TaxTMI 
TaxTMI 
GENERAL PROVISIONS REGARDING EXPORTS AND IMPORTS
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....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 sub-clauses (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 China (through Gunji, Namgay....
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....169 Non-commercial imports and exports by entities who have been authorized by Reserve Bank of India. Application for Grant of IEC Number 2.9 An application for grant of IEC Number shall be made by Registered Office, in case of companies and Head Office in case of proprietorship concerns, partnership concerns and HUFs, of applicant, except EOUs and SEZ units, to concerned RA in ANF2A with documents prescribed therein. Only one IEC would be issued / allowed against a single PAN number. The application (ANF 2 A) for issuance of fresh IEC or modification of IEC shall indicate the name and designation of the person whose photograph has been affixed on the Bank Certificate. A photograph of the person alongwith his/her name and designation shall also be affixed on the IEC No. to be issued (Appendix 18 B). 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 ....
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....e item, before permitting export of the same from their country, RA may issue such certificates as per Appendix 31A of HBPv1. The certificate shall be issued based on application made under ANF 2C-1 along with documents prescribed therein. Validity Of Import Licence / Certificate / Authorisation / Permissions / CCPs / Export licence 2.12 Validity of import / export Authorisation from date of issue shall be as follows, unless specified otherwise: (i) Advance Authorisation / DFIA (including Advance Authorisation for annual requirement, and Replenishment Authorisation for Gem & Jewellery as per Chapter- 4 of FTP) 24 months (ii) a For Zero duty EPCG Authorisations (other than spares) 9 months (ii) b For 3% EPCG Authorisations (other than spares) 36 months (iii) EPCG Authorisation for Spares, refractories, catalyst and consumables Co-terminus with EOP 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 Coterminus with contracted duration of project execution, whichev....
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....nt indicated in the consolidated certificate by customs shall be deemed to have been recredited.] 2.13.3 An application for revalidation (including for restricted items), may be made to RA concerned. RA would consider such application as per government rules / notifications. Where DGFT is concerned authority, original application shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT. Duplicate Copies of Export-Import Licence / Certificate / Authorisation / Permissions / CCPs 2.14 Where an Authorization is lost or misplaced, an application for issue of a duplicate may be made along with an affidavit, as given in Appendix-24, to issuing RA. RA concerned may, on merits to be recorded, issue a duplicate after issuing an order for cancellation of original and informing customs authority where original was registered. 2.15 Duplicate copy of freely transferable Authorisation, may be issued against an application accompanied with following documents: a. An application with fee equivalent to 10% of duty saved or duty credit (of unutilized balance). b. A copy of FIR reporting loss. c. Original affidavit on notorised stamp paper. ....
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...., with export obligation as may be specified. Such licensee is required to furnish a LUT to RA and DGFT in this regard. DGFT / RA concerned shall monitor export obligation. Warehousing Facility 2.19 Public / Private Customs Bonded Warehouses may be set up in DTA as per Chapter-IX of Customs Act, 1962, to import items in terms of paragraph 2.28 of FTP. On receipt of goods, such warehouses shall keep these goods for one year without payment of applicable customs duties. Goods can be cleared against Bill of Entry for home consumption, on payment of applicable custom duty and on submission of Authorisation wherever required, after an order for clearance of such goods for home consumption is issued by competent customs authorities. In case of clearance against duty free categories / concessional duty categories, exemption / concession from duty shall be allowed. In case of clearance against DEPB and other duty credit scrips customs duty on imports may be adjusted. Goods can be re-exported without payment of customs duty provided (i) a shipping bill or a bill of export is presented in respect of such goods; and (ii) order for export of such goods has been made by compet....
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.... 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 tariff preference, verification and certification of eligibility. Export Inspection Council (EIC) is the agency authorised to print blank certificates. ^3[The fee for issuance of Certificate of Origin (Preferential) forIndia's exports underIndia's Free Trade Agreements (FTAs), Preferential Trade Agreements (PTAs) and for exports under GSP, Global System of Trade Preferences (GSTP) schemes shall be Rs. 350/- (Rupees Three Hundred and Fifty only). The enhanced fee would be applicable for the applications received w.e.f. April 1, 2011.] Generalised System of Preferences (GSP) (a) GSP is a non-contractual instrument by which industrialized (developed) countries unilaterally and....
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....India. EIC is sole agency to issue CoO under ISLFTA. IndiaAfghanistan 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 be sole agency to issue CoO under Early Harvest Scheme of Framework Agreement on India-Thailand Free Trade Agreement. Non Preferential 2.21.2 Government has also nominated certain agencies to issue Non Preferential CoO in accordance with Article II of International Convention Relating to Simplification of Customs fo....
