TaxTMI 
TaxTMI 
TaxTMI 
General Provisions Regarding Imports and Exports
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....evel with international Harmonized System goods nomenclature maintained by World Customs Organization (http://www.wcoomd. org). However, India maintains national Harmonized System of goods at 8-digit level notified under First Schedule of the Customs Tariff Act,1975 which may be viewed under 'Regulatory Updates' at http://dgft. gov.in and at https://www.cbic.gov.in (c) The import/export policies for all goods are indicated against each item as per its ITC (HS). Schedule 1 of ITC (HS) lays down the Import Policy regime while Schedule II of ITC(HS) lays down the Export Policy regime. (d) Except where it is clearly specified, Schedule 1 of ITC (HS), Import Policy is for new goods and not for Second Hand goods. For Second Hand goods, the Import Policy regime is given under Para 2.31 of this FTP. 2.03 Compliance of Imports with Domestic Laws (a) Domestic Laws/ Rules/ Orders/ Regulations/ technical specifications/ environmental/safety and health norms applicable to domestically produced goods shall apply, mutatis mutandis, to imports, unless specifically exempted. (b) However, goods to be utilized/ consumed in manufacture of export products may be exempted by DGFT from domestic stan....
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....ra 4.36 of Handbook of Procedures (HBP), 2023 shall not be available. (g) 11[The Export Obligation period for such authorizations shall be as per Para 4.40 of Handbook of Procedures.] (h) Import of Inputs without compliance to the mandatory QCOs under DFIA scheme is not allowed. (i) This exemption is further subject to para 2.03 (c) of FTP. ii) For EOUs (i) Exemption from applicability of mandatory QCOs issued under the BIS Act, 2016, shall be provided to EOU on import of inputs which are required for export production. No DTA clearance of such inputs or goods manufactured made out of such inputs, are allowed. An undertaking to that effect will be submitted to the Customs authorities by the EOU at the time of importation and a copy of the same shall also be submitted to the Development Commissioner concerned. The exemption from QCO will be available for physical exports only and such exemption will not be allowed for deemed exports. This exemption is further subject to para 2.03 (c) of FTP. iii) For SEZ (i) Exemption from applicability of mandatory QCOs issued under the BIS Act, 2016, shall be provided to SEZ on import of inputs which are required for export production.....
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....ated. 2.06 Mandatory documents for export/ import of goods from/into India (a) Mandatory documents required for export of goods from India: 1. Bill of Lading/ Airway Bill/ Lorry Receipt/ Railway Receipt/Postal Receipt 2. Commercial Invoice cum Packing List* 3. Shipping Bill/Bill of Export/ Postal Bill of Export (b) Mandatory documents required for import of goods into India 1. Bill of Lading/Airway Bill/Lorry Receipt/ Railway Receipt/Postal Receipt in form CN-22 or CN 23 as the case may be. 2. Commercial Invoice cum Packing List** 3. Bill of Entry [Note: *(i) As per CBIC Circulars issued under the Customs Act, 1962 (ii) **Separate Commercial Invoice and Packing List would also be accepted.] (c) For export or import of specific goods or category of goods, which are subject to any restrictions/ policy conditions or require NOC or product specific compliances under any statute, the regulatory authority concerned may notify additional documents for purposes of export or import. (d) In specific cases of export or import, the regulatory authority concerned may electronically or in writing seek additional documents or information, as deemed necessary to ensure legal co....
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....ard. 2.09 Actual User Condition Goods which are importable freely without any 'Restriction' may be imported by any person. However, if such imports require an Authorisation, Actual User alone may import such good(s) unless Actual User condition is specifically dispensed with by DGFT. 2.10 Terms and Conditions of an Authorisation Every Authorisation shall, inter alia, include either all or some of the following terms and conditions (as applicable in terms of the para under which the Authorisation has been issued), in addition to such other conditions as may be specified: (a) Description, quantity and value of goods; (b) Actual User condition (as defined in Chapter 11); (c) Export Obligation; (d) Minimum Value addition to be achieved; (e) Minimum export/import price; (f) Bank guarantee/ Legal undertaking / Bond with Customs Authority/RA (as in para 2.35 of FTP). (g) Validity period of import/export as specified in Handbook of Procedures. 2.11 Application Fee (a) Application for IEC/Authorisation/License/Scrips/ Registration must be accompanied by application fees as indicated in the Appendix 2K of Appendices and Aayat Niryat Forms. Fees must be paid online through....
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.... DEL, all new licences, authorisations, scrips, certificates, instruments etc. will be blocked from printing/ issue/renewal. (d) DEL orders may be placed in abeyance, for reasons to be recorded in writing by the concerned RA. DEL order can be placed in abeyance, for a period not more than 60 days at a time. (e) A firm's name can be removed from DEL, by the concerned RA for reasons to be recorded in writing, if the firm completes Export Obligation/ pays penalty/ fulfils requirement of Demand Notice(s) issued by the RA/submits documents required by the RA. 2.15 Firm/company under adjudication proceeding before the National Company Law Tribunal (NCLT) Any firm/company coming under the adjudication proceeding before the National Company Law Tribunal (NCLT) shall inform the concerned Regional Authority (RA) and NCLT of any outstanding export obligations/liabilities under any of the schemes under FTP. The total outstanding duty saved amount/dues along with interest, and any penalty imposed under FT (D&R) Act, or any other dues, shall be counted as part of the dues to the government against the said firm/company. Prohibitions on Trade (Country, Organisations, Groups, Individuals etc.....
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....6(2012)]. Importers of Charcoal shall submit a declaration to Customs that the consignment has not originated in Somalia. 8[2.20A Prohibition on Import from Pakistan Direct or indirect Import or transit of all goods originating in or exported from Pakistan, whether or not freely importable or otherwise permitted, shall be prohibited with immediate effect, until further orders. This restriction is imposed in the interest of national security and public policy. Any exception to this prohibition shall require prior approval of the Government of India.] Import / Export through State Trading Enterprises: 2.21 State Trading Enterprises (STEs) (a) State Trading Enterprises (STEs) are governmental and non-governmental enterprises, including marketing boards, which deal with goods for export and /or import. Any good, import or export of which is governed through exclusive or special privilege granted to State Trading Enterprise (STE), may be imported or exported by the concerned STE as per conditions specified in ITC (HS). The list of STEs notified by DGFT is in Appendix-2J. (b) Such STE(s) shall make any such purchases or sales involving imports or exports solely in accordance with c....
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....sonal effects may be imported as part of passenger baggage as per limits, terms and conditions thereof in Baggage Rules notified by Ministry of Finance. (b) Samples of such items that are otherwise freely importable under FTP may also be imported as part of passenger baggage without an Authorisation subject to Baggage Rules as notified by Customs from time to time. (c) Exporters coming from abroad are also allowed to import drawings, patterns, labels, price tags, buttons, belts, trimming and embellishments required for export, as part of their passenger baggage, without an Authorization subject to value limit as laid down in FTP or as per the relevant Customs notification(s) in this regard. (d) Any item(s) including Samples or Prototypes of items whose import policy is "restricted" or "prohibited" or is canalised through STEs are not permitted as part of passenger baggage except with a valid authorization/ permission issued by DGFT. 2.28 Re - import of goods repaired abroad Capital goods, equipment, components, parts and accessories, whether imported or indigenous, except those restricted under ITC (HS) may be sent abroad for repairs, testing, quality improvement or upgradatio....
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....or the purpose of further use in their DTA operations only; given that there is a minimum usage of 2 years in the SEZ area and that the goods are not older than 5 years from the date of manufacturing 2. In cases where a unit is closing down its operations in SEZ, and re-locating to the DTA, the import of Used IT Assets from SEZ into DTA is allowed without a Licence for Restricted Imports given that the goods are not older than 5 years from the date of manufacturing. However IT assets that have entered the SEZ area in second hand/used/old condition and have been used in the SEZ area for less than 2 years are not covered. 3. The relaxation for import from SEZ to DTA under condition 1 & 2 above, shall be applicable given that no exemption from any regulatory requirements (i.e., CRO, WPC, RoHS) was availed at the time of import of the Used IT Assets into the SEZ. 4. Import of any Used IT Assets which do not fulfill the above-mentioned criteria shall be subject to a licence for Restricted Import.] II. Second Hand Goods other than capital goods Restricted Importable against Authorisation III. Second Hand Goods imported for the purpose of repair/refurbishing / reconditi....
