Chapter 2 - General Provisions Regarding Imports and Exports - Foreign Trade Policy, 2023

..... 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 standards/ quality specifications. 2.04 Authority to specify Procedures DGFT may, specify Procedures to be followed by an exporter or importer or by any licensing/Regional A .....

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Chapter 2 - General Provisions Regarding Imports and Exports - Foreign Trade Policy, 2023

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..... um 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 compliance. 2.07 Principles of Restrictions DGFT may, through a Notification, impose Prohibition or Restriction : (a) on export of foodstuffs or other essential products for preventing or relieving critical shortages; (b) on imports and exports necessary for the application of standards or regulations for the classification, grading or marketing of commodities in international trade; (c) on imports of fisheries product, imported in any form, for enforcement of governmental measures to restrict production of the domestic product or fo .....

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Chapter 2 - General Provisions Regarding Imports and Exports - Foreign Trade Policy, 2023

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..... tion, 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 any of the channels as notified under Appendix 2K, unless provided otherwise. (b) Application fee is nothing but the fee for processing of the application. Therefore, the fee once received will not be refunded except in the circumstances and in a manner laid down in Appendix 2K. 2.12 Clearance of Goods from Customs against Authorisation Goods already imported / shipped / arrived, in advance, but not cleared from Customs may also be cleared against an Authorisation issued subsequently. However, such goods already imported/shipped/arrived, in advance are first warehoused against Bill of Entry for Wareh .....

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Chapter 2 - General Provisions Regarding Imports and Exports - Foreign Trade Policy, 2023

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..... ional 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. and Product Specific): 2.16 Prohibition on Import and Export of Arms and related material from / to Iraq Notwithstanding the policy on Arms and related materials in Chapter 93 of ITC(HS), the import/export of Arms and related material from/to Iraq is Prohibited . However, export of Arms and related material to Government of Iraq shall be permitted subject to No Objection Certificate from the Department of Defence Production. 2.17 Prohibition on Trade with the Islamic State in Iraq and the Levant [ISIL, also known as Daesh], Al Nusrah Front [ANF] and other individuals, groups, undertakings and entities associated with Al .....

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Chapter 2 - General Provisions Regarding Imports and Exports - Foreign Trade Policy, 2023

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..... b) Such STE(s) shall make any such purchases or sales involving imports or exports solely in accordance with commercial considerations, including price, quality, availability, marketability, transportation and other conditions of purchase or sale in a non-discriminatory manner and shall afford enterprises of other countries adequate opportunity, in accordance with customary business practices, to compete for participation in such purchases or sales. (c) DGFT may, however, grant an authorisation to any other entity to import or export any of the goods notified for exclusive trading through STEs. Trade with Specific Countries: 2.22 Trade with Neighbouring Countries DGFT may issue instructions or frame schemes as may be required to promote and regulate trade and strengthen economic ties with neighbouring countries. 2.23 Transit Facility Transit of goods through India from/ or to countries adjacent to India shall be enabled and regulated in accordance with strategic and economic interests of India as well as the bilateral treaties between India and those countries. Such arrangements will be subject to conditions and restrictions as may be specified by DGFT in accordance with Internatio .....

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Chapter 2 - General Provisions Regarding Imports and Exports - Foreign Trade Policy, 2023

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..... may be sent abroad for repairs, testing, quality improvement or upgradation or standardization of technology and re-imported without an Authorisation. 2.29 Import of goods used in projects abroad Project contractors after completion of projects abroad, may import without an Authorisation, goods including capital goods used in the project, provided they have been used for at least one year. 2.30 Import of Prototypes Import of new / second hand prototypes / second hand samples may be allowed on payment of duty without an Authorisation to an Actual User (industrial) engaged in production of or having industrial license / letter of intent for research in item for which prototype is sought for product development or research, as the case may be, upon a self- declaration to that effect, to the satisfaction of Customs authorities. Import Policy for Second Hand Goods: 2.31 Second Hand Goods Sl.No. Categories of Second-Hand Goods Import Policy Conditions, if any I. Second Hand Capital Goods I(a) i. Desktop Computers; ii. Refurbished/re-conditioned spares of re-fu .....