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....Insurance Companies 2.25.2 Amount of Insurance Cover for transit loss by General Insurance and Private Approved Insurance Companies in India 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. RBI write-off on export proceeds realization 2.25.4 Realization of export proceeds shall not be insisted under any of the Export Promotion Schemes under this Foreign Trade Policy, if the Reserve Bank of India (RBI) writes off the requirement of realization of export proceeds on merits and the exporter produces a certificate from the concerned Foreign Mission of India about the fact of non-recovery of export proceeds from the buyer. However, this would not....
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.... a period of six months on re-export / re-import basis, shall be allowed without an Authorisation on submission of a certificate from an officer of a rank not below that of an Under Secretary / Deputy DGFT in DoC / DGFT or an officer of Indian Trade Promotion Organization (ITPO) duly authorised by 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 Wast....
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.... the time of clearance of goods: I) Pre-shipment inspection certificate as per the format in Annexure-I to Appendix 5 from any of the Inspection & Certification agencies given in Appendix-5 to the effect that: i) The consignment does not contain any type of arms, ammunition, mines, shells, cartridges, or any other explosive material in any form either used or otherwise, and that the consignment was checked for radiation level and it does not contain radiation level (gamma and neutron) in excess of natural background. The certificate shall give the value of background radiation level at that place as also the maximum radiation level on the scrap. ii) The imported item (s) is actually a metallic waste/scrap/seconds/defective as per the internationally accepted parameters for such a classification. II) Copy of the contract between the importer and the exporter stipulating that the consignment does not contain any type of arms, ammunition, mines, shells, cartridges, radio active contaminated, or any other explosive material in any form either used or otherwise. b Import of scrap would take place only through following designated ports and no exceptions would be allowed e....
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....ers / laptops and refurbished/reconditioned spares thereof is restricted. Import of refurbished / reconditioned spares of capital goods, other than those of personal computers/laptops will be allowed on production of a Chartered Engineer certificate that such spares have atleast 80% residual life of original spare. 2.33A Customs or any other Central or State Government authority may avail of services of Inspection and Certification Agencies in Appendix 5 of the HBP v1, for certifying residual life as well as valuation / purchase price of capital goods. Import of Ammunition by Licensed Arms Dealers 2.34 Import of following types of ammunition are allowed against an Authorisation by licensed arms dealers subject to conditions as may be specified: (i) Shotgun Cartridges 28 bore; (ii) Revolver Cartridges of .450, .455 and .45 bores; (iii) Pistol Cartridges of .25, .30 Mauser, .450 and .45 bores; (iv) Rifle Cartridges of 6.5 mm, .22 savage, .22 Hornet, 300 Sherwood, 32/40, .256, .275, .280, 7m/m Mauser, 7 m/m Man Schoener, 9m/m Mauser, 9 m/m Man Schoener, 8x57, 8x57S, 9.3 m/m, 9.5 m/m, .375 Magnum, .405, .30.06, .270, .30/30 Winch, .318, .33 Winch,.275 Mag., .350....
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.... and 2.35.2 may be made in ANF 2B to DGFT through Director of Tourism, Government of India who will forward application to RA concerned along with their recommendations. Import of Other Restricted Items 2.36 ITC (HS) contains list of restricted items. An application for import of such items may be made, in ANF 2B along with documents prescribed therein. Original application along with Treasury Receipt (TR) / Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA. EXIM Facilitation Committee 2.37 Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf. DGFT / RA may take assistance and advice of a Facilitation Committee. The Assistance of technical authorities may also be taken by seeking their comments in writing. Facilitation Committee will consist of representatives of Technical Authorities and Departments / Ministries concerned. 2.37A Import authorizations for a restricted item, if so directed by the competent authority, shall be issued for import through one of the sea ports or air ports or ICD....
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....uthorities without an import Authorisation provided that: (a) Shipment of replacement goods is made within 24 months from date of clearance of previously imported goods through Customs or within guarantee period in case of machines or parts thereof where such period is more than 24 months; and (b) No remittance shall be allowed except for payment of insurance and freight charges where replacement of goods by foreign suppliers is subject to payment of insurance and / or freight by importer and documentary evidence to this effect is produced while making remittance. 2.42.1 In case of short-shipment, short-landing or loss in transit, import of replacement goods will be permitted based on certificate issued by customs authorities without an import Authorisation. This procedure shall also apply to cases in which shortshipment of goods is certified by foreign supplier, who has agreed to replace free of cost. 2.42.2 Cases not covered by above provisions will be considered on merits by DGFT for grant of Authorisation for replacement of goods for which an application may be made. Transfer of Imported Goods 2.43 Freely importable goods can be transferred by sale or other....
