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GENERAL PROVISIONS REGARDING IMPORTS AND EXPORTS

Chapter 2 - Policy - Foreign Trade Policy - DGFT - Chapter 2 - CHAPTER 2 2.00 Objective The general provisions governing import and export of goods and services are dealt with in this chapter. 2.01 Exports and Imports - Free , unless regulated (a) Exports and Imports shall be Free except when regulated by way of prohibition , restriction or exclusive trading through State Trading Enterprises (STEs) as laid down in Indian Trade Classification (Harmonised System) [ITC (HS)] of Exports and Imports. .....

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at 2/4/6/8 digits. (b) ITC (HS) is aligned at 6 digit level 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 which may be viewed by clicking on Downloads at http://dgft.gov.in. (c) The import/export policies for all goods are indicated against each item in ITC (HS). Schedule 1 of ITC (HS) lays down the Import Policy regime while Schedule 2 of ITC .....

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nless specifically exempted. (b) However, goods to be utilized/ consumed in manufacture of export products, as notified by DGFT, may be exempted from domestic standards/quality specifications. 2.04 Authority to specify Procedures DGFT may specify procedure to be followed by an exporter or importer or by any licensing/Regional Authority (RA) or by any other authority for purposes of implementing provisions of FT (D&R) Act, the Rules and the Orders made there under and FTP. Such procedure, or .....

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vely, an application for e-IEC may be filed online in ANF 2A, in accordance with Para 2.08 of Handbook of Procedure on payment of application fee of ₹ 500/-, to be paid online through net banking or credit/debit card (to be operationalised shortly). Documents/ details required to be uploaded/ submitted along with the application form are listed in the Application Form (ANF 2A). (b) When an e-IEC is approved by the competent authority, applicant is informed through e-mail that a computer ge .....

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oprietorship firms); (3) Cancelled cheque bearing entity s pre-printed name or Bank certificate in prescribed format ANF-2A(I)] 7[(d) Only online application for IEC /modification in IEC can be made by applicants through digital signature (Class-II or Class-III) with effect from 1.4.2016.] (e) Detailed guidelines for applying for e-IEC are available at . (II) No Export/Import without IEC: (i) No export or import shall be made by any p .....

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r 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 (b) Mandatory documents required for import of goods into India 1. Bill of Lading / Airway Bill / Lorry Receipt / Railway Receipt / Postal Receipt. 2. Commercial Invoice cum Packing List* 3. Bill of Entry [Note:* (i) As per CBEC Circular No. 01/15-Customs dated 12/01/2015. (ii) Separate Commercial Invoice and Pack .....

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sure legal compliance. (e) The above stipulations are effective from 1st April, 2015.] 2.07 Principles of Restrictions DGFT may, through a Notification, impose restrictions on export and import, necessary for: - (a) Protection of public morals; (b) Protection of human, animal or plant life or health; (c) Protection of patents, trademarks and copyrights, and the prevention of deceptive practices; (d) Prevention of use of prison labour; (e) Protection of national treasures of artistic, historic or .....

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Notice issued in this regard. 2.09 Export of SCOMET Items Export of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET), as indicated in Appendix-3 of Schedule 2 of ITC(HS) Classification of Export & Import Items, shall be governed by the specific provisions of (i) Chapter IV A of the FT(D&R) Act, 1992 as amended from time to time (ii) Sl. No. 4 & 5 of Table A and Appendix-3 of Schedule 2 of ITC(HS) Classification of Export & Import Items (iii) Para 2.16, .....

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orisation Every Authorisation shall, inter alia, include following terms and conditions (as applicable), 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 9); (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 .....

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items traded through STEs. 2.14 Authorisation - not a Right No person can claim an Authorisation as a right and DGFT or RA shall have power to refuse to grant or renew the same in accordance with provisions of FT (D&R) Act, Rules made there under and FTP. 2.15 Penal action and placing of an entity in Denied Entity List (DEL) (a) If an Authorisation holder violates any condition of such Authorisation or fails to fulfill export obligation, or fails to deposit the requisite amount within the p .....

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particulars. Any information / particulars subsequently found untrue/ incorrect will be liable for action under FTDR Act, 1992 and Rules therein in addition to penal action under any other Act/Order. (c) A firm may be placed under Denied Entity List (DEL), by the concerned RA, under the provision of Rule 7 of Foreign Trade (Regulation) Rules, 1993. On issuance of such an order, for reasons to be recorded in writing, a firm may be refused grant or renewal of a license, certificate, scrip or any i .....

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port Obligation/ pays penalty/ fulfills requirement of Demand Notice(s) issued by the RA/submits documents required by the RA. 4[Prohibitions (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 materia .....

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tm), trade in oil and refined oil products, modular refineries and related materials, besides items of cultural (including antiquities), scientific and religious importance is prohibited with the Islamic State in Iraq and the Levant [ISIL], Al Nusrah Front [ANF] and other individuals, groups, undertakings and entities associated, directly or indirectly, with Al Qaida.] 9[2.17 Prohibition on Direct or Indirect Import and Export from/to Democratic People's Republic of Korea A. Direct or indire .....

