Ftp hbcontents0910

Handbook of Procedures (Vol. I)
27th August 2009 - 31st March 2014

Government of India
Ministry of Commerce and Industry
Department of Commerce

website: http://dgft.gov.in

TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY
(PART-I, SECTION-1)

GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY

PUBLIC NOTICE No 1 / 2009-14
NEW DELHI, DATED THE 27th August, 2009

In exercise of powers conferred under Paragraph 2.4 of the Foreign Trade Policy,
2009-14, the Director General of Foreign Trade hereby notifies the Handbook of
Procedures (Volume I) as contained in Annexure to this Public Notice and the
Appendices to the Handbook of Procedures (Volume I). This shall come into force
from 27th August, 2009.

This issues in Public interest.

(R.S. Gujral)
Director General of Foreign Trade and
Ex Officio Additional Secretary to the Government of India

(Issued from File No: 01/94/180/Handbook/AM10/ PC-4)

CONTENTS

CHAPTER SUBJECT Page

GLOSSARY 1

1 INTRODUCTION 5

2 GENERAL PROVISIONS 7
REGARDING IMPORTS AND EXPORTS

3 PROMOTIONAL MEASURES 41

4 DUTY EXEMPTION / REMISSION SCHEMES 51

5 EXPORT PROMOTION CAPITAL GOODS SCHEME 91

6 EXPORT ORIENTED UNITS (EOUs), 101
ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs),
SOFTWARE TECHNOLOGY PARKS (STPs) AND
BIO-TECHNOLOGY PARKS (BTPs)

7 SPECIAL ECONOMIC ZONES 121

8 DEEMED EXPORTS 123

9 MISCELLANEOUS MATTERS 127

GLOSSARY (ACRONYMS)

ACU Asian Clearing Union
AEZ Agri Export Zone
ANF Aayaat Niryaat Form
ARO Advance Release Order
ASIDE Assistance to States for Infrastructure Development of Exports
BG Bank Guarantee
BIFR Board of Industrial and Financial Reconstruction
BoA Board of Approval
BoT Board of Trade
BRC Bank Realisation Certificate
BTP Bio Technology Park
CBEC Central Board of Excise and Customs
CCP Customs Clearance Permit
CEA Central Excise Authority
CEC Chartered Engineer Certificate
CIF Cost, Insurance & Freight
CIS Commonwealth of Independent States
CoD Cash on Delivery
CoO Certificate of Origin
CVD Countervailing Duty
DA Document against Acceptance
DoBT Department of Bio Technology
DC Development Commissioner
DEPB Duty Entitlement Pass Book
DFIA Duty Free Import Authorisation
DFRC Duty Free Replenishment Certificate
DGCI&S Director General, Commercial Intelligence & Statistics
DGFT Director General of Foreign Trade
DIPP Department of Industrial Policy & Promotion
DoC Department of Commerce
DoE Department of Electronics
DoIT Department of Information Technology
DoR Department of Revenue
DoT Department of Tourism
DTA Domestic Tariff Area

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EDI Electronic Data Interchange
EEFC Exchange Earners’ Foreign Currency
EFC Exim Facilitation Committee
EFT Electronic Fund Transfer
EH Export House
EHTP Electronic Hardware Technology Park
EIC Export Inspection Council
EO Export Obligation
EODC Export Obligation Discharge Certificate
EOP Export Obligation Period
EOU Export Oriented Unit
EPC Export Promotion Council
EPCG Export Promotion Capital Goods
EPO Engineering Process Outsourcing
FDI Foreign Direct Investment
FIEO Federation of Indian Export Organisation
FIRC Foreign Exchange Inward Remittance Certificate
FMS Focus Market Scheme
FOB Free On Board
FPS Focus Product Scheme
FT(D&R)Act Foreign Trade ( Development & Regulation) Act, 1992 (No. 22 of 1992)
FTDO Foreign Trade Development Officer
FTP Foreign Trade Policy
GATS General Agreement on Trade in Services
GRC Grievance Redressal Committee
HACCP Hazard Analysis And Critical Control Process
HBP v1 Hand Book of Procedures (Vol. 1)
HBP v2 Hand Book of Procedures (Vol. 2)
ICD Inland Container Depot
ICM Indian Commercial Mission
IEC Importer Exporter Code
ISO International Standards Organisation
ITC (HS) Indian Trade Classification (Harmonised System) Classification for
Export & Import Items
ITPO India Trade Promotion Organisation
LoC Line of Credit
LoI Letter of Intent
LoP Letter of Permit
LUT Legal Under Taking
MAI Market Access Initiative

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MDA Market Development Assistance
MEA Ministry of External Affairs
MoD Ministry of Defence
MoF Ministry of Finance
NC Norms Committee
NFE Net Foreign Exchange
NOC No Objection Certificate
PRC Policy Relaxation Committee
PTH Premier Trading House
PSU Public Sector Undertaking
R&D Research and Development
RA Regional Authority
RBI Reserve Bank of India
REP Replenishment
RCMC Registration-cum-Membership Certificate
RSCQC Regional Sub-Committee on Quality Complaints
S/B Shipping Bill
SEH Star Export House
SEI CMM Software Engineers Institute’s Capability Maturity Model
SEZ Special Economic Zone
SFIS Served from India Scheme
SIA Secretariat for Industrial Assistance
SION Standard Input Output Norms
SSI Small Scale Industry
STE State Trading Enterprise
STH Star Trading House
STP Software Technology Park
TEE Towns of Export Excellence
TH Trading House
TRQ Tariff Rate Quota
VA Value Addition
VKGUY Vishesh Krishi and Gram Udyog Yojana
WHOGMP World Health Organisation Good Manufacturing Practices

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CHAPTER 1

INTRODUCTION

Notification 1.1 In pursuance of the provisions of paragraph 2.4 of FTP, the
Director General of Foreign Trade (DGFT) hereby notifies
the compilations known as HBPv1, HBPv2 and Schedule of
DEPB rates. These compilations, as amended from time to
time, shall remain in force until 31st March, 2014, except DEPB
scheme, which shall continue to be operative till 31st December,
2010 or till a replacement scheme is announced, whichever is
earlier.

Objective 1.2 Objective is to implement provisions of FT (D&R) Act, Rules
and Orders made thereunder and FTP (2009-14) by laying
down simple, transparent and EDI compatible procedures,
which are easy to comply with and administer, for efficacious
management of foreign trade.

Definition 1.3 For purpose of this Handbook, definitions and glossary
contained in FT (D&R) Act, Rules and Orders made
thereunder and the FTP (2009-14) shall apply.

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CHAPTER 2

GENERAL PROVISIONS REGARDING EXPORTS AND IMPORTS

Policy 2.1 Policy relating to general provisions regarding exports and
imports is given in Chapter 2 of FTP.

Countries of 2.2 Unless otherwise specifically provided, import / export will be
Imports / Exports valid from / to any country. Above provisions shall, however,
be subject to all conditionality, or requirement of Authorisation
as required under Schedule I and / or Schedule II of ITC
(HS).

Application Fee 2.3 The scale of fee, mode of payment, procedure for refund of
fee and categories of persons exempted from payment of fee
are contained in Appendix-21B.

Territorial Jurisdiction 2.4 Every application, unless otherwise specified, shall be submitted
of Regional Authorities to RA concerned, as indicated in Appendix-1 of HBP v1.
(RA)

Filing of Application 2.5 An incomplete or unauthorised application is liable to be
rejected giving specific reason for rejection. In case of manual
applications, applicant would furnish a soft copy of the
application in MS word format.

Profile of Importer/ 2.6 Each importer / exporter shall be required to file importer/
Exporter exporter profile once with RA in ANF 1. RA shall enter such
information in database so as to dispense with need for asking
information again. In case of any change in information given
in ANF 1, importer / exporter shall intimate same to RA.

Self Addressed 2.7 Applicant shall furnish a self addressed envelope of 40x15 cm
Stamped Envelope with required postal stamp affixed, for all documents required
to be sent by Speed Post.

IEC No: 2.8 Following categories of importers or exporters are exempted
Exempted Categories from obtaining IEC number:

(i) Importers covered by clause 3(1) [except sub-clauses
(e) and (l)] and exporters covered by clause 3(2)
[except sub-clauses (i) and (k)] of Foreign Trade
(Exemption from application of Rules in certain cases)
Order, 1993.

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(ii) Ministries / Departments of Central or State
Government.
(iii) Persons importing or exporting goods for personal use
not connected with trade or manufacture or agriculture.

(iv) Persons importing / exporting goods from / to Nepal,
Myanmar through Indo-Myanmar border areas and
China (through Gunji, Namgaya Shipkila and Nathula
ports), provided CIF value of a single consignment does
not exceed Indian Rs.25, 000. In case of Nathula port,
the applicable value ceiling will be Rs. 100,000.

However, exemption from obtaining IEC number shall not be
applicable for export of Special Chemicals, Organisms,
Materials, Equipments and Technologies (SCOMET) as listed
in Appendix- 3, Schedule 2 of ITC (HS) except in case of
exports by category (ii) above.

(v) Following permanent IEC numbers shall be used by
non-commercial PSUs and categories of importers /
exporters mentioned against them for import / export
purposes:

S.No Code Number Categories of Importers / Exporters

1. 0100000011 All Ministries / Departments of Central
Government and agencies wholly or
partially owned by them.
2. 0100000029 All Ministries / Departments of any State
Government and agencies wholly or
partially owned by them.
3. 0100000037 Diplomatic personnel, Counselor officers
in India and officials of UNO and its
specialised agencies.
4. 0100000045 Indians returning from / going abroad
and claiming benefit under Baggage
Rules.
5. 0100000053 Persons / Institutions / Hospitals
importing or exporting goods for
personnel use, not connected with trade
or manufacture or agriculture.
6. 0100000061 Persons importing / exporting goods
from / to Nepal

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7. 0100000070 Persons importing / exporting goods
from / to Myanmar through Indo-
Myanmar border areas
8. 0100000088 Ford Foundation
9. 0100000096 Importers importing goods for display
or use in fairs / exhibitions or similar
events under provisions of ATA carnet.
This IEC number can also be used by
importers importing for exhibitions/fairs
as per Para 2.29 of HBPv1.
10. 0100000100 Director, National Blood Group
Reference Laboratory, Bombay or their
authorized offices.
11. 0100000126 Individuals / Charitable Institution /
Registered NGOs importing goods,
which have been exempted from
Customs duty under Notification issued
by Ministry of Finance for bonafide use
by victims affected by natural calamity.
12. 0100000134 Persons importing / exporting
permissible goods as notified from time
to time, from / to China through Gunji,
Namgaya Shipkila and Nathula ports,
subject to value ceilings of single
consignment as given in Para 2.8(iv)
above.
13 0100000169 Non-commercial imports and exports
by entities who have been authorized by
Reserve Bank of India.

Application for Grant 2.9 An application for grant of IEC Number shall be made by
of IEC Number Registered Office, in case of companies and Head Office in
case of proprietorship concerns, partnership concerns and
HUFs, of applicant, except EOUs and SEZ units, to concerned
RA in ANF2A with documentsprescribed therein.
Only one IEC would be issued / allowed against a single PAN
number.
The application (ANF 2 A) for issuance of fresh IEC or
modification of IEC shall indicate the name and designation of
the person whose photograph has been affixed on the Bank
Certificate. A photograph of the person alongwith his/her
name and designation shall also be affixed on the IEC No. to
be issued (Appendix 18 B).

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IEC Format and 2.9.1 RA concerned shall issue an IEC number in prescribed format
Statements (Appendix-18B). A copy of such IEC number shall be
endorsed to concerned banker (as per details given in ANF
2A).
A consolidated statement (in Appendix 18 C) of IEC numbers
issued by RA shall be sent to Exchange Control Department
of RBI as given in Appendix-18D.

Validity of IEC No. 2.9.2 An IEC number allotted to an applicant shall be valid for all its
branches / divisions / units / factories.

Duplicate Copy of 2.9.3 Where an IEC Number is lost or misplaced, issuing authority
IEC Number may consider requests for grant of a duplicate copy of IEC
number, on an affidavit.

Surrender of 2.9.4 If an IEC holder does not wish to operate allotted IEC number,
IEC Number he may surrender same by informing issuing authority. On
receipt of such intimation, issuing authority shall immediately
cancel it and electronically transmit it to DGFT and Customs
authorities.

Application for Import 2.10 An application for grant of an Authorisation for import or export
and Export of Restricted of items mentioned as restricted in ITC (HS) may be made to
Items RA as specified under relevant Chapters of this Handbook.

Imports under Indo-US 2.11 Import of specified capital goods, raw materials and
Memorandum of components, from United States of America (USA) is subject
Understanding to US Export Control Regulations.
US suppliers of such items are required to obtain an export
authorisation based on import certificate issued in India. The
following are designated Import Certificate Issuing Authorities
(ICIA):

(i) Department of Electronics (DoE), for computer and
computer based systems;
(ii) Department of Industrial Policy and Promotion (DIPP),
Technical Support Wing (TSW), for organised sector
units registered under it, except for computers and
computer based systems;
(iii) Ministry of Defence (MoD), for defence related items;
(iv) DGFT for small scale industries and entities not covered
above as well as on behalf of any of the above;
(v) Embassy of India, Washington, DC, on behalf of any
of the above.

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A request for an import certificate shall be made in ANF 2C.
Import certificate in Appendix-31 may be issued by ICIA directly
to importer with a copy to (i) Ministry of External Affairs (MEA)
(AMS Section), New Delhi, (ii) DoE, New Delhi; and (iii) DGFT.
However, this import certificate will not be regarded as a substitute
for an import authorisation in respect of items mentioned as
restricted in ITC (HS) and an import authorisation will have to be
obtained for such items.

2.11A In case of import of any freely importable item in India, if a foreign
Government insists on certification of end user of the item, before
permitting export of the same from their country, RA may issue
such certificates as per Appendix 31A of HBPv1. The certificate
shall be issued based on application made under ANF 2C-1 along
with documents prescribed therein.

Validity of 2.12 Validity of import / export Authorisation from date of issue
Import Licence/Certificate/ shall be as follows, unless specified otherwise:
Authorisation/Permissions/
CCPs/Export licence
(i) Advance Authorisation / DFIA 24 months
(including Advance Authorisation for
annual requirement, and Replenishment
Authorisation for Gem & Jewellery as
per Chapter- 4 of FTP)
(ii) a For Zero duty EPCG Authorisations 9 months
(other than spares)
(ii) b For 3% EPCG Authorisations 36 months
(other than spares)
(iii) EPCG Authorisation for Spares, Co-terminus
refractories, catalyst and consumables with EOP
of EPCG
Authorisation.
(iv) Others including CCP and DEPB, 24 months
unless otherwise specified

(v) Advance Authorisation / DFIA for 24 months or
deemed export (including Advance Co-terminus with
Authorisation for annual requirement) contracted
duration of
project
execution,
whichever is
later.

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(vi) Export Licence / Authorisation 12 months
(However, EFC
may decide to
issue Export
Authorisation for
a longer duration
in case of R&D
studies based on
recommendation
of technical
authority)

2.12.1 Where an Authorisation expires during the month, such
Authorisation shall be deemed to be valid until last day of
concerned month.
This proviso would be applicable even for a revalidated
Authorisation.

2.12.2 Validity of an import Authorisation is decided with reference
to date of shipment / dispatch of goods from supplying country
as given in Paragraph 9.11 A of HBP v1 and not the date of
arrival of goods at an Indian port.
2.12.3 Provisions of paragraph 2.12.1 above shall not be applicable
to DEPB, Service Providers under SFIS, VKGUY and duty
credit scrips issued under FMS and FPS, which are duty credit
entitlements and must be valid on date on which actual debit
of duty is made.
2.12.4 Similarly, EOP shall be deemed to be valid until month end.

Revalidation of Import / 2.13 RA concerned may revalidate import Authorisation on merits,
Export Licence / for six months from date of expiry of validity. However, Export
Certificate / Authorisation / Licence may only be revalidated by RA concerned onon
Permissions recommendation of DGFT for six months at a time and
maximum upto 12 months from date of expiry of validity.
2.13.1 However, revalidation of freely transferable Authorisation and
stock and sale Authorisation shall not be permitted unless validity
has expired while in custody of Customs authority / RA.
2.13.2 Such revalidation (under 2.13 and 2.13.1 above) would be
permitted under specific orders of Head of concerned Office
and would be maximum up to extent of custody period.
2.13.3 An application for revalidation (including for restricted items),
may be made to RA concerned. RA would consider such
application as per government rules / notifications. Where
DGFT is concerned authority, original application shall be

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submitted to RA concerned and self-attested copy of same
shall be submitted to DGFT.

Duplicate Copies of 2.14 Where an Authorisation is lost or misplaced, an application
Export-Import Licence / for issue of a duplicate may be made along with an affidavit, as
Certificate / Authorisation / given in Appendix-24, to issuing RA.
Permissions / CCPs RA concerned may, on merits to be recorded, issue a duplicate
after issuing an order for cancellation of original and informing
customs authority where original was registered.

2.15 Duplicate copy of freely transferable Authorisation, may be
issued against an application accompanied with following
documents:
a. An application with fee equivalent to 10% of duty saved
or duty credit (of unutilized balance).
b. A copy of FIR reporting loss.
c. Original affidavit on notorised stamp paper.
d. Indemnity bond on a stamp paper undertaking to
indemnify revenue loss, which may be caused on account
of issue of such duplicate.
2.15.1 When an Authorisation has been lost by a Government agency
and a proof to this effect is submitted, documents at serial nos.
(a) to (d) above shall not be required.
In such cases, revalidation shall be for six months from date of
endorsement.
2.15.2 RA concerned shall obtain a report regarding utilization of such
Authorisation from Custom authority at port of registration
before issuing duplicate, for balance unutilized.
2.15.3 Validity of duplicate Authorisation shall be co-terminus with
original period. No request shall be entertained if validity has
expired.
2.15.4 Provision of paragraph 2.15.2 and 2.15.3 shall be applicable
both for cases covered under paragraph 2.14 and 2.15.

Identity Cards 2.16 To facilitate collection of Authorisation and other documents
from DGFT Head Quarters and RA, identity cards (as in
Appendix 20B, valid for 3 years) may be issued to proprietor/
partners / directors and authorised employees (not more than
three), of importers and exporters, upon application as in
Appendix 20A.
In addition, Identity Card may also be issued by the applicant
firms on their letterhead to the concerned employees. These

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Identity Cards may be countersigned by the concerned RA.
However, application for identity card in Appendix 20B will
require to be made by the applicant and all other parameters
would need to be met.
However, in case of limited companies, RA may approve
allotment of more than three identity cards per company.
In case of loss of an identity card, a duplicate card may be
issued on the basis of an affidavit.
For common directors / partners, of a group company or in
any other similar cases, RA may issue multiple identity cards
after recording reasons in writing.

Interviews with 2.17 Officers may grant interview at their discretion to authorised
authorised Officers representative of importer / exporter. Interviews / clarifications
may also be sought through E-mails.

Export of Items 2.18 Units other than small scale units are permitted to expand or
Reserved for SSI Sector create new capacities in respect of items reserved for small
scale sector, subject to condition that they obtain an Industrial
licence under the Industries (Development and Regulation) Act,
1951, with export obligation as may be specified.
Such licensee is required to furnish a LUT to RA and DGFT in
this regard. DGFT / RA concerned shall monitor export
obligation.

Warehousing Facility 2.19 Public / Private Customs Bonded Warehouses may be set up
in DTA as per Chapter-IX of Customs Act, 1962, to import
items in terms of paragraph 2.28 of FTP.
On receipt of goods, such warehouses shall keep these goods
for one year without payment of applicable customs duties.
Goods can be cleared against Bill of Entry for home
consumption, on payment of applicable custom duty and on
submission of Authorisation wherever required, after an order
for clearance of such goods for home consumption is issued
by competent customs authorities.
In case of clearance against duty free categories / concessional
duty categories, exemption / concession from duty shall be,
allowed.
In case of clearance against DEPB and other duty credit scrips
customs duty on imports may be adjusted.
Goods can be re-exported without payment of customs duty
provided (i) a shipping bill or a bill of export is presented in
respect of such goods; and (ii) order for export of such goods
has been made by competent customs authorities.

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Execution of 2.20 Before clearance of goods through Customs, Authorisation
Bank Guarantee / holder shall execute a BG/LUT with customs authorities.
Legal Undertaking for In such cases, RA shall endorse the following condition on
Advance Authorisation / the licence/ Authorisation:
DFIA and EPCG
Authorisation "BG / LUT as applicable, to be executed with concerned
Customs Authorities.”
In case of indigenous sourcing, Authorisation holder shall
furnish BG / LUT to RA as per Customs Circular No.58/2004
dated 31.10.04, as amended from time to time.
In case, the firm has already executed BG / LUT for the full
value of the licence/ certificate / authorization / permission
(covering the items indigenously procured) to the Customs and
furnishes proof of the same to Regional Authority (RA), no
BG / LUT shall be required to be executed with the RA. The
RA concerned shall endorse on the authorization that the
Customs Authority shall release / redeem BG / LUT only after
receipt of NOC or EODC from the RA concerned. RA shall
endorse a copy of the same along with a forwarding letter to
the Customs Authority at the Port of registration for their
information and record.

