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DUTY EXEMPTION / REMISSION SCHEME

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..... ion of norms, then only such documents may be submitted in physical form to the concerned Norms Committee in DGFT headquarters. 4.03 Applicant details Where applicant is a branch office or a manufacturing unit, name of branch office or manufacturing unit should appear in electronic RCMC and in IEC of the applicant. 4.04 Advance Authorisation Applicant shall file application online in ANF 4A. Same form is applicable where Standard Input Output Norms (SION) have been notified or on the basis of adhoc norms or on self declaration basis as per paragraph 4.07 of Hand Book of Procedures. 4.05 Advance Authorisation for items which are otherwise prohibited for export (i) Items covered under Chapter 7 and Chapter 15 of ITC (HS) Schedule 2, which are prohibited for export, may be allowed to be exported under the advance authorization scheme. Export shall be allowed subject to pre-import condition under notified SION/prior fixation of norms by Norms Committee in terms of paragraph 4.06 of Hand Book of Procedures. Import and Export would be permitted only through EDI enabled ports. (ii) The Export obligation period (EOP) of advance authorizations issued for such item .....

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..... Email addresses for communication with respective Norms Committee NC-1 81 to 84, 86 to 93 nc1.dgft@nic.in NC-2 72 to 76, 78 to 80, 85 nc2.dgft@nic.in NC-3 29, 30 nc3.dgft@nic.in NC-4 27, 28, 31 to 38, 44 to 49, 68 to 71 nc4.dgft@nic.in NC-5 41 to 43, 50 to 67 nc5.dgft@nic.in NC-6 1 to 26, 94 to 98 nc6.dgft@nic.in NC-7 39, 40 nc7.dgft@nic.in (ii) An applicant shall indicate a valid email address for communication purpose and to ensure that this email address is active. (iii) The decisions of Norms Committees shall be available on the website of DGFT (http://dgft.gov.in) periodically and the applicants shall update themselves the status of norms fixation in respect of Authorisation obtained by them. (iv) Exporters / EPC shall provide data to the Norms Committee concerned for the fix .....

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..... e from Chartered Engineer in Appendix-4K. For issuance of such a certificate, the Chartered Engineer shall act only in the domain of his/her competence. (ii) General Notes given in the book titled Standard Input Output Norms including policy for packing material and fuel shall also be applicable to this scheme in so far as they are not inconsistent with this scheme. (iii) The applicant shall apply for inputs with specific descriptions along with 8 digit ITC (HS) Classification. Where ever the export product and/or inputs are given in brand names, the correct chemical /technical name shall also be given in the application. (iv) RA may issue Advance authorisation as applied for subject to the conditions specified in FTP and Handbook of Procedures (2015-20) . Input Output Norms as applied and wastage claimed by the applicant shall be treated as final. Ratification of the same by NC is not required. (v) Applicant or his supporting manufacturer/co-licensee shall maintain a proper account of consumption and utilization of duty free imported / domestically procured inputs against each authorisation, as prescribed in Appendix-4H . Application for EODC shall be .....

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..... n shall also be simultaneously endorsed by applicant to (a) Drug Controller of India, Nirman Bhawan, New Delhi, (b) Narcotics Commissioner, Central Bureau of Narcotics, Gwalior (c) respective Zonal Director of Narcotics Control Bureau. The applicant should declare that they would maintain prescribed records / documents and also submit prescribed returns to the relevant authorities, within time as prescribed by law from time to time. (ii) Regional Authority shall endorse a copy of such Advance Authorisation to the above three agencies. Regional Authority shall also endorse a condition that before effecting imports, No Objection Certificate shall be obtained from Drug Controller and Narcotics Commissioner of India. 4.09 Cases requiring Sanitary Import Permit. (i) Where import of meat and meat products of any kind including fresh, chilled and frozen meat, tissue or organs of poultry, pig, sheep, goat; egg egg powder; milk milk products; bovine, ovine and caprine embryos, ova or semen; and pet food products of animal origin has been sought as an input under Advance Authorisation, the Regional Authority, while issuing Advance Authorisation shall endorse a condition that .....

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..... risations, subsequent to fixation of norms by Norms Committee, may be enhanced, if the Advance Authorisation was issued restricting the CIF value to maximum of value in sub-paragraph (i) (ii) above. (iv) In such cases Authorisations shall be issued by Regional Authority concerned under Adhoc Norms Fixed category and application copies need not be forwarded to NC for fixation / ratification of norms. Where the application has already been forwarded before the ratification of Norms, the Regional Authority shall finalise the case as per the norms subsequently ratified by NC in a similar case of the party. (v) Authorisation holder in such cases shall be entitled for further authorisation (s) as per norms ratified by Norms Committee without need for subsequent ratification by Norms Committee. In such cases the applicant would file application under Adhoc Norms Fixed category to the Regional Authority concerned. 16 [ (vi) Norms ratified by any Norms Committee (NC) in the O/o DGFT on or after 01.04.2015 in respect of any Advance authorization obtained under paragraph 4.07, shall-be valid for the entire period of the Foreign Trade Policy i.e. up to 39 [ 31.03.2023 ] o .....