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54/Rev.9/Part 2; g) S/2014/253; h) S/2016/308; i) S/RES/2321(2016) and j) Any other item as determined by Central Government, which could contribute to DPRK's nuclear-related, ballistic missile-related or other weapons of mass destruction related programmes; (ii) 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 o .....

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osene-type rocket fuel subject to the provisions of Paragraph 31 of UNSC Resolution 2270 (2016) and paragraph 20 of UNSC Resolution 2321 (2016); and (iii) New helicopters and vessels, except as approved in advance by the Committee on a case-by-case basis. C. Direct or indirect import of following items, whether or not originating in Democratic people's Republic of Korea (DPRK), from DPRK is 'Prohibited': (i) Coal, iron, and iron ore, subject to the provisions of Paragraph 26 of UNSC .....

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lution 1718 (2006)and Paragraph 39 of 2321(2016).] 8[2.18 Direct or Indirect Export/import to/from Iran (a) Direct or indirect export to Iran or import from Iran of any item, material, equipment, goods or technology mentioned in the following documents would be permitted subject to the provisions contained in Annex B to the United Nations Security Council Resolution 2231 (2015). i. Items listed in INFCIRC/254/Rev.9/Part I and INFCIRC/254/ Rev.7/Part 2 (IAEA Documents) as updated by the IAEA from .....

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coal has originated in Somalia [United Nations Security Council Resolution 2036 (2012)]. Importers of charcoal shall submit a declaration to Customs that the consignment has not originated in Somalia. Import / Export Through State Trading Enterprises: 2.20 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 gover .....

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ry 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 authorization to any other person to import or export any of the goods notified for exclusive trading through STEs. Trade with Specific Countries: 2.21 Trade with neighbouring Countries DGFT may issue instructions or frame schemes as may be required to promote trade and strengthen .....

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s as may be required, and anything contained in FTP, in so far as it is inconsistent with such instructions or schemes, shall not apply. Import of Specific Categories of Goods: 2.24 Import of Samples Import of samples shall be governed by para 2.65 of Handbook of Procedures. 2.25 Import of Gifts Import of gifts shall be free where such goods are otherwise freely importable under ITC (HS). In other cases, such imports shall be permitted against an authorisation issued by DGFT. 2.26 Passenger Bagg .....

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export, as part of their passenger baggage without an Authorisation. 2.27 Re - import of goods repaired abroad Capital goods, equipments, components, parts and accessories, whether imported or indigenous, except those restricted under ITC (HS) may be sent abroad for repairs, testing, quality improvement or upgradation or standardization of technology and re-imported without an Authorisation. 2.28 Import of goods used in projects abroad Project contractors after completion of projects abroad, may .....

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a self- declaration to that effect, to satisfaction of customs authorities 2.30 Import through courier service Imports through a registered courier service are permitted as per Notifications issued by DoR. However, importability / exportability of such items shall be regulated in accordance with this FTP/ ITC(HS). Import Policy for Second Hand Goods : 2.31 Second Hand Goods S. No. Categories of Second Hand Goods Import Policy Conditions, if any I Second Hand Capital Goods (a) i. Personal compute .....

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above} Free II Second Hand Goods other than capital goods Restricted Importable against Authorization Import Policy for Metallic Waste and Scraps : 2. 32 Import of Metallic waste and Scrap (a) 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 types of arms, ammunition, mines, shells, live or used cartridge or any other explosive material in any fo .....

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r processing activity, without an authorization, on payment of applicable Customs Duty. Other Provisions Related to Imports: 2.34 Import under Lease Financing No specific permission of RA is required for 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 prescribe .....

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us waste and chemicals and warehouse them in such bonded warehouses. (b) Such goods may be cleared for home consumption in accordance 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) If such goods are not cleared for home consumption within a period of one year or such extended period as the customs authorities may permit, importer of such goods shall re-export the goods. 2.37 Special provisi .....

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ee Exports All goods may be exported without any restriction except to the extent that such exports are regulated by ITC (HS) or any other provision of FTP or any other law for the time being in force. DGFT may, however, specify through a public notice such terms and conditions according to which any goods, not included in ITC (HS), may be exported without an Authorisation. 2.40 Exemption / Remission of Service Tax in DTA on goods & services exported For all goods and services which are expo .....

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Shipping Bill / Bill of Export/ Airway Bill. 2.42 Third Party Exports Third party exports (except Deemed Export) as defined in Chapter 9 shall be allowed under FTP. In such cases, export documents such as shipping bills shall indicate name of both manufacturing exporter/manufacturer and third party exporter(s). Bank Realisation Certificate (BRC), export order and invoice should be in the name of third party exporter. Exports of Specific Categories 2.43 Export of Samples Export of Samples and Fre .....