Execution of 2.20A At the time of filing application for scrip(s) under DEPB
Bank Guarantee/ Scheme/freely transferable incentive Scheme under Chapter
Legal Undertaking for 3 of FTP, without Bank Realisation Certificate (BRC), the
DEPB/freely applicant shall execute BG/LUT (as per Customs Circular no.
transferable schemes 58/2004) with the RA as per Appendix 25C or Appendix
under Chapter 3 25D respectively.

Corporate Guarantee 2.20.1 A status holder or a PSU may also submit Corporate Guarantee
in lieu of Bank Guarantee/LUT in terms of the provisions of
relevant Customs Circular in this regard. In case of a group
company, if one company of a Group is a status holder,
Corporate Guarantee may be given for another company by
this company, which is not a status holder.

Certificate of 2.21 Certificate of Origin (CoO) is an instrument to establish
Origin (CoO) evidence on origin of goods imported into any country. There
are two categories of CoO viz. (1) Preferential and (2) Non
preferential.

Preferential 2.21.1 Preferential arrangement / schemes under which India is
receiving tariff preferences for its exports are Generalised
System of Preferences (GSP), Global System Of Trade
Preferences (GSTP), SAARC Preferential Trading Agreement
(SAPTA), Asia-Pacific Trade Agreement (APTA), India–Sri
Lanka Free Trade Agreement (ISLFTA) and Indo-Thailand

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Free Trade Agreement. These arrangements / agreements
prescribe Rules of Origin which have to be met for exports to
be eligible for tariff preference.
Authorised agencies shall provide services relating to issue of
CoO, including details regarding rules of origin, list of items
covered by an agreement, extent of tariff preference, verification
and certification of eligibility. Export Inspection Council (EIC)
is agency authorised to print blank certificates. Authorised
agencies may charge a fee, as approved by DoC, for services
rendered.

Generalised System (a) GSP is a non-contractual instrument by which
of Preferences (GSP) industrialized (developed) countries unilaterally and
based on non-reciprocity extend tariff concessions to
developing countries. Following countries extend tariff
preferences under their GSP Scheme:
(i) United States of America,
(ii) New Zealand
(iii) Belarus
(iv) European Union,
(v) Japan
(vi) Russia
(vii) Canada,
(viii) Norway
(ix) Australia (only to LDCs)
(x) Switzerland
(xi) Bulgaria
GSP schemes of these countries detail sectors /
products and tariff lines under which benefits are
available, including conditions and procedures governing
benefits. These schemes are renewed and modified from
time to time. Normally Customs of GSP offering
countries require information in Form ‘A’ (prescribed
for GSP Rules Of Origin) duly filled by exporters of
beneficiary countries and certified by authorised
agencies. List of agencies authorised to issue GSP CoO
is given in Appendix-4A.

Global System of (b) Under agreement establishing GSTP, tariff concessions
Trade Preference (GSTP) are exchanged among developing countries, who have
signed agreement. Presently, 46 countries are members
of GSTP and India has exchanged tariff concessions
with 12 countries on a limited number of products. EIC
is sole agency authorised to issue CoO under GSTP.

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SAARC Preferential (c) SAPTA was signed by seven SAARC members namely
Trading Agreement (SAPTA) India, Pakistan, Nepal, Bhutan, Bangladesh, Sri Lanka
and Maldives in 1993 and came into operation in 1995.
Four rounds of trade negotiations have been completed
and more than 3000 tariff lines are under tariff
concessions among SAARC countries. List of agencies,
authorised to issue CoO under SAPTA are notified
under Appendix – 4B.
Asia-Pacific (d) APTA is a preferential trading arrangement designed
Trade Agreement (APTA) to liberalise and expand trade in goods progressively in
Economic and Social Commission for Asia and Pacific
(ESCAP) region through liberalization of tariff and non-
tariff barriers. At present, Bangladesh, Sri Lanka, South
Korea, India and China are exchanging tariff
concessions under APTA. Agencies authorised to issue
CoO under APTA are listed in Appendix – 4B.

India-Sri Lanka (e) Free Trade Agreement (FTA) between India and Sri
Free Trade Agreement (ISLFTA) Lanka was signed on 20.12.1998 and was
operationalised in March, 2000 following notification
of required Customs tariff concessions by Government
of Sri Lanka and India. EIC is sole agency to issue
CoO under ISLFTA.

India-Afghanistan (f) A Preferential Trade Agreement between Transitional
Preferential Trade Agreement Islamic State of Afghanistan and Republic of India was
signed on 6.3.2003 and was operationalised with
issuance of Customs Notification No 76/2003 dated
13.5.2003. EIC is sole agency to issue CoO under
India Afghanistan Preferential Trade Agreement.

Indo-Thailand (g) India and Thailand have signed protocol to implement
Framework Agreement Early Harvest Scheme under India- Thailand Free Trade
for Free Trade Area Agreement on 01.09.2004.Tariff preferences for
imports on items of Early Harvest Scheme would be
available only to those products, which satisfy Rules of
Origin Criteria, notified by Department of Revenue,
Ministry of Finance, vide notification No.101/2004-
Customs dated 31.08.2004. EIC would be sole agency
to issue CoO under Early Harvest Scheme of
Framework Agreement on India-Thailand Free Trade
Agreement.

Non Preferential 2.21.2 Government has also nominated certain agencies to issue Non
Preferential CoO in accordance with Article II of International
Convention Relating to Simplification of Customs formalities,

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

(a) Details of quantum / origin of inputs / consumables used
in export product.
(b) Two copies of invoices.
(c) Packing list in duplicate for concerned invoice.
(d) Fee not exceeding Rs.100 per certificate as may be
prescribed by concerned agency.
The agency would ensure that goods are of Indian origin as
per general principles governing rules of origin before granting
CoO (non preferential). Certificate would be issued as per
Format given in Annexure-II to Appendix–4C. It should be
ensured that no correction/re-type is made on certificate.

Any agency desirous of enlistment in Appendix–4C may submit
their application as per Annexure I to Appendix 4C to the
concerned RA.

In case of tea, all exporters who are required to submit
CoO (Non-Preferential) shall apply to Tea Board or any
Inspection Agency authorized by Tea Board and enlisted in
Appendix-4C of HBP v1 with documents listed above.

Automatic Licence / 2.22 Status holders shall be issued Authorisation automatically within
Certificate / stipulated time period. Deficiency, if any, informed through
Authorisation / covering letter, shall be required to be rectified by status holders
Permission within 10 days from date of communication of deficiency.

Submission of 2.23 Wherever original documents have been submitted to a
certified copies different RA / nominated agencies or to a different division of
of documents same RA, applicant can furnish photocopy of documents duly
certified by him in lieu of original.

Advance Payment 2.24 In case, payment is received in advance and export / deemed
exports takes place subsequently, application for an
Authorisation shall be filed within specific period following the
month during which exports / deemed exports are made, unless
otherwise specified.

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Payment through 2.25.1 Payment through ECGC cover would count for benefits under
ECGC cover FTP.

Payment through 2.25.2 Amount of Insurance Cover for transit loss by General
General /Private Insurance Insurance and Private Approved Insurance Companies in India
Companies would be treated as payment realized for exports under various
export promotion schemes.

Irrevocable 2.25.3 In case where applicant applies for duty credit scrip / DEPB /
Letter of Credit DFIA / discharge of EO against confirmed irrevocable letter
of credit (or bill of exchange which is unconditionally Avalised
/ Co-Accepted / Guaranteed by a bank) and this is confirmed
and certified by exporter’s bank in relevant Bank Certificate
of Export and Realization, payment of export proceeds shall
be deemed to be realized. For Status Holders, irrevocable
letter of credit would suffice.

RBI write-off 2.25.4 Realization of export proceeds shall not be insisted under
on export proceeds any of the Export Promotion Schemes under this Foreign Trade
realization Policy, if the Reserve Bank of India (RBI) writes off the
requirement of realization of export proceeds on merits and
the exporter produces a certificate from the concerned Foreign
Mission of India about the fact of non-recovery of export
proceeds from the buyer. However, this would not be
applicable in self-write off cases.

Export by post 2.26 In case of export by post, exporter shall submit following
documents in lieu of documents prescribed for export by sea /
air:
1) Bank Certificate of Export and Realisation as in
Appendix-22A.
2) Relevant postal receipt
3) Invoice duly attested by Customs authorities.

Import/ Export 2.26.1 Imports / Exports through a registered courier service is
through Courier permitted as per Notification issued by DoR. However,
Service importability / exportability of such items shall be regulated in
accordance with FTP.

Direct negotiation 2.26.2 In cases where exporter directly negotiates document (not
of export documents through authorised dealer) with permission of RBI, he is
required to submit following documents for availing of benefits
under export promotion schemes:
a. Permission from RBI allowing direct negotiation of
documents (not required for status holders),

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b. Copy of Foreign Inward Remittance Certificate (FIRC)
as per Form 10-H of Income Tax department in lieu of
BRC and
c. Statement giving details of shipping bills / invoice against
which FIRC was issued.

Import/Export 2.27 No Authorisation shall be required for Import of bonafide
of Samples technical and trade samples of items restricted in ITC(HS)
except vegetable seeds, bees and new drugs . Samples of tea
not exceeding Rs.2000 (CIF) in one consignment shall be
allowed without an Authorisation by any person connected
with Tea industry.
Duty free import of samples upto Rs 100,000 for all exporters
(Rs.300,000 for gems and jewellery sector) shall be allowed
as per terms and conditions of Customs notification.
Exports of bonafide trade and technical samples of freely
exportable item shall be allowed without any limit.

Import under 2.28 Import under lease financing shall be available under EPCG
Lease Financing Scheme, EOU / SEZ scheme. Domestic supplier of capital
goods to eligible categories of deemed exports shall be eligible
for benefits of deemed exports as in paragraph 8.3 of FTP,
even in cases where supplies are under lease financing.

Exhibits Required 2.29 Import / export of exhibits, including construction and decorative
for National and materials required for the temporary stands of foreign / Indian
International exhibitors at exhibitions, fair or similar show or display for a
Exhibitions or Fairs period of six months on re-export / re-import basis, shall be
and Demonstration allowed without an Authorisation on submission of a certificate
from an officer of a rank not below that of an Under Secretary
/ Deputy DGFT in DoC / DGFT or an officer of Indian Trade
Promotion Organization (ITPO) duly authorised by its
Chairman in this behalf, to effect that such exhibition, fair or
similar show or display.
(i) has been approved or sponsored by DoC or ITPO;
and
(ii) is being held in public interest.
Extension beyond six months for re-export / re-import will be
considered by Customs authorities on merits. Consumables
such as paints, printed material, pamphlets, literature etc.
pertaining to exhibits need not be re-exported / re-imported.

Import Policy 2.30 Policy relating to general provisions regarding import of capital
goods, raw materials, intermediates, components,

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consumables, spares, parts, accessories, instruments and other
goods is given in Chapter 2 of FTP.

General Procedure 2.31 Wherever an import Authorisation, including CCP, is required
for Licensing of under FTP, procedure contained in this chapter shall be
Restricted Goods applicable.

2.32 Import of Metallic Waste and Scrap

2.32.1 Import of any form of metallic waste, scrap will be subject to
the condition that it will not contain hazardous, toxic waste,
radioactive contaminated waste / scrap containing radioactive
material, any type of arms, ammunition, mines, shells, live or
used cartridge or any other explosive material in any form either
used or otherwise.

2.32.2 Import of following types of metallic waste and scrap will be
free subject to conditions detailed below :

S.No. ITC code Item description
1 720410 00 waste and scrap of cast iron
2. 72042190 Other
3. 72042920 Of High speed steel
4. 72042990 Other
5. 72043000 Waste and scrap of tinned iron
or steel
6. 72044100 Turnings, shavings, chips, milling
waste, saw dust, fillings,
trimmings and stampings,
whether or not in bundles
7. 72044900 Other
8. 72045000 Remelting scrap ingots
9. 74040010 Copper scrap
10. 74040022 Brass scrap
11. 75030010 Nickel scrap
12. 76020010 Aluminium scrap
13. 79020010 Zinc scrap
14. 80020010 Tin scrap
15. 81042010 Magnesium scrap

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Shredded form:
Import of metallic waste and scrap listed above in shredded
form shall be permitted through all ports of India subject to
following conditions:-

a. Importer shall furnish the following documents to the
customs at the time of clearance of goods:
I) Pre-shipment inspection certificate as per the format in
Annexure I to Appendix 5 from any of the Inspection
& Certification agencies given in Appendix-5 to the
effect that the consignment does not contain radio active
contaminated material in any form; and
II) Copy of the contract between the importer and the
exporter stipulating that the consignment does not
contain any radio active contaminated material in any
form.
Import from Hodaideh, Yemen and Bandar Abbas, Iran will
be in shredded form only.

Unshredded compressed and loose form:
Import of metallic waste, scrap listed in para 2.32.2 above in
unshredded compressed and loose form shall be subject to
a. Importer shall furnish the following documents to the
Customs at the time of clearance of goods:
I) Pre-shipment inspection certificate as per the format in
Annexure-I to Appendix 5 from any Inspection &
Certification agencies given in Appendix-5 to the effect
that:
i) The consignment does not contain any type of
arms, ammunition, mines, shells, cartridges, radio
active contaminated or any other explosive
material in any form either used or otherwise.
ii) The imported item (s) is actually a metallic waste/
scrap/seconds/defective as per the internationally
accepted parameters for such a classification.
II) Copy of the contract between the importer and the
exporter stipulating that the consignment does not
contain any type of arms, ammunition, mines, shells,
cartridges, radio active contaminated, or any other
explosive material in any form either used or otherwise.

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b Import of scrap would take place only through
following designated ports and no exceptions would
be allowed even in case of EOUs, SEZs:-
“1.Chennai, 2.Cochin, 3.Ennore, 4.JNPT, 5.Kandla,
6.Mormugao, 7.Mumbai, 8.New Mangalore,
9.Paradip, 10.Tuticorin, 11.Vishakhapatnam, 12. ICD
Loni, Ghaziabad, 13.Pipava, 14.Mundra, 15.Kolkata,
16.ICD Ludhiana, 17.ICD Dadri (Greater Noida),
18.ICD Nagpur, 19.ICD Jodhpur, 20.ICD Jaipur,
21.ICD Udaipur, 22.CFS Mulund, 23.ICD Kanpur,
24.ICD Ahmedabad, 25.ICD Pitampur and 26.ICD
Malanpur”.
2.32.2.A In case any agency wishes to be enlisted under Appendix-5,
they may furnish an application to the office of Director General
of Foreign Trade in the format in Appendix-5A, which will be
considered by an Inter-Ministerial Committee

2.32.3 However, import of other kinds of metallic waste and scrap
will be allowed in terms of conditions of ITC (HS).

2.32.4 Import policy for seconds and defective, rags, PET bottles /
waste, and ships is given in ITC (HS).

Import of 2.33 Import of second hand capital goods including refurbished /
Second Hand reconditioned spares, except those of personal computers/
Capital Goods laptops, shall be allowed freely, subject to conditions for
following categories:

Import of second hand computers including personal
computers/ laptops and refurbished/reconditioned spares
thereof is restricted.

Import of refurbished / reconditioned spares of capital goods,
other than those of personal computers/laptops will be allowed
on production of a Chartered Engineer certificate that such
spares have atleast 80% residual life of original spare.

2.33.1 Notwithstanding provisions of Para 2.33 above, second hand
computers, laptops and computer peripherals including printer,
plotter, scanner, monitor, keyboard and storage units can be
imported freely as donations by following category of donees:

(i) Schools run by Central or State Government or a local
body,
(ii) Educational Institution run on non- commercial basis
by any organization,

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(iii) Registered Charitable Hospital,
(iv) Public Library,
(v) Public funded Research and Development
Establishment,
(vi) Community Information Centre run by Central or State
Government or local bodies,
(vii) Adult Education Centre run by Central or State
Government or a local body,
(viii) Organization of Central or State Government or a Union
Territory.
Imports under this sub Para would be subject to the condition
that goods shall not be used for any commercial purpose, is
non transferable and complies with all terms and conditions of
relevant Customs Rules and Regulations.

2.33A Customs or any other Central or State Government authority
may avail of services of Inspection and Certification Agencies
in Appendix 5 of the HBP v1, for certifying residual life as
well as valuation / purchase price of capital good.

Import of 2.34 Import of following types of ammunition are allowed against
Ammunition by an Authorisation by licensed arms dealers subject to conditions
Licensed Arms Dealers as may be specified:
(i) Shotgun Cartridges 28 bore;
(ii) Revolver Cartridges of .450, .455 and .45 bores;
(iii) Pistol Cartridges of .25, .30 Mauser, .450 and .45
bores;
(iv) Rifle Cartridges of 6.5 mm, .22 savage, .22 Hornet,
300 Sherwood, 32/40, .256, .275, .280, 7m/m Mauser,
7 m/m Man Schoener, 9m/m Mauser, 9 m/m Man
Schoener, 8x57, 8x57S, 9.3 m/m, 9.5 m/m, .375
Magnum, .405, .30.06, .270, .30/30 Winch, .318, .33
Winch,.275 Mag., .350 Mag., 400/350, .369 Purdey,
.450/400, .470, .32 Win, .458 Win, .380 Rook, .220
Swift and .44 Win. bores.
An import Authorisation shall be issued at 5% of value of annual
average sales turnover of ammunition (whether indigenous or
imported) during preceding three licensing years subject to a
minimum of Rs. 2000.

An application for grant of an Authorisation for items listed
above may be made to RA in ANF 2B along with documents
prescribed therein.

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Restricted Items 2.35 Items mentioned as restricted for imports in ITC (HS) required
Required By Hotels, by hotels, restaurants, travel agents and tour operators may
Restaurants, Travel be allowed against an Authorisation, based on recommendation
Agents, Tour Operators of Director General, Tourism, Government of India.
and other Specified
Categories 2.35.1 Hotels, including tourist hotels, recognised by Director General
of Tourism, Government of India or a State Government shall
be entitled to import Authorisation upto a value of 25% of
foreign exchange earned by them from foreign tourists during
preceding licensing year, for import of essential goods related
to hotel and tourism industry.

2.35.2 Travel agents, tour operators, restaurants, and tourist transport
operators and other units for tourism, like adventure / wildlife
and convention units, recognized by Director General of
Tourism, Government of India, shall be entitled to import
authorisation up to a value of 10% of foreign exchange earned
by them during preceding licensing year, for import of essential
goods which are restricted for imports related to travel and
tourism industry, including office and other equipment required
for their own professional use.

2.35.3 Import entitlement under paragraphs 2.35.1 and 2.35.2 of any
one licensing year can be carried forward, either in full or in
part, and added to import entitlement of two succeeding
licensing years and shall not be transferable except within the
group company or to managed hotels.

2.35.4 Such imported goods may be transferred after 2 years with
permission of DGFT.
No permission for transfer will be required in case the imported
goods are re-exported. However, re-export shall be subject
to all conditionality, or requirement of licence, or permission,
as may be required under Schedule II of ITC (HS).

2.35.5 An application for grant of an Authorisation under paragraphs
2.35.1 and 2.35.2 may be made in ANF 2B to DGFT through
Director of Tourism, Government of India who will forward
application to RA concerned along with their recommendations.

Import of Other 2.36 ITC (HS) contains list of restricted items. An application for
Restricted Items import of such items may be made, in ANF 2B along with
documents prescribed therein. Original application along with
Treasury Receipt (TR) / Demand Draft shall be submitted to
RA concerned and self-attested copy of same shall be
submitted to DGFT in duplicate along with proof of submission
of application to concerned RA.

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EXIM Facilitation 2.37 Restricted item Authorisation may be granted by DGFT or
Committee any other RA authorised by him in this behalf. DGFT / RA
may take assistance and advice of a Facilitation Committee.
The Assistance of technical authorities may also be taken by
seeking their comments in writing. Facilitation Committee will
consist of representatives of Technical Authorities and
Departments / Ministries concerned.

2.37A Import authorizations for a restricted item if so directed by the
competent authority, shall be issued for import through one of
the sea ports or air ports or ICDs or LCS, as per the option
indicated, in writing, by the applicant. Authorization holder
shall register the same at the port specified in the authorization
and thereafter all imports against said authorization shall be
made only through that port, unless the authorization holder
obtains permission from customs authority concerned to import
through any other specified port.

Gifts of Consumer 2.38 In terms of provisions contained in paragraph 2.19 of FTP, an
or Other Goods application for grant of CCP for import as gifts of items
appearing as restricted for imports in ITC (HS) shall be made
to the DGFT as in ANF 2B along with documents prescribed
therein. Where recipient of a gift is a charitable, religious or an
educational institution registered under any law in force, and
gift sought to be imported has been exempted from payment
of customs duty, such import shall be allowed by customs
authorities without a CCP.

Import under Govt. 2.39 Import of goods under Government to Government agreements
to Govt. Agreements may be allowed without an Authorisation or CCP on production
of necessary evidence to satisfaction of Customs authorities

Import of Cheque 2.40 Indian branches of foreign banks, insurance companies and
Books / Ticket Forms etc. travel agencies may import chequebooks, bank draft forms
and travellers cheque forms without a CCP. Similarly, airlines/
shipping companies operating in India, including persons
authorised by such airlines / shipping companies, may import
passenger ticket forms without a CCP.