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....s. (ii) If goods brought for exhibition are not re-exported or sold within bond period due to circumstances beyond control of importer, customs authorities may allow extension of bond period on merits. Import of Overseas Office Equipment 2.45 On winding up of overseas offices, set up with approval of RBI, used office equipment and other items may be imported without Authorisation. Prototypes 2.46 Import of new / second hand prototypes / second hand samples may be allowed on payment of duty without an Authorisation to an Actual User (industrial) engaged in production of or having industrial licence / letter of intent for research in item for which prototype is sought for product development or research, as the case may be, upon a self-declaration to that effect, to satisfaction of customs authorities. Restricted items for R&D 2.47 All restricted items and items permitted to be imported by STEs, except live animals, required for R&D purpose may be imported without an Authorisation by Government recognized Research and Development units. Export Policy 2.48 Policy relating to Exports is given in Chapter-2 of FTP. Further, Schedule 2, Appendix-1 of ITC (HS) sp....
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....ate such verifications as are required by Government of India. Government of India may also require additional formal assurances, as appropriate, including on end-use and nonretransfer, from State of recipient. III. Licensing authority for items in Category 0 in Appendix 3 to Schedule 2 of ITC(HS) is Department of Atomic Energy. Applicable guidelines are notified by that Department under Atomic Energy Act, 1962. For certain items in Category 0, formal assurances from recipient State will include non-use in any nuclear explosive device. Licences for export of certain items in Category 0 will not be granted unless transfer is additionally under adequate physical protection and is covered by appropriate International Atomic Energy Agency (IAEA) safeguards, or any other mutually agreed controls on transferred items. IV. Additional end-use conditions may be stipulated in licences for export of items or technology that bear possibility of diversion to or use in development or manufacture of, or use as, systems capable of delivery of weapons of mass destruction. V. Applications for transfer of "Technology" for any item on the List will be considered as an application for expor....
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....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. An application for grant of Free Sale and Commerce Certificate may be made to RA concerned as per format in Appendix 39 of HBP Vol.I, along with Annexure A therein. RA shall issue Free Sale and Commerce Certificate as per Annexure B of Appendix 39. PROCEDURE/GUIDELINES FOR FILING/ EVALUATION OF APPLICATIONS FOR ENTERING INTO AN ARRANGEMENT OR UNDERSTANDING FOR SITE VISITS, ON-SITE VERIFICATION AND ACCESS TO RECORDS / DOCUMENTATION An application for entering into an arrangement or understanding involving site visit, on-site verification or access to records/documentation by a foreign government or a foreign third party either acting directly or through an Indian party as mentioned in Appendix 3 of Schedule 2 of ITC(HS) shall be made in ANF 2EE to DGFT(Hqrs.), New Delhi along with documents prescribed therein. These applications shall be considered by an Inter-Ministerial Working Group (IMWG) in DGFT based on following guidelines/general criteria: I. Following factors, among others, will be taken into accoun....
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....e authorization. (c) Site visit, on-site verification or access to records/documentation shall be concluded during the period mentioned in the authorization. (d) Exporter/Importer will keep a record of site visit, on- 33 site verification or access to records/documentation alongwith detail of individuals who visited the premises during this visit and produce the same as and when required to do so by the GOI. (e) No exchange of goods, services and technologies and any documentation including drawings, specification sheets etc. will take place during the visit. (f) Exporter/importer may be required to give any additional assurance that the Government of India may require. (g) Any other condition that may be stipulated in the permission. III. Provisions of Weapons of Mass Destruction Act, 2005 shall also apply to an arrangement or understanding that involves site visit, on-site verification or access to records/documentation. IV. Any violation of any condition of the license shall invite civil/ criminal prosecution as per law." RAs may also issue, on application, Free Sale and Commerce Certificate for export of items not covered under Drugs & Cosmetics Act, 194....
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.... Free Import of R&D Equipment for Pharmaceuticals and Bio-technology Sector 2.55 Duty free import of goods (as specified in list 28 of Customs notification No.21/2002 dated 1.3.2002, as amended from time to time) upto 25% of FOB value of exports during preceding licensing year, shall be allowed. The eligible unit may furnish an application given in Appendix-15A to RA concerned duly countersigned by Chartered Accountant. In respect of duty free import of R&D equipment, units not registered with Central excise shall be allowed to give Installation Certificate issued by an independent Chartered Engineer. 2.55.1 Duty free imports of goods as specified in list 28A of Customs notification No. 21/2002 dated 1.3.2002, upto 1% of FOB value of exports made during preceding licensing year, shall be allowed to agro chemicals sector unit having export turnover of Rs. 20 crore or above during preceding licensing year. The eligible unit shall apply in form given in Appendix-15B to RA concerned duly countersigned by Chartered Accountant. In respect of duty free import of R&D equipment, units not registered with Central excise shall be allowed to give Installation Certificate issued ....