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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. (b) Samples of such items that are otherwise freely exportable under FTP may also be exported as part of passenger baggage without .....

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lusive trading through State Trading Enterprises or any conditionality/ requirement as may be required under Schedule 2 - Export Policy of the ITC (HS); (iii) Export is against freely Convertible currency. (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 Customs Authority. II. (a) Goods imported against payment in freely convertibl .....

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Chapter-90 of ITC(HS) will not be subject to minimum value addition requirement for export to Iran. Exports of these items to Iran shall, however, be subject to all other conditions of FTP 2015-20 and ITC (HS) 2012, 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. 3[(d) Exports under this dispensation, as at II (a), (b) and (c) above shall not be eligible for any export incentives. .....

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ement goods are not mentioned as restricted items for exports in ITC (HS). 2.49 Export of Repaired Goods (i) 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 re-export. Such goods shall be allowed clearance without an Authorisation and in accordance with customs notification. (ii) However, re-export of such defective parts/spares by the Companies/firms and Original Equipme .....

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(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 warehouses shall be entitled to procure goods from domestic manufacturers without payment of duty. Supplies made by a domestic supplier to such notified warehouses shall be treated as physical exports provided payments are made in free foreign exchange. Payments and Receipts on Imports / Exports 2.52 Denomination of Export Contracts (a) .....

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t must be against payment in free foreign currency by buyer in his non-resident bank account. Free foreign exchange remitted by buyer to his non-resident bank (after deducting bank service charges) on account of this transaction would be taken as export realization under export promotion schemes of FTP. (c) Contracts (for which payments are received through Asian Clearing Union (ACU) shall be denominated in ACU Dollar. Central Government may relax provisions of this paragraph in appropriate case .....

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ible currency. 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 there under and FTP. (b) In case an Exporter is unable to realise the export proceeds for reasons beyond his control (force- .....

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rganizations 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 AANF. (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 2.92 of the Handbook o .....

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(CRES) issued by Spices Board shall be treated as Registration-Cum-Membership Certificate (RCMC) for the purposes under this Policy. Policy Interpretation and Relaxations: 2.57 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 .....

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xation or relief, as he may deem fit and proper, on grounds of genuine hardship and adverse impact on trade to any person or class or category of persons from any provision of FTP or any procedure. While granting such exemption, DGFT may impose such conditions as he may deem fit after consulting the Committees as under: Sl. No. Description Committee (a) Fixation / modification of product norms under all schemes Norms Committees (b) Nexus with Capital Goods (CG) and benefits under EPCG Schemes EP .....

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resort to redress grievances of Importers/ Exporters, DGFT may provide an opportunity for Personal Hearing (PH) before PRC. For such PH, a specific request along with the prescribed application fee as per Appendix-2K has to be made to DG, if following conditions are satisfied: (i) If an importer/exporter is aggrieved by any decision taken by Policy Relaxation Committee (PRC), or a decision/order by any authority in the Directorate General of Foreign Trade and (ii) A request for review before th .....

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FT (D&R) Act, 1992, as amended from time to time. 2.60 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 Central Board of Excise and Customs to decide such cases also with effect from 01.04.2005. Self Cert .....

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ith 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 Entrepreneurial s Memorandum (IEM) / Indus .....

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orms and will come into effect only when India incorporates the scheme into a specific agreement with its partner/s and the same is appropriately notified by DGFT. - Notes:- 1. Substituted vide Not. 08/2015-2020 - Dated 4-6-2015 w.e.f. 1st April 2015 "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 2. Commercial Invoice cum Packing List* 3. Shipping Bill/Bill of Export (b) Mand .....

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oncerned 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. (e) The above stipulations are effective from 1st April, 2015." 2. Substituted vide Not. 08/2015-2020 - Dated 4-6-2015 w.e.f. 1st April 2015 "2.11 Terms and Conditions of an Authorisation Every Authorisation shall, .....

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t. 08/2015-2020 - Dated 4-6-2015 w.e.f. 1st April 2015 "(d) Exports under this dispensation, as at II(b) and (c) above shall not be eligible for any export incentives." 4. Substituted vide Not. 14/2015-2020 - Dated 30-6-2015, before it was read as, "Prohibitions (Country and Product Specific)" 5. Inserted vide Not. 14/2015-2020 - Dated 30-6-2015, 6. Substituted vide Not. 34/2015-2020 - Dated 29-1-2016, before it was read as, "(c) Briefly, following are the requisite deta .....

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prescribed format ANF2A(I). (ii) Details of the Proprietor/ Partners/ Directors/ Secretary or Chief Executive of the Society/ Managing Trustee of the entity: (1) PAN (for all categories) (2) DIN/DPIN (in case of Company /LLP firm) (iii) Details of the signatory applicant: (1) Identity proof (2) PAN (3) Digital photograph" 7. Substituted vide Not. 34/2015-2020 - Dated 29-1-2016 before it was read as, "(d) In case the applicant has digital signature, the application can also be submitted .....

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