TaxTMI 
TaxTMI 
GENERAL PROVISIONS REGARDING EXPORTS AND IMPORTS
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....iable to be rejected giving specific reason for rejection. Such incomplete application may be re-opened on rectifying the deficiencies. 2.6 Profile of Importer/ Exporter ANF 1 contains the profile in of the importer / exporter. IEC Holder shall be responsible for updating the same as and when a change takes place or in any case at least once in a year. 2.7 Self Addressed Stamped Envelope Applicant shall furnish a self-addressed envelope of relevant size with required postal stamp affixed, in case where the applicant opts to avail the 'Speed Post' facility. 2.8 IEC Number Exempted Categories (a) IEC is compulsory for import and / or exports. However, the following categories of importers or exporters are exempted from obtaining IEC. Sl.No. Categories Exempted from obtaining IEC (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 trad....
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....ime, from / to China through Gunji, Namgaya Shipkila and Nathula ports, subject to value ceilings of single consignment as given in Para 2.8(iv) above. 13 0100000169 Non-commercial imports and exports by entities who have been authorized by Reserve Bank of India. 2.9 Application for Grant of IEC (a) Exporters / Importers shall file an application in ANF 2A format for grant of IEC and submit the same to jurisdictional RA. List of RAs, along with their jurisdiction is given in Appendix 1. (b) Only one IEC would be issued against a single PAN. 2.9.1 IEC Format and Statements RA concerned shall issue an IEC in prescribed format (Appendix-18B). A copy of such IEC shall be endorsed to concerned banker (as per details given in ANF 2A). Such endorsement should ordinarily be done using emails. 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 by EDI in DGFT Hqrs. 2.9.2 Validity of IEC An IEC number allotted to an applicant shall be valid for all its branches / divisions / units / factories. 2.9.3 Duplicate copy of the IEC If original IEC, issued in format Ap....
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....lated items; (iv) DGFT for small scale industries and entities not covered above as well as on behalf of any of the above; (v) Embassy of India, Washington, DC, on behalf of any of the above. (b) A request for an import certificate shall be made in ANF 2C. Import certificate in Appendix-31 may be issued by ICIA directly to importer with a copy to (i) Ministry of External Affairs (MEA) (AMS Section), New Delhi, (ii) DoE, New Delhi; and (iii) DGFT. (c) However, this import certificate will not be regarded as a substitute for an import authorisation in respect of items mentioned as restricted in ITC (HS) and an import authorisation will have to be obtained for such items. 2.11A End User Certificate In case of import of any freely importable item in India, if a foreign Government insists on certification of end user of the 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. 2.12 Validity of Export Authorisation and Import Licence / Certificate / Authorisation / Permissions / C....
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....alidation (under 2.13 and 2.13.1 above) would be permitted under specific orders of Head of concerned Office and would be maximum up to the extent of custody period. ^5[2.13.2A (i.) Only for the purpose of utilisation of re-credit of 4% Special Additional Duty (SAD) of customs, the freely transferable duty credit scrips (including DEPB), shall be deemed to have been revalidated till 30.09.2013. No further endorsement by the respective RA on such scrips shall be required. (ii.) If the consolidated certificate (Credit Note) has already been issued by Customs or gets issued by 30.06.2013, then the amount (4% SAD) indicated in the consolidated certificate by customs shall be deemed to have been re-credited in the scrips in such cases, without any further reference to any RA of DGFT.] 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. 2.14 Duplicate Copies of Export-Import Licence / Certificate / Author....
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..... Common directors / partners, of a group company or in any other similar cases, RA may issue multiple identity cards after recording reasons in writing. 2.17 Interviews with authorised Officers (a) Officers may grant interview at their discretion to authorized representative of importer / exporter. Interviews / clarifications may also be sought through E-mails. (b) Adjudicating Officers shall grant Personal Hearing to exporters or importers, including their authorized representatives, before passing final orders. 2.18 Export of Items Reserved for SSI Sector Units other than small scale units are permitted to expand or create new capacities in respect of items reserved for small scale sector, subject to condition that they obtain an Industrial licence under the Industries (Development and Regulation) Act, 1951, 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. 2.19 Warehousing Facility (a) 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. ....