Import of 2.41 Import Authorisation for reconditioned / second hand aircraft
Reconditioned/ Second Hand spares is not needed on recommendation of Director General
Aircraft Spares of Civil Aviation, Government of India (DGCA).

Import of 2.42 Goods or parts thereof on being imported and found defective
Replacement Goods or otherwise unfit for use or which have been damaged after
import, may be exported without an Authorisation, and goods

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in replacement thereof may be supplied free of charge by foreign
suppliers or imported against a marine insurance or marine-
cum-erection insurance claim settled by an insurance company.
Such goods shall be allowed clearance by the customs
authorities without an import Authorisation provided that:
(a) Shipment of replacement goods is made within 24
months from date of clearance of previously imported
goods through Customs or within guarantee period in
case of machines or parts thereof where such period is
more than 24 months; and
(b) No remittance shall be allowed except for payment of
insurance and freight charges where replacement of
goods by foreign suppliers is subject to payment of
insurance and / or freight by importer and documentary
evidence to this effect is produced while making
remittance.

2.42.1 In case of short-shipment, short-landing or loss in transit, import
of replacement goods will be permitted based on certificate
issued by customs authorities without an import Authorisation.
This procedure shall also apply to cases in which short-shipment
of goods is certified by foreign supplier, who has agreed to
replace free of cost.

2.42.2 Cases not covered by above provisions will be considered on
merits by DGFT for grant of Authorisation for replacement of
goods for which an application may be made.

Transfer of 2.43 Freely importable goods can be transferred by sale or
Imported Goods otherwise by importer freely. Transfer of imported goods, which
are subject to Actual User condition and have become surplus
to needs of Actual User, shall be made only with prior permission
of RA concerned.
Following information alongwith supporting documents shall
be furnished with request for grant of permission for transfer,
to RA concerned:
(i) Reasons for transfer of imported material;
(ii) Name, address, IEC number and industrial
Authorisation registration, if any, of transferee;
(iii) Description, quantity and value of goods imported and
those sought to be transferred;
(iv) Copies of import Authorisation and bills of entry relating
to imports made;

27

(v) Terms and conditions of transfer as agreed upon
between buyer and seller.
2.43.1 Prior permission of RA shall not, however, be necessary for
transfer or disposal of goods, which were imported with Actual
User condition, provided such goods are freely importable
without Actual User condition on date of transfer.

2.43.2 Prior permission of RA shall also not be required for transfer
or disposal of imported goods after a period of two years
from the date of import. However, transfer of imported firearms
by the importer / Authorisation holder shall be permitted only
after 10 years of import with approval of DGFT.

“Renowned Shooters” for 3 consecutive years are allowed to
sell their imported weapons after three years from date of import
of the respective weapon. Other “Renowned Shooters” are
allowed to sell their weapons after 5 years from the date of
import. The sale shall be subject to approval from DGFT.

Sale of Exhibits 2.44 (i) Sale of exhibits of restricted items, mentioned in
ITC (HS), imported for an international exhibition / fair
organized / approved / sponsored by ITPO may also
be made, without an Authorisation within bond period
allowed for re-export, on payment of applicable
customs duties, subject to a ceiling limit of Rs.5 lakhs
(CIF) for such exhibits for each exhibitor.
However, sale of exhibits of items, which were freely
imported shall be made, without an Authorisation, within
bond period allowed for re-export on payment of
applicable customs duties.
(ii) If goods brought for exhibition are not re-exported or
sold within bond period due to circumstances beyond
control of importer, customs authorities may allow
extension of bond period on merits.

Import of Overseas 2.45 On winding up of overseas offices, set up with approval of
Office Equipment RBI, used office equipment and other items may be imported
without Authorisation.

Prototypes 2.46 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 licence / 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
satisfaction of customs authorities.

28

Restricted items 2.47 All restricted items and items permitted to be imported by
for R&D STEs, except live animals, required for R&D purpose may be
imported without an Authorisation by Government recognized
Research and Development units.

Export Policy 2.48 Policy relating to Exports is given in Chapter-2 of FTP. Further,
Schedule 2, Appendix-1 of ITC (HS) specifies list of items,
which may be exported without an Authorisation but subject
to terms and conditions specified.

Application for 2.49 An application for grant of Export Authorisation in respect of
Grant of Export Licence/ items mentioned in Schedule 2 of ITC (HS) may be made in
Certificate / Permission ANF 2D (2E for SCOMET items) to DGFT along with
documents prescribed therein. EFC shall consider applications
on merits for issue of export Authorisation.
An Inter-Ministerial Working Group in DGFT shall consider
applications for export of Special Chemicals, Organisms,
Materials, Equipment and Technologies (SCOMET) as
specified in Appendix-3 to Schedule 2 of ITC (HS) based on
guidelines given below.
Applications for licences to export items or technology on
SCOMET List are considered case-by-case, based inter alia
on the following general criteria:
I. Following factors, among others, are taken into account
in the evaluation of applications for export of items on
SCOMET List:
a. Credentials of end-user, credibility of
declarations of end-use of the item or technology,
integrity of chain of transmission of item from
supplier to end-user, and on potential of item or
technology, including timing of its export, to
contribute to end-uses that are not in conformity
with India’s national security or foreign policy
goals and objectives, objectives of global non-
proliferation, or its obligations under treaties to
which it is a State party.
b. Assessed risk that exported items will fall into
hands of terrorists, terrorist groups, and non-
State actors;
c. Export control measures instituted by recipient
State;
d. The capabilities and objectives of programmes
of recipient State relating to weapons and their
delivery;

29

e. Assessment of end-uses of item(s);
f. Applicability to an export licence application of
relevant bilateral or multilateral agreements to
which India is a party.
II. A condition for consideration of an application for an
export licence is submission of stipulated certifications
to effect, inter alia, that:
a. The item will be used only for stated purpose
and that such use will not be changed, nor items
modified or replicated without consent of
Government of India;
b. Neither the items nor replicas nor derivatives
thereof will be re-transferred without consent of
Government of India;
c. End-user shall facilitate such verifications as are
required by Government of India.Government
of India may also require additional formal
assurances, as appropriate, including on end-use
and non-retransfer, from State of recipient.
III. Licensing authority for items in Category 0 in Appendix
3 to Schedule 2 of ITC(HS) is Department of Atomic
Energy. Applicable guidelines are notified by that
Department under Atomic Energy Act, 1962. For
certain items in Category 0, formal assurances from
recipient State will include non-use in any nuclear
explosive device. Licences for export of certain items
in Category 0 will not be granted unless transfer is
additionally under adequate physical protection and is
covered by appropriate International Atomic Energy
Agency (IAEA) safeguards, or any other mutually
agreed controls on transferred items.
IV. Additional end-use conditions may be stipulated in
licences for export of items or technology that bear
possibility of diversion to or use in development or
manufacture of, or use as, systems capable of delivery
of weapons of mass destruction.
V. Applications for transfer of “Technology” for any item
on the List will be considered as an application for
export of item itself.
VI. Licences for export of items in this List (other than those
under Category 0, 1 and 2) solely for purposes of
display or exhibition shall not require any end-use or

30

end-user certifications. No export licence for display
or exhibition shall be issued for ‘Technology’ in any
category or for items under Categories 0, 1, and 2.
VII. Export of items not on SCOMET List may also be
regulated under provisions of the Weapons of Mass
Destruction and their Delivery Systems (Prohibition of
Unlawful Activities) Act, 2005.
Note 1: Export or attempt to export in violation of any
of conditions of licence shall invite civil and/or criminal
prosecution.
Note 2: Licences for export of items in this List for
display or exhibition abroad are subject to a condition
of re-import within a period not exceeding six months.
Exporters are entitled to apply for an export licence for
such items exhibited abroad if exhibitor intends to offer
that item for sale during exhibition abroad. Such sale
shall not take place without a valid licence.
Note 3: Export of items in Category 2 of this list may
also be controlled by other applicable guidelines issued
from time-to-time. Exporters of items in this category
are advised to seek guidance from DGFT.
Note 4: Exporters are entitled to apply for a ‘destination
licence’ for countries and / or groupings of countries
for export to which only re-transfer conditions need be
imposed.
Note 5: Exporters are entitled to request that only such
conditions need be imposed as are subject of
government-to-government instruments of accord over
export of items on SCOMET List.
Note 6: ‘Technology’ (see also entry ‘Technology’ in
glossary in Appendix-3 to Schedule 2 of ITC (HS)):
Approval of export of an item on the SCOMET List
also authorizes the export to same end-user of minimum
‘technology’ required for installation, operation,
maintenance and repair of the item.
DGFT in association with Administrative Ministries /
Departments and Trade Associations will organize
Industry Outreach Programme on regular basis for an
effective awareness among the exporters /importers
dealing with trade, in particular, in SCOMET items.
RAs may also issue, on application, Free Sale and
Commerce Certificate for export of items not covered

31

under Drugs & Cosmetics Act, 1940, which have usage
in hospitals, nursing homes and clinics, for medical and
surgical purposes and are not prohibited for export.
Validity of such certificate shall be two years from date
of issue unless otherwise specified.

An application for grant of Free Sale and Commerce
Certificate may be made to RA concerned as per format
in Appendix 39 of HBP Vol.I, along with Annexure A
therein.

RA shall issue Free Sale and Commerce Certificate as
per Annexure B of Appendix 39.

Export of Items 2.50 An application for export of items mentioned in ITC (HS) under
under STR regime may be made to DGFT.
State Trading Regime
(STR)

Exports of 2.51 An application for export of samples or exhibits, which are
Samples / Exhibits restricted for export, may be made to DGFT.

Free of Cost Exports 2.52 Status holders shall be entitled to export freely exportable items
on free of cost basis for export promotion subject to an annual
limit of Rs.10 lakh or 2% of average annual export realisation
during preceding three licensing years whichever is higher.

Gifts / Spares / 2.53 For export of gifts, indigenous / imported warranty spares and
Replacement Goods replacement goods in excess of ceiling / period prescribed in
paragraphs 2.32, 2.33 and 2.37 respectively of FTP, an
application may be made to DGFT.

Furnishing of 2.54 All exports made in non physical form by using communication
Returns in respect links including high speed data communication links, internet,
of Exports in telephone line or any other channel which do not involve
non Physical form Customs authorities has to be compulsorily reported on
quarterly basis to concerned EPC (Para 3.12 of FTP) as given
in Appendix 19C.

These provisions shall be applicable to all exporting units
located anywhere in country including those located in STP,
SEZ, EHTP and under 100% EOU scheme.

Duty Free Import of 2.55 Duty free import of goods (as specified in list 28 of Customs
R&D Equipment for notification No.21/2002 dated 1.3.2002, as amended from
Pharmaceuticals and time to time) upto 25% of FOB value of exports during
Bio-technology Sector preceding licensing year, shall be allowed.

32

The eligible unit may furnish an application given in Appendix-
15A to RA concerned duly countersigned by Chartered
Accountant.

In respect of duty free import of R&D equipment, units not
registered with Central excise shall be allowed to give
Installation Certificate issued by an independent Chartered
Engineer.

2.55.1 Duty free imports of goods as specified in list 28A of Customs
notification No. 21/2002 dated 1.3.2002, upto 1% of FOB
value of exports made during preceding licensing year, shall
be allowed to agro chemicals sector unit having export turnover
of Rs. 20 crore or above during preceding licensing year.

The eligible unit shall apply in form given in Appendix-15B to
RA concerned duly countersigned by Chartered Accountant.

In respect of duty free import of R&D equipment, units not
registered with Central excise shall be allowed to give
Installation Certificate issued by an independent Chartered
Engineer.

Conversion of E.P. 2.56 If Customs Authorities, after recording reasons in writing,
copy of shipping bill permit conversion of an E.P. copy of any scheme-shipping
from one Scheme bill on which benefit of that scheme has not been availed,
To Another exporter would be entitled to benefit under scheme in which
shipment is subsequently converted.

Offsetting of 2.57 Subject to specific approval of RBI, any payables, or equity
Export Proceeds investment made by an Autorisation holder under any export
promotion scheme, can be used to offset receipts of his export
proceeds. In such cases, offsetting would be equal to realisation
of export proceeds and exporter would have to submit
following additional documents:
a) Appendix-22D in lieu of Bank Realisation Certificate.
b) Specific permission of RBI.

Quality Certification 2.58 It has been a constant endeavor to promote quality standards
in export product / units manufacturing export product.

2.58.1 One of salient features incorporated in FTP as per paragraph
3.10.3 for promotion of quality standards is grant of Export /
Trading House status on achievement of a lower threshold limit
for units having ISO-9000 (series), ISO-14000 (Series) or
HACCP certification or WHOGMP or SEI CMM level-2 &
above status / certification.

33

2.58.2 List of such agencies authorised to grant quality certification is
given in Appendix-6.

For ISO 9000 (Series) and for ISO 14000 (Series), the Agencies
accredited with National Accreditation Board for Certification
Bodies (NABCB) under Quality Council of India shall be deemed
to be authorized under this Policy. List of such accredited
agencies is available on the web site www.qcin.org and also
provided under Appendix 6.

Any agency desirous of enlistment in Appendix –6 may submit
their application as per Annexure I to Appendix 6 to concerned
RA.

Procedure for import 2.59 Attention is invited to Government of India, Ministry of Finance
under the (Department of Revenue), Notification No. 21/2002-Customs
Tariff Rate Quota Scheme dated 01.03 2002. As per it, import of four items viz., (1)
Skimmed and whole milk powder, milk food for babies etc.
(0402.10 or 0402.21) (2) Maize (corn): other (1005.90) (3)
Crude sunflower seed or safflower oil or fractions thereof
(1512.11) and (4) Refined rape, colza or mustard oil, other
(1514.19 or 1514.99) is allowed in a financial year, up to
quantities as well as such concessional rates of customs duty as
indicated below:
S.No ITC Code No. Quantity of Concessional
& Item Quota Duty
1 Tariff Code No. 10,000 MTs 15%
0402.10 or 0402.21
Skimmed and whole
Milk Powder. Milk
Food for babies etc.
2 Tariff Code No. 1005.90 5,00,000 MTs 15%
Maize (Corn): other
3 Tariff Code No. 1512.11 150,000 MTs 50%
Crude Sunflower seed
or safflower oil or
fractions thereof
4 Tariff Code No. 150,000 MTs 45%
1514.19 & 1514.99
Rape, Colza, Canola or
Mustard Oil, Other (Refined)

Eligible entities for 2.59.1 (a) Milk Powder (Tariff Code No. 0402.10 or 0402.21):
allocation of quota National Dairy Development Board (NDDB), State
Trading Corporation (STC), National Cooperative

34

Dairy Federation (NCDF), National Agricultural
Cooperative Marketing Federation of India Ltd.
(NAFED), Minerals and Metals Trading Corporation
(MMTC), Projects & Equipment Corporation of India
Limited (PEC) and Spices Trading Corporation Limited
(STCL)
(b) Maize (corn)(Tariff Code No. 1005.90): National
Agricultural Cooperative Marketing Federation of India
Ltd.(NAFED), State Trading Corporation (STC),
Minerals and Metals Trading Corporation (MMTC),
Projects & Equipment Corporation of India
Limited(PEC), Spices Trading Corporation Limited
(STCL) and State Cooperative Marketing Federations
(c) Crude sunflower seed or safflower oil or fractions
thereof (Tariff Code No. 1512.11) and Refined rape,
colza, canola or mustard oil, other (Tariff Code No.
1514.19 or 1514.99): National Dairy Development
Board (NDDB), State Trading Corporation (STC),
National Agricultural Cooperative Marketing Federation
of India Ltd.(NAFED) Spices Trading Corporation
Limited (STCL) and Central Warehousing Corporation
(CWC) State Cooperative Marketing Federation &
State Cooperative Civil Supplies Corporation
All eligible entities are eligible to avail quotas as per request of
applicants received.

All eligible entities desiring availment of quota as mentioned
above, may make application to EFC in ANF to DGFT, Udyog
Bhavan, New Delhi – 110 011. Completed application forms
along with prescribed documents must reach on or before 1st
March of each financial year preceding to the year of quota
e.g. Applications for TRQ for 2010-2011 must reach DGFT
by 01.03. 2010.

Imports have to be completed before 31st March of financial
year i.e. consignments must be cleared by customs authorities
before this date.

Since import of maize (corn) is through STEs, the allottes of
quota i.e. designated agencies in para 1 (b) above for this item
shall also be granted an import Authorisation for allotted
quantities as indicated at Sl. No. 21(b) of Customs Notification
No. 21/2002 dated 1.3.2002 in terms of para 2.11 of FTP,
2009-2014, if they do not wish to make imports through FCI.

35

Application fee for these applications shall be paid according
to procedure contained in Appendix 21 B to HBP-v1.

EFC in DGFT will evaluate and allot quota among applicants
by 31st March of each financial year preceding to year of quota
e.g. for 2010-11, EFC will allot quota by 31st March 2010.

Issuance of scrips 2.60 In case where EP copy of Shipping Bill / original BRC has
against lost EP copy been lost, claim under VKGUY/ FMS/ FPS can be considered
of the Shipping Bills subject to submission of following documents: -
and / or original Bank
Realisation Certificate a) A duplicate / certified copy of concerned document
issued by Customs Authority / Bank in lieu of original;
b) An application fee equivalent to 2% of relevant
entitlement. However, no fee shall be charged when
such document is lost by Government agencies and a
documentary proof to this effect is submitted;
c) An affidavit by exporter about loss of document and
an undertaking to surrender it immediately to concerned
RA, if found subsequently;
d) An indemnity bond by exporter to effect that he would
indemnify Government for financial loss if any on
account of duty credit issued against lost Shipping Bills/
BRC.
Customs Authority, before allowing clearance, shall
ensure that benefit / duty credit against such shipping
bill has not been availed.
2.60.1 Claim against lost Shipping Bill / BRC shall be preferred within
a period of six months from date of release of duplicate copy
of Shipping Bill / on date of realization of export proceeds.
Any application received thereafter shall be rejected.

Export Promotion 2.61 A list and product category of EPCs, including CB is given in
Council (EPC)/ Appendix-2. Commodity Boards function as EPCs for
Commodity products allotted to them. EPC is authority issuing RCMC.
Boards (CB)

Non-Profit, 2.62 EPCs are non-profit organizations registered under Companies
Autonomous and Act or Societies Registration Act.
Professional Bodies
2.62.1 EPCs shall be autonomous and shall regulate their own affairs.
However, if Central Government frames uniform bylaws for
constitution and / or for transaction of business for EPCs,
they shall adopt the same with such modifications as Central
Government may approve having regard to special nature or
functioning of such EPC.

36

Concerned Administrative Ministry would interact with
Managing Committee of EPC concerned at least twice a year.

Registering Authorities 2.63 (i) While obtaining RCMC, an exporter has to declare his
issuing RCMC main line of business in the application. The exporter is
required to obtain RCMC from the Council which is
concerned with the product of his main line of business.
(ii) Irrespective of para (i) above, a status holder has to
obtain RCMC from Federation of Indian Exporters’
Organisation (FIEO).
(iii) In case an export product is not covered by any Export
Promotion Council/Commodity Board, etc. RCMC in
respect thereof is to be obtained from FIEO.
(iv) Exporters of minor forest produce and their value added
products shall obtain RCMC from SHEFEXIL, EPC.
Software exporters shall register themselves with
Electronic and Software EPC.
(v) Exporters of 14 specific services as listed in Appendix-
2 of HBPv1, are required to register themselves with
Services EPC. Other service exporters shall register
themselves with FIEO.
(vi) In respect of exporters having their head office /
registered office in State of Orissa, RCMC may be
obtained from FIEO office in Bhubaneswar irrespective
of product being exported by them. However, exporters
of minor forest product from the State can also obtain
RCMC from SHEFEXIL, EPC.
(vii) In respect of multi product exporters having their head
office/ registered office in the North Eastern States,
RCMC may be obtained from Shellac & Forest
Products Export Promotion Council (except for the
products looked after by APEDA, Spices Board and
Tea Board).

Registration cum 2.64 An exporter may, on application given in Appendix-19A,
Membership Certificate register and become a member of EPC. On being admitted to
(RCMC) membership, applicant shall be granted forthwith Registration-
cum-Membership Certificate (RCMC) of EPC concerned, in
format given in Appendix-19B. In case an exporter desires to
get registration as a manufacturer exporter, he shall furnish
evidence to that effect.

Prospective / potential exporters may also, on application,
register and become an associate member of an EPC .

37

Validity Period 2.64.1 RCMC shall be deemed to be valid from 1st April of licensing
of RCMC year in which it was issued and shall be valid for five years
ending 31st March of licensing year, unless otherwise specified.

Intimation Regarding 2.65 In case of change in ownership, constitution, name or address
Change In Constitution of an exporter, it shall be obligatory on part of RCMC holder
to intimate such change to registering authority within a period
of one month from date of such change. Registering authority,
however, may condone delays on merits.

Furnishing Of Returns 2.66 Exporter shall furnish quarterly returns / details of his exports
of different commodities to concerned registering authority.
However, status holders shall also send quarterly returns to
FIEO in format specified by FIEO.