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....Crude sunflower seed or safflower oil or fractions thereof (1512.11) and (4) Refined rape, colza or mustard oil, other (1514.19 or 1514.99) is allowed in a financial year, up to quantities as well as such concessional rates of customs duty as indicated below: S.No. ITC Code No. & Item Quantity of Quota Concessional Duty 1 (i) Tariff Code No. 0402.10 or 0402.21 Skimmed and whole Milk Powder. Milk Food for babies etc. ^5[50,000 MTs.] 0% (ii) Tariff Code No. 0405 White Butter, Butter oil, Anhydrous Milk Fat 15,000 MTs 0% 2 Tariff Code No. 1005.90 Maize (Corn): other 5,00,000 MTs ^4[0%] 3 Tariff Code No. 1512.11 Crude Sunflower seed or safflower oil or fractions thereof 150,000 MTs 50% 4 Tariff Code No. 1514.19 & 1514.99 Rape, Colza, Canola or Mustard Oil, Other (Refined) 150,000 MTs 45% Eligible entities for allocation of quota: 2.59.1 (a) Milk Powder (Tariff Code No. 0402.10 or 0402.21) and White Butter, Butter oil, Anhydrous Milk Fat (0405): National Dairy Development Board (NDDB), State Trading Corporation (STC), National Cooperative Dairy Federation (NCDF), National Agricultural Cooperative Marketing Fed....
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....ank Realisation Certificate 2.60 In case where EP copy of Shipping Bill / original BRC has been lost, claim under VKGUY/ FMS/ FPS can be considered subject to submission of following documents: - a) A duplicate /certified copy of concerned document issued by Customs Authority / Bank in lieu of original; b) An application fee equivalent to 2% of relevant entitlement. However, no fee shall be charged when such document is lost by Government agencies and a documentary proof to this effect is submitted; c) An affidavit by exporter about loss of document and an undertaking to surrender it immediately to concerned RA, if found subsequently; d) An indemnity bond by exporter to effect that he would indemnify Government for financial loss if any on account of duty credit issued against lost Shipping Bills / BRC. Customs Authority, before allowing clearance, shall ensure that benefit / duty credit against such shipping bill has not been availed. 2.60.1 Claim against lost Shipping Bill / BRC shall be preferred within a period of six months from date of release of duplicate copy of Shipping Bill / on date of realization of export proceeds. Any application received thereafter ....
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....astern States, RCMC may be obtained from Shellac & Forest Products Export Promotion Council (except for the products looked after by APEDA, Spices Board and Tea Board). ^2[(viii) In respect of exporters of handicrafts and handloom products from the State of Jammu & Kashmir, Director, Handicrafts, Government of Jammu & Kashmir is authorized to issue Registration Cum Membership Certificate (RCMC).] Registration cum- Membership Certificate (RCMC) 2.64 An exporter may, on application given in Appendix-19A, register and become a member of EPC. On being admitted to membership, applicant shall be granted forthwith Registration cum- Membership Certificate (RCMC) of EPC concerned, in format given in Appendix-19B. In case an exporter desires to get registration as a manufacturer exporter, he shall furnish evidence to that effect. Prospective / potential exporters may also, on application, register and become an associate member of an EPC. Validity Period of RCMC 2.64.1 RCMC shall be deemed to be valid from 1st April of licensing year in which it was issued and shall be valid for five years ending 31st March of licensing year, unless otherwise specified. Intimation Regarding....
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....ronically through EFT (electronic fund transfer) Sr. No. Mode of Application Fee Deduction (as a % of normal application fee) 1 Digitally signed 25% 2 Application fee payment vide EFT 25% 3 Both digitally signed as well as use of EFT for payment of application fee 50% Benefits 2.70.4 Facility will reduce unnecessary physical interface with DGFT. It will enable faster processing, speedier communication of deficiencies, if any, and on-line availability of application processing status. 2.70.5 Authorisation issued using DGFT Electronic Application System shall be transmitted electronically to Customs through EDI Mode. This shall also obviate need for verification of Authorisations before allowing clearance. &n....