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....as per Appendix 25C or Appendix 25D respectively. 2.20.1 Corporate Guarantee A status holder or a PSU may also submit Corporate 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. 2.21 Certificate of Origin (CoO) (a) Certificate of Origin (CoO) is an instrument to establish evidence on origin of goods imported into any country. (b) There are two categories of CoO viz. (i) Preferential and (ii) Non preferential. 2.21.1 Preferential (a) 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. (b) Autho....
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....cessions among SAARC countries. List of agencies, authorised to issue CoO under SAPTA are notified under Appendix - 4B. Asia- Pacific Trade Agreement (APTA) (d) APTA is a preferential trading arrangement designed to liberalise and expand trade in goods progressively in Economic and Social Commission for Asia and Pacific (ESCAP) region through liberalization of tariff and nontariff barriers. At present, Bangladesh, Sri Lanka, South Korea, India and China are exchanging tariff concessions under APTA. Agencies 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 issole 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 is....
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....ipulated time period. Deficiency, if any, informed through covering letter, shall be required to be rectified by status holders within 10 days from date of communication of deficiency. 2.23 Submission of Certified Copies of Documents Wherever original documents have been submitted to a different RA / nominated agencies or to a different division of same RA, applicant can furnish photocopy of documents duly certified by him in lieu of original. 2.24 Advance Payment In case, payment is received in advance and export / deemed exports takes place subsequently, application for an Authorisation shall be filed within specific period following the month during which exports / deemed exports are made, unless otherwise specified. 2.25.1 Payment through ECGC cover Payment through ECGC cover would count for benefits under FTP. 2.25.2 Payment through General/Private Insurance Companies 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. 2.25.3 Irrevocable Letter of Credit In case where applicant applies for duty cred....
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....ry. (b) Duty free import of samples upto Rs 100,000 for all exporters (Rs.300,000 for gems and jewellery sector) shall be allowed as per terms and conditions of Customs notification. Exports of bonafide trade and technical samples of freely exportable item shall be allowed without any limit. 2.28 Import under Lease Financing Import under lease financing shall be available under EPCG Scheme, EOU / SEZ scheme. Domestic supplier of capital goods to eligible categories of deemed exports shall be eligible for benefits of deemed exports as in paragraph 8.3 of FTP, even in cases where supplies are under lease financing. 2.29 Exhibits Required for National and International Exhibitions or Fairs and Demonstration (a) Import / export of exhibits, including construction and decorative materials required for the temporary stands of foreign / Indian exhibitors at exhibitions, fair or similar show or display for 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 belowthat of an Under Secretary / Deputy DGFT in DoC / DGFT or an officer of Indian Trade Promotion Organization (I....
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.... 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 the consignment was checked for radiation level and scrap 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; and II) Copy of the contract between the importer and the exporter stipulating that the consignment does not contain any radio activecontaminated material in any form. b. Import from Hodaideh, Yemen and Bandar Abbas, Iran will be in shredded form only. Procedure for import in unshredded compressed and loose form (c) Import of metallic waste, scrap listed in para 2.32.2 above in unshredded compressed and loose form shall be subject to the following conditions:- a. Importer shall furnish the following documents to the Customs at 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 ef....
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....d Importer (a) In case of any mis-declaration in PSIC, PSIA would be liable to pay a penalty upto Rs. 10 Lakhs (if the agency is based in India) or up to US $20,000/- (if the agency is based in foreign country), in addition to suspension/ cancellation of recognition. (b) The importer would also be responsible for import of any material in contravention of the declaration as required under Para 2.32.2 of HBP Vol.I and would be liable to pay penalty upto Rs. 10 Lakhs. 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 second and defective, rags, PET bottles / waste, and ships is given in ITC (HS). ^3[2.33 ****] 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. 2.34 Import of Ammunition by Licensed Arms Dealers (a) 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....