De-Registration 2.67 Registering authority may de-register an RCMC holder for a
specified period for violation of conditions of registration.
Before such de-registration, RCMC holder shall be given a
show cause notice by registering authority, and an adequate
and reasonable opportunity to make a representation against
the proposed de-registration. Upon de–registration, concerned
EPC shall intimate the same to all RAs.

Appeal Against 2.68 A person aggrieved by a decision of registering authority in
De-registration respect of any matter connected with issue of RCMC may
prefer an appeal to DGFT or an officer designated in this behalf
within 45 days against said decision and decision of appellate
authority shall be final.

Directives of DGFT 2.69 DGFT may direct any registering authority to register or de-
register an exporter or otherwise issue such other directions
to them consistent with and in order to implement provisions
of FT (D&R) Act, Rules and Orders made there under, FTP
or this Handbook.

2.70 Electronic Data Interchange

Eligibility 2.70.1 Facility of electronic filing of applications shall be available to
all exporters.

Procedure 2.70.2 An exporter would be able to file his application on DGFT
website at http://dgft.gov.in/. Application will then be processed
in accordance with prevalent rules and regulations.

Applicant will have to visit concerned office to hand-over hard
copy of application along with requisite documents including
application fee. Authorisation shall be issued on receipt of hard
copies of documents as mentioned above after due scrutiny
as prescribed in HBP v1.

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Fiscal Incentives 2.70.3 Following deductions in Application Fee would be admissible
for EDI for applications signed digitally and / or where application fee
is paid electronically through EFT (electronic fund transfer)
Sr. No. Mode of Application Fee Deduction
(as a % of normal
application fee)

1 Digitally signed 25%

2 Application fee payment 25%
vide EFT

3 Both digitally signed as 50%
well as use of EFT for
payment of application fee

Benefits 2.70.4 Facility will reduce unnecessary physical interface with DGFT.
It will enable faster processing, speedier communication of
deficiencies, if any, and on-line availability of application
processing status.

2.70.5 Authorisation issued using DGFT Electronic Application
System shall be transmitted electronically to Customs through
EDI Mode. This shall also obviate need for verification of
Authorisations before allowing clearance.

New EDI Initiatives 2.70.6 To further improve quality of services some new EDI initiatives
are being taken by DGFT:

Electronic Message Exchange between Customs and DGFT
in respect of incentive schemes under Chapter 3 will become
operational by 31st December, 2009.

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CHAPTER - 3

PROMOTIONAL MEASURES

Status Certificate 3.1 Policy for Status Holder is given in Chapter 3 of FTP.

Application for 3.2 Application for grant of status shall be filed by 31st March, in
grant of Status ANF 3A. An existing status holder shall be automatically treated
Certificate to be an equivalent status holder as given in Para 3.10 of FTP.

3.2.1 Application shall be filed with jurisdictional RA / Development
Commissioner (DC). However, in cases where export
performance of EOUs / SEZs is clubbed together with
company / firm / Group Company in DTA, the same will be
considered by jurisdictional RA (in DGFT) only.

3.2.2 All newly issued Status certificates shall be valid from 1st April
of the year during which application for recognition was filed.
For renewals, application filed before expiry of current validity,
renewals shall have a validity commencing from 1st April of
next licensing year; otherwise validity period shall be 1st April
of year during which application was filed. All Status
Certificates shall be valid for a period of 5 years reckoned
from the 1st April of the relevant year. All Status Certificates
valid beyond 31.3.2014 shall continue to remain in force, in
case provisions of Foreign Trade Policy (2014-19) continue
to recognize the status. Pending the finalization of the
applications for grant of recognition, existing status holders
who have applied for recognition before the expiry of their
status, shall have a grace period of 6 months. During this grace
period of 6 months such status holders shall continue to be
recognized as Status holders even after the expiry of earlier
Status Certificate i.e. till September end, unless their applications
are finally rejected or status recognition is granted once again,
as the case may be.

Maintenance of 3.3 Status Holder shall maintain true and proper accounts of its
Accounts exports and imports based on which such recognition has been
granted.Record shall also be maintained during validity period
and for a minimum period of three years thereafter. These
accounts shall be made available for inspection to RA
concerned or any authority nominated by DGFT.

41

Refusal / Suspension / 3.4 Status Certificate may be refused or suspended or cancelled
Cancellation of by RA concerned, if status holder or any agent or employee
Certificate or authorized representative acting on his behalf:
(a) Fails to discharge export obligation imposed;
(b) Tampers with Authorisations;
(c) Misrepresents or has been a party to any corrupt or
fraudulent practice in obtaining any Authorisation;
(d) Commits a breach of FT (D& R) Act, or Rules, Orders
made there under and FTP; or
(e) Fails to furnish information required by this Directorate.

3.4.1 A reasonable opportunity shall be given to Status Holder before
taking any action under above paragraph.

Appeal 3.5 An applicant, who is not satisfied with decision taken to
suspend or cancel Status Certificate, may file an appeal to
DGFT within 45 days. Decision of DGFT shall be final thereon.

3.6 SERVED FROM INDIA SCHEME (SFIS)
(a) Policy for SFIS is given in Chapter 3 of FTP.
(b) For foreign exchange earned during current financial
year, application for Duty Credit Scrip shall be filed on
monthly/quarterly/half-yearly/annual basis, at the option
of the applicant to be exercised along with first
application for the current financial year, with
jurisdictional RA, in ANF 3B along with documents
prescribed therein, for which the last date for filing
application on time shall be 12 months from the end of
relevant month / quarter / half-year /year periodicity.
(c) Service provider shall within one month of completion
of imports made or expiry of validity of Duty Credit
scrip whichever is earlier, submit a statement of imports
made under it to jurisdictional RA with a copy to
jurisdictional Excise authorities (service tax cell)
wherever applicable.

Ineligible Remittances 3.6.1 Foreign exchange remittances other than those that are earned
and Services for SFIS for rendering of services would not be counted for entitlement.
scheme Thus, other sources of foreign exchange earnings such as equity
or debt participation, donations, receipts of repayment of loans
etc. and any other inflow of foreign exchange, unrelated to
rendering of service, would be ineligible. For calculation of
entitlement, following shall not be taken into account.

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a) Foreign Exchange remittances:
I. related to Financial Services Sector
1. Raising of all types of foreign currency Loans;
2. Export proceeds realization of clients;
3. Issuance of Foreign Equity through ADRs /
GDRs or other similar instruments;
4. Issuance of foreign currency Bonds;
5. Sale of securities and other financial instruments;
6. Other receivables not connected with services
rendered by financial institutions; and
II. earned through contract/regular employment abroad
(e.g. labour remittances);
b) Payments for services received from EEFC Account;
c) Foreign exchange turnover by Healthcare Institutions
like equity participation, donations etc. (However,
remittances received on account of medical treatment,
surgery, testing, consultancy and health care provided
by the institution shall be eligible.);
d) Foreign exchange turnover by Educational Institutions
like equity participation, donations etc. (However
remittances received on account of the course fees and
consultancy provided by the institution shall be eligible.);
e) Export turnover relating to services of units operating
under SEZ / EOU / EHTP / STPI / BTP Schemes or
supplies of services made to such units;
f) Clubbing of turnover of services rendered by SEZ /
EOU / EHTP / STPI / BTP units with turnover of DTA
Service Providers;
g) Service Providers in Telecom Sector (Sr. No 2C of
Appendix 10);
h) Foreign Exchange earnings for Services provided by
Airline and Shipping Lines Service providers for routes
plying from any country X to any country Y only, not
touching India at all; and
i) Exports of Goods.

3.7 VISHESH KRISHI AND GRAM UDYOG YOJANA
(VKGUY)

3.7.1 Policy pertaining to VKGUY is given in Chapter 3 of FTP.
Appendix 37A contains the list of VKGUY items along with

43

the admissible date of export. Application for grant of Duty
Credit scrip under VKGUY for exports made from 27.8.2009
onwards shall be made to RA concerned in ANF3C along
with documents prescribed therein. Listed products shall be
eligible for Duty Credit Scrip upon exports on or after the
Date of Export indicated in the relevant Appendix.

3.7.2 Policy pertaining to the Agri. Infrastructure Incentive Scrip
under VKGUY is given in Para 3.13.4 of Chapter 3 of FTP.
All Status Holders may apply for grant of Duty Credit scrip
for export made during current year to RA, CLA, New Delhi
in ‘ANF 3D - ANF for Policy Para 3.13.4.’ along with
documents prescribed therein.

Applicants may file one application before the last date
prescribed for each half year period (Apr-Sep / Oct-Mar).
Applications for exports during Apr-Sept period shall be filed
from 15th January till 15th February of current year and for
exports during Oct-Mar period, applications shall be filed from
1st May till 31st May of the next licensing year.

Applications received after the last date shall be summarily
rejected, as Para 9.3 and Para 9.4 shall not be applicable.

The allocation of duty credit scrips by RA, CLA, New Delhi,
under Para 3.13.4 of FTP, shall be done proportionate to the
eligible claims of individual applications, vis-à-vis the total eligible
claims of all the status holders put together, received for each
half year (Apr-Sep / Oct-Mar) periods, in such a way that the
total benefits granted for all status holders put together does
not exceed the limit prescribed for each half year in Para 3.13.4
of FTP. Accordingly if the total eligible claim of all the status
holders put together is, say, Rs 200 Cr, each applicant status
holder would be granted one-fourth of the claim an applicant
is eligible for.

FOCUS MARKET SCHEME (FMS)

3.8 Policy pertaining to FMS is given in Chapter 3 of FTP. Notified
Markets are listed in Appendix 37C.

3.8.1 An application for exports made from 27.8.2009 onwards
shall be filed separately, with RA concerned in ANF3C along
with documents prescribed therein.

Eligibility of Focus Market (as in Appendix 37C) shall be
determined from date of export as per Para 9.12 of HBP v1.

44

Proof of Landing – 3.8.2 Applicant shall be required to submit proof of landing of export
for FMS and MLFPS consignment in specified market.
Any one of the following documents should suffice, as a proof
of landing of export consignment in specified Focus Market:
(i) A self attested copy of import bill of entry filed by
importer in specified market, or
(ii) Delivery order issued by port authorities, or
(iii) Arrival notice issued by goods carrier, or
(iv) Tracking report from the goods carrier (Shipping Line/
Airline etc. or his accredited agent in India) duly certified
by them, evidencing arrival of export cargo to
destination Focus Market, or
(v) For Land locked Focus Market, Rail/Lorry receipts of
transportation of goods from Port to Land locked Focus
Market, or
(vi) Any other documents that may satisfactorily prove to
RA concerned that goods have landed in / reached the
Focus Market.
In case of (iv) and (vi) above, the accredited agent of the
Goods Carrier must certify that he is the accredited agent of
the concerned Goods Carrier on the date of issuance of the
tracking report / document.

Further, in the case of issuance of any other document under
(vi) above, the accredited agent must state that he has verified
that this proof of landing of goods in relevant Focus Market is
given based on information available in the Goods Carrier’s
backup database and he has issued this document accordingly.

FOCUS PRODUCT SCHEME (FPS)

3.9 Policy pertaining to FPS is given in Chapter 3 of FTP. Notified
Products are listed in Appendix 37D.

3.9.1 An application for exports made from 27.8.2009 onwards
shall be filed, with RA concerned in ANF3C along with
documents prescribed therein. Eligibility of Focus Product (as
in Appendix 37D) shall be determined from date of export as
per Para 9.12 of HBP v1.

3.9.2 The procedure for filing applications against export of Market
Linked Focus Products under FPS (Para 3.15.3 of FTP) will
be the same as laid down for Focus Product Scheme in Para
3.9.1 above. In case of applications for grant of benefit under

45

Market Linked Focus Product scheme, for proof of landing
of export consignment in specified market, Para 3.8.2 of HBP
Vol.1 shall apply.

3.10 Procedure for Status Holders Incentive Scrip

3.10.1 Policy pertaining to Status Holders Incentive Scrip is given in
Para 3.16 of Chapter 3 of FTP.

3.10.2 ANF3E and other conditions for claiming Status Holders
Incentive Scrip shall be notified separately.

3.11 COMMON PROCEDURAL FEATURES FOR
PROMOTIONAL SCHEMES, APPLICABLE TO ALL
SCHEMES IN THIS CHAPTER, UNLESS
SPECIFICALLY PROVIDED FOR:

Jurisdictional RA / 3.11.1 Applicant shall have option to choose Jurisdictional RA on the
RA Concerned basis of Corporate Office, Registered Office, Branch Office
address endorsed on IEC. However, once opted, no change
would be allowed.

3.11.2 Provisions contained in Chapter 2 and 9 of this HBP shall
apply to all Promotional Schemes.

Port of Registration 3.11.3 Duty Credit Scrip (including splits) shall be issued with a single
port of registration which shall be the port of export. After
issue of Duty Credit Scrip, but before registration with Customs,
the Applicant can change the port of registration from RA
concerned. Before registration, authorities shall verify
genuineness of Duty Credit scrip, from RA concerned, until
EDI system of message exchange is put in place.

However, applicant may use Duty Credit Scrip for imports
from any other port (that includes ICD/LCS) after obtaining
TRA from authorities at port of registration. The above
procedure shall be applicable only in respect of EDI enabled
ports. In case of exports through non-EDI ports, the port of
registration shall be the port of exports.

Facility for Split Scrips 3.11.4 Split certificates of Duty Credit Scrip subject to a minimum of
Rs 5 Lakh each and multiples thereof may also be issued, on
request at the time of application with different port of
registration.
After issue, request of splits shall be permitted with same port
of registration as appearing on the original scrip. The above
procedure shall be applicable only in respect of EDI enabled
ports.

46

In case of exports through non-EDI ports, the facility of splits
shall not be allowed, after issue of scrip.

Import from 3.11.5 Entitlement can be used for import from private / public bonded
private / public warehouses subject to fulfillment of paragraph 2.28 of FTP
bonded warehouses and terms and conditions of DoR notification.

Re-export of 3.11.6 Goods imported which are found defective or unfit for use,
defective / unfit goods may be re-exported, as per DoR guidelines. Where Duty Credit
scrip has been used for imports, Customs shall issue a certificate
containing particulars of scrip used, date of import of re-
exported goods and amount debited while importing such
goods. Based on this certificate, upon application, a fresh Scrip
shall be issued by concerned RA to extent of 98% of debited
amount, with same port of registration and valid for a period
equivalent to balance period available on date of import of the
defective / unfit goods.

Validity Period 3.11.7 Duty Credit Scrip shall be valid for a period of 24 months.
& Revalidation Revalidation of Duty Credit Scrip shall not be permitted.

Declaration of Intent 3.11.8 For export shipments filed under Free Shipping Bill category,
on Free Shipping Bills for exports of products / to markets eligible under Chapter 3
of FTP (Appendix 37A, 37C, 37D), the exporter shall state
the intention to claim benefits under Chapter 3 of FTP by
declaring on the Free Shipping Bills as under:

‘I/We, hereby, declare that I/We shall claim the benefits, as
admissible, under Chapter 3 of FTP’.

This declaration shall not be required for export shipments
under any of the schemes of Chapter 4 (including drawback)
or Chapter 5 of FTP.

Further for products, markets notified during the year, this
declaration shall be necessary for exports under Free Shipping
Bills, only after a grace period of one month from the date of
relevant public notice.

Moreover for exports made prior to date of notification of
products / markets, such a declaration will not be required,
since export shipments under Free Shipping Bills have already
taken place.

Last date of 3.11.9 Applications for obtaining Duty Credit Scrip shall be
filing of application for filed within a period of twelve months from the date of
Duty Credit Scrips, export or within six months from the date of realization or

47

except three months from the date of printing / release of shipping
for FTP Para bill, whichever is later, in respect of shipments for which claim
3.13.4 and FTP is being filed. Further, for shipments already made prior to the
Para 3.16 inclusion/modification of the items / markets in relevant
appendices by various Public Notices issued from time to time;
the last date for filing applications shall be six months from the
end of the month of the relevant Public Notice that included/
modified the items/markets, or the time period permitted in
the first sentence of this Para, whichever is later. For SFIS for
current financial year, the last date shall be 12 months from the
end of application frequency period.

3.11.10 Shipments from EDI Ports and Non-EDI Ports cannot be
clubbed in one application. Port of registration for EDI enabled
ports shall be the port of export. 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.

3.11.11 Freely Transferable Duty Credit Scrip shall be granted on FOB
value of exports. FOB Value of Exports shall be taken from
the Shipping Bill (FOB value in free foreign exchange declared
on the Shipping Bill and converted into Indian Rupees at the
Monthly Customs Rate of Exchange on the date of LEO).
Date of export is determined as per Para 9.12 of HBPv1.
Multiple Applications can be filed and supplementary cut shall
not be applicable. However, an application shall contain a
maximum of upto 50 shipping bills.

3.11.12 All the pre-realization cases are to be monitored by RA
concerned with respect to realization of export proceeds. The
procedure prescribed in Para 4.45 shall apply, mutatis mutandis,
to freely transferable Duty Credit Scrips issued under Chapter
3 on the pre-realization basis. However for adjustment of
excess / short realisation, procedure in Para 3.11.13 is to be
followed.

3.11.13 (i) In case there is no pending claim and there is no cash
deposit towards the amount immediately after the expiry
of 12 months time period from the date of issuance of
the Scrip, the RA shall initiate necessary action. If the
Scrip holder does not pay the amount within 60 days
of the expiry of aforesaid 12 months time period, the
scrip holder shall be required to pay the said amount
along with 15% interest per annum from the date of
issuance of the Scrip(s) for the Duty Credit for which
BRC or Documentary evidence (evidencing realisation

48

of export proceeds as required under FTP or the
Procedure laid thereunder) could not be produced. In
case the Scrip holder surrenders the unutilized / partially
unutilized Duty Credit Scrip, then unutilized / partially
unutilized credit shall be deduced from the payable
amount.
(ii) In case the FOB value realized in free foreign exchange
is higher as per BRC, when compared to the FOB value
in free foreign exchange as declared on the Shipping
Bill(s) on which the original duty credit scrip was issued,
supplementary claim shall be filed within a period of six
months from the date of realization.

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CHAPTER-4

DUTY EXEMPTION / REMISSION SCHEME

Policy 4.1 Policy relating to Duty Exemption / Remission Scheme is
prescribed in Chapter 4 of FTP.

General Provision 4.2 An application for grant of an Advance Authorisation / Advance
Authorisation for Annual Requirement / DEPB / DFIA may be
made by Registered office or Head office or a branch office
or manufacturing unit of eligible exporter, to RA concerned.

4.3 Where applicant is branch office or manufacturing unit(s) of
an exporter, it shall furnish self certified copy of valid RCMC
where name of branch office or manufacturing unit is given.

Advance Authorisation 4.4 Where SION have been published, an application in
ANF 4A, along with documents prescribed therein, shall be
submitted to RA concerned.

4.4.1 In case of export of gold /silver / platinum jewellery and articles
thereof, quantity, wastage and value addition norms shall be
as prescribed in paragraph 4A of FTP and HBP v1.

4.4.2 In case where norms have not been published, an application
in ANF 4B, along with prescribed documents, shall be
furnished to concerned Norms Committee (NC) at DGFT
Headquarters for fixation of Norms.

In such cases, original copy of application along with prescribed
fee shall be filed with RA concerned and a self attested copy
of same shall be filed with NC.

Authorisation in such cases shall be issued by RA as per NC
recommendation.

NC shall also function as a recommendatory authority for
SION. DGFT may notify such norms.

4.4.3 Where import of Acetic Anhydride, Ephedrine and Pseudo-
ephedrine is required as an input, applications shall be filed
with RA concerned.

Copies of such applications shall also be simultaneously
endorsed to the Drug Controller of India, Nirman Bhawan,
New Delhi, Narcotics Commissioner, Central Bureau of

51

Narcotics, Gwalior and respective Zonal Director of Narcotics
Control Bureau, alongwith a declaration that applicant will
maintain prescribed records and also submit prescribed
returns.

4.4.4 RA, while issuing Advance Authorisation for import of Acetic
Anhydride, Ephedrine and Pseudo- ephedrine, shall endorse
a condition that before effecting imports, NOC shall be
obtained from Narcotics Commissioner of India, Central
Bureau of Narcotics, Gwalior and shall also endorse a copy
of Authorisation to Drug Controller, Nirman Bhawan, New
Delhi and concerned Zonal Director of Narcotics Control
Bureau.

Advance 4.5 Transfer of any duty free material imported or procured against
Authorisation for Advance Authorisation from one unit of company to another
applicants with for manufacturing purpose shall be done with prior intimation
multiple units to jurisdictional Excise Authorities with a clear understanding
that no benefit of CENVAT shall be claimed on such transferred
inputs. However, such transfers shall not be allowed to units
located in areas covered by Central Excise Notification No.
39/2003 and 50/2003 (i.e. Himachal Pradesh / Uttaranchal).
In case of non-excisable company / products, units should
maintain a proper record. However to avail facility, all such
units should be available in IEC certificate and follow rules
and regulation of Central Excise for job work. Large Taxpayer
Units (LTUs) having multiple units, may not follow above job
work procedure, after fulfillment of EO. Duty Free material
imported or procured against advance authorization can be
taken from the port directly to the project site of the project
authority as per provision stated in ANF 4A and DOR guide
lines.

