, which were freely imported shall be made, without an Authorisation, within bond period allowed for re-export on payment of applicable customs duties. (ii) If goods brought for exhibition are not re-exported or sold within bond period due to circumstances beyond control....
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....rity or foreign policy goals and objectives, objectives of global non-proliferation, or its obligations under treaties to which it is a State party. b. Assessed risk that exported items will fall into hands of terrorists, terrorist groups, and non-State actors; c. Export control measures instituted by recipient State; d. The capabilities and objectives of programmes of recipient State relating to weapons and their delivery; e. Assessment of end-uses of item(s); f. Applicability to an export licence application of relevant bilateral or multilateral agreements to which India is a party. II. A condition for consideration of an application for an export licence is submission of stipulated certifications to effect, inter alia, that: a. The item will be used only for stated purpose and that such use will not be changed, nor items modified or replicated without consent of Government of India; b. Neither the items nor replicas nor derivatives thereof will be re-transferred without consent of Government of India; c. End-user shall facilitate such verifications as are required by Government of India. Government of India may also require additional formal assurances, as appropriate,....
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....oupings of countries for export to which only re-transfer conditions need be imposed. Note 5: Exporters are entitled to request that only such conditions need be imposed as are subject of government to-government instruments of accord over export of items on SCOMET List. Note 6: 'Technology' (see also entry 'Technology' in glossary in Appendix 3 to Schedule 2 of ITC (HS)): Approval of export of an item on the SCOMET List also authorizes the export to same end-user of minimum 'technology' required for installation, operation, maintenance and repair of the item. DGFT in association with Administrative Ministries / Departments and Trade Associations will organize Industry Outreach Programme on regular basis for an effective awareness among the exporters /importers dealing with trade, in particular, in SCOMET items. DGFT may also issue, on application, Free Sale and Commerce Certificate for export of items not covered under Drugs & Cosmetics Act, 1940, which have usage in hospitals, nursing homes and clinics, for medical and surgical purposes and are not prohibited for export. Validity of such certificate shall be two years from date of issue unless otherwise specified. Export O....
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....P. copy of any scheme-shipping bill on which benefit of that scheme has not been availed, exporter would be entitled to benefit under scheme in which shipment is subsequently converted. Relocation of Industries 2.57 Deleted. Offsetting of Export Proceeds 2.58 Subject to specific approval of RBI, any payables, or equity investment made by an Autorisation holder under any export promotion scheme, can be used to offset receipts of his export proceeds. In such cases, offsetting would be equal to realisation of export proceeds and exporter would have to submit following additional documents: a) Appendix 22D in lieu of Bank Realisation Certificate. b) Specific permission of RBI. Quality Certification 2.59 It has been a constant endeavor to promote quality standards in export product / units manufacturing export product. 2.59.1 One of salient features incorporated in FTP as per paragraph 3.5.2 Note.1 for promotion of quality standards is grant of Export / Trading House status on achievement of a lower threshold limit for units having ISO-9000 (series), ISO-14000 (Series) or HACCP certification or WHOGMP or SEI CMM level-2 & above status / certification. 122.59.2 List ....
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.... Limited (STCL) and State Cooperative Marketing Federations (c) Crude sunflower seed or safflower oil or fractions thereof (Tariff Code No. 1512.11) and Refined rape, colza or mustard oil, other (Tariff Code No. 1514.19 or 1514.99): National Dairy Development Board (NDDB), State Trading Corporation (STC), National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED) Spices Trading Corporation Limited (STCL) and Central Warehousing Corporation (CWC) State Cooperative Marketing Federation & State Cooperative Civil Supplies Corporation (d) Deleted. All eligible entities are eligible to avail quotas as per request of applicants received. All eligible entities desiring availment of quota as mentioned above, may make application to EFC in ANF to DGFT, Udyog Bhavan, New Delhi - 110 011. Completed application forms along with prescribed documents must reach on or before 1stMarch of each financial year preceding to the year of quota e.g. Applications for TRQ for 2007-2008 must reach DGFT by 01.03. 2007. Imports have to be completed before 31stMarch of financial year i.e. consignments must be cleared by customs authorities before this date. Since import of maize (corn) i....