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....ed hotels. 2.35.4 Such imported goods may be transferred after 2 years with permission of DGFT. No permission for transfer will be required in case the imported goods are re-exported. However, re-export shall be subject to all conditionality, or requirement of licence, or permission, as may be required under Schedule II of ITC (HS). 2.35.5 An application for grant of an Authorisation under paragraphs 2.35.1 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. 2.36 Import of Other Restricted Items 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. 2.37 EXIM Facilitation Committee 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 o....
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....s 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 importedagainst a marine insurance or marine-cum-erection insurance claim settled by an insurance company. Such goods shall be allowed clearance by the customs authorities 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 (a) 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 Authoris....
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....te of its first sale. Such transfer/sale is subject to the provisions of the Arms Act, 1959 and other rules/regulations by state/local police. NRAI/Department of Sports will maintain the required records.] 2.44 Sale of Exhibits (a) 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. (b) 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. 2.45 Import of Overseas Office Equipment On winding up of overseas offices, set up with approval of RBI, used office equipment and other items may be imported without Authorisation. 2.46 Prototypes I....
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....jectives of global non-proliferation, or India's obligations under International treaties/Agreements 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 the recipient State; d. Capabilities and objectives of programmes of the recipient State relating to weapons and their delivery; e. Assessment of end-use(s) of item(s); f. Applicability of provisions of relevant bilateral or multilateral agreements, to which India is a party, to the case under consideration. II. Application shall be accompanied by an end user certificate as per Appendix-36, certifying 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. III. The end-user certificate will indicate the name of the item to be exported, the name of the importe....
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....only such conditions need be imposed as are subject of government-to-government instruments of accord over export of items on SCOMET List. Note 5:'Technology' (see also entry 'Technology' in glossary in Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items): 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. 2.49 A.3 No export authorisation is required for supply of SCOMET items from DTA to SEZ. However, all supplies of SCOMET items from DTA to SEZ will be reported to the Development Commissioner of the respective SEZ by the supplier in the prescribed proforma [Annexure 1 to Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items] within one week of the supplies getting effected. An annual report of such supplies from DTA to SEZ shall be sent to SCOMET Cell, DGFT (Hqrs), Department of Commerce, Udyog Bhawan, Maulana Azad Road, New Delhi-110011, by the Development Commissioner (DC), SEZ in the prescribed proforma [Annexure 2 to Appendix-3 to Schedule 2 of ITC (HS) Classifications of Expo....
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....ld lead to dual-use items and technology falling into the hands of terrorists, terrorist groups and non-State actors. (e) In case site visit, on-site verification or access to records/documentation is to be carried out by a foreign government or its representative(s), the following shall be taken into consideration :- i. Export control measures instituted by the foreign government; ii. Capabilities and objectives of programs of the foreign government relating to weapons and their delivery. (f) Applicability of relevant bilateral and multilateral agreements to which India is a party. (g) Assessment of any threat that such site visit, on-site verification or access to records/ documentation may pose to India's national security, and relations with any other country. (h) Assessment of possible links of the foreign parties with terrorist organizations and non-state actors within their own country or in any other country. II. Permission for arrangement or understanding involving site visit, on-site verification or access to records / documentation will be subject to the following conditions: (a) Site visit, on-site verification or access to records /documentation will ....
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.... HBP Vol. I along with Annexure A therein. RA shall issue Free Sale and Commerce Certificate as per Annexure B of Appendix 39-A. 2.50 Export of Items under State Trading Regime (STR) An application for export of items mentioned in ITC (HS) under STR regime may be made to DGFT. 2.51 Exports Of Samples / Exhibits An application for export of samples or exhibits, which are restricted for export, may be made to DGFT. 2.52 Free of Cost Exports Status holders shall be entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of Rs.10 lakh or 2% of average annual export realisation during preceding three licensing years whichever is higher. 2.53 Gifts / Spares / Replacement Goods For export of gifts, indigenous / imported warranty spares and replacement goods in excess of ceiling / period prescribed in paragraphs 2.32, 2.33 and 2.37 respectively of FTP, an application may be made to DGFT. 2.54 Furnishing of Returns in respect of Exports in non-Physical form (a) All exports made in non-physical form by using communication links including high speed data communication links, internet, telephone line or any ....
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....pecific permission of RBI. 2.58 Quality Certification It has been a constant endeavor to promote quality standards in export product / units manufacturing export product. 2.58.1 One of salient features incorporated in FTP as per paragraph 3.10.3 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. 2.58.2 (a) List of such agencies authorised to grant quality certification is given in Appendix-6. (b) For ISO 9000 (Series) and for ISO 14000 (Series), the Agencies accredited with National Accreditation Board for Certification Bodies (NABCB) under Quality Council of India shall be deemed to be authorized under this Policy. List of such accredited agencies is available on the web site www.qcin.org and also provided under Appendix 6. (c) Any agency desirous of enlistment in Appendix -6 may submit their application as per Annexure I to Appendix 6 to concerned RA. 2.59 Procedure for import under the Tariff Rate Quota Scheme Attention is invited to Government of I....
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.... 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 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 1st March of each financial year preceding to the year of quota [e.g. Applications for TRQ for 2011-2012 must reach DGFT by 01.03.2011]. Imports have to be completed before 31st March of financial year i.e. consignments must be cleared by customs authorities before this date. Since import of maize (corn) is through STEs, the allottees of quota i.e. designated agencies in para 1 (b) above for this item shall also be granted an import Authorisation for allotted quantities as indicated at Sl. No. 21(b) of Customs Notification No. 21/2002 dated 1.3.2002 in terms of para 2.11 of FTP, 2004-2009, i....
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....ve Ministry would interact with Managing Committee of EPC concerned at least twice a year. 2.63 Registering Authorities issuing RCMC (a) While obtaining RCMC, an exporter has to declare his main line of business in the application. The exporter is required to obtain RCMC from the Council which is concerned with the product of his main line of business. (b) A status holder has an option to obtain RCMC from Federation of Indian Exporters' Organization (FIEO). (c) In case an export product is not covered by any Export Promotion Council/Commodity Board etc., RCMC in respect thereof is to be obtained from FIEO. Further, in case of multi product exporters, not registered with any EPC, where main line of business is not discernible, the exporter has an option to obtain RCMC from Federation of Indian Exporters Organization (FIEO). ^7[(d) Exporters of minor forest produce and their value added products shall obtain RCMC from SHEFEXIL, EPC. Electronics and Computer Software/ IT Enabled Services (ITeS) exporters shall register themselves with Electronic and Computer Software EPC.] (e) Exporters of 14 specific services as listed in Appendix-2 of HBP v1, are required to ....
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.....66 Furnishing Of Returns Exporter shall furnish quarterly returns / details of his exports of different commodities to concerned registering authority. However, status holders shall also send quarterly returns to FIEO in format specified by FIEO. 2.67 De-Registration Registering authority may de-register an RCMC holder for a specified period for violation of conditions of registration. Before such de-registration, RCMC holder shall be given a show cause notice by registering authority, and an adequate and reasonable opportunity to make a representation against the proposed de-registration. Upon de-registration, concerned EPC shall intimate the same to all RAs. 2.68 Appeal Against Deregistration 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. 2.69 Directives of DGFT 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 provision....
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....d spares, except those of personal computers / laptops, shall be allowed freely, subject to conditions for following categories: (b) Import of second hand computers including personal computers / laptops and refurbished/reconditioned spares thereof is restricted. (c) 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. 4. Substituted vide PUBLIC NOTICE NO. 4 (RE 2013)/2009-2014 dated 18-4-2013, before it was read as, "9 months" 5. Substituted vide PUBLIC NOTICE No. 06(RE 2013)/2009-2014 dated 18-4-2013, before it was read as, " "2.13.2A Only for the purpose of utilisation of re-credit of 4% Special Additional Duty (SAD) of customs, the freely transferable duty credit scrips (including DEPB), shall be deemed to have been revalidated till 30.6.2012. No further endorsement of such scrips by the res....