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..... ved, together with interest as notified by DoR, on excess inputs as per norms fixed by NC. However, in case Norms Committee allows lower norms for one, more, or all inputs authorisation holder will have option to undertake additional EO in proportion to excess inputs. (ii) In case application is rejected by Norms Committee, authorization holder shall pay duty saved amount along with interest on inputs, as applicable as notified by DoR. In cases of domestically procured inputs, the amount to be paid shall be based on exemptions/refund availed on customs duty/taxes/cess by the domestic supplier. (iii) Applicant shall deposit amount as per paragraph 4.49(a)(ii) of HBP in case the inputs were not freely importable. This amount is in addition to the amounts in sub-paragraph (i) above. 4.16 Time limit for fixation of norms by Norms Committees (i) Deleted. (ii) In case application for fixation of adhoc norms / SION is rejected on ground of non-furnishing of required documents/ information to Norms Committee or technical authority represented in Norms Committee, authorisation holder shall be liable to pay customs duty with interest as notified by DoR and amount as per para .....

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..... Book of Procedures. Regional Authority shall cross verify the requirement of inputs as per the details given in the application and with Chartered Engineer Certificate accompanying the application and issue the authorization. Regional Authority shall not forward such application to Norms Committee and the inputs and export product so allowed by Regional Authority, shall be treated as input combinations permitted under NI Process. 4.20 Redemption of Authorisation issued under paragraph 4.18 HBP Provisions contained in paragraph 4.49 of Hand Book of Procedures, 2015-20, except sub-paragraph (f), shall be applicable. Regional Authority shall compare the details of Appendix 4-I, duly verified and certified by the jurisdictional Customs Authority, with that of the inputs made/allowed in the authorisation, before allowing redemption or Bondwaiver against individual advance authorization issued for pharmaceutical product(s) manufactured through NI process. As a result of the verification process, in case, it is found that the authorisation holder has consumed lesser quantity of inputs than imported, authorisation holder shall be liable to pay customs duty on unutilized imported ma .....

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..... to the concerned Norms Committee in DGFT headquarters. 4.24 Amendment of Export item and inputs (i) An application for amendment of an export item or input or quantity of input under SION or under ad-hoc Norms shall be filed online in ANF 4B. (ii) Applicant would give justification for seeking amendment and Regional Authority would consider it with specific approval of Head of Office. In case of any major change in input or request for more wastage to that allowed under SION or ad-hoc norm, same should be referred to Norms Committee for ratification. 4.25 Revision of SION by NC NC may identify SIONs which in its opinion are required to be reviewed. Exporters are required to submit revised data in ANF 4B for such revision. It is mandatory for industry / exporter(s) to provide production and consumption data etc. as may be required by DGFT / EPC for revision of SION. Otherwise, applicant shall not be allowed to take benefit of Advance Authorization scheme. 4.26 Description of an Advance Authorisation An Advance Authorisation shall, inter-alia, specify: (a) Names and description of items including specifications, where applicable, to be imported and expor .....

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..... for grant of Advance Authorisation or DFIA for Intermediate supply may be made on the basis of a tie-up arrangement with an ultimate exporter (physical / deemed) holding an Advance Authorisation or DFIA. Regional Authority concerned shall consider such requests. (b) Advance Authorisation or DFIA for Intermediate supply shall be issued after making Authorisation of ultimate exporter invalid for direct import of item, to be supplied by intermediate manufacturer. In such case, a copy of the invalidation letter will be given to ultimate exporter holding Authorisation and copy thereof will be sent to intermediate supplier as well as Regional Authority of intermediate supplier. Intermediate Authorisation holder in such case has an option either to supply intermediate product to the holder of Advance Authorisation (i.e ultimate exporter) or DFIA or to export (physical / deemed) directly. Intermediate supplier can also supply the product(s) directly to the port for export by the ultimate exporter (holder of Advance Authorisation or DFIA). In such cases, shipping bill shall be in the name of the ultimate exporter with the name of intermediate supplier endorsed on it. (c) Facility of A .....

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..... port before export is a condition for availing Advance Authorisation scheme and authorisation holder desires to have material processed through any other manufacturer or jobber. (b) Upon such endorsement made by Regional Authority, authorisation holder and co-authorisation holder shall jointly and severally be liable for completion of EO. Any one of co-authorisation holders may import goods in his name or in joint names. BG/LUT shall also be furnished in their joint names. (c) If authorisation holder is registered under GST Act, he has an option of getting names of jobber endorsed by jurisdictional Customs authority as per GST Rules in lieu of Regional Authority s endorsement. In case manufacturer exporter holding authorisation is not registered / not required to be registered under GST Act, job work may be allowed after endorsement of supporting manufacturer s name in the authorisation from RA concerned. However, authorisation holder shall be solely responsible for imported items and fulfilment of EO. 4.36 Acceptance of BG/LUT (a) Regional Authority concerned will endorse on the reverse of Advance Authorisation at the time of issue of authorisation about acceptance o .....

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..... , Kheda (Pithampur, District Dhar), Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Mallanpur, Mandideep (District Raisen), Merripalem, Guntur District(AP), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Patli (Gurgaon) Pondicherry, Raipur, Rewari, Rudrapur (Nainital), Salem, Singanalur, Surajpur, Surat, Talegoan (District Pune), Thudiyalur (Tamil Nadu), Tirupur, Todiarpet (TNPM), Tuticorin, Udaipur, Vadodara, Varanasi, Veerapandi (Tamil Nadu), Waluj (Aurangabad), Hosur (Tamil Nadu) and Nattakkam (Kottayam Taluk and District) LCS: Agartala, Amritsar Rail Cargo, Atari, Chengrabanda, Dawki, Ghojadanga, Hilly, Jogbani, Mahadipur, Nautanva (Sonauli), Nepalganj Road, Petrapole, Ranaghat, Raxaul, Singhabad, Sutarkhandi. SEZ: As notified by Central Government any SEZ can be a specified port for import and export. (b) Commissioner of Customs may permit imports and exports from any other seaport / airport / ICD or LCS. (c) For imports from Airport / Seaport / ICD / LCS other than port of registration, a TRA shall be issued by the customs authority at the port of registration to customs authority at port of import. How .....

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..... (xii) After clubbing, Authorisations shall for all purposes, be deemed to be one Authorisation. The value addition would be calculated on the basis of total CIF and total FOB arrived at after clubbing the Authorisations. (xiii) All cases clubbed, as per earlier provisions would not be reopened. (xiv) No clubbing shall be permitted in respect of Authorisations where misrepresentation / fraud have come to the notice of RA. Further, no clubbing of Authorisations, where EODC/redemption letter has already been issued or adjudication orders have already been passed by RA/Customs Authority, shall be permitted. (xv) Additional provisions for clubbing of Authorisations covered under Appendix 30A (issued under FTP 2009-14) / Appendix-4J (issued under FTP 2015-20 ) and Authorisations issued with EOP less than 18 months: (a) Export obligation period of clubbed Authorisations shall be reckoned from the date of earliest import in any of the Authorisations proposed to be clubbed. (b) Clubbing of such Authorisations shall be allowed provided all exports are completed within initial/extended Export Obligation period reckoned from date of earliest import in any of .....

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..... of issue of Authorisation. (b) Validity of Advance Authorisation for supplies under Chapter-7 of FTP shall be co-terminus with contracted duration of project execution or 12 months from the date of issue of Authorisation, whichever is later. 10 [ (c) (i) Regional Authority may consider a request of original Authorisation holder and grant one revalidation for six months from expiry date. Request(s) for revalidation of Authorisation shall be filed online in ANF 4D. (ii) Regional Authority may further consider a request of original Authorisation holder and grant second revalidation for six months from expiry date of the first revalidation for making imports proportionate to export obligation already fulfilled. Request(s) for revalidation of Authorisation shall be filed online in ANF 4D. ] (d) In case of revalidation of advance authorization issued prior to 27.8.2009 (FTP 2004-2009), it should be ensured that VA is maintained at 15% (and as per details mentioned in paragraph 4.09 of FTP) or as stipulated in the Advance Authorization, whichever is higher. However, for Advance Authorisations for products with VA as per Appendix 4D, the VA shall be as per the VA stated i .....

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..... reunder: CIF VALUE OF ADVANCE AUTHORIZATION COMPOSITION FEE TO BE LEVIED (IN ₹) Up to ₹2 Crores 5,000 More than ₹2 Crores to ₹10 Crores 10,000 Above ₹10 Crores 15,000 Authorisation holder will have to submit a self -declaration to RA stating that unutilized imported/domestically procured inputs are available with the applicant. ] 43 [ (f) Request for further extension of six months after first extension as in (e) above can be considered by Regional Authority, subject to the payment of composition fee as prescribed hereunder: CIF VALUE OF ADVANCE AUTHORIZATION COMPOSITION FEE TO BE LEVIED (IN ₹) Up to ₹2 Crores 10,000 More than ₹2 Crores to ₹10 Crores 20,000 Above ₹10 Crores 30,000 No further extension shall be allowed by Reg .....

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..... his para (4.42 (d),(e),(f)) would remain available for these authorizations as per eligibility. c. In cases where Advance Authorisation Holder has already obtained EO extension upon the payment of composition fee, the refund of the composition fee will not be permitted. ] [ (k) For implementation of all PRC decisions involving levy of Composition Fee while allowing extension in EOP and/or regularisation of exports already made, the applicable Composition Fee shall be as prescribed hereunder: CIF VALUE OF ADVANCE AUTHORIZATION (AA) LICENSES ISSUED COMPOSITION FEE TO BE LEVIED (IN ₹) Up to ₹2 Crores 25,000 More than ₹2 Crores to ₹10 Crores 50,000 Above ₹10 Crores 1,00,000 No refund of earlier paid Composition Fee shall be admissible. ] 4.43 Provisional clearance of export consignment Customs may allow provisional clearance of export consignment as and when Authorisation holder produces documentary evidence of having applied for Export Obligation extensio .....

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..... initiate penal action as per law including refusal of further authorization to the defaulting exporter. 30 [ (g) For all Advance Authorisations, where Export Obligation period is expiring/ has expired between 01.02.2020 and 31.10.2020, as a one-time temporary measure, date of submission of documents for EO fulfilment is extended up to 31.12.2020. ] 4.45 Advance Authorisation for Annual Requirement (a) Exporters eligible for such Authorisations shall file online application in ANF 4A to Regional Authority concerned. All provisions applicable to Advance Authorisation given above would apply except the following: (i) Authorisation holder shall have flexibility to export any product falling under export product group using duty exempted material. (ii) Within eligible entitlement, an exporter may apply for one or more than one authorisation in a licensing year, subject to the condition that against one Port of registration, not more than five authorisations can be issued for same product group. One time enhancement / reduction of the authorisation shall be available. (iii) On completion of EO against one or more authorisations, all issued in same licensing year, e .....

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..... g Shipping Bills and e-BRC. Scanned copy of other documents as prescribed in the ANF 4F shall also be uploaded. In case of deemed exports or export from non-EDI ports, the documents evidencing proof of export/supply shall be submitted at the counter of Regional Authority concerned giving reference of online application in physical form except eBRC. (ii) Deleted. (iii) In case EO has been fulfilled, Regional Authority shall issue Bond Waiver Certificate (BWC) and forward a copy to the Customs authority at the port of registration of Authorisation enclosing details of shipping bill number(s), date(s), FOB value in Indian Rupees as per shipping bill(s) and description of export products in respect of shipment taken into account for allowing waiver of Bond condition. Such bond waiver shall not preclude the Customs Authority from taking bond in terms of the Customs notification. (iv) While allowing waiver of Bond for such exports, Regional Authority may revalidate the Authorisation in continuation for further six months for replenishment of inputs consumed in the production of exported product, from the date of endorsement provided applicant has made a specific request in ANF 4 .....

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..... d upto 26.08.2009 (a) Advance Licences including Advance Licence for Annual Requirement issued up to 26.08.2009 shall be governed by provisions contained in Chapter-7 of HBP v1(RE-2001), Chapter 4 of HBP v1 (2002-2007) as Notified on 31.3.2002, Chapter 4 of HBP v1 (2004-2009) as notified on 31.8.2004 , and Chapter 4 of HBP v1 (2009-14) as notified on 27.08.2009 respectively as amended from time to time, excepting provisions relating to clubbing and extension in E.O. period which shall be governed by provisions of paragraphs 4.38 and 4.42 (e) respectively and any other provision, as notified by DGFT. (b) Wherever Customs duty is to be paid on unutilised material, same shall be paid along with interest thereon as notified by DoR. 4.49 Regularisation of Bona fide Default Cases of bona fide default in fulfilment of EO may be regularised by Regional Authority as under: (a) If EO is fulfilled in terms of value, but there is a shortfall in terms of quantity, the Authorisation holder shall, for regularisation, pay: (i) To customs authorities, customs duty on unutilized value of imported / indigenously procured material along with interest as notified by DoR. Exporter w .....

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..... onsumed lesser quantity of inputs than imported, Authorisation holder shall be liable to pay customs duty on unutilized value of imported material, along with interest thereon as notified, or affect additional export within the EO period. (g) Regularization of Bona fide default in the cases where Authorisation was issued for import of drugs from unregistered sources with pre import condition. Import of drugs from unregistered sources issued with pre import condition shall be regularised in the following manner: 15 [ The Authorisation holder shall submit documents showing consumption of full imported quantity as per norms. In case, there is shortfall in fulfilment of EO and unutilised imported quantity remains with the authorisation holder, the Authorisation holder shall submit a selfdeclaration along with Chartered Accountant's certificate regarding destruction of the unutilised duty free imported material accompanied by an affidavit-cum-indemnity bond indemnifying the Government for any harm or loss occurring due to diversion of such imported material from unregistered sources into the domestic market that may be detected in future by any authority , or proof o .....

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..... may direct licence holders to pay balance amount of customs duty after informing the reasons of the difference in the liability worked out by Authorisation holder and the calculations by Regional Authority. In such case, the balance amount of duty and interest, if any shall be paid by Authorisation holder within 30 days, for regularization of the matter. (e) The interest shall be paid in cash through TR Challan 006 at the rate applicable on the date of payment of delayed duty amount to the Customs Authority. (f) On receipt of said documentary evidence from Authorisation holder, Regional Authority shall redeem the case, shall endorse details of duty paid on the EODC/Redemption Letter and inform details of recovery/ deposits made to the Customs Authority at the port of registration or the Commissioner of Customs having jurisdiction over the factory of the Authorisation holder, as the case may be. (g) Payment of duty, interest and any dues for regularisation shall, however, be without prejudice to any other action that may be taken by Customs Authorities at any stage under Customs Act, 1962. 4.51 Maintenance of Proper Accounts 33 [ Every Advance Authorisation hold .....

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..... (e) 4.49 (f) and 4.52 of this Handbook of Procedures shall also be applicable for DFIA Scheme. (c) After completion of exports and realization of proceeds, request for issuance of transferable Duty Free Import Authorisation may be made to concerned Regional Authority within a period of twelve months from the date of export or six months (or additional time allowed by RBI for realization) from the date of realization of export proceeds, whichever is later. 3 [(d) Late cut provisions given in para 9.02 of Hand Book of Procedures are also applicable for DFIA. However, in respect of export of raw sugar under SION E52, 12 months relaxation is provided for imposition of late cut.] 4.55 Facility for Split DFIA Split Authorisations of DFIA subject to a minimum of CIF value of ₹ 10 lakh each and multiples thereof may also be issued, on request at the time of seeking transferability. A fee of ₹ 1000/- each shall be paid for each split authorization. Split-up DFIAs shall be permitted with the same port of registration as appearing on the original DFIA. 4.56 Re-export of goods imported under DFIA Scheme (i) Goods imported against transferable DFIA, which .....

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..... the month in which the export has been made in case of advance payment and the month in which export proceeds have been realised in part or full after making of exports, shall be excluded while calculating period of six months for filing of application for REP Authorisation. 22 [ (f) For the Replenishment Authorisation applications where the last date of filing the application falls between 01.02.2020 and 31.07.2020, the last date stands extended by six months. ] 4.60 Wastage Norms Maximum wastage or manufacturing loss on gold/silver/ platinum jewellery and articles thereof is as follows: Sl.No. Items of export Percentage of wastage by weight with reference to Gold/ Platinum / Silver content in export item Gold / platinum Silver a) Plain jewellery, articles, and ornaments like Mangalsutra containing gold and black beads /imitation stones, cubic zirconia diamonds, precious, semi-precious stones. 2.5% 3.2% b) Studded jewellery and articles thereof 5.0% 5.0% .....

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..... ded) 14% in case of gold religious idols studded with colour gem stones, 15% in case of gold religious idols studded with diamonds ] 4.62 Entitlement Entitlement of quantity of gold / silver / platinum against the export of articles made out of these metals shall be quantity of gold / silver / platinum in item of export plus admissible wastage / manufacturing loss. In the case of Studded Jewellery, the calculation of the quantum of precious metal shall be done excluding the weight of studding. 4.63 Loss of Gem and Jewellery in transit Consignments of gem and jewellery items exported out of country and lost in transit after exports, where foreign exchange against such exports has been realised or insurance claims settled, will also be eligible for REP Authorisation. 4.64 Gem Jewellery Replenishment Authorisations (a) Gem REP Authorisations shall be valid for import of precious stones, semi-precious and synthetic stones and pearls used in export of Gems and Jewellery products. In addition, Authorisation shall also be valid for import of empty jewellery boxes up to 5% of value of Authorisation within its overall CIF value. Gem REP A .....

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..... al carriage of jewellery by foreign buyer, following documents should be submitted by the exporter/seller as proof of exports for claiming export entitlements: (i) Copy of shipping bill filed by Indian Seller; (ii) copy of Currency Declaration Form filed by Foreign Buyer with Customs at the time of his arrival; and (iii) Foreign Exchange Encashment Certificate from Bank. (c) In addition to this, Personal Carriage on Documents Against Acceptance (DA)/ Cash On Delivery (COD) basis is also allowed. Exporter will have to furnish following documents as proof of exports for claiming export entitlements: (i) Copy of Shipping Bill filed by Indian Seller; and (ii) Bank Certificate / e-BRC of Export and Realisation. (d) Instructions issued by Customs Department in this regard should be followed mutatis mutandis. 4.69 Conversion of Purity/Fineness For conversion of quantity of gold/ silver/platinum in terms of equivalent quantity in terms of fineness, following formula shall be used: (i) Where items of gold has been exported in terms of carats, quantity of gold shall be multiplied by number of carat of gold exported, divided by 24 and thereafter again divi .....

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..... es for export/supplies as prescribed under GST rules. 4.74 Export of Cut Polished Diamonds for Certification/ Grading Re- import Following are authorized laboratories for certification / grading of diamonds of 0.25 carat and above : (1) International Gemological Institute (IG) Hong Kong. (2) American Gem Society Laboratories (AGS Laboratories),8917 West Sahara Avenue, Las Vegas, Nevada 89117; (3) Central Gem Laboratory, Miyagi Building, 5-15-14 Ueno TaitoKu, Tokyo, Japan; (4) Diamond Trading Company, Maidenhead, UK; (5) European Gemological Laboratory (EGL), USA; (6) Gemological Institute of America (GIA), USA; (7) Hoge Road Voor Diamond, Antwerp, (HRD); (8) International Diamond Laboratories DMCC, Dubai. (9) The Robert Mouawad Campus, International Gemological Institute (IGI) USA; (10) World Diamond Centre of Diamonds High Council, Antwerp, Belgium. (11) GIA Hong Kong Laboratory Ltd., Hong Kong; (12) Gemological Research (Thailand) Co. Ltd., Bangkok; (13) GIA Education and Laboratory (Pvt) Ltd., Johannesburg; (14) GIA Education and Laboratory, Goborone (Botswana); (15) Forevermark NV, Antwerp, Belgium; (16) International G .....

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..... , technical manpower as well as other infrastructure required for the Laboratory, to function as Authorised Laboratory for certification/ grading of diamonds of 0.25 carat and above. Based on the Inspection Report and recommendations of the GJEPC, the concerned laboratory would be considered for inclusion in paragraph 4.42 or 4.43 of FTP as the case may be. 4.77 Export Against Supply By Foreign Buyer (a) Before clearance of each consignment of import supplied by foreign buyer, Nominated Agency / Status Holder having Nominated Agency Certificate/Eligible Exporter shall execute a bond with Customs, undertaking to export within stipulated period in contract, gold/silver/platinum jewellery or articles equivalent to entire import quantity of gold/silver/platinum, mountings and findings etc excluding admissible wastage. (b) In case of direct supply of gold/silver/platinum, alloys, findings and mountings of gold/silver/platinum and plain semi-finished gold/silver/platinum jewellery to status holder/ exporter, Status Holder/exporter shall furnish a Bank Guarantee/LUT, as per Customs Rules and regulations to Customs equivalent to Basic Customs Duty leviable on imported gold/ silv .....

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..... ed Agency/ Status Holder having Nominated Agency Certificate / exporter concerned is situated. It shall be valid for shipment for a period of seven days including the date on which endorsement was made by nominated agency in case of exports through nominated agency. If exports cannot be made within this period, exporter shall file a fresh shipping bill. (e) At the time of export, exporter shall submit following documents: (i) Shipping bill with two extra copies where exports are made from a Customs House other than Customs House through which corresponding import of gold/silver/platinum/plain semi-finished gold/silver/ platinum jewellery was effected. In other cases, shipping bill with an extra copy; (ii) Three copies of tax invoices for export/supplies as prescribed under GST rules ; (iii) Certificate from nominated agency indicating quantity and value of items supplied by foreign buyer. (f) Customs authorities shall return two copies of shipping bill and connected invoice duly attested. One copy shall be sent to person who presented documents and the other copy shall be sent by Customs to office of nominated agency/Status holder/ exporter. (g) In case of exports .....

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..... olding/participating in overseas exhibition. (a) Items not sold abroad shall be re- imported within 60 days of close of exhibition. However in case exporter is participating in more than one exhibition within 45 days of close of first exhibition, then 60 days shall be counted from date of close of last exhibition. In case of exhibition in USA, the time period shall be 90 days instead of 60 days mentioned above. In case of personal carriage of gems and jewellery for holding / participating in overseas exhibitions, value of such gems and jewellery shall not exceed US $ 5 million. Gold/ silver/ platinum content on items sold in such exhibitions may be imported as replenishment. (b) Exporter shall take replenishment from nominated agency within 120 days from the close of the exhibition gold /silver / platinum for replenishment content against items sold abroad in exhibition. (D) Personal Carriage of gems jewellery or export through airfreight/post parcel route for Export Promotion Tours/photo shoots/fashion shows overseas. Personal carriage/export through airfreight/post parcel route of gold/silver/ platinum jewellery, cut and polished diamonds, precious, semi-precious stone .....

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..... triation of sale proceeds period would be equal to the period allowed plus six months, or as subject to RBI guidelines, whichever is less. ] 4.81 Export against supply by Nominated Agencies Exporter may obtain gold/silver/ platinum on following basis: (i) Replenishment basis after completion of exports; (ii) Outright purchase basis in advance; (iii) Loan basis. 4.82 Replenishment Basis (a) Exporter may apply to Nominated Agency / Status Holder having Nominated Agency Certificate for booking of precious metal gold/silver/platinum. Quantity of precious metal booked with nominated agency shall be equivalent to precious metal content in the export product and admissible wastage. (b) Applicant shall at the time of booking deposit an earnest money for a minimum amount of 20% of notional price of precious metal, which shall be adjusted at actual sale. (c) Exporter may also export jewellery on a notional rate based on certificate provided by Bank. Exporter must fix price within credit terms allowed to buyer and realise proceeds within the due date of the credit terms or 180 days, whichever is earlier. Exporter exporting on a notional basis under Replenishm .....

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..... d of 90 days from date of release of gold on loan basis. No extension for fulfilment of EO shall be allowed. (d) (i) Exporter shall be permitted to export jewellery on the basis of a notional rate certificate to be issued by nominated agency / GJEPC. This rate will be based on prevailing Gold/US$ rate and the US$/INR rate in notional rate certificate. Certificate issued by nominated agency/GJEPC should not be older than 7 working days of date of shipment. (ii) VA will have to be achieved on rate as may be got fixed with buyer and Nominated Agency. (iii) Exporter shall have flexibility to fix the price and repay Gold Loan within 180 days from date of export. This price shall be communicated to nominated agencies who will issue a certificate showing final confirmation of the rate to the bank negotiating documents, to ensure export proceeds are realized at this rate. (e) Nominated agencies may accept payment in dollars towards cost of import of precious metal from EEFC account of exporter. 4.85 Exports against Advance Authorisation (a) Procedure applicable to Advance Authorisations under Chapter 4 of Hand Book of Procedures shall generally apply to this scheme exce .....

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..... ons as given in paragraph 4.49 above shall apply. This shall be without prejudice to any action that may be taken against exporter under FT(D R) Act, Order or Rules Issued hereunder as amended from time to time. 4.87 Replenishment Authorisation for Import of Consumables etc. Application for import of consumables etc., as given in paragraph 4.36 of FTP shall be filed online to the concerned Regional Authority in ANF 4H. 4.88 Personal Carriage of Gems Jewellery Export Parcels (a) Personal Carriage of gems jewellery parcels by Foreign Bound Passengers from all EOU/SEZ units and all firms in DTA through Airports in Delhi, Mumbai, Kolkata, Chennai, Kochi, Coimbatore, Bangalore, Hyderabad, Jaipur is permitted. Procedure for Personal Carriage of exports shall be as prescribed by Customs. Export proceeds shall, however, be realised through normal banking channel. (b) For claiming Replenishment in case of Personal Carriage of Exports by Foreign Bound passenger, documents shall be same as mentioned under paragraph 4.82(c) above. Authorised Courier Companies are also permitted to operate on the above lines. 4.89 Personal Carriage of Gems Jewellery Import Parcels .....

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..... ) Every Nominated Agency is required to maintain records of imports of precious metal (both quantity and value) and its distribution for the purpose of exports of value added product as well as for the purpose of domestic consumption as per the format given in Appendix 4-M of Hand Book of Procedures. Nominated Agencies will also have to follow the guidelines/ rules/procedures /directions as prescribed by RBI and DGFT. Failure to comply will render Nominated Agency Certificate liable to be cancelled in addition to action under FT (DR) Act 1992, as amended, after affording opportunity of personal hearing. (ii) Monitoring by Gems Jewellery Export Promotion Council: Monitoring in respect of Nominated Agencies MMTC Ltd, Handicraft and Handlooms Exports Corporation Ltd, The State Trading Corporation Ltd, PEC Ltd, STCL Ltd, MSTC Ltd, Diamond India Limited will be by Gems Jewellery Export Promotion Council (G J EPC). Nominated Agencies shall file half yearly return as per format given in Appendix 4-M of Hand Book of Procedures, to the Gems Jewellery Export Promotion Council (GJEPC), Mumbai within 15 days of every completed half year. In turn, G J EPC shall compile the half ye .....

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..... ne module. c. Separate online applications for claims under RoSCTL for shipping bills with Let Export date in the period 07.03.2019 to 31.12.2019 and with Let Export date on or after 01.01.2020 shall be made. d. Facility of Split Scrips: Provisions of para 3.09 of the HBP shall apply mutatis mutandis. e. The Jurisdictional RA for application of the RoSCTL would be as per the para 3.06 (b) of the HBP. The applicants shall ensure that they are applying only to the concerned Jurisdictional RA, as per para 3.06 (b) of the Handbook of Procedures for getting the scrip and shall submit a declaration to that effect while applying for the scrip online. However, the limitation imposed in para 3.06 (a) regarding choosing a RA at the beginning of financial year and maintaining the same RA for all applications in that Financial year shall not apply. f. Choice of Port of Registration for RoSCTL Scrips: While making an online application i. Shipments from EDI Ports and Non-EDI Ports cannot be clubbed in one application. ii. The applicant can chose the Port of registration for EDI enabled ports from any one of the ports from where export is made. iii. In case of exports .....

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..... RoSCTL. l. Processing of Non EDI Shipping bills at RA: In case of Non EDI shipping bills concerned RA shall verify the details entered by the exporter from the original shipping bills before grant of scrip. m. A duplicate scrip may be issued under the RoSCTL, under the provisions of the para 2.24 of the Handbook of Procedures 2015-20. n. All exporters are eligible for making a claim under the RoSCTL, except the entities/IEC which are in the Denied Entity List of the DGFT. 4.96 Recovery Mechanism a. The record of shipping bills and other documents related to export, is required to be maintained by the applicant for a period of 3 years from the date of issuance of scrip for post issue scrutiny and recovery purposes. Licensing Authority may call such documents in original at any time within 3 years. In case the applicant fails to submit the original documents on demand by Licensing Authority, the applicant shall be liable to refund the rebate granted along with interest at the rate prescribed under Section 28AA of Customs Act, 1962, from the date of issuance of scrip. b. Also, there can be instances, where based on the application of the exporter, amount more .....

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..... ble only for shipping bill (s) for which Drawback has been disbursed and RoSL amount has not been disbursed. Only those Shipping bills, on which Customs authorities/ ICEGATE have not disbursed RoSL will be transmitted online by the DG (Systems)/ ICEGATE to the DGFT Server for exporter to file an application. However, the applicant shall ensure that no application is filed against the shipping bill for which RoSL claim has been received from the Customs Authorities alongwith Drawback. Any mis-declaration to that effect, would invite penal action as per the FT (D R) Act, 1992. d. Facility of Split Scrips: Provisions of para 3.09 of the HBP shall apply mutatis mutandis. e. The Jurisdictional RA for application of the RoSL would be according to para 3.06 (b) of the HBP . The applicants shall ensure that they are applying only to the concerned Jurisdictional RA, as per para 3.06 (b) of the Handbook of Procedures for getting the scrip and shall submit a declaration to that effect while applying for the scrip online. However, the limitation imposed in para 3.06 (a) regarding choosing an RA at the beginning of financial year and maintaining the same RA for all applicatio .....

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..... , is required to be maintained by the applicant for a period of 3 years from the date of issuance of scrip for post issue scrutiny and recovery purposes. Regional Authority may call such documents in original at anytime within 3 years. In case the applicant fails to submit the original documents on demand by Regional Authority, the applicant shall be liable to refund the rebate granted along with interest at the rate prescribed under Section 28AA of Customs Act, 1962 , from the date of issuance of scrip. b. In case of claim for rebate under the RoSL scheme where the rebate is issued by DGFT in the form of Duty Credit Scrips, such rebate shall be allowed only on the basis of actual remittances realized by the exporter. In case, excess payment is made due to error or miscalculation, the exporter shall be liable to refund the same within 30 days from the date of demand raised by the concerned RA of DGFT. Such amount will be refunded by the exporter with 15% interest or as prescribed under Section 28AA of Customs Act, 1962 , whichever is more from the date of issue of such Duty Credit Scrip and till the date of actual refund. In case the exporter fails to refund the amount so .....

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..... y document(s) should be endorsed with File Number or Authorisation Number to establish co-relation of exports / supplies with Authorisation issued. Export/supply document(s) should also contain details of exempted materials/inputs consumed. (b) If application is approved, authorisation shall be issued based on input / output norms in force on the date of receipt of application by Regional Authority. If in the intervening period (i.e. from date of filing of application and date of issue of authorisation) the norms get changed, the authorization will be issued in proportion to provisional exports / supplies already made till any amendment in norms is notified. For remaining exports, Policy / Procedures in force on date of issue of authorisation shall be applicable. (c) The export of SCOMET items shall not be permitted against an Authorisation until and unless the requisite SCOMET Authorisation is obtained by the applicant. (d) Exports/supplies made in anticipation of authorisation shall not be eligible for inputs with pre-import condition. 7. Substituted vide PUBLIC NOTICE No. 9/2015-2020 - Dated 14-05-2018 , before it was read as, (iv) In respect of export product .....

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..... Para 4.42 of Handbook of procedures on payment of composition fee. (vii) Only such Advance Authorisations shall be clubbed where exports under all Authorisations have been made within the initial/ extended EO period of the earliest issued Authorisation. (viii) Clubbing shall be permitted only when there is shortfall in fulfilment of export obligation occurred in first authorisation and excess exports are made in subsequent Authorisations. However, this condition may not be insisted when validity period (for import) of Authorisations runs concurrently and imports made in subsequent authorisation falls within validity period (for import) of first authorisation and such import made within validity period of first authorisation are on pro-rata, equal to or in excess to the extent of exports made in first authorisation. Subsequent Authorizations issued after expiry of validity of first Authorisation shall not be allowed to be clubbed. (ix) Clubbing of Authorisations issued with different EO periods shall also be allowed. (x) Accounting of exports made outside expiry of initial or extended EO period of earliest issued authorisation shall not be taken into consideration for EO .....

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..... ion holder shall submit documents showing consumption of full imported quantity as per norms. In case, there is shortfall in fulfilment of EO and unutilised imported quantity remains with the authorisation holder, the Authorisation holder shall either submit a certificate from the jurisdictional Central Excise / Customs Authority certifying destruction of the unutilised imported quantity in their presence or proof of re-export of the same to the same supplier in-terms of para 4.43A of HBP 2015-2020. 16. Substituted vide PUBLIC NOTICE NO. 25/2015-2020 dated 14-08-2019 before it was read as 11 [ (vi) Norms ratified by any Norms Committee (NC) in the O/o DGFT on or after 01.04.2015 in respect of any Advance authorization obtained under paragraph 4.07, shall be valid for the entire period of the Foreign Trade Policy i.e. up to 31.3.2020 or for a period of three years from the date of ratification, whichever is later. Since all decisions of the Norms Committees are available in the form of minutes on the DGFT website, all other applicants of Advance Authorization are also eligible to apply and get their authorizations based on such ratified norms on repeat basis during v .....

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..... isdictional RA, as per para 3.06 (b) of the Handbook of Procedures for getting the scrip and shall submit a declaration to that effect while applying for the scrip online. However, the limitation imposed in para 3.06 (a) regarding choosing a RA at the beginning of financial year and maintaining the same RA for all applications in that Financial year shall not apply. f. Choice of Port of Registration for RoSCTL Scrips: While making an online application i. Shipments from EDI Ports and Non-EDI Ports cannot be clubbed in one application. ii. The applicant can chose the Port of registration for EDI enabled ports from any one of the ports from where export is made. iii. In case of exports through non-EDI port, the port of registration shall be the relevant non-EDI port of exports. Accordingly, separate application shall be filed for each non-EDI port g. The DGFT online system shall electronically process the online applications and scrip shall be issued based on a system based approval and check mechanism. After system based approval, scrips will be issued by RAs without cross verifying EDI Shipping Bill details. The Scrip would be delivered by hand or b .....

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..... ery purposes. Licensing Authority may call such documents in original at anytime within 3years.In case the applicant fails to submit the original documents on demand by Licensing Authority, the applicant shall be liable to refund the rebate granted along with interest at the rate prescribed under Section 28AA of Customs Act 1962 , from the date of issuance of scrip. b. Also, there can be instances, where based on the application of the exporter, amount more than the eligible amount has been issued under RoSCTL; in such cases, concerned RA will examine the relevant scrip's electronic records and in case, an excess claim/ excess disbursal is taken note of by the RA, the RA would request the firm to explain the discrepancy. In case an excess grant of rebate is established, the applicant shall refund the excess claim with interest as prescribed in paragraph 3.19 of FTP c. In case the applicant fails to refund the excess claim as stipulated above or does not respond to any communication by RA within 30 days of receipt of such communication, RA will initiate action as per FT(D R) Act and Rules. d. The rebate allowed is subject to the receipt of sale pro .....

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..... ed 22-07-2021 before it was read as 20 [ (e) For all Advance Authorisations where the validity for import is expiring between 01.02.2020 and 31.07.2020, the validity stands automatically extended by six months from the date of expiry. No separate amendment/endorsement is required on the authorisations. The option to avail further validity extensions under this para would remain available for these authorisations as per eligibility. ] . 33. Substituted vide PUBLIC NOTICE NO. 16/2015-2020 dated 22-07-2021 before it was read as Every Advance Authorisation holder shall maintain a true and proper account of consumption and utilisation of duty free imported / domestically procured goods against each authorisation as prescribed in Appendix 4H or 4I , as applicable. These records are required to be sent to the concerned Regional Authority at the beginning of each licensing year for all those authorisations, which have been redeemed in previous licencing year. However, these records in said format are required to be submitted for authorisations issued on or after 13-05-2005. Such records should be preserved for a period of at least three years from date of redemption. 3 .....

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..... t extension as in (b) above can be considered by Regional Authority, provided Authorisation holder has fulfilled minimum 50% export obligation in quantity as well as in value, on pro-rata basis. This will be subject to payment of composition fee @ 0.5% per month on unfulfilled FOB value of export obligation. No further extension shall be allowed by Regional Authority. This provision shall also be applicable to Advance Authorisations issued during FTP 2009-2014. However, only two extensions of six months each as mentioned above can be allowed subject to payment of composition fee and under no circumstance Regional Authority shall allow any extension beyond 12 months from date of expiry of EO period. At the time of filing application for second EO extension, the Authorisation holder will have to submit a self declaration to RA stating that unutilised imported/domestically procured inputs are available with the applicant. 44. Substituted vide PUBLIC NOTICE NO. 52/2015-2020 dated 18-01-2023 before it was read as, (g) Deleted. 45. Inserted vide PUBLIC NOTICE NO. 52/2015-2020 dated 18-01-2023 (As per Public Notice wrong Sl. No. H its shuold be ha ) 46. Substitu .....

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