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....ccordance with provisions of FTP and against Authorisation, wherever required. Customs duty as applicable shall be paid at the time of clearance of such goods. (c) The clearance of the warehoused goods shall be as per the provisions of the Customs Act, 1962. 2.37 Special provision for Hides Skins and semi-finished goods Hides, Skins and semi-finished leather may be imported in the Public/ Private Bonded warehouse for the purpose of DTA sale and the unsold items thereof can be reexported from such bonded warehouses on payment of the applicable rate of export duty. 2.38 Sale on High Seas Sale of goods on high seas for import into India may be made subject to FTP or any other law in force. 2.39 Merchanting Trade 2[Merchanting trade involving shipment of goods from one foreign country to another foreign country without touching Indian ports, or shipment of goods within one specific foreign country, involving an Indian intermediary is allowed subject to compliance with RBI guidelines, except for goods in the CITES, or under SCOMET.] Exports: 2.40 Free Exports All goods may be exported without any restriction except to the extent that such exports are regulated by ITC(HS) or an....
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....mported, in accordance with FTP, may be exported in same or substantially the same form without an Authorisation provided that item to be imported or exported is not in the restricted for import or export in ITC(HS) Schedules. (b) Goods, including capital goods (both new and second hand), may be imported for export provided: (i) Importer clears goods under Customs Bond; (ii) Goods are freely exportable, i.e., are not "Restricted" or "Prohibited" or subject to "exclusive trading through State Trading Enterprises" or any conditionality or requirement as may be required under Schedule 2 of the Export Policy of the ITC (HS); (iii) Export is against freely convertible currency or as per para 2.52(d)(ii) of FTP. (c) Goods in (b) above will include 'Restricted' goods for import (except 'Prohibited' items). (d) Capital goods, which are freely importable and freely exportable, may be imported for export on execution of LUT/BG with the Customs Authority. (e) Notwithstanding the above, goods which are freely importable may be re-exported except items as in the Prohibited or SCOMET List of exports, in same or substantially same form even though such goods are under "Restricted list" ....
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....toms notification. To that extent the exporter shall return the benefits /incentive availed on the returned goods. If the item is 'restricted' for import, the exporter shall require an import license. However, re-export of such defective parts/ spares by the Companies/firms and Original Equipment Manufacturers shall not be mandatory if they are imported exclusively for undertaking root cause analysis, testing and evaluation purpose. 2.49 Export of Spares Warranty spares (whether indigenous or imported) of plant, equipment, machinery, automobiles or any other goods [except those restricted under ITC (HS)] may be exported along with main equipment or subsequently but within contracted warranty period of such goods, subject to approval of RBI. 2.50 Re-export of imported Goods found defective and unsuitable for use Imported goods found defective after Customs clearance, or not found as per specifications or requirements may be re-exported back as per Customs Act, 1962. 2.51 Private Bonded Warehouses for Exports (a) Private bonded warehouses exclusively for exports may be set up in DTA as per terms and conditions of notifications issued by Department of Revenue. (b) Such warehous....
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.... designated Special Vostro account of the correspondent bank of the partner country. 2.53 Applicability of FTP Schemes for Export Realisations in Indian Rupees (i) Export proceeds realized in Indian Rupees against exports to Iran are permitted to avail exports benefits / incentives/ fulfilment of Export Obligations under the FTP, at par with export proceeds realized in freely convertible currency, subject to compliance of para 2.19 of the FTP. (ii) Export proceeds realized in Indian Rupees as per para 2.52(d)(ii) are permitted to avail exports benefits / incentives / fulfilment of Export Obligations under the FTP. 2.54 Non-Realisation of Export Proceeds (a) If an exporter fails to realize export proceeds within time specified by RBI, he shall, without prejudice to any liability or penalty under any law in force, be liable to return all benefits / incentives availed against such exports and action in accordance with provisions of FT (D&R) Act, Rules and Orders made thereunder and the FTP. (b) In case an Exporter is unable to realize the export proceeds for reasons beyond his control (forcemajeure), he may approach RBI for writing off the unrealized amount as laid down in Para ....