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....n affairs. However, if Central Government frames uniform bylaws for constitution and / or for transaction of business for EPCs, they shall adopt the same with such modifications as Central Government may approve having regard to special nature or functioning of such EPC. Concerned Administrative Ministry would interact with Managing Committee of EPC concerned at least twice a year. 2.65.2 Deleted 2.66 Deleted Registering Authorities issuing RCMC 2.67 A status holder has option to obtain RCMC from Federation of Indian Exporters Organization (FIEO). Exporters of minor forest produce and their value added products shall obtain RCMC from SHEFEXIL, EPC. Software exporters shall register themselves with Electronic and Software EPC. Exporters of 13 specific services as listed in Sl. No. 34 of Appendix 2 of HBP v1, are required to register themselves with Services EPC. Other service exporters shall register themselves with FIEO. 10In respect of exporters having their head office/registered office in State of Orissa, RCMC may be obtained from FIEO office in Bhubaneshwar irrespective of product being exported by them. However, exporters of minor forest produce from the State c....
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....2 A person aggrieved by a decision of registering authority in respect of any matter connected with issue of RCMC may prefer an appeal to DGFT or an officer designated in this behalf within 45 days against said decision and decision of appellate authority shall be final. Directives of DGFT 2.73 DGFT may direct any registering authority to register or deregister an exporter or otherwise issue such other directions to them consistent with and in order to implement provisions of FT (D&R) Act, Rules and Orders made there under, FTP or this Handbook. 2.74 Electronic Data Interchange 2.74.1 Role and functions of EDI are defined in Para 2.45 of FTP. Basic purpose of EDI Initiatives is to improve services for DGFT user community thereby achieving greater transparency of operations and reducing transaction costs by decreasing processing time for obtaining Authorisation from DGFT. These EDI initiatives have made our exports competitive in international markets. Eligibility 2.74.2 Facility of electronic filing of applications shall be available to all exporters. Procedure 2.74.3 An exporter would be able to file his application on DGFT website at http://dgft.gov.in/. Appl....
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....(RE-2007)/2004-2009 dated 26/7/2007, before it was read as, "Before clearance of goods through Customs, Authorisation holder shall execute a LUT / BG with customs authorities. "Bank Guarantee / LUT as applicable to be executed as per relevant Customs Notification / Circular" In case of indigenous sourcing, Authorisation holder shall furnish BG / LUT to RA as prescribed below before sourcing the material: (A). Following entities shall be entitled for LUT facility: 1. All Status holders / PSUs; 2. Manufacturer exporter (except Proprietorship and Partnership firms), Registered with Central Excise authority with a minimum export turnover of Rs.1 Crore in preceding year and having exported during previous two financial years. 3. Manufacturer Exporter, registered with Central Excise Authority and having paid Central Excise Duty of Rs.1 Crore or more during preceding financial year. 4. All exporters with an export turnover of at least Rupees 5 crores in preceding licencing year and having a good track record and three years of export performance. (B) Following shall be required to furnish a Bond supported by BG to extent of 15% of duty saved on excise and education cess, if appli....
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....tic turnover or 200% of FOB / FOR value of supplies of preceding licensing year, whichever is higher. Authorisation beyond 200% entitlement shall be subject to 100% BG on duty saved amount for CIF value exceeding 200% entitlement. However, entitlement may be recredited on production of documentary evidence showing fulfillment of export obligation and realization of export / supply proceeds. In respect of categories at (A) 2 and (A) 4 above, Authorisation Holder would be required to submit Export Performance Certificate issued by a Chartered Accountant as per Appendix 26. For import / domestic procurement of car under EPCG scheme, 100% BG will be required to be furnished except in case of status holders / PSUs who will furnish BG / LUT as aforesaid. BG exemption / relaxation as mentioned above shall also be available in respect of past Authorisation where Authorisation holder had earlier filed BG but as on date he is entitled for BG exemption. In case, firm has already executed BG / LUT for full value of Authorisation covering items indigenously procured, to Customs and furnishes proof of the same, no BG / LUT shall be required to be executed with RA." 5. Has been substituted ....