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Chapter 2 - General Provisions Regarding Imports and Exports - Foreign Trade Policy, 2023

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..... res. 2.33 Removal of Scrap/Waste from SEZ A SEZ unit/Developer/ Co-developer may be allowed to dispose of in DTA any waste or scrap, including any form of metallic waste and scrap, generated during manufacturing or processing activity, without an Authorisation, on payment of applicable Customs Duty. Other Provisions Related to Imports: 2.34 Import under Lease Financing No specific permission of DGFT is required for import of lease financed Capital Goods. 2.35 Execution of Legal Undertaking (LUT) / Bank Guarantee (BG) (a) Wherever any duty-free import is allowed or where otherwise specifically stated, importer shall execute, Legal Undertaking (LUT) / Bank Guarantee (BG) / Bond with the Customs Authority, as prescribed, before clearance of goods. (b) In case of indigenous sourcing, Authorisation holder shall furnish LUT/BG/Bond to the RA concerned before sourcing material from indigenous supplier/ nominated agency as prescribed in Chapter 2 of Handbook of Procedures. 2.36 Private/Public Bonded Warehouses for Imports (a) Private/ Public bonded warehouses may be set up in DTA as per rules, regulations and notifications issued under the Customs Act, 1962. Any person may import goods exc .....

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Chapter 2 - General Provisions Regarding Imports and Exports - Foreign Trade Policy, 2023

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..... xports of bonafide trade and technical samples of freely exportable item shall be allowed without any limit. (b) The procedure for Export of Samples and Free of charge goods shall be governed by provisions given in Para 2.63 of Handbook of Procedures. 2.44 Export of Gifts Goods including edible items, of value not exceeding Rs.5,00,000/- in a licensing year, may be exported as a gift. However, items mentioned as restricted for exports in ITC(HS) shall not be exported as a gift, without an Authorisation. 2.45 Export of Passenger Baggage (a) Bona-fide personal baggage may be exported either along with passenger or, if unaccompanied, within one year before or after passenger s departure from India. However, items mentioned as restricted in ITC(HS) shall require an Authorisation. Government of India officials proceeding abroad on official postings shall, however, be permitted to carry along with their personal baggage, food items (free, restricted or prohibited) strictly for their personal consumption. The Provisions of the Para shall be subject to Baggage Rules issued under Customs Act, 1962. (b) Samples of such items that are otherwise freely exportable under FTP may also be exported .....

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Chapter 2 - General Provisions Regarding Imports and Exports - Foreign Trade Policy, 2023

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..... of these items to Iran shall, however, be subject to all other conditions of FTP and ITC (HS), as applicable. Bird s eggs covered under ITC (HS) 0407 0408 and Rice covered under ITC (HS) 1006 are not covered under this dispensation, as at II (a) above. (d) Exports under this dispensation, as at I (e) and II (a), (b) and (c) above shall not be eligible for any export incentives. 2.47 Export of Replacement Goods Goods or parts thereof on being exported and found defective/damaged or otherwise unfit for use may be imported for replacement free of charge by the exporter in accordance with the relevant Customs Notification, and such goods shall be allowed for export by Customs authorities, provided that replacement goods are not under the restricted or SCOMET items for exports in ITC(HS). If the export item is Restricted or under SCOMET list, the exporter shall require an Authorisation for export of such replacement goods. 2.48 Export of Repaired Goods Goods or parts thereof, except restricted under ITC (HS), on being exported and found defective, damaged or otherwise unfit for use may be imported for repair and subsequent reexport. Such goods shall be allowed clearance without an Auth .....

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Chapter 2 - General Provisions Regarding Imports and Exports - Foreign Trade Policy, 2023

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..... Dollar. However, participants in the ACU may settle their transactions in ACU Dollar or in ACU Euro as per RBI Notifications. Central Government may relax provisions of this paragraph in appropriate cases. Export contracts and invoices can be denominated in Indian rupees against EXIM Bank/Government of India line of credit. (d) Invoicing, payment and settlement of exports and imports is also permissible in INR subject to compliances as under RBI s A.P. (DIR Series) Circular No.10 dated 11th July, 2022. Accordingly, settlement of trade transactions in INR shall take place through the Special Rupee Vostro Accounts opened by AD banks in India as permitted under Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016, in accordance to the following procedures: (i) Indian importers undertaking imports through this mechanism shall make payment in INR which shall be credited into the Special Vostro account of the correspondent bank of the partner country, against the invoices for the supply of goods or services from the overseas seller /supplier. (ii) Indian exporters, undertaking exports of goods and services through this mechanism, shall be paid the export proceeds i .....

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Chapter 2 - General Provisions Regarding Imports and Exports - Foreign Trade Policy, 2023

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..... ort restriction, promulgation of law or decree after the shipment has been affected are also covered. Some of the anti- dumping measures or non-tariff barriers introduced after a shipment has been made will come under the purview of the political risk. In such cases exporter s interest are protected by ECGC. Export Promotion Councils: 2.56 Recognition of EPCs to function as Registering Authority for issue of RCMC (a) Export Promotion Councils (EPCs) are organizations of exporters, set up with the objective to promote and develop Indian exports. Each Council is responsible for promotion of a particular group of products/ projects/services as given in Appendix 2T of ANF. (b) EPCs are also eligible to function as Registering Authorities to issue Registration-cum-Membership Certificate (RCMC) to its members. The criteria for EPCs to be recognized as Registering Authorities for issue of RCMC to its members are detailed in Para 2.78 of the Handbook of Procedures. 2.57 Registration-cum-Membership Certificate (RCMC) (a) Any person, applying for an Authorisation to import/ export under the FTP (except items listed as Restricted items in ITC (HS)) or applying for any other benefit or concess .....

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Chapter 2 - General Provisions Regarding Imports and Exports - Foreign Trade Policy, 2023

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..... (PRC), or a decision/order by any authority in the Directorate General of Foreign Trade, a specific request for Personal Hearing (PH) along with the prescribed application fee as per Appendix-2K has to be made to DGFT. DGFT may consider request for relaxation after consulting concerned Norms Committee, EPCG Committee or Policy Relaxation Committee (PRC) and the decision conveyed in pursuance to the personal hearing shall be final and binding. (b) The opportunity for Personal Hearing will not apply to a decision/order made in any proceeding, including an adjudication proceeding, whether at the original stage or at the appellate stage, under the relevant provisions of FT (D R) Act, 1992, as amended from time to time. 2.61 Regularization of EO default and settlement of Customs duty and interest through Settlement Commission With a view to providing assistance to firms who have defaulted under FTP for reasons beyond their control as also facilitating merger, acquisition and rehabilitation of sick units, it has been decided to empower Settlement Commission in Department of Revenue to decide such cases also with effect from 01.04.2005. However, in cases where the matter is under the purv .....

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Chapter 2 - General Provisions Regarding Imports and Exports - Foreign Trade Policy, 2023

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..... 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 calibre 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 material including spare parts; (ii) all arms and related material, including small arms and light weapons and their related material; (iii) all items, materials, equipment, goods and technology as set out in the United Nations Security Council (UNSC) 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 .....

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Chapter 2 - General Provisions Regarding Imports and Exports - Foreign Trade Policy, 2023

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..... ls; (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, mollusks, and other aquatic invertebrates in all forms). This measure is subject to the exemptions, clarifications and procedures set out in paragraph 9 of Resolution 2371(2017) and paragraph 6 of Resolution 2397 (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); (viii) food and agricultural products [Chapters 12, 08, 07 of ITC(HS)], machinery [Chapter 84 of ITC(HS)], electrical equipment [Chapter 85 of ITC(HS)], earth and stone including magnesite and magnesia [Chapter 25 of ITC(HS)], wood [Chapter 44 of ITC(HS)], and vessels [Chapter 89 of ITC(HS)].These measures are subject to the procedures set out in paragraph 6 of Resolution 2397(2017). Explanation a) UNSC means the United Nations Security Council; b) IAEA means the I .....

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Chapter 2 - General Provisions Regarding Imports and Exports - Foreign Trade Policy, 2023

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