Chapter 9 - DEFINITIONS - Foreign Trade Policy 2015-2020 (From 5-12-2017 to 31-3-2023) Revised

CHAPTER 9 DEFINITIONS For purpose of FTP, unless context otherwise requires, the following words and expressions shall have the following meanings attached to them:- 9.01 Accessory or Attachment means apart, sub-assembly or assembly that contributes to efficiency or effectiveness of a piece of equipment without changing its basic functions. 9.02 Act means Foreign Trade (Development and Regulation) Act, 1992 (No.22 of 1992) [FT (D R) Act] as amended from time to time. 9.03 Actual User is a person (either natural legal) who is authorized to use imported goods in his/its own premise which has a definitive postal address. (a) Actual User (Industrial) is a person (either natural legal) who utilizes imported goods for manufacturing in his own industrial unit or manufacturing for his own use in another unit including a jobbing unit which has a definitive postal address. (b) Actual User (Non-Industrial) is a person (either natural legal) who utilizes the imported goods for his own use in. (i) any commercial establishment, carrying on any business, trade or profession, which has a definitive postal address; or (ii)any laboratory, Scientific or Research and Development(R D) institution, university or other educational institution or hospital which has a definitive postal address; or (iii) Any service industry which has a definitive postal address. 9.04 9.04 AEZ means Agricultural Export Zones notified by DGFT in Appendix 2V of Appendices and Aayat Niryat Forms. 9.05 Appeal is an application filed under section 15 of the Act and includes such applications preferred by DGFT officials in government interest against decision by designated adjudicating/appellate authorities. 9.06 Applicant means person on whose behalf an application is made and shall, wherever context so requires, includes person signing the application. 9.07 Authorisation means permission as included in Section 2(g) of the Act to import or export as per provisions of FTP. 9.08 Capital Goods means any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernisation, technological up-gradation or expansion. It includes packaging machinery and equipment, refrigeration equipment, power generating sets, machine tools, equipment and instruments for testing, research and development, quality and pollution control. Capital goods may be for use in manufacturing, mining, agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture and viticulture as well as for use in services sector. 9.09 Competent Authority means an authority competent to exercise any power or to discharge any duty or function under the Actor the Rules and Orders made there under or under FTP. 9.10 Component means one of the parts of a sub-assembly or assembly of which a manufactured product is made up and into which it may be resolved. A component includes an accessory or attachment to another component. 9.11 Consumables means any item, which participates in or is required for a manufacturing process, but does not necessarily form part of end-product. Items, which are substantially or totally consumed during a manufacturing process, will be deemed to be consumables. 9.12 Consumer Goods means any consumption goods, which can directly satisfy human needs without further processing and includes consumer durable sand accessories thereof. 9.13 Counter Trade means any arrangement under which exports/imports from /to India are balanced either by direct imports/exports from importing/exporting country or through a third country under a Trade Agreement or otherwise. Exports/Imports under Counter Trade may be carried out through Escrow Account, Buy Back arrangements, Barter trade or any similar arrangement. Balancing of exports and imports could wholly or partly be in cash, goods and/or services. 9.14 Developer means a person or body of persons, company, firm and such other private or government undertaking, who develops, builds, designs, organises, promotes, finances, operates, maintains or manages a part or whole of infrastructure and other facilities in SEZ as approved by Central Government and also includes a co- developer. 9.15 Development Commissioner means Development Commissioner of SEZ 9.16 Domestic Tariff Area (DTA) means area within India which is outside SEZs and EOU/ EHTP/STP/BTP. 9.17 Deleted 9.17A e commerce for the purpose of Merchandise Exports from India Scheme (MEIS) under Foreign Trade Policy (2015-20) (FTP) shall mean the export of goods hosted on a website accessible through the internet to a purchaser. While the dispatch of goods shall be made through courier or postal mode, as specified under the MEIS, the payment for goods purchased on ecommerce platform shall be done through international credit /debit cards and as per the Reserve Bank of India Circular (RBI/2015-16/185) [A.P.( DIR Series) Circular No. 16 dated September 24, 2015.] as amended from time to time. 9.18 EOU means Export Oriented Unit for which a letter of permit has been issued by Development Commissioner. 9.19 Excisable goods means any goods produced or manufactured in India and subject to duty of excise under Central Excise and Salt Act 1944(1of 1944). 9.20 Export is as defined in FT (D R) Act, 1992, as amended from time to time. 9.21 Exporter means a person who exports or intends to export and hold san IEC number, unless otherwise specifically exempted. 