Advance 4.6 For policy in paragraph 4.1.8, a specific endorsement shall be
Authorisation for made on exchange control copy of Advance Authorisation
Free of Cost and disallowing remittances for material being supplied free of cost.
Paid Material All inputs imported shall be utilised in manufacturing of product
except wastage.

Self Declared 4.7 RA may also issue Advance Authorisations, where SION are
Authorisations not fixed, based on self declaration and an undertaking by
where SION applicant for a final adjustment as per Adhoc / SION fixed by
does not exist NC.

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However, no Advance Authorisation shall be issued under this
paragraph for import of following products:-

i. All vegetable / edible oils classified under Chapter -
15 and all types of oilseeds classified under Chapter -
12 of ITC (HS) book;
ii. All types of cereals classified under Chapter – 10 of
ITC (HS) book;
iii. All spices other than light black pepper (light berries)
having a duty of more than 30%, classified under
Chapter-9 and 12 of ITC (HS) book;
iv. All types of fruits/vegetables having a duty of more than
30%, classified under Chapter 7 and 8 of ITC (HS)
book; and
v. Horn, hoof and any other organ of animal.
vi. Honey.
For export of perfumes, perfumery compounds and various
feed ingredients containing vitamins, no Authorisation shall be
issued by RA and applicants may apply under Para 4.4.2
above. Where export and/or import of biotechnology items
are involved, Authorisation under this paragraph shall be issued
by RA only on submission of a “No Objection Certificate”
from Department of Biotechnology.

Entitlement 4.7.1 CIF value of one or more such authorisations shall be
maximum 500% of FOB and / or FOR value of preceding
year’s exports and / or supplies in case of status holders and
Rs. 5 crore or 500% of the FOB and / or FOR value of
preceding year exports and / or supply, whichever is more, for
others.

However, in cases where NC has already ratified norms for
same export and import products in respect of an authorization
obtained under paragraph 4.7, such norms shall be valid for a
period of one year reckoned from the date of ratification.

In such cases Authorisations shall be issued by RA concerned
under “Adhoc Norms Fixed” category and application copies
need not be forwarded to NC for fixation / ratification of norms.
Authorisation holder in such cases shall be entitled for further
authorisation (s) as per norms ratified by NC without need for
subsequent ratification by NC. In such cases, applicant would
file application under Adhoc Norms Fixed category.

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However, NC should ensure that such adhoc norm(s), if not
notified already, are notified within six months of the ratification
of such adhoc norm(s).

4.7.2 Once norms are fixed by NC, value limits mentioned in above
paragraph would not be applicable to advance authorisations
issued under this paragraph. Such authorisations, subsequent
to fixation of norms by NC, may be enhanced.

It is mandatory for industry to provide production data etc. as
may be required by DGFT / EPC for fixation of SION.
Otherwise, applicant shall not be allowed to take benefit of
Advance Authorization scheme for taking repeat advance
authorizations on self-declared basis.

Authorisation in 4.7.3 An applicant shall be entitled for authorisation in excess of
Excess of entitlement mentioned in paragraph 4.7.1 subject to furnishing
Entitlement of 100% Bank Guarantee to Customs authority to cover
exemption from customs duties. A specific endorsement to this
effect shall be made on authorisation.

Application 4.7.4 Original application with prescribed documents shall be
submitted to concerned RA. RA shall forward a copy of
application within 7 days from Authorisation issue date to NC
for fixation of norms within prescribed time.

Undertaking 4.7.5 Applicant shall give an undertaking that he shall abide by norms
fixed by NC and accordingly pay duty, together with interest,
on unutilised inputs as per norms fixed by NC. However,
Authorisation holder has option to undertake additional EO in
proportion to excess unutilized inputs. In case application is
rejected by NC, authorization holder shall pay customs duty
saved along with interest on imported inputs, as notified.
However in such cases where the NC decides adhoc norms
based on information available to it and the exporter represents
against the decision of the NC, time limit for filing
representation, if any, before the Norms Committee shall be
four months from the date of communication of decision of the
fixation of adhoc norms by NC.

In addition, an amount as per Para 4.28(i)(b) below has to be
deposited.

4.7.6 In such cases, where norms are not finalised by NC within
four months from Authorisation issue date, norms as applied
for shall be treated as final and no adjustment will be made.
However, where application for fixation of adhoc / SION is

54

rejected on account of non-furnishing of required documents/
information, Authorisation holder shall be liable for penalty as
stated in above paragraph. In case SION for the said product
is notified, SION would be made applicable for deciding
wastage norm and EO. In such cases where export obligation
is completed pending fixation of norms by NC, entitlement for
authorisation as given in paragraph 4.7.1 may be re-credited
upon production of documentary evidence (copies of Shipping
bill / bill of export / Central Excise certified copies of invoices)
showing fulfillment of export obligation in respect of previous
authorisations. However, bond waiver / redemption shall not
be allowed pending fixation of norms in such cases.

Standardisation 4.8 For standardization of norms, an application may be made by
of Adhoc Norms manufacturer exporter or merchant exporter tied to supporting
manufacturer, duly filled in with complete data. Such applications
shall be made to NC in ANF 4B. Import of fuel may also be
allowed under SION by NC subject to following: -

(a) Facility of import of fuel shall be allowed only to
manufacturer having captive power plant.
(b) In cases where SION specifically allows fuel, same shall
be permitted under advance Authorisation. However,
If fuel is not covered specifically under SION, it may
be allowed as per General Fuel Policy for products
covered under SION or under paragraph 4.7 above.
(c) Fuel should be allowed only against an actual user
Authorisation. However in case of DFIA, fuel can only
be transferred to agencies granted marketing rights by
the Ministry of Petroleum and Natural Gas.
(d) Applications of fixation for fuel entitlement for new
sectors and modification of the existing entitlement as
per General Note for Fuel in HBP v2 would be made
to NC along with requisite data in ANF 4B.

Modification of 4.9 An application for modification of existing SION may be filed
SION before the NC by manufacturer exporter or merchant-exporter,
tied to supporting manufacturer, in form given in ANF 4B.

Amendment of 4.10 An application for amendment of an export item or inputs under
Export item SION or under Adhoc Norms may be filed by any
and inputs manufacturer or merchant exporter as per ANF 4B.

Applicant would give justification for seeking amendment and
same would be considered by Regional Authority with specific

55

approval of Head of office. In case of any major change in
input or request for more wastage to that allowed under SION
or adhoc norm, same should be referred to NC for ratification.

Revision of SION 4.10.1 NC may identify SIONs which in its opinion are required to
by NC 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.

Description of 4.11 An Advance Authorisation shall specify:
an Advance Authorisation
(a) names and description of items to be imported and
exported / supplied;
(b) quantity of each item to be imported or wherever
quantity cannot be indicated, value of item shall be
indicated. However, if in SION, quantity and value of
individual inputs is a limiting factor, same shall be
applicable.
(c) aggregate CIF value of imports; and
(d) FOB / FOR value and quantity of exports / supplies.

Exports in 4.12 Exports / supplies made from the date of EDI generated file
Anticipation of number for an Advance Authorisation, may be accepted
Authorisation towards discharge of EO. Shipping / Supply document(s)
should be endorsed with File Number or Authorisation Number
to establish co-relation of exports / supplies with Authorisation
issued. The requirement of endorsement of file number or
authorisation number on the shipping bill would be dispensed
with once the EDI Data Transmission System for the shipments
becomes operational.

If application is approved, authorisation shall be issued based
on input / output norms in force on the date of receipt of
application by RA in proportion to provisional exports /
supplies already made till any amendment in norms is notified.
For remaining exports, Policy / Procedures in force on
authorisation issue date shall be applicable.

4.12.1 Exports / supplies made in anticipation of grant of an Advance
Authorisation shall be entirely on risk and responsibility of
exporter.

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4.12.2 Conversion of duty free shipping bills to drawback shipping
bills may also be permitted by customs authorities in case
application for an Advance Authorisation is rejected or modified
by RA.

Advance 4.13 Application for grant of Advance Authorisation or DFIA for
Authorisation or Intermediate supply may be made on the basis of a tie-up
DFIA for agreement with exporter (physical / deemed) holding an
Intermediate Advance Authorisation or DFIA. RA concerned shall consider
Supplies such requests.
Advance Authorisation or DFIA for Intermediate supply shall
be issued after making Authorisation invalid for direct import
of items, to be supplied by intermediate manufacturer. In such
cases, a copy of the invalidation letter will be given to
Authorisation holder and copy thereof will be sent to
intermediate supplier as well as RA of intermediate supplier.
Authorisation holder in such case has an option either to supply
intermediate product to the holder of Advance Authorisation
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. However, once Electronic message
transfer facility among the RAs becomes fully operational,
sending copy of invalidation letter / ARO to jurisdictional RA
shall not be required.
Facility of Advance Authorisation shall be available even in
cases where intermediate supplier has supplied or intend to
supply material subsequent to fulfilment of EO by exporter
holding Advance Authorisation / DFIA from where invalidation
letter was issued.

Advance Release 4.14 An application may be made to RA concerned for grant of
Order (ARO) ARO to procure inputs from indigenous sources / STEs.

4.14.1 Application shall specify:

(i) name, description and quantity of items and
(ii) individual value of items to be procured. An ARO may
be issued along with Advance Authorisation / DFIA or
subsequently, and its validity shall be co-terminus with
validity of Advance Authorisation / DFIA.

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An ARO issued for procurement of an individual item shall be
automatically valid for procurement from one or more
indigenous sources.

Back to Back 4.15 Exporter may alternatively avail facility of a back to back inland
Inland Letter letter of credit from banks. An Advance Authorisation / DFIA
of Credit (L/C) holder may approach a bank for opening an inland letter of
credit (L/C) in favour of an indigenous supplier.

4.15.1 Before opening the L/C, bank will ensure that necessary BG /
LUT has been executed by Advance Authorisation / Non
Transferable DFIA holder and an endorsement to that effect
has been made on the Authorisation.
However, execution of BG / LUT shall not be required against
transferable DFIA. After opening inland L/C, bank shall make
following endorsement on Exchange Control and Customs copy
of Advance Authorisation / DFIA:
Value of this Advance Authorisation / DFIA stands reduced
by a sum of Rs. __________ , being value of inland L/C
No.________ opened today by authorisation holder in favour
of M/s ______________________ (name and address of
indigenous supplier).

4.15.2 Authorisation shall be invalidated by bank for direct import
only in respect of full quantity and value of item being sourced
indigenously.

4.15.3 Original Letter of credit (L/C) may be retained by bank for
negotiation and only non-negotiable copy of L/C may be given
to indigenous supplier.

4.15.4 Responsibility of bank shall be confined to making
endorsement. Bank shall not be liable for any misrepresentation
or false statement made by authorisation holder while requesting
bank to make endorsement. Inland L/C opened by bank in
favour of indigenous supplier shall not be cancelled for any
reason whatsoever.

4.15.5 Non negotiable copy of inland L/C together with photocopy
of Advance Authorisation / DFIA duly carrying endorsements
made by bank shall be sufficient for indigenous supplier to
claim deemed export benefits. L/C issued shall be entitled to
benefits given in paragraph 8.3 (b) and (c) of FTP, as
applicable.

4.15.6 Where import is permitted as an input under this scheme, gold/
silver can be sourced through nominated agencies as given in

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FTP (Chapter 4) for supply against the Advance Authorisations/
DFIA issued. Before supply of material, nominated agencies
should follow same procedure as given in paragraph 4.15.1
above.

Facility of 4.16 Imported material may be used in any unit of holder of Advance
Supporting Authorisation or Non Transferable DFIA (subject to condition
Manufacturer(s)/ of paragraph 4.5 of this Handbook) or jobber / supporting
Jobber/co-licensee manufacturer provided same is endorsed on authorisation by
RA. If applicant desires to have name of any manufacturer or
jobber added to authorisation, he may apply. Such
endorsement shall be mandatory where prior import before
export is a condition for availing Advance Authorisation / DFIA
scheme and authorisation holder desires to have material
processed through any other manufacturer or jobber.

Upon such endorsement made by RA, 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.

However if authorisation holder is registered with Central
Excise, he has an option of getting names of jobber endorsed
by Central Excise as per Central Excise Rules in lieu of RA’s
endorsement. In case manufacturer exporter holding
authorisation is not registered / not required to be registered
with Central Excise authority, job work may be allowed as
per Central Excise Rules and regulations without insisting for
endorsement of supporting manufacturer’s name. However,
authorisation holder shall be solely responsible for imported
items and fulfillment of EO.

4.17 In case BG / LUT has been redeemed, advance authorization
holder can get duty free inputs processed from any
manufacturer under Actual User condition as per job work
regulations prescribed under Central Excise Rules. However
such restriction shall not be applicable in case of transferable
DFIA holder.

Acceptance of 4.18 At the time of issue of authorisation, acceptance of undertaking
BG/LUT given by applicant to RA concerned in relevant ANF will be
endorsed on the reverse of Advance Authorisation.
Authorisation holder shall execute Bank Guarantee / Legal
Undertaking, as the case may be, in terms of para 2.20 of
HBP v1.

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Port of 4.19 Advance Authorisation shall be issued for purpose of import
Registration and export through one of sea ports or airports or ICDs or
LCS specified below. Authorisation holder shall register
authorisation at the port specified in authorisation and thereafter
all imports against said authorisation shall be made only through
that port, unless the authorisation holder obtains permission
from customs authority concerned to import through any other
specified port. However, exports may be made through any
of the specified ports.

Sea Ports:

Mumbai, Kolkata, Cochin, Kakinada, Kandla, Mangalore,
Marmagoa, Chennai, Paradeep, Pipavav, Sikka, Tuticorin
Vishakhapatnam, Dahej, Nagapattinam, Okha, Mundhra,
Surat (Magdalla), Jamnagar, Nhava Sheva, Haldia,
Krishnapatnam.

Air-ports:

Ahmedabad, Bangalore, Bhubaneshwar, Mumbai, Kolkata
Coimbatore Air Cargo Complex, Cochin, Delhi, Hyderabad,
Jaipur, Srinagar, Trivandrum, Varanasi, Nagpur, Chennai,
Indore, Dabolim (Goa).

ICDs:

Agra, Bangalore, Coimbatore, Delhi, Faridabad, Guwahati
(Amingaon), Guntur, Hyderabad, Jaipur, Jallandhar, Kanpur,
Ludhiana, Moradabad, Nagpur, Pimpri (Pune), Pitampur
(Indore), Surat, Tirupur, Varanasi, Nasik, Rudrapur(Nainital),
Dighi (Pune), Vadodara, Daulatabad, (Wanjarwadi and
Maliwada), Waluj (Aurangabad), Anaparthy, Salem Mallanpur,
Singanalur, Jodhpur, Kota, Udaipur, Ahmedabad, Bhiwadi,
Madurai, Bhilwara, Pondicherry, Garhi Harsaru, Bhatinda,
Dappar, Chheharata (Amritsar), Karur, Miraj, Rewari,
Bhusawal, Jamshedpur, Surajpur, Dadri, Tuticorin.

LCS:

Ranaghat , Singhabad , Raxaul, Jogbani, Nautanva (Sonauli),
Petrapole, Mahadipur, Hilly, Chengrabanda, Dawki, Atari,
Ghojadanga.

SEZ:

As notified by Central Government, any SEZ can be a specified
port for import and export.

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4.19.1 Commissioner of Customs may permit imports and exports
from any other seaport / airport / ICD or LCS .

4.19.2 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.

Facility of Clubbing 4.20 Facility of clubbing shall be available only for redemption /
regularisation of cases and no further import or export shall be
allowed. For this facility, authorisations are required to have
been issued under similar Customs notification even pertaining
to different financial years. However in case of Authorisations
issued in 2004-09 period or thereafter, Advance Authorisations
with different customs notification can be clubbed.

4.20.1 RA, under whose jurisdiction authorisation is issued or DGFT
(HQ) in other cases, shall consider a request in ANF 4D for
clubbing all imports and exports of more than one Advance
Authorisation provided imported inputs are properly accounted
for as per norms. Value addition of the authorisations so
clubbed shall be average of minimum value addition prescribed
in FTP and Procedure laid thereunder, imposed on individual
authorisations. Upon clubbing, authorisations shall, for all
purposes, be deemed to be one Authorisation and thereafter
shortfall, if any, shall be regularized in terms of para 4.28 of
HBP v1.

4.20.2 Accountability of imports and exports shall be restricted in
relation to individual categories of Advance Authorisations
including Advance Authorisation for annual requirements.

4.20.3 Facility is available only for Advance Authorisation(s) where
there is shortfall in fulfillment of EO, and which is sought to be
clubbed with an advance Authorisation(s) which is valid for
imports. For expired Authorisation(s) with EO shortfall and
which is sought to be clubbed with an advance Authorisation(s)
which is valid for imports, applicant shall pay composition fee
for EO period extension as per paragraph 4.22 below.

4.20.4 Wherever exports are effected beyond EO extension period
(allowed vide paragraph 4.22 below) of earlier authorisation,
no clubbing shall be permitted.

4.20.5 Notwithstanding provisions of para 4.20.3 and 4.20.4 above,
Clubbing of all expired Authorisations may also be permitted
provided all expired Authorisations have been issued during

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Exim Policy period 1992-1997 & 1997-2002 i.e., 1st April
1992 to 31st March, 2002. However clubbing of erstwhile
Value Based Advance licences shall not be allowed.

Enhancement/ 4.21 In respect of an Advance Authorisation, RA concerned (as
Reduction in the per their financial powers) may consider a request for:
value of Authorisation
(a) enhancement / reduction in CIF value of advance
authorisation;
(b) enhancement / reduction in CIF value, quantity of inputs,
FOB value and quantity of exports of an advance
authorization;
provided VA after such enhancement does not fall below
minimum VA stipulated in FTP and HBP v1 laid thereunder
and there is no change in input-output norms and FTP under
which advance authorisation was issued.

4.21.1 Request for prorata enhancement in value and quantity may
be made either before or after exports. In such cases where
there is a change in SION prior to export of said product,
pro-rata enhancement shall be given after calculating entitlement
on revised SION.

4.21.2 The application for the enhancement/ reduction in the value of
Authorisation shall be made in ANF 4E.

Application 4.21.3 Application fee leviable for enhancement would be on the
fee for difference in CIF values of original and final Authorisation.
enhancement However, no application fee would be charged if value of
Authorisation is being reduced or applicant has paid maximum
fee of Rs 100,000 (for manual applications) and Rs 50,000
(for digitally signed applications) respectively in original
application for Advance Authorisation/DFIA.

Export 4.22 Fulfillment Period of EO under an Advance Authorisation shall
Obligation (EO) commence from Authorisation issue date, unless otherwise
Period and its specified. EO shall be fulfilled within 36 months except in case
Extension of supplies to projects / turnkey projects in India / abroad
under deemed exports category, where EO must be fulfilled
during contracted duration.

EO period for Advance Authorizations issued with input (s) as
mentioned in Appendix 30A shall be as per the period
stipulated against each entry therein. Facility of extension of
EOP shall not be allowed in case of Advance Authorisation
issued for these inputs. RA shall make an endorsement in
Advance Authorisation to this effect.

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4.22.1 Whenever a ban / restriction is imposed on export of any
product, export obligation period in respect of Advance
Authorisation already issued prior to imposition of ban, would
stand automatically extended for a period equivalent to the
duration of ban, without any composition fee.

For the Advance Authorisation (erstwhile licences) where raw
sugar has been imported between 21.09.04 and 15.4.08, but
the export obligation is yet to be fulfilled, the export obligation
period stands automatically extended upto 31.12.2009 without
payment of composition fee. Against these Advance
Authorisations / licences, no further EO extension shall be
allowed beyond 31.12.2009.

4.22.2 Customs may allow provisional clearance of export
consignment as and when Authorisation holder produces
documentary evidence of having applied for EO extension to
concerned RA.

Revalidation 4.23 RA may consider a request of original Authorisation holder
of Authorisation and grant one revalidation for six months from expiry date.
Request(s) for revalidation of Authorisation shall be made in
ANF 4E.

Monitoring 4.24 RA, with whom undertaking is executed by Advance
of Obligation Authorisation holder, shall maintain a proper record in a master
register indicating starting and closing dates of obligation period
and other particulars to monitor EO.

Within two months from date of expiry of period of obligation,
Authorisation holder shall submit requisite evidence in discharge
of export obligation in accordance with paragraph 4.25 below.

However, in respect of shipments where six months period
(one year in case of status certificate holder and others as per
RBI guidelines) for realisation of foreign exchange has not
become due, RA shall not take action for non submission of
bank certificate of exports and realisation, provided other
document substantiating fulfillment of EO have been furnished.

4.24.1 In case Authorisation holder fails to complete EO or fails to
submit relevant information / documents, RA shall take action
by refusing further Authorisations, enforce condition of
Authorisation and Undertaking and also initiate penal action
as per law.

