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GENERAL PROVISIONS REGARDING EXPORTS AND IMPORTS

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..... ft copy of 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 40x15 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 .....

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..... exporting permissible goods as notified from time to time, 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. 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 documentsprescribed 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 IE .....

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..... ms mentioned as restricted in ITC (HS) and an import authorisation will have to be obtained for such items. 2.11A 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. 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 Authorisa .....

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..... is less than 6 months on the date of re-credit. ] 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 Authorisation 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. d. Indemnity bond on a stamp paper undertaking .....

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..... ified. 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 competent customs authorities. Execution .....

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..... erences (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 agency authorised to print blank certificates. Authorised agencies may charge a fee, as approved by DoC, for services rendered. Generalised System of Preferences (GSP) (a) GSP is a non-contractual instrument by which industrialized (developed) countries unilaterally and based on non-reciprocity extend tariff concessions to developing countries. Following countries extend tariff preferences under their GSP Scheme: (i) United States of America, (ii) New Zealand (iii) Belarus (iv) European Union, (v) Japan (vi) Russia (vii) Canada, (viii) Norway (ix) Australia (only to LDCs) (x) Switzerland .....

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..... 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 formalities, 1923. These CoOs evidence origin of goods and do not bestow any right to preferential tariffs. List of notified agencies is provided in Appendix - 4C. In addition, agencies authorized to issue Preferential CoO as per Para 2.21.1 of HBP v1 are also authorized to issue Non-Preferential CoO. All exporters who are required to submit CoO (Non .....

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..... / 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 be applicable in self-write off cases. 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 duly attested by Customs authorities .....

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..... irman 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 [ "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 .....

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..... o 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 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 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 radioactive contaminated, or any other explosive material in any form either used or otherwise. b .....

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..... 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 Mag., 400/350, .369 Purdey, .450/400, .470, .32 Win, .458 Win, .380 Rook, .220 Swift and .44 Win. bores. An import Authorisation shall be issued at 5% of value of annual average sales turnover of ammunition (whether indigenous or imported) during preceding three licensing years subject to a minimum of Rs. 2000. An application for grant of an Authorisation for items listed above 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 .....

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..... 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. 9 [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 ICDs or LCS, as per the option indicated, in writing, by the applicant. However, for import of rough marble, port of registration is mandatory and the applicant must indicate the same in the application itself. Authorization holder shall register the import authorisation at the port specified in the Authorization and thereafter all imports against said authorization shall be made only through that port, unless the authorization holder obtains permission from customs authority concerned to import through any other specified port. ] Gifts of Consumer or Other Goods 2.38 In terms of provisions contained in paragraph .....

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..... hort-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 short-shipment 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 otherwise by importer freely. Transfer of imported goods, which are subject to Actual User condition and have become surplus to needs of Actual User, shall be made only with prior permission of RA concerned. Following information alongwith supporting documents shall be furnished with request for grant of permission for transfer, to RA concerned: (i) Reasons for transfer of imported material; (ii) Name, address, IEC number and industrial Authorisation registration, if any, of transferee; (iii) Description, quantity and value of goods imported and those sought to be transferred; (iv) Copies of import A .....

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..... 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) specifies list of items, which may be exported without an Authorisation but subject to terms and conditions specified. Application for Grant of Export Licence/ Certificate / Permission 2.49 An application for grant of Export Authorisation in respect of items mentioned in Schedule 2 of ITC (HS) may be made in ANF 2D (2E for SCOMET items) to DGFT along with documents prescribed therein. EFC shall consider applications on merits for issue of export Authorisation. An Inter-Ministerial Working Group in DGFT shall consider applications for export of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) as specified in Appendix-3 to Schedule 2 of ITC (HS) based on guidelines given below. Applications for licences to export items or technology on SCOMET List are considered case-by-case .....

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..... itional 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 export of item itself. VI. Licences for export of items in this List (other than those under Category 0, 1 and 2) solely for purposes of display or exhibition shall not require any end-use or end-user certifications. No export licence for display or exhibition shall be issued for 'Technology' in any category or for items under Categories 0, 1, and 2. VII. Export of items not on SCOMET List may also be regulated under provisions of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005. Note 1: Export or attempt to export in violation of any of conditions of licence shall invite civil and/or criminal prosecution. Note 2: Licences for export of items in this List for display or exhibition abroad are subject to a condition of re-import within a period not exceeding six months .....

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..... with Annexure A therein. RA shall issue Free Sale and Commerce Certificate as per Annexure B of Appendix 39-A ] 8 [ 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 account in the evaluation of applications for entering into an arrangement or understanding for site visits, on-site verification and access to records/documentation: (a) Purpose for which arrangement / understanding is proposed under which site visit or on-site verification or access to records/docu .....

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..... isited 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. ] Export of Items under State Trading Regime (STR) 2.50 An application for export of items mentioned in ITC (HS) under STR regime may be made to DGFT. Exports of Samples / Exhibits 2.51 An application for export of samples or exhibits, which are restricted for export, may be made to DGFT. Free of Cost Exports 2.52 Status holders shall be entitled to export freely exportable items on free of cost basis for export promotion subject .....

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..... n which benefit of that scheme has not been availed, exporter would be entitled to benefit under scheme in which shipment is subsequently converted. Offsetting of Export Proceeds 2.57 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 realization 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 2.58 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 List of such agencies authorised to grant quality certification is given in Appen .....

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..... and Spices Trading Corporation Limited (STCL). ] (b) Maize (corn)(Tariff Code No. 1005.90) : National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED), State Trading Corporation (STC), Minerals and Metals Trading Corporation (MMTC), Projects Equipment Corporation of India Limited(PEC), Spices Trading Corporation 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, canola 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 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 do .....

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..... ing CB is given in Appendix-2. Commodity Boards function as EPCs for products allotted to them. EPC is authority issuing RCMC. Non-Profit, Autonomous and Professional Bodies 2.62 EPCs are non-profit organizations registered under Companies Act or Societies Registration Act. 2.62.1 EPCs shall be autonomous and shall regulate their own 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. Registering Authorities issuing RCMC 2.63 (i) 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. 1 [ (ii) A status holder has an option to obtain RCMC from Federation of Indian Exporters' Organisation (FIEIO). ] 5 [ (iii) In case an export product is not covered by any Export Prom .....

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..... hing Of Returns 2.66 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. De-Registration 2.67 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. Appeal Against De-registration 2.68 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 2.69 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 .....

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..... Federation of Indian Exporters' Organisation (FIEO). 2. Substituted vide Public Notice No. 17/2009-2014, dated 12/11/2009, before it was read as:- 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 explosive material in any form either used or otherwise. 2.32.2 Import of following types of metallic waste and scrap will be free subject to conditions detailed below : S. No. ITC code Item description 1. 720410 00 waste and scrap of cast iron 2. 72042190 Other 3. 72042920 Of High speed steel 4. 72042990 Other 5. 72043000 Waste and scrap of tinned iron or steel 6. 72044100 Turnings, shavings, chips, milling waste, saw dust, fillings, trimmings and stampings, whether or not in bundles 7. 72044900 Other 8. 720450 .....

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..... 4.JNPT, 5.Kandla, 6.Mormugao, 7.Mumbai, 8.New Mangalore, 9.Paradip, 10.Tuticorin, 11.Vishakhapatnam, 12. ICD Loni, Ghaziabad, 13.Pipava, 14.Mundra, 15.Kolkata, 16.ICD Ludhiana, 17.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". 2.32.2.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 in the format in Appendix-5A, which will be considered by an Inter-Ministerial Committee. 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). 3. Substituted vide Public Notice No. 38/2009-14, dated 03/02/2010, before it was read as;- However, revalidation of freely transferable Authorisation and stock and sale Authorisation shall not be permitted unless validity has expired while in custody of Customs authority / RA. 4. Inserted vide Public Notice No. 38/2009-14, dated 03/02/2010, 5. Amende .....

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..... register the same at the port specified in the authorization and thereafter all imports against said authorization shall be made only through that port, unless the authorization holder obtains permission from customs authority concerned to import through any other specified port. 10. Deleted vide Public Notice No. 62/2009-2014, dated 13/05/2010 , before it was read as:- Notwithstanding provisions of Para 2.33 above, second hand computers, laptops and computer peripherals including printer, plotter, scanner, monitor, keyboard and storage units can be imported freely as donations by following category of donees: (i) Schools run by Central or State Government or a local body, (ii) Educational Institution run on non- commercial basis by any organization, (iii) Registered Charitable Hospital, (iv) Public Library, (v) Public funded Research and Development Establishment, (vi) Community Information Centre run by Central or State Government or local bodies, (vii) Adult Education Centre run by Central or State Government or a local body, (viii) Organization of Central or State Government or a Union Territory. Imports under this sub Para would be subject to the condit .....

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