9.22 Export Obligation means obligation 6 to export product or products covered by Authorisation or permission in terms of quantity, value or both, as may be prescribed or specified by Regional or competent authority. 9.23 Free as appearing in context of import/export policy for items means goods which do not need any Authorisation / License or permission for being imported into the country or exported out. 9.24 FTP means the Foreign Trade Policy which specifies policy for exports and imports under Section 5 of the Act. 9.25 Import is as defined in FT (D R) Act, 1992 as amended from time to time. 9.26 Importer means a person who imports or intends to import and holds an IEC number, unless otherwise specifically exempted. 9.27 ITC (HS) refers to Indian Trade Classification (Harmonized System) at 8 digits. 9.28 Jobbing means processing or working upon of raw materials or semi-finished goods supplied to job worker, so as to complete a part of process resulting in manufacture or finishing of an article or any operation which is essential for aforesaid process. 9.29 LicensingYear meansperiodbeginningonthe1st April of a year and ending on the 31st March of the following year. 9.30 Managed Hotel means hotels managed by a three star or above hotel/ hotel chain under an operating management contract for a duration of at least three years between operating hotel/ hotel chain and hotel being managed. Management contract must necessarily cover the entire gamut of operations/management of managed hotel. 9.31 Manufacture means to make, produce, fabricate, assemble, process or bring into existence, by hand or by machine, a new product having a distinctive name, character or use and shall include processes such as refrigeration, re-packing, polishing, labelling, Re-conditioning repair, remaking, refurbishing, testing, calibration, re-engineering. Manufacture, for the purpose of FTP, shall also include agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture, viticulture and mining. 9.32 Manufacturer Exporter means a person who exports goods manufactured by him or intends to export such goods. 9.33 Merchant Exporter means a person engaged in trading activity and exporting or in tending to export goods. 9.34 NC means the Norms Committee in the Directorate General of Foreign Trade for approval of adhoc input output norms in cases where SION does not exist and recommend SION to be notified in DGFT. 9.35 Notification means a notification published in Official Gazette. 9.36 Order means an Order made by Central Government under the Act. 9.37 Part means an element of a sub-assembly or assembly not normally useful by itself, and not amenable to further disassembly for maintenance purposes. Apart may be a component, spare or an accessory. 9.38 Person means both natural and legal and includes an individual, firm, society, company, corporation or any other legal person including the DGFT officials. 9.39 Policy means Foreign Trade Policy (2015-2020 ) as amended from time to time. 9.40 Prescribed means prescribed under the Actor the Rules or Orders made there under or under FTP. 9.41 Prohibited indicates the import/export policy of an item, as appearing in ITC (HS) or elsewhere, whose import or export is not permitted. 9.42 Public Notice means a notice published under provisions of paragraph2.55 of FTP 9.42A Project Exports refers to export of engineering goods on deferred payment terms and execution of turnkey projects and civil construction contracts abroad collectively. Project Exports would encompass (i) Civil construction contracts; (ii) Turnkey Engineering contracts including supply of Capital Goods on deferred payment terms; (iii) Process and Engineering Consultancy Services; and (iv) Project Construction items (excluding Steel and Cement). 9.43 Quota means the quantity of goods of a specific kind that is permitted to be imported without restriction or imposition of additional Duties. 9.44 Raw material means input(s) needed for manufacturing of goods. These inputs may either be in a raw/natural/unrefined/unmanufactured or manufactured state. 9.45 Regional Authority means authority competent to grant an Authorisation under the Act/Order. 9.46 Registration-Cum-Membership Certificate (RCMC) means certificate of registration and membership granted by an Export Promotion Council/Commodity Board/Development Authority or other competent authority as prescribed in FTP or Handbook of Procedure. 9.47 Restricted is a term indicating the import or export policy of an item, which can be imported into the country or exported outside, only after obtaining an Authorisation from the offices of DGFT. 9.48 Rules means Rules made by Central Government under Section 19 of the FT (D R) Act. 9.49 SCOMET is the nomenclature for dual use items of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET). Export of dual-use items and technologies under India s Foreign Trade Policy is regulated. It is either prohibited or is permitted under an Authorisation. 9.50 Services include all tradable services covered under General Agreement on Trade in Services (GATS) and earning free foreign exchange. 9.51 Service Provider means a person providing: (i) Supply of a service from India to any other country; (Mode1- Cross border trade) (ii) Supply of a service from India to service consumer(s)of any other country in India; (Mode 2-Consumption abroad) (iii)Supply of a service from India through commercial presence in any other country. (Mode 3 Commercial Presence.) (iv)Supply of a service from India through the presence of natural persons in any other country (Mode 4- Presence of natural persons.) 9.52 Ships mean all types of vessels used for seaborne trade or coastal trade, and shall include second hand vessels. 9.53 SION means Standard Input Output Norms notified by DGFT. 9.54 Spares means a part or a sub-assembly or assembly for substitution that is ready to replace an identical or similar part or sub- assembly or assembly. Spares include a component or an accessory. 9.55 Specified means specified by or under the provisions of this Policy through Notification/Public Notice. 9.56 Status holder means an exporter recognized as One Star Trading House/ Two Star Trading House / Three Star Trading House/ Four Star Trading House/ Five Star Trading House by DGFT/Development Commissioner. 9.57 Stores means goods for use in a vessel or aircraft and includes fuel and spares and other articles of equipment, whether or not for immediate fitting. 9.58 (a) Supporting Manufacturer is one who manufactures goods/products or any part/accessories/components of a good/product for a merchant exporter or a manufacturer exporter under a specific Authorisation. (b) Supporting Manufacturer for the EPCG Scheme shall be one in whose premises/factory Capital Goods imported/ procured under EPCG Authorisation is installed. 9.59 State Trading Enterprises (STEs), for the purpose of this FTP, are those entities which are granted exclusive right/privileges export and /or import as per Para 2.20 (a) of FTP. 9.60 Third-party exports means exports made by an exporter or manufacturer on behalf of another exporter(s). In such cases, export documents such as shipping bills shall indicate names of both manufacturer exporter/manufacturer and third party exporter(s). Bank Realisation Certificate (BRC), Self Declaration Form (SDF), export order and invoice should be in the name of third party exporter. 9.61 Transaction Value is as defined in Customs Valuation Rules of Department of Revenue. 9.62 Wild Animal means any wild animal as defined in Section2 (36) of Wildlife (Protection) Act, 1972. Appendix I (Para 2.17) 2.17 Prohibition on direct or indirect import and export from/to Democratic People s Republic of Korea (DPRK) Prohibition on export: (A) The direct or indirect supply, sale, transfer or export of the following items to Democratic People s Republic of Korea (DPRK) is prohibited:- (i) any battle tanks, armoured combat vehicles, large caliber artillery systems, combat aircraft, attack helicopters, warships, missiles or missile systems as defined for the purpose of the United Nations Register on Conventional Arms, or related materiel including spare parts; (ii) All arms and related materiel, including small arms and light weapons and their related materiel; (iii) all items, materials, equipment, goods and technology as set out in the UNSC United Nations Security Council and International Atomic Energy Agency (IAEA) documents, namely, 1. S/2006/853*; 2. S/2006/853/Corr.1; 3. Part B of S/2009/364; 4. Annex III of Resolution 2094 (2013); 5. S/2016/1069; 6. Annex A to INFCIRC/254/Rev.12/Part1 (IAEA document); 7. Annex to INFCIRC/254/Rev.9/Part2 (IAEA document); 8. S/2014/253; 9. S/2016/308; 10. Annex III of Resolution 2321 (2016); and 11. other items, materials, equipment, goods and technology, as determined by the Central Government, which could contribute to DPRK s nuclear related, ballistic missile-related or other weapons of mass destruction related programmes; (iv) Luxury goods, including, 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 vessels, except as approved in advance by the Committee on a case-by-case basis; (ii) Aviation fuel, including aviation gasoline, naphtha-type jet fuel, kerosene-type jet fuel, and kerosene-type rocket fuel. This measure is subject to the provisions of paragraph 31 of Resolution 2270 (2016) and paragraph 20 of Resolution of 2321 (2016); (iii) Condensates and natural gas liquids; (iv) Refined petroleum products. This measure is subject to the exemptions and procedures set out in paragraph 14 of Resolution 2375 (2017); (v) Crude oil. This measure is subject to the exemptions and procedures set out in paragraph 15 of Resolution 2375 (2017); Sectoral prohibitions (import) (D) The direct or indirect procurement or import from DPRK, of the following items is prohibited: (i) Coal, iron and iron ore. This measure is subject to the exemptions and procedures set out in paragraph 8 of Resolution 2371 (2017); (ii) Gold, titanium ore, vanadium ore, and rare earth minerals; (iii) Copper, nickel, silver and zinc; (iv) Statues, unless the Committee approves on a case-by-case basis in advance; (v) Seafood (including fish, crustaceans, molluscs, and other aquatic invertebrates in all forms). This measure is subject to the exemptions and procedures set out in paragraph 9 of Resolution 2371 (2017); (vi) Lead and lead ore. This measure is subject to the exemptions and procedures set out in paragraph 10 of Resolution 2371 (2017); (vii) Textiles (including but not limited to fabrics and partially or fully completed apparel products). This measure is subject to the exemptions and procedures set out in paragraph 16 of Resolution 2375 (2017); Explanation.- a) UNSC means the United Nations Security Council; b) IAEA means the International Atomic Energy Agency; c) Committee means the Committee of the UNSC set up in terms of paragraph 12 of Resolution 1718 (2006); and 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), 2094 (2013), 2270 (2016), 2231 (2016), 2356 (2017), 2371 (2017) and 2375 (2017).