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....P, shall be required to provide, the RCMC granted by competent authority in accordance with Procedures specified in Handbook of Procedures unless specifically exempted under FTP. (b) Certificate of Registration as Exporter of Spices (CRES) issued by Spices Board and Certificate of Registration as Exporter of Coir & Coir products issued by the Coir Board shall be treated as Registration-CumMembership Certificate (RCMC) for the purposes under this Policy. 2.58 Interpretation of Policy (a) The decision of DGFT shall be final and binding on all matters relating to interpretation of Policy, or provision in Handbook of Procedures, Appendices and Aayat Niryat Forms or classification of any item for import / export in the ITC (HS). (b) A Policy Interpretation Committee (PIC) may be constituted to aid and advice DGFT. The composition of the PIC would be as follows: (i) DGFT: Chairman (ii) All Additional DGFTs in Headquarters: Members (iii) All Joint DGFTs in Headquarters looking after Policy matters: Members (iv) Joint DGFT (PRC/PIC): Member Secretary (v) Any other person / representative of the concerned Ministry / Department, to be co-opted by the Chairman. 2.59 Exemption f....
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.... Certificate of Origin (i) Currently, Certificates of Origin under various Preferential Trade Agreements [PTA], Free Trade Agreements [FTAs], Comprehensive Economic Cooperation Agreements [CECA] and Comprehensive Economic Partnerships Agreements [CEPA] are issued by designated agencies as per Appendix 2B of Appendices and Aayat Niryat Forms. A new optional system of self-certification is being introduced with a view to reducing transaction cost. (ii) The Manufacturers who are also Status Holders shall be eligible for Approved Exporter Scheme. Approved Exporters will be entitled to self-certify their manufactured goods as originating from India with a view to qualifying for preferential treatment under different PTAs/FTAs/CECAs/CEPAs which are in operation. Self-certification will be permitted only for the goods that are manufactured as per the Industrial Entrepreneurs Memorandum (IEM) / Industrial License (IL) /Letter of Intent (LOI) issued to manufacturers. (iii) Status Holders will be recognized by DGFT as Approved Exporters for self-certification based on availability of required infrastructure, capacity and trained manpower as per the details in Para 2.94 of Handbook of Pro....
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.... and 2208] and cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes [HS Codes 2402] under Chapter 22 and 24, Schedule 2 ITC (HS) Export Policy 2018, but not limited to, the items specified in Annex IV of Resolution 2094 (2013), Annex IV of Resolution 2270 (2016) and Annex IV of Resolution 2321 (2016); (v) items as determined by the Central Government, except food or medicine, that could directly contribute to the development of the Democratic People's Republic of Korea's operational capabilities of its armed forces. This measure is subject to the exemptions set out in paragraph 8 (a) and (b) of Resolution 2270 (2016); Prohibition on import (B) The direct or indirect procurement or import from DPRK, of items, whether or not originating in DPRK, covered in sub-paragraphs (A)(i), (A)(ii),(A)(iii) and (A) (v) above is prohibited. Sectoral prohibitions (export) (C) The direct or indirect supply, sale, transfer or export of the following items to DPRK is prohibited: (i) new helicopters and new or used vessels, except as approved in advance by the Committee on a case-by-case basis; (ii) aviation fuel, including aviation gasoline, naptha-type jet fuel....
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....ittee of the UNSC set up in terms of paragraph 12 of Resolution 1718 (2006); d) Resolution, as the case may be, means the UNSC Resolutions under Chapter VII of the Charter of the United Nations on Democratic People's Republic of Korea, namely, 1718 (2006), 1874 (2009), 2087 (2013),2094 (2013), 2270 (2016), 2231 (2016), 2356 (2017), 2371 (2017),2375 (2017) and 2397(2017). ************* NOTES:- 1. Inserted vide Notification No. 56/2023 dated 01-01-2024 2. Substituted vide Notification No. 62/2023 dated 29-02-2024 before it was read as, "Merchanting trade involving shipment of goods from one foreign country to another foreign country without touching Indian ports, involving an Indian intermediary is allowed subject to compliance with RBI guidelines, except for goods/items in the CITES and SCOMET list." 3. Inserted vide Notification No. 69/2023 dated 07-03-2024 4. Inserted vide Notification No. 71/2023 dated 11-03-2024 5. Substituted vide Notification No. 71/2023 dated 11-03-2024 before it was read as, "3[(c) The list of Ministries/Departments whose notifications on mandatory QCOs, that are exempted by the DGFT for goods to be utilised....