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Advance 4.24A Exporters eligible for such Authorisations shall file an application
Authorisation for in ANF 4A to RA concerned. All provisions as to Advance
Annual Requirement Authorisation given above would apply except the following:
(i) RA while issuing Authorisation shall mention technical
characteristics quality and specifications in respect of
following inputs:-Alloy steel including stainless steel,
copper alloy, synthetic rubber, bearings, solvents,
perfumes/ essential oils/aromatics chemicals, surfactants,
relevant fabrics and marble.
(ii) Authorisation holder shall have flexibility to export any
product falling under export product group using duty
exempted material.
(iii) Within eligible entitlement, an exporter may apply for
one or more than one authorisations in a licensing year,
subject to condition that against one port of registration
only one authorisation can be issued for same product
group. One time enhancement / reduction of the
authorisation shall be available in terms of paragraph
4.21 above.
(iv) On completion of EO against one or more
authorisations, all issued in same licensing year,
entitlement of an exporter for that licensing year shall
be deemed to be revived by an amount equivalent to
EO completed against authorisation(s).
(v) In respect of export product for which Standard Input
Output Norms (SION) does not exist, the authorization
holder shall submit an application in “Aayaat-Niryaat
Form” along with prescribed documents to NC before
making the shipment. The applicant shall also furnish
Advance Authorisation for Annual Requirement No.
and date along with the File No. from which the same
was issued in the covering letter to the application.

Fulfillment Of 4.25 Authorisation holder shall furnish prescribed documents in
Export Obligation ANF 4F in support of fulfillment of EO.

Discharge of 4.25A Quantity Based Advance licences issued prior to 1.4.2002
export obligation shall be disposed off as per Public Notice No. 79 dated
against advance 2.1.2006, PN 151 dated 26.2.09, as amended from time to
licences issued prior time.
to 1.4.2002

Redemption / 4.26 In case EO has been fulfilled, RA shall redeem the case. After
No Bond redemption, RA shall forward a copy of redemption letter
Certificate indicating shipping bill number(s), date(s), FOB value in Indian

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rupees as per shipping bill(s) and description of export product
in respect of shipment which were taken into account for the
purpose of fulfillment of EO to Customs authority at port of
registration. Such details shall also be placed by the Zonal
Offices in their website immediately after issuance of export
obligation discharge/redemption letter/No Bond Certificate (in
case of “No BG / LUT” facility) and by DGFT Hqr in DGFT
website on monthly basis for customs authority to access it
from website.

Cancellation/ redemption of BG / LUT would be undertaken
by Customs within 30 days of issue of Export Obligation
Discharge Certificate (EODC) / bond waiver by RA.

Ordinarily, redemption of BG / LUT shall not preclude customs
authority from conducting random checks and from taking
action against Authorisation holder for any misrepresentation,
mis-declaration and default detected subsequently.

Further RA shall also take action against authorisation holder
in case of non-submission of Appendix 23, duly filled in, as
stipulated in Paragraph 4.30 below or for any misrepresentation,
misdeclaration and default detected subsequently in details
declared and furnished in Appendix 23. An endorsement to
this effect shall be made by RA in the redemption certificate.

Transitional 4.27 Advance Licences including Advance Licences for Annual
Arrangement for Requirement issued upto 26.08.2009 shall be governed by
Authorisations provisions contained in Chapter-7 of HBP v1 (RE-2001),
issued upto Chapter 4 of HBP v1 (2002-2007) as Notified on 31.3.2002
26.08.2009 and Chapter 4 of HBP v1 (2004-2009) as notified on
31.8.2004 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
4.20 and 4.22.1 respectively above and any other provision,
as notified by DGFT.

However, wherever Customs duty is to be paid on unutilised
material, same shall be paid alongwith interest thereon as
notified.

Regularisation of 4.28 Cases of bonafide default in fulfillment of EO may be regularised
Bonafide Default. by RA as under:

(i) If EO is fulfilled in terms of value, but there is a shortfall
in terms of quantity, the Authorisation holder shall, for

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regularization, pay:-
a) to customs authorities, customs duty on unutilized
value of imported/ indigenously procured material
along with interest as notified; however, for the
customs duty component, the authorisation
holder has the option to furnish valid duty credit
scrips issued under Chapter 3 of FTP and
DEPB; and
b) an amount equivalent to 3% of the CIF value of
unutilised imported material through a TR in
authorised branch of Central Bank of India
indicating the “Head Account: 1453, Foreign
Trade and Export Promotion and Minor Head
102”. Authorisation holder shall also be required
to obtain a separate authorisation for
regularisation of excess imported input.
However, provisions of this sub paragraph shall
not be applicable if unutilised imported material
was freely importable on the date of import.
(ii) If the EO is fulfilled in quantity but there is shortfall in
value, no penalty shall be imposed if Authorisation
holder has achieved minimum value addition prescribed.
However, if value addition falls below the minimum value
addition prescribed Authorisation holder shall be
required to deposit an amount equal to 1% of shortfall
in FOB value in Indian Rupee through TR in authorised
branch of Central Bank of India as above or through
EFT mode.
Value wise shortfall shall be calculated with reference
to actual quantity of exports and FOB value of realisation
with reference to prorata quantity of imports and CIF
value. For example, if export performance is only 50%
quantitywise but import has been for complete CIF
value permitted, then value addition would be calculated
on a prorata basis, i.e with reference to 50% of CIF
value of imports. This would accordingly imply that
where Authorisation holder is unable to export, no
penalty on valuewise shortfall shall be imposed.
(iii) If EO is not fulfilled both in terms of quantity and value,
the Authorisation holder shall, for the regularisation, pay
as per (i) and (ii) above.
(iv) In case an exporter is unable to complete EO
undertaken in full and he has not made any import under

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Authorisation, Authorisation holder will also have an
option to get the Authorisation cancelled and apply for
drawback after obtaining permission from Customs
authorities for conversion of shipping bills to Drawback
Shipping Bills.
(v) RA shall compare relevant portion of Appendix-23
duly verified and certified by Chartered Accountant
with that of norms allowed in Authorisation(s) and actual
quantity imported against Authorisation(s) in the
beginning of licensing year for all such Authorisations
redeemed in preceding licensing year. In this verification
process, in case it is found that Authorisation holder
has consumed lesser quantity of inputs than imported,
Authorisation holder shall be liable to pay customs duty
on unutilized value of imported material, alongwith
interest thereon as notified, or effect additional export
within the EO period. However, for the customs duty
component, the authorisation holder has the option to
furnish valid duty credit scrips issued under Chapter 3
of FTP and DEPB.
Time Period 4.29 Customs duty with interest to be recovered from Authorisation
For Depositing holder on account of regularisation or enforcement of BG /
Fines, Customs LUT, shall be deposited by Authorisation holder in relevant
Duty, Etc. Head of Account of Customs Revenue i.e., “Major Head 0037
- Customs and minor head 001- Import Duties” in prescribed
T.R. Challan within 30 days of demand raised by regional /
customs authority and documentary evidence shall be produced
to this effect to RA / customs authority immediately. However,
for the customs duty component, the authorisation holder has
the option to furnish valid duty credit scrips issued under
Chapter 3 of FTP and DEPB.

On receipt of such documentary evidence from Authorisation
holder, RA shall intimate details of recovery/ deposits made
to Customs Authority at port of registration under intimation
to Joint Secretary (Drawback), Department of Revenue,
Ministry of Finance, Jeevan Deep Building, New Delhi.

Payment of amount 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.

Maintenance of 4.30 Every Advance Authorisation holder shall maintain a true and
Proper Accounts proper account of consumption and utilisation of duty free
imported / domestically procured goods against each

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authorisation as prescribed in Appendix-23. These records
are required to be sent to the concerned RA 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.

Consideration of 4.30A In case where Original EP copy of Shipping Bill / original BRC
cases against lost has been lost, request for EODC, "No BG / LUT condition"
EP copy of the under Advance Authorisation / DFIA scheme or endorsement
Shipping Bills of transferability under DFIA scheme can be considered,
and / or Bank subject to submission of following documents in lieu of those
Realisation original documents:
Certificate
a) A duplicate / Customs Certified / Self-attested copy of
the shipping Bill in lieu of the original; Duplicate / Bank
certified copy of BRC in lieu of original;
b) An application fee equivalent to 1% of duty saved
amount. However, no fee shall be charged when such
document is lost by Government agencies and a
documentary proof to this effect is submitted;
c) An affidavit by exporter about loss of document and
an undertaking to surrender it immediately to concerned
RA, if found subsequently;
d) An indemnity bond by exporter to the effect that he
would indemnify Government for financial loss, if any,
on account of duty free import entitlement availed /
allowed against lost Shipping Bills / BRC. Customs
Authority, before allowing redemption of BG / LUT or
clearance after endorsement of “No BG / LUT
condition” or endorsement of transferability, shall verify
the genuineness of such shipping bill (s) and ensure that
no double benefit against such shipping bill has been
availed. This specific condition shall be endorsed by
RA concerned on the EODC.

DUTY FREE IMPORT AUTHORISATION (DFIA) SCHEME
Duty Free Import 4.31 Policy relating to the Duty Free Import Authorisation (DFIA)
Authorisation (DFIA) Scheme is prescribed in Chapter 4 of FTP.
Scheme

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Application 4.32 An application in ANF 4H along with documents therein, shall
be submitted to RA concerned.

4.32.1 Guidelines as in paragraph 4.4.1 and 4.4.3 above would be
adhered to.

4.32.3 However in respect of following items, exporter shall be
required to give declaration with regard to technical
characteristics, quality and specification in shipping bill. RA
while issuing DFIA shall mention technical characteristics,
quality and specification in respect of such inputs:

Alloy steel including Stainless Steel, Copper Alloy, Synthetic
Rubber, Bearings, Solvent, Perfumes/ Essential Oil/ Aromatic
Chemicals, Surfacatants, Relevant Fabrics, Marble, Articles
made of polypropylene, Articles made of Paper and Paper
Board, Insecticides, Lead Ingots, Zinc Ingots, Citric Acid,
Relevant Glass fibre reinforcement (Glass fibre, Chopped /
Stranded Mat, Roving Woven Surfacing Mat), Relevant
Synthetic Resin (unsaturated polyester resin, Epoxy Resin, Vinyl
Ester Resin, Hydroxy Ethyl Cellulose), Lining Material.

Facility for Split 4.32.4 Split Authorisations of DFIA subject to a minimum of CIF
DFIA value of Rs. 10 lakhs each and multiples thereof may also be
issued, on request at the time of seeking transferability. A fee
of Rs. 1000/- each shall be paid for each split authorization.

Split-up DFIAs shall be permitted with same Port of Registration
as appearing on the original DFIA.

4.33 Provisions of paragraphs 4.6, 4.11, 4.12, 4.12.1, 4.18, 4.19,
4.21, 4.22, 4.23, 4.24, 4.26 and 4.28 of this Handbook shall
also be applicable for DFIA Scheme.

DFIA for 4.34 Transfer of any duty free material imported or procured against
applicants actual user DFIA shall be governed by provisions of paragraph
with multiple 4.5 above.
units

Re-export of 4.35 Goods imported against transferable DFIA, which are found
goods imported defective or unfit for use, may be re-exported, as per DoR
under DFIA Scheme guidelines. In such cases 95% of CIF value debited against
DFIA for export of such goods, shall be generated by
concerned Commissioner of Customs as an Authorisation,
containing amount generated and the details of original
DFIA.Based on the certificate, a fresh DFIA shall be issued

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by concerned RA.Fresh DFIA, so issued, shall have same
port of registration and shall be valid for a period equivalent to
balance period available on date of import of such defective/
unfit goods.

Fulfillment of Export 4.36 Provision of paragraph 4.25 above shall apply.
Obligation and Original DFIA holder shall maintain a true and proper account
maintenance of of consumption and utilisation of duty free imported /
proper accounts domestically procured goods against each authorisation as
of imports as prescribed in Appendix-23. These records are required to
be sent to concerned RA along with request for bond waiver /
redemption / discharge of export obligation/ transferability.
Such records should be preserved for a period of at least three
years from date of redemption.

Transferability 4.36A Once export obligation is fulfilled and required documents as
of DFIA stipulated in Paragraph 4.36 above have been furnished, RA
shall make authorisation transferable subject to conditions
stipulated for this scheme including an endorsement on the
authorisation itself as to liability of additional customs duty /
excise duty in respect of imported / indigenously procured
inputs, as the case may be, which have already been imported
under Actual User DFIA and are sought to be transferred after
fulfillment of E.O. DFIA holder shall deposit additional customs
duty / excise duty alongwith applicable interest as per Customs
Notification in relevant Head of Account of Customs Revenue
i.e., “Major Head 0037 – Customs and Minor Head 001 –
Import Duties” in prescribed T.R. Challan and furnish a
documentary evidence to RA alongwith the application for
endorsement of transferability.

DUTY ENTITLEMENT PASSBOOK (DEPB) SCHEME
Duty Entitlement 4.37 Policy relating to Duty Entitlement Passbook (DEPB) Scheme
Passbook (DEPB) is given in Chapter-4 of FTP. Duty credit under the scheme
Scheme shall be calculated by taking into account deemed import
content of said export product as per SION. Value addition
achieved by export of such product shall also be taken into
account while determining the rate of duty credit under the
scheme.

Fixation of 4.38 ANF 4C prescribes form regarding fixation of DEPB rates.
DEPB Rate All applications for fixation of DEPB rates shall be routed
through concerned EPCs which shall verify the FOB value of
exports as well as international price of inputs covered under
SION.

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Provisional 4.38A To encourage diversification and to promote export of new
DEPB Rate products, DEPB Committee would be empowered to notify
provisional DEPB rates. However, such DEPB rates would
be valid for a limited period of time during which exporter
would furnish data on export and import for regular fixation of
rates.

Exports in anticipation 4.39 No exports shall be allowed under DEPB scheme unless DEPB
of DEPB Rate rate of concerned export product is notified.

Port of Registration 4.40 Exports/imports made from specified Sea Ports, Airports, ICD
& LCSs given in paragraph 4.19 above and made to any
Special Economic Zone (SEZ), notified by Central
Government, are entitled to DEPB.

4.40.1 DEPB shall be issued with single port of registration, which
will be the port from where exports have been effected.

Maintenance of Record 4.40.2 Each Custom House at ports shall maintain a separate record
of details of exports made under DEPB.

Credit under DEPB 4.41 In respect of products where rate of credit entitlement under
and Present Market Value DEPB Scheme comes to 10% or more, amount of credit
against each such export product shall not exceed 50% of
Present Market Value (PMV) of export product. During
export, exporter shall declare on shipping bill that benefit under
DEPB Scheme would not exceed 50% of PMV of export
product. However PMV declaration shall not be applicable
for products for which value cap exists irrespective of DEPB
rate of product.

Utilisation of DEPB 4.42 As notified in FTP.
credit

Application for DEPB 4.43 An application for grant of credit under DEPB may be made
to RA concerned in ANF 4G alongwith prescribed documents.
Agency commission shall be allowed for DEPB entitlement
upto 12.5% of FOB value only. FOB value in free foreign
exchange shall be converted into Indian rupees as per
exchange rate for exports, notified by Ministry of Finance, as
applicable on the date of order of “Let Export” by Customs.

4.43A In respect of consignment exports wherein exporter has
declared FOB value on a provisional basis, exporter shall be
eligible for final assessment of such shipping bill based on actual
FOB realised upon sale of such goods in freely convertible
currency.

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4.43B An application for grant of credit for supplies from DTA to
SEZ can be made by DTA unit or SEZ unit. DTA unit may
claim benefits either from RA or Development Commissioner
concerned. In case claims have been filed with RA, RA while
allowing benefits to the DTA unit will simultaneously endorse a
copy of communication to concerned Development
Commissioner alongwith details of export documents . In case
DTA supplier prefers claim with Development Commissioner,
the Development Commissioner will verify Denied Entity List
(DEL) status of supplier from DGFT website before allowing
DEPB benefits. SEZ unit will file application with Development
Commissioner concerned in ANF 4G along with prescribed
documents.

4.44 DEPB shall be issued with transferable endorsement.

Monitoring of 4.45 RA shall monitor all such cases wherein the Scrip(s) has been
Realisation issued without Bank Realisation Certificate(BRC) and ensure
that the BRC is submitted within 12 months from the date of
issuance of the Scrip. In case no RBI extension is produced,
RA shall initiate action for recovery of the same. In such cases,
DEPB holder (the original applicant) shall deposit in cash or
through debit of the valid DEPB / adjustment of pending DEPB
claim for an amount equivalent to the Duty Free Credit allowed.
If amount realized in Free Foreign Exchange is less, then
payable amount would be reduced proportionately. However,
if the DEPB holder does not pay the amount within 60 days of
the expiry of the 12 months time period from the date of issue
of the Scrip, he shall be required to pay the said amount along
with 15% interest per annum from the date of issuance of
Scrip(s) for the Duty Credit for which BRC or Documentary
evidence (evidencing realisation of export proceeds as required
under FTP or the Procedure laid thereunder) could not be
produced by the DEPB holder. In case he surrenders the
unutilized / partially unutilized Duty Credit Scrip, then unutilized/
partially unutilized Credit shall be deducted from the payable
amount.

In case of Cash Payment, the same shall be deposited in the
Head of Account of Customs as stated in paragraph 4.29
above.

Time Period 4.46 Application for obtaining credit shall be filed within a period of
twelve months from the date of exports or the date of up linking
of EDI shipping bill details in the DGFT website, or within

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three months from the date of printing / release of shipping bill,
whichever is later, in respect of shipments for which claim has
been filed.

In case the FOB realisation in free foreign exchange is higher
as per BRC than the FOB value in the shipping bill(s) on which
original DEPB was issued, supplementary claim shall be filed
within a period of six months from the date of realisation, in
respect of shipments for which claim has been filed.

4.47 Wherever provisional shipment has been allowed by customs
authorities, DEPB against such exports shall be issued only
after release of shipping bill by Customs. In such cases,
application for DEPB shall be filed within six months from date
of release of such shipping bill.

Frequency 4.48 All shipping bills in any one application must relate to exports
of Application made from one Custom House only. There is no limit on number
of shipping bills which can be filed through EDI mode in a
single application.

Verification 4.49 In case of EDI shipping bills before 1.10.2005 and non-EDI
by Customs shipping bills, RA shall ensure that while issuing DEPB, Shipping
Bill No(s) and date(s), FOB value in Indian Rupees as per
Shipping Bill(s) and description of export product are endorsed
on DEPB. Before allowing imports against such DEPB,
Customs shall verify that details of exports, as given on DEPB,
are as per their records. However, in case of EDI shipping
bills issued on or after 1-10-2005 from EDI ports which are
being transmitted electronically by Customs to DGFT, DEPBs
issued shall be sent to Customs at port of registration through
an electronic message exchange system and DEPB shall be
registered at port of registration electronically. No verification
of shipping bills against which such DEPBs have been issued,
will be required before allowing imports against these DEPBs.

Revalidation 4.50 No revalidation shall be granted beyond original period of
validity of DEPB unless it expires in custody of Regional /
Customs Authorities as per paragraph 2.13 of HBP v1.

Re-export of 4.51 Goods imported under DEPB scheme, which are found
goods imported defective or unfit for use, may be re-exported, as per guidelines
under DEPB given in paragraph 3.11.6 of HBP v1.
Scheme

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Issuance of DEPB 4.52 In case where EP copy of Shipping Bill has been lost,
and other duty credit DEPB and other duty credit certificates, claim can be
certificates against considered subject to submission of following documents:-
lost EP copy of the
Shipping Bills a) A duplicate / certified copy of Shipping Bill issued by
Customs authority in lieu of original;
b) An application fee equivalent to 2% of the DEPB or
other duty credit entitlement in respect of lost Shipping
Bills. However, no fee shall be charged when Shipping
Bill is lost by Government agencies and a documentary
proof to this effect is submitted;
c) An affidavit by exporter about loss of Shipping Bills
and an undertaking to surrender it immediately to
concerned RA, if found subsequently; and
would indemnify Government for financial loss if any
on account of DEPB or other duty credit certificate
issued against lost Shipping Bills.
Customs authority, before allowing clearance, shall ensure that
no DEPB benefit has been availed against same shipping bill.

4.52.1 Claim against lost Shipping Bill shall be preferred within a period
of six months from date of release of duplicate copy of shipping
bill and any application received thereafter will be rejected.
This is subject to the condition that the request for duplicate
copy of Shipping Bill to Customs Authority was filed within
the time period similar to that mentioned in paragraph 4.46
above. However, if a provisionally assessed DEPB shipping
bill is lost, time period for filing an application for DEPB would
be six months from the date of release of the finally assessed
shipping bill.

Loss Of Original 4.53 In such cases where original Bank Realisation Certificate (BRC)
Bank Certificate has been lost, the DEPB claim can be considered subject to
submission of following documents:
a) A duplicate copy of BRC issued by bank authority in
lieu of original loss;
b) An application fee equivalent to 2% of the DEPB
entitlement in respect of lost BRC;
c) An affidavit by exporter about loss of BRC and an
undertaking to surrender it immediately to RA, if found
subsequently;

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would indemnify Government for financial loss, if any,
on account of DEPB issued against lost BRC.

Claim against lost BRC shall be preferred within a period of
six months from date of realisation and application received
thereafter will be rejected.

In such cases, where both documents have been lost, exporter
shall follow procedure laid down in paragraph 4.52 and 4.53.
Time period for such application shall be as per paragraph
4.52 and 4.53, whichever is later.Late cut provision stated in
paragraph 9.3 shall be applicable.

Export 4.54 Export obligation fulfillment period and its extension shall be
Obligation period governed as per paragraph 4.22 above. However, any
(EOP) and its extension in EOP beyond 36 months from the date of issue of
extension the authorisation shall not be allowed.

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GEMS AND JEWELLERY
4A Policy relating to Gem Replenishment Authorisation, and
scheme for gold/ silver/platinum jewellery is given in paragraph
4A of FTP.
Replenishment 4A.1 An application for REP Authorisation may be made in ANF
Authorisation 4I alongwith documents prescribed therein to RA concerned
as in Appendix-1A.
4A.1.1 Application shall be filed within six months following the month
during which the export proceeds are realised. For export
proceeds realised during the month, consolidated application
for entire month shall be filed.
4A.1.2 In case where payment is received in advance and exports
take place subsequently, application for REPAuthorisation shall
be filed within six months following the month during which
exports are made.
4A.1.3 For purpose of clarity, it is again reiterated that 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.
Wastage Norms 4A.2 Wastage or manufacturing loss on gold/silver/ platinum
jewellery and articles thereof is as follows:

Sl. Item of exports Percentage of wastage by weight
No. with reference to Gold/Platinum/
Silver content in export item
Gold/ Platinum Silver

a) Plain jewellery and articles and ornaments like 3.5% 4.5%
Mangalsutra containing gold and black beads/
imitation stones, cubic zirconia diamonds,
precious, semi-precious stones.
b) Studded jewellery and articles thereof 9.0% 10%
c) Mountings and findings manufactured 3.5% 4.5%
(by non-mechanised process) indigeneously
d) Any jewellery/articles manufactured by a fully 1.25% 1.25%
mechanised process and unstudded.
e) Mountings, whether imported or indigenously 2.5% 2.5%
procured/ manufactured, used in studded jewellery
f) Gold/silver/platinum medallions and coins 0.25% 0.25%
(excluding coins of nature of legal tender)
g) Findings and mountings manufactured by 1.25% 1.25%
mechanized process

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Value Addition 4A.2.1 Under scheme for export of jewellery, value addition shall be
calculated as per paragraph 4A.6 of FTP. Minimum value
addition shall be:

S.No. Item of Export Minimum Value Addition

a) Plain gold / platinum / silver jewellery and Articles 3%
and ornaments like Mangalsutra containing gold
and black beads / imitation stones, except in
studded form of jewellery.
b) All types of Studded gold / platinum / silver 5%
Jewellery and articles thereof.
c) Any jewellery / articles manufactured by fully 1.5%
mechanised process
d) Gold / silver / platinum medallions & coins
(excluding coins of nature of legal tender) 1.5%
e) Gold / silver / platinum findings / mountings
manufactured by mechanised process 2.25%

4A.2.2 Entitlement of quantity of gold / silver / platinum against the
export shall be quantity of gold / silver / platinum in item of
export plus admissible wastage / manufacturing loss.

Loss of Gem 4A.3 Consignments of gem and jewellery items exported out of
and Jewellery 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.

Gem & Jewellery 4A.4 Gem REP Authorisations shall be valid for import of precious
Replenishment stones, semi-precious and synthetic stones and pearls. In
Authorisations addition, Authorisation shall also be valid for import of empty
jewellery boxes upto 5% of value of Authorisation within its
overall CIF value. Gem REP Authorisations issued against
export of studded gold / silver / platinum jewellery articles,
shall also be valid for import of cut and polished precious /
semi-precious stones other than emerald upto 10% of CIF
value of Authorisation within its overall CIF value.

4A.4.1 Gem REP Authorisation are available as per scale given in
Appendix-12B.

Filing of Application 4A.4.2 (i) An application for Gem Rep Authorisation may be given
to RA concerned as given in Appendix-1A in the form
given in Appendix-22-F alongwith prescribed
documents.

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(ii) In case E.P Copy of Shipping Bill and Customs attested
invoice is submitted to nominated agencies, exporter
shall furnish a self certified photo copy of same along
with a certificate from nominated agencies certifying
carat/value of studdings in case of studded jewellery
and excess value addition achieved in case of plain
jewellery and articles.
(iii) Provision of paragraph 4A.1.1 to 4A.1.4 will also be
applicable for Gem Rep Authorisations.
Agency Commission 4A.5 Exporter availing scheme of gold / silver / platinum jewellery
are allowed to pay agency commission. Value addition shall
be calculated after deducting agency commission.

Endorsement on 4A.6 During export of jewellery, shipping bill and invoice presented
shipping Bill to customs authorities shall contain description of item, its purity,
and Invoice weight of gold/ silver/ platinum content, wastage claimed
thereon, total weight of gold/ silver/ platinum content plus
wastage claimed and its equivalent quantity in terms of 0.995/
0.999 fineness for gold/ silver and in terms of 0.9999 fineness
for platinum and its value, fob value of exports and value
addition achieved. If purity of gold/silver/platinum used is same
in respect of all or some of items made out from each of these
metals for export, exporter may give total weight of gold/silver/
platinum and other details of such similar items which are of
same purity. In case of studded items, shipping bill shall also
contain description, weight and value of precious/ semi-
precious stones/diamonds/ pearls used in manufacture, and
weight / value of any other precious metal used for alloying
gold/silver.

Conditions of Exports 4A.7 Exports shall be allowed by customs authorities provided
endorsement made on shipping bill and invoice are correct
and value addition achieved is not below minimum prescribed
in FTP.

Proof of Exports 4A.8 Exporter has to furnish the proof of exports, wherever required
for export of gold / silver / platinum jewellery and articles thereof,
by furnishing following documents:

(a) E.P copy of the shipping bill;
(b) Customs attested invoice;
(c) Bank certificate of realisation in Appendix 22A.
In case of Personal carriage of jewellery by foreign buyer,
following documents should be submitted by the exporter/seller

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as proof of exports for claiming export entitlements:

(a) Copy of shipping bill filed by Indian Seller;
(b) A copy of Currency Declaration Form filed by Foreign
Buyer with Customs at the time of his arrival; and
(c) Foreign Exchange Encashment Certificate from Bank.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 of Export and Realisation
Instructions issued by Customs Department in this regard
should be followed mutatis mutandis.

Conversion of 4A.9 For conversion of quantity of gold/ silver/platinum in terms of
Purity/Fineness 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 divided by 0.995/0.999/0.900 to arrive at
equivalent quantity of gold in terms of fineness of 0.995/
0.999/0.900 respectively; and

(ii) Wherever purity of item of export is expressed in terms
of fineness, the quantity of gold/silver/platinum shall be
multiplied by fineness of gold/silver/platinum exported
and thereafter divided by 0.995 / 0.999 / 0.900 to arrive
at equivalent quantity of gold/ silver/platinum in terms
of 0.995 / 0.999 / 0.900 fineness respectively’.

Release of Gold/Silver/ 4A.10 Gold / silver / platinum shall be released to exporter of jewellery
Platinum by Nominated by nominated agencies/RBI authorised banks in multiples of
Agencies 10 gms or in Ten Tola Bars in respect of golds. However,
silver shall be released to exporters in multiples of 1 Kg only.
Any balance of gold/ silver/ platinum shall be available to
exporter along with his future entitlement. Gold/ silver shall be
released by the nominated agencies in terms of 0.995 fineness
or more and platinum in terms of 0.900 fineness or more.

Terms of payment 4A.11 Export of gold / silver / platinum jewellery and articles thereof
shall be against irrevocable letter of credit, payment of cash

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on delivery basis, Documents Against Acceptance (DA) basis
or advance payment in foreign exchange.

Port of Export 4A.12 Exports under schemes of gold /silver/platinum jewellery and
articles thereof shall be allowed by airfreight and Foreign Post
Office through the Customs House at Mumbai, Calcutta,
Chennai, Cochin, Delhi, Jaipur, Bangalore, Kochi, Coimbatore,
Ahmedabad, Dabolin Airport, Goa, Hyderabad and Surat
(Surat Hira Bourse). Export by courier shall also be allowed
through Custom Houses at Mumbai, Calcutta, Chennai,
Cochin, Coimbatore, Delhi, Jaipur, Bangalore, Ahmedabad
and Hyderabad upto FOB value of Rs.20 lakhs per
consignment.

Export by Post 4A.13 Policy for export of gems and jewellery parcel by post is in
paragraph 4A.16 of FTP. At the time of exports, exporter
shall submit following documents:

(i) Shipping bills or invoice presented at foreign Post Office;
(ii) Certificate from nominated agencies indicating price at
which gold/ silver/platinum was booked or given on
outright sale basis or loan basis;
(iii) Three copies of invoice.

Import of Diamonds 4A.14 This facility has been stated in Paragraph 4A.2 of FTP. At the
for Certification/ time of imports of diamonds, the bill of entry shall have the
Grading & re-export detailed description, including the dimensions /specifications
of the diamonds. At the time of re-export after grading/
certification, the Bill of entry details should be endorsed in the
shipping bill, so far as the dimensions and other specifications/
details of the diamonds are concerned, so as to establish a
clear correlation between the imported diamonds and the
diamonds being re-exported. In addition, a separate self
certificate shall be attached by GIA (or any other approved
agency) along with the shipping bill at the time of shipment, for
matching of the imports to that of the exports as per the
documents and GIA (or any other approved agency) certificate.

GIA (or any other agency approved in this regard) shall obtain
GR waiver as per the procedure laid down by RBI, in all such
cases.

Re-export of the imported diamonds shall be completed within
a maximum time period of 3 months from the date of import(s).
At the time of import, the agency shall give an undertaking to
the customs to this effect. GIA (or any other agency approved

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in this regard) shall furnish a quarterly report to the customs
authority at the port of import by 25th of the month, succeeding
the end of the quarterly period, to ensure that the exports are
effected within the stipulated time period.

Export Against 4A.15 Before clearance of each consignment of import supplied by
Supply By foreign buyer, nominated agency shall execute a bond with
Foreign Buyer 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.

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 regualtions to Customs equivalent to
Customs Duty leviable on imported gold/ silver/ platinum,
alloys, findings and mountings of gold/ silver/ platinum and plain
semi-finished gold/ silver/ platinum jewellery etc.

BG /LUT, executed with Customs shall be valid for one year.
In case of direct supply to Status Holder/exporter, exports
shall be completed within 90 days. In case of non-fulfillment
of EO / non-achievement of stipulated value addition, Customs
Department shall proceed to recover custom duty alongwith
interest which may include enforcement of BG /LUT. Besides
importer will be liable to penal action under Customs Act.

4A.15.1 Nominated agency/Status Holder/exporter shall be liable to
pay customs duty leviable on that quantity which is proved to
have been not exported.

4A.15.2 Goods shall be cleared through Customs by nominated agency/
Status Holder/exporter. Even where export order is received
by an Associate, goods shall be cleared through Customs by
nominated agency only and not Associate. Associate shall, in
such cases, authorise nominated agency to act as its agent to
file Bill of Entry and shipping bill.

4A.15.3 At time of export, shipping bill presented to Customs shall
also contain the following:

(i) Name and address of associate/Status Holder/exporter;
(ii) An endorsement by nominated agency that export is
made against an order received by concerned associate,
its date of registration with nominated agency. In case

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of exports by Status Holder/exporter, a Self Declaration
shall be provided to this effect;
(iii) Name of Customs House through which gold/ silver/
platinum/plain semi-finished gold/ silver/ platinum
jewellery was imported and corresponding Bill of Entry
No. and date and date of import.
4A.15.4 Each shipping bill shall be valid for exports only through
Customs House located at the place where office of nominated
agency/Status Holder/ 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.

4A.15.5 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 invoice;
(iii) Certificate from nominated agency indicating quantity
and value of items supplied by foreign buyer.
4A.15.6 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.

4A.15.7 In case of exports through nominated agency, exporter shall
submit proof of exports to nominated agency within 15 days
of exports, who shall, after verifying documents, release
admissible quantity of the gold/ silver/ platinum etc. to exporter.

4A.15.8 Exporter may also obtain, in advance, gold/ silver/ platinum
etc. supplied by foreign buyer by furnishing a BG /LUT for an
amount equal to international price of such items plus customs
duty payable thereon. BG /LUT shall be redeemed only when
the exporter has furnished proof of exports to nominated agency
and accounted for the use of items supplied in advance in export
product.

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4A.15.9 For redemption of bond/ BG /LUT executed with Customs,
nominated agency/Status Holder/exporter shall furnish a
statement indicating items, its quantity and value supplied by
foreign buyer, corresponding Bill of Entry number and date,
number of each of shipping bills against which corresponding
exports was made.

Maintenance of 4A.16 Nominated agency shall maintain complete account,
Accounts consignment-wise, of the gold, silver, platinum, mountings,
findings/ plain semi-finished gold/silver/ platinum jewellery etc.
imported for execution of each export order, exports effected
and quantity of gold, silver, platinum mountings, findings etc.
released against such exports. For direct exports, similar
accounts shall also be maintained by Status Holder. Such
accounts shall be maintained for a minimum period of three
years from date of exports.

Export Through 4A.17 Nominated agencies shall produce to Customs Authorities letter
Exhibitions /Export in original or its certified copy, containing Government’s
Promotion Tours / approval for holding exhibition/export of branded jewellery.
Export of Branded Any other person shall produce to Asst. Commissioner, customs
Jewellery letter in original or its certified copy containing GJEPC’s
approval for holding exhibitions/ export promotion tour/export
of branded jewellery.

In case of re-import, such items, on arrival, shall be verified
alongwith export documents before clearance.

4A.18 (a) Exports under this scheme shall be subject to following
conditions for following modes of export:
(i) Export of Gems and Jewellery for holding/
participating in overseas exhibition.Exports under
this scheme shall be subject to the following
conditions: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

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as replenishment. 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.
(ii) 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 stones, beads and articles as
samples upto US$ 1 Million for export
promotion tours/photo shoots/fashion shows and
temporary display/ sale abroad is also permitted
with approval of Gem & Jewellery EPC subject
to the condition that promoter would bring back
jewellery / goods or repatriate sale proceeds
within 45 days from date of departure through
normal banking channel. In case of personal
carriage for export promotion tours, exporter
shall declare personal carriage of such samples
to Customs while leaving country and obtain
necessary endorsement on Export Certificate
issued by Jewellery Appraiser of Customs. In
such cases exporter shall book with nominated
agency, within 120 days after export promotion
tour or expiry of stipulated period of 45 days,
whichever is earlier, gold/silver/platinum for
replenishment content against items sold abroad.
(iii) Export of branded jewellery.Export of branded
jewellery is also permitted with approval of Gem
& Jewellery EPC for display/sale in permitted
shops set up abroad or in showroom of their
distributors/ agents. Items not sold abroad within
365 days shall be re-imported. Exporter shall
book with nominated agency within 120 days
after the end of stipulated period of 365 days,
gold/silver/platinum for replenishment content
against items sold abroad.
(b) Following documents shall be submitted for claiming
such replenishment:
(i) Customs attested invoice;

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(ii) Copy of the approval letter issued by
Government/GJEPC;
(iii) Certificate from nominated agency/ GJEPC as
in Appendix-22F.
(c) In case of exhibitions organised by nominated agencies,
gold/silver/ platinum shall be imported as replenishment
by nominated agencies within 60 days from close of
exhibition.
4A.19 Nominated agencies shall maintain a complete account of
exports made, goods sold abroad, goods re-imported, and
metals purchased abroad and imported into India. Such account
shall be maintained for a minimum period of three years from
date of close of exhibition.

Export Against 4A.20 Exporter may obtain gold/silver/ platinum on following basis:-
Supply By Nominated
Agencies (i) Replenishment basis after completion of exports;
(ii) Outright purchase basis in advance;
(iii) Loan basis.

Replenishment Basis 4A.21 Exporter may apply to nominated agency 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.

4A.21.1 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.

4A.21.2 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 Replenishment
Scheme must book the same quantity of gold with Nominated
Agency on same rate that he may have booked with buyer.
Nominated agencies shall purchase precious metal on behalf
of exporter at the rate so fixed and thereafter issue a purchase
certificate bearing a serial number to exporter indicating quantity
of gold/ silver/platinum and CIF value, in dollars including the
Rupee equivalent. Price shall be actual price at which gold/
silver/platinum is purchased by nominated agencies plus
permitted service charges levied by nominated agencies shall
be included with the price of gold/ silver/ platinum for value

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addition. Duplicate and triplicate copies of exporter’s
application together with copies of purchase certificate for
exporter shall be sent by nominated agencies to concerned
Custom House as well as to the negotiating bank who will
confirm realization at which gold has been purchased. Exporter
exporting under notional rate will get replenishment only after
proceeds are realised.

4A.21.3 Exports shall be effected within a period of 120 days from
date of booking and drawal of precious metal shall be
completed within a period of 150 days from date of booking
or within 30 days from date of export whichever is later.

Outright Purchase 4A.22 Exporter may obtain required quantity of precious metal in
Basis in Advance advance on outright purchase basis subject to furnishing of
BG / LUT to nominated agencies for an amount as may be
prescribed by nominated agency. On failure to effect exports
within period prescribed, the nominated agencies shall enforce
BG / LUT, as the case may be.

4A.22.1 Exports shall be effected within a maximum period of 90 days
from date of outright purchase of precious metal.

Loan Basis 4A.23 Exporter may obtain required quantity of precious metal on
loan basis subject to furnishing of BG / LUT, for customs duty
to nominated agencies for an amount as may be prescribed by
nominated agencies. On failure to effect exports within the
period prescribed, the nominated agencies shall enforce the
BG / LUT.

4A.23.1 Exporter has to pay interest on gold taken on loan basis at the
rate as may be specified.

4A.23.2 Export has to be completed within a maximum period of 90
days from date of release of gold on loan basis. No extension
for fulfillment of EO shall be allowed.

4A.23.3 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.

Value addition will have to be achieved on rate as may be got
fixed with buyer and Nominated Agency.Exporter shall have
flexibility to fix the price and repay Gold Loan within 180 days

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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.

4A.24 Nominated agencies may accept payment in dollars towards
cost of import of precious metal from EEFC account of
exporter.

Exports against 4A.25 Procedure applicable to Advance Authorisations under
Advance Chapter-4 of HBP v1 shall generally apply to this scheme
Authorisation except norms for value addition, EO period and regularization
of default. Value addition for Gems and Jewellery items shall
be as per paragraph 4A.2.1 of this Handbook.

4A.25.1 EO will be required to be fulfilled within 120 days from date
of import of each consignment against Authorisation. However
EO period shall be 180 days from date of import of findings,
mountings made of gold, platinum and silver and export of
jewellery. No further extension in EO period will be allowed.
Advance Authorisation holder may also import gold as
replenishment after completion of exports.

4A.26 Advance Authorisation holder may obtain gold /silver / platinum
from nominated agencies in lieu of direct imports. In such a
case, nominated agency shall make, both exchange control
copy and customs purpose copy of Authorisation invalid for
direct imports.

Regularistion of 4A.27 Cases of bonafide default in fulfillment of EO by an exporter
Bonafide Default who has obtained precious metals from nominated agencies
may be regularised provided exporter has paid customs duty
alongwith interest thereon as notified by Customs. However,
for the customs duty component, the authorisation holder has
the option to furnish valid duty credit scrips issued under
Chapter 3 of FTP and DEPB. Further, in case of Advance
Authorisation, the provisions as given in paragraph 4.28 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 thereunder.

Replenishment 4A.28 A replenishment authorization for duty free import of
Authorisation for consumables and tools (as notified by Customs) for Jewellery
Import of made out of precious metals (other than Gold & Platinum)
Consumables etc. equal to 2% and for Cut and Polished Diamonds and Jewellery
made out of Gold and Platinum equal to 1% of FOB value of
exports of the preceding year, may be issued on production of

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Chartered Accountant Certificate indicating the export
performance. However, in case of Rhodium finished Silver
jewellery, entitlement will be 3% of FOB value of exports of
such jewellery. This Authorisation shall be non-transferable and
subject to actual user condition.

Application for import of consumables etc., as given above,
may be made to the concerned RA in ANF 4I.

Personal Carriage of 4A.29 Personal Carriage of gems & jewellery parcels by Foreign
Gems & Jewellery Bound Passengers from all EOU/SEZ units and all firms in
Export Parcels DTA through Airports in Delhi, Mumbai, Kolkata, Chennai,
Cochin, 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. For claiming
Replenishment in case of Personal Carriage of Exports by
Foreign Bound passenger, documents shall be same as
mentioned under paragraph 4A.21.2 above. Authorised
Courier Companies are also permitted to operate on the above
lines.

Personal Carriage of 4A.30 Personal carriage of gems & jewellery import parcels by an
Gems & Jewellery Indian importer/ Foreign National may be permitted into all
Import Parcels EOUs/SEZ units and all firms in DTA through airports in Delhi,
Mumbai, Kolkata, Chennai, Bangalore, Hyderabad Jaipur.
Procedure will be same as for import of goods by air-freight
except that parcels shall be brought to Customs by Importer /
Foreign National for examination and release. Clearance of
imports under this scheme shall be as per normal customs
clearance procedure.

Duty free import of 4A.31 Duty free import of gems and jewellery samples upto Rs 3
samples lakhs or 0.25% of the average of last three years export
turnover of gems and jewellery items, whichever is lower, shall
be allowed in a financial year as per Customs notification.

Re-import of 4A.32 An exporter of plain/ studded precious metal jewellery shall
rejected jewellery be allowed to re-import duty free jewellery rejected and
returned by buyer upto 2% of FOB value of exports in
preceding licencing year (based on CA certified copy of export
of preceding year) with refund of any duty exemption/refund/
replenishment benefit availed on inputs used as per customs
rules and regulations.

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Diamond & Jewellery 4A.33 Policy for Diamond and Jewellery Dollar Accounts is given in
Dollar Accounts paragraph 4A.17 of FTP. Detailed procedure for its operation
will be notified separately.

Export of Diamond, 4A.34 Policy for export of diamond, gemstone and jewellery on
Gemstone & Jewellery consignment basis is given in paragraph 4A.20 of FTP.
on consignment basis
Detailed procedure in this regard shall be governed as per the
relevant Customs Rules & Regulations. Re-import of these
items (either in complete or partial lot) exported on
consignment basis shall be subject to condition that exporter
follows prescribed provisions of relevant customs notification
to establish that goods are the same which were exported.

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CHAPTER 5

EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME

Policy 5.1 Policy relating to zero duty EPCG scheme and concessional
3% duty EPCG Scheme are given in Chapter 5 of FTP.

Exclusions under 5.1A Zero duty EPCG Scheme under para 5.1 of FTP shall not be
Zero Duty EPCG available for import of capital goods relating to export of
Scheme products covered under following chapters/headings of
ITC(HS) classification:

Chapters 1 to 24, 25 to 27, 31, 40, 43, 44, 45 , 47 to 49, 68
to 70, 71, 81 (metals in primary and intermediate forms only),
89, 93, 97, 98

ITC(HS) 7201 to 7212, 7218 to 7220, 7224 to 7226, 7401
to 7406, 7501 to 7504, 7601 to 7603, 7801, 7802, 7901 to
7903, 8001, 8002 and 8401. However, zero duty EPCG
Scheme will be available for handicraft exports under Chapters
5, 44, 68, 97.

Imports under zero duty scheme shall also not be available for
units who are currently availing any benefits under Technology
Upgradation Fund Scheme (TUFS) administered by Ministry
of Textiles, Government of India. Zero duty EPCG scheme
shall also not be available to applicants, who avail in that year,
the benefit of Status Holder Incentive Scheme under Paragraph
3.16 of FTP.

All other provisions pertaining to the concessional 3% EPCG
scheme under this Chapter, to the extent they are not
inconsistent with the above provisions of zero duty EPCG
scheme, shall be applicable to the zero duty scheme also.

Application Form 5.2 An application for grant of an authorization may be made to
RA concerned in ANF 5A along with documents prescribed
therein.

5.3 RA concerned shall, on the basis of nexus certificate from an
Independent Chartered Engineer (CEC) submitted by the
applicant in Appendix 32A, issue EPCG authorization.
Reasonable wastage, if any, anticipated at the time of
installation of capital goods will also be certified by the
Chartered Engineer in the nexus certificate and the same would

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be mentioned in the condition sheet of the EPCG authorization
at the time of issue. RA shall thereafter forward a copy of the
EPCG authorization to the concerned Jurisdictional Central
Excise Authority. The wastage so permitted at the time of
issuance of authorization would be allowed to be sold on
payment of applicable duty on sale of scrap/ waste.

5.3.1 Authorization holder shall produce to the concerned RA a
certificate from the Jurisdictional Central Excise Authority,
confirming installation of Capital Goods at factory premises of
authorization holder or his supporting manufacturer(s) /
vendor(s) within six months from date of completion of import.

In the case of import of spares, the installation certificate shall
be submitted by the Authorization holder within a period of
three years from the date of import.

However, in case of units not registered with Central Excise
Authorities, the Authorization holder shall produce to the
concerned RA, a certificate from an independent Chartered
Engineer confirming the said installation of capital goods/spares.

5.3.2 EPCG authorization shall be issued with a single port of
registration mentioned in paragraph 4.19 of HBPv1 for imports.
However, exports can be made from any port specified in
paragraph 4.19.

5.3.3 (i) An applicant may also apply for import of spares, tools,
spare refractories and catalyst as are required for
installation and maintenance of Capital Goods.
Application shall contain list of plant/ machinery installed
in factory/ premises of applicant for which spares, tools,
spare refractories and catalyst are required, duly
certified by Chartered Engineer or Jurisdictional Central
Excise Authorities.
In such cases EPCG authorization shall not specify list
of spares but shall indicate:-
(a) Name of plant /machinery for which spares are
required.
(b) Value of duty saved allowed under the
authorization.
(c) Description of product to be exported with value
of export obligation as per FTP.

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(ii) Further, at time of final redemption of export obligation,
authorization holder shall submit certificate from
Independent Chartered Engineer confirming use of
spares, tools, spare refractories and catalyst so
imported in the installed capital goods on the basis of
stock & consumption register maintained by
authorization holder.

EPCG Scheme to 5.4 An EOU/ a relocated SEZ unit, while converting to a DTA
resultant DTA Unit Unit, may apply for an EPCG authorization in ANF alongwith
from conversion documents prescribed therein. ‘No Objection Certificate’
of EOU/ Relocated should be produced from concerned Development
SEZ Units Commissioner.

Indigenous Sourcing 5.5 EPCG authorization holder intending to source capital goods
of Capital goods indigenously, either alongwith application or after issuance of
EPCG authorization, shall request to RA for invalidation of
EPCG authorization for direct import/ issue of ARO , alongwith
name and address of source person of the capital goods.

5.5.1 RA concerned will issue such invalidation letter/ARO, in
duplicate.

5.5.2 Indigenous manufacturer intending to supply capital goods to
EPCG authorization holder may apply to RA in ANF for
issuance of Advance authorization for import of inputs including
components required for manufacture of capital goods to be
supplied to EPCG authorization holder.

Leasing of Capital 5.6 An EPCG authorization holder may, source capital goods from
Goods a domestic leasing company. In such cases, the Bill of Entry of
imported capital goods or commercial invoice of indigenous
capital goods, shall be signed jointly by EPCG authorization
holder and leasing company. However, EPCG authorization
holder shall alone be fully responsible for fulfillment of export
obligation.

Conditions for 5.7 In addition to conditions mentioned in paragraph 5.5 of FTP
fulfillment of following conditions shall also be applicable for fulfillment of
Export Obligation export obligation.

5.7.1 EPCG authorization holder shall export either directly or
through third party (s). If a merchant exporter is EPCG
authorization holder, name of supporting manufacturer shall
also be indicated on shipping bills. At the time of export, EPCG
authorization No. and date shall be endorsed on shipping bills
which are proposed to be presented towards discharge of
export obligation.

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5.7.2 Export proceeds shall be realized in freely convertible currency
except for deemed exports. Exports to SEZ units /Supplies to
developers/ Co-developers, irrespective of currency of
realization would also be counted for discharge of Export
Obligation.

5.7.3. Supplies made to Oil and Gas sector also may be counted
towards discharges of export obligation against an EPCG
authorization provided it has been issued on or before
31.03.2000 and no benefit under paragraph 8.3.of FTP has
been claimed on such supplies.

5.7.4 Exports made to former USSR, or to such countries as notified
by DGFT, shall not be counted for fixing average level of
exports.

Additional Export Obligation (over and above indicated
average) for all previous EPCG Licenses, which have not been
redeemed, will be indicated separately. Exports made against
EPCG authorizations, which have not been redeemed, shall
not be added up for calculating the average export performance
for the purpose of subsequent EPCG authorization.

5.7.5 Export under EPCG scheme shall also be entitled for benefits
under Chapter 4 of FTP.

5.7.6 In case of export of goods relating to handicraft, handlooms,
cottage, tiny sector, agriculture, aqua-culture (including
fisheries), animal husbandry, floriculture, horticulture,
pisciculture, viticulture, poultry and sericulture, the EPCG
authorization holders shall not be required to maintain average
level of exports. However, this exemption from maintenance
of average level of exports shall not be allowed for import of
fishing trawlers, boats, ships and other similar items.

Goods, excepting tools imported under EPCG scheme by such
sectors, shall not be allowed to be transferred for a period of
five years from date of imports even in cases where export
obligation has been fulfilled. Transfer of capital goods to group
companies, within five years from the date of import would
however be permitted after fulfillment of EO, under intimation
to RA and jurisdictional Central Excise Authority.

5.8 The Authorization holder under the EPCG scheme shall fulfill
the export obligation over the specified period in the following
proportions:

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For Zero Duty EPCG Scheme

Period from the date of Minimum export
issue of Authorization obligation to be
fulfilled
Block of 1st to 4th year 50%
Block of 5th and 6th year 50%

For concessional 3% duty EPCG Scheme

fulfilled

5.8.1 In respect of Authorizations, on which the value of duty saved
is Rs.100 crore or more , the export obligation shall be fulfilled
over a period of 12 years (not applicable to zero duty EPCG
scheme) in the following proportion:-

fulfilled

5.8.2 However, the export obligation of a particular block of year
may be set off by the excess exports made in the preceding
block year. The Authorization holder would intimate the regional
authority on the fulfillment of the export obligation, as well as
average exports, within three months of completion of the
block, by secured electronic filing using digital signatures.

5.8.3 Where export obligation of any particular block of years is not
fulfilled in terms of the above proportions, except in such cases
where the export obligation prescribed for a particular block
of years is extended by the Regional Authority subject to
payment of composition fee of 2% on duty saved amount equal
to unfulfilled portion of EO, such Authorization holder shall,
within 3 months from the expiry of the block of years, pay
duties of customs (alongwith applicable interest as notified by
DoR) of an amount equal to that proportion of the duty leviable

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on the goods which bears the same proportion as the unfulfilled
portion of the export obligation bears to the total export
obligation.

5.8.4 EPCG authorizations issued upto 31.03.2000 shall be
governed by provisions laid down in paragraph 6.11 in HBP
v1 (RE-99). Notwithstanding the same in HBPv1 (RE-99),
authorization holder shall not have to surrender special Import
licence in case of value wise shortfall.

Authorizations issued from 1st April, 2000 upto 31st March,
2002 shall be governed by provisions of Chapter 6 of HBPv1
(RE-01) as amended from time to time.

Authorizations issued from 1st April, 2002 upto 31st August,
2004 shall be governed by provisions of para 5.8 of HBP v1
(RE-02) as amended from time to time.

Monitoring of 5.9 Authorization holder shall submit to RA concerned by 30th
Export Obligation April of every year, report on fulfillment of export obligation.
RA concerned may issue partial EO fulfillment certificate,
provided export performance is proportionately adequate to
fulfillment of export obligation.

Automatic 5.10 If authorization issued has actually been utilized for import of
Reduction/Enhancement a value in excess, upto 10% of CIF value /duty saved amount
upto 10% of CIF value of authorization, authorization shall be deemed to have been
and prorata Reduction/ enhanced by that proportion. Customs shall automatically allow
Enhancement in export clearance of goods in excess, upto 10% of authorization value/
obligation duty saved amount, without endorsement by concerned RA

In such case, authorization holder shall furnish additional fee
to cover excess imports effected, in terms of CIF value/duty
saved amount, to RA concerned, within one month of excess
imports taking place. Export obligation shall automatically stand
enhanced proportionately.

In case of utilization being more than 10%, concerned RA as
per their financial powers, may endorse as per extant
provisions. Authorization holder shall furnish additional BG/
LUT to the customs authority.

5.10.1 Similarly, if EPCG authorization holder has utilized authorization
less than the value earmarked in authorization, his export
obligation shall stand reduced on prorata basis with reference
to actual utilization of authorization.

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Extension of Export 5.11 Concerned RA, may consider one or more requests for grant
Obligation Period of extension in export obligation period, on payment of
composition fee equal to 2% of proportionate duty saved
amount on unfulfilled export obligation or an enhancement in
export obligation imposed to the extent of 10% of total export
obligation imposed under authorization, as the case may be, at
the choice of exporter, for each year of extension sought. Such
first extension in EO period can be for a maximum period of 2
years.

Extension in EO period beyond two years’ period available
above, may be considered, for a further extension upto 2 years
with a condition that 50% of duty payable in proportion to the
unfulfilled export obligation is paid by authorization holder to
Custom authorities before an endorsement of extension is made
on EPCG authorization by RA concerned. In such cases, no
composition fee is to be paid or additional EO is to be imposed
as prescribed in the Para above. In case the firm is still not
able to complete the export obligation, duty already deposited
will be deducted from total duty plus interest to be paid for
EO default.

However for zero duty EPCG scheme only one extension of 2
years in export obligation period shall be available, subject to
conditions mentioned above.

Extension in export obligation period shall also be subject to
such terms and conditions as may be prescribed by competent
authority.

5.11.1 The firm /company, which is applying for registration with BIFR/
Rehabilitation Department of State Government, shall also
intimate DGFT with regard to relief sought for EPCG
authorization, if any, within 30 days of receipt of application
by agency concerned.

DGFT, thereafter, shall take up the matter with agency
concerned to safeguard government interest on account of
default in fulfillment of export obligation imposed on EPCG
authorization obtained by such firm/companies.

DGFT may consider such application for grant of period of
extension upto 12 years, or as per rehabilitation package
prepared by operating agency and approved by BIFR board/
state authority.

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5.11.2 To provide relief to exporters of those sectors where total
exports in that sector/product group has declined by more
than 5% compared to the previous year, average export
obligation for the year may be reduced proportionate to
reduction in exports of that particular sector/product group
during the relevant year as against the preceding year.

The sectors /product groups for which this relaxation is to be
allowed shall be conveyed by the DGFT to all the RAs within
seven months of the end of the previous financial year, and the
RAs shall re- fix the annual average EO for previous year
accordingly, for exporters in that sector /product group.

Automatic EO extension 5.11.3 Whenever a ban/restriction is imposed on export of any
in the event of ban on product, export obligation period in respect of EPCG
export product authorizations already issued prior to imposition of ban of
such export products, would stand automatically extended for
a period equivalent to the duration of ban, without any
composition fee and exporter would not be required to maintain
average E.O. as well for the ban period.

Export Obligation 5.12 RA concerned may condone shortfall upto 5% in export
Shortfall obligation arising out of duty saved amount.

Redemption 5.13 As evidence of fulfillment of export obligation, authorization
holder shall furnish application in ANF 5 B with documents
prescribed therein.

On being satisfied, RA concerned shall issue a certificate of
discharge of export obligation to the EPCG authorization holder
and send a copy to customs authorities with whom BG/LUT
has been executed.

RA shall ensure disposal of such applications within 30 days.
Shortcomings, if any, shall be pointed out in one go. All
correspondence, thereafter, shall relate to these deficiencies
only. Fresh correspondence, if necessary, shall be within 15
days. Once documents are complete, EO will be discharged
within 30 days of receipt of complete documents /information.

Process of issue of final discharge certificate/ rejection shall
be completed within a period of 90 days from date of receipt
of initial request. Applications that remain outstanding beyond
a period of 90 days shall be reported to DGFT alongwith
reasons thereof, immediately thereafter.

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Regularization of 5.14 In case, EPCG authorization holder fails to fulfill prescribed
Bonafide Default export obligation, he shall pay duties of Customs plus interest
as prescribed by Customs authority. Such facilities can also
be availed by EPCG authorization holder to exit at his option.
The authorization holder will have the option to furnish valid
duty credit scrips, issued under Chapter 3 of FTP & DEPB,
for payment of the customs duty component.

Maintenance of Records 5.15 Every EPCG authorization holder shall maintain, for a period
of 3 years from date of redemption, a true and proper account
of exports/ supplies made and services rendered towards
fulfillment of export obligation.

Re-Export of Capital 5.16 Capital Goods imported under EPCG scheme, which are found
Goods Imported under defective or unfit for use, may be re-exported back to foreign
EPCG Scheme supplier within three years from the date of payment of duty
on importation thereof, with permission of RA /Customs
Authority. Consequently, EO would be refixed.

Replacement of 5.16.1 Capital Goods imported and found defective or otherwise unfit
Capital Goods for use may be exported, and Capital Goods in replacement
thereof be imported under EPCG scheme. In such cases, while
allowing export, the Customs shall credit the duty benefit availed
which can be debited again at the time of import of such
replaced Capital Goods.

Penal Action 5.17 In case of failure to fulfill export obligation or any other
condition of authorization, authorization holder shall be liable
for action under FT (D&R) Act, 1992, Orders and Rules made
there under, provisions of FTP and Customs Act, 1962.

Clubbing of EPCG 5.18 Clubbing of two or more EPCG authorizations of same
authorization authorization holder would be permitted.

5.18.1 An application for clubbing can be made only to RA concerned
in ANF 5D. Clubbing shall not be permitted in case
authorizations are issued by different RAs.

5.18.2 Total export obligation would be refixed taking into account
total of duty saved or total of CIF value of imports.

5.18.3 On Clubbing, authorizations for all purpose shall be deemed
to be a single EPCG authorization. Export obligation period
for clubbed authorization shall be reckoned from first
authorization issue-date. However, in cases where clubbed
CIF /duty saved value exceeds Rs.100 crore, no corresponding
benefit of increase in export obligation period shall be
admissible.

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5.18.4 Average export obligation for clubbed authorizations would
be highest of average export obligations endorsed on individual
authorizations so clubbed.

5.18.5 No clubbing would be permitted after expiry of EOP.

5.18.6 The aforesaid provisions for Clubbing of EPCG Authorizations
shall be applicable for authorizations issued on or after
1.4.2007. However, EPCG authorizations issued prior to
1.4.2007 shall be governed by provisions contained in Chapter
5 of HBP v1 (RE-2006).

Refixation of Export 5.19 (a) EPCG authorization holder can apply for refixation
Obligation upon of export obligation as given in para 5.5 (i) of FTP in
conversion from CIF ANF 5C.
based to duty based EO (b) For all EPCG authorizations, authorization holder
should have fulfilled mandated (original or amended)
block wise export obligation, till previous block to
application date. In all such cases, refixed export
obligation would be computed as under:
(% export obligation unfulfilled) x (8) x (duty saved on
authorization issue-date)

(c) There would be no change in average export obligation
fixed or export obligation period of original authorization.

Technological 5.20 Application for technological upgradation of the capital goods
Upgradation of would be made in ANF 5A.
Capital Goods

Import of Refurnished/ 5.21 Import of refurbished / reconditioned spares must have a
Reconditioned Spares residual life not less than 80% of life of original spare, which
and Tools would be certified by EPCG authorization holder.

The tools imported under EPCG Scheme may be transferred
to any of units or group companies of applicant.

5.22 Revalidation of authorizations issued under EPCG scheme shall
not be allowed.

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CHAPTER 6

EXPORT ORIENTED UNITS (EOUs), ELECTRONICS HARDWARE
TECHNOLOGY PARKS (EHTPs), SOFTWARE TECHNOLOGY PARKS
(STPs) SCHEME AND BIO-TECHNOLOGY PARKS (BTPs)

Scheme 6.1 Policy relating to EOUs, EHTPs, STPs and BTPs Schemes is
given in Chapter 6 of FTP.

Applications / 6.2.1 For setting up an EOU, three copies of application as in
Approval / Renewal Appendix 14-I-A may be submitted to DC.
of approval
6.2.2 Applications for setting up units under EOU scheme other than
proposals for setting up of unit in service sector (except R&D,
software and IT enabled services, or any other service activity
as may be delegated by BoA), shall be approved or rejected
by Units Approval Committee within 15 days, as per criteria
indicated in Appendix 14-I-B and sector specific conditions
relating to approval as in Appendix 14-I-C. In other cases,
approval may be granted by DC after clearance by BoA.

6.2.3 Proposals for setting up EOU requiring industrial licence may
be granted approval by DC after clearance of proposal by
BoA (as per Appendix 14-I-D) and Department of Industrial
Policy and Promotion within 45 days on merits.

6.2.4 STP / EHTP complexes can be set up by Central Government,
State Government, Public or Private Sector Undertakings or
any combination thereof, duly approved by Inter-Ministerial
Standing Committee (IMSC) in Ministry of Communication
and Information Technology (Department of Information
Technology - DoIT). Application for setting up EHTP / STP
unit shall be in format prescribed by DoIT and shall be
submitted to officer designated by DoIT.

6.2.5 BTP can be set up by Central Government, State Government,
Public or Private Sector Undertakings or any combination
thereof. Application for setting up of BTP shall be submitted
to Department of Bio-Technology (DoBT) and such
applications which meet guidelines prescribed by DoBT will
be approved and recommended to DGFT for notification.
Application for setting up of BTP unit shall be submitted to
officer designated by DoBT.

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6.2.6 LoP / LoI shall specify item(s) of manufacture / service activity,
annual capacity, projected annual export for first five years in
dollar terms, Net Foreign Exchange (NFE) earnings, limitations,
if any, regarding sale of finished goods, by-products and rejects
in DTA and such other matter as may be necessary and also
impose such conditions as may be required.

6.2.7 LoP/LoI issued to EOU / EHTP / STP / BTP units by
concerned authority would be construed as an authorization
for all purposes. Standard format for LoP for EOU is given in
Appendix 14- I-E.

6.2.8 EOUs shall have separate earmarked premises for separate
LoP. Similarly, EOUs may be approved on leased premises
provided lease has been obtained from Government
Department / Undertaking / Agency. However, in case lease is
obtained from private parties, it shall have a validity period of
five years from date of LUT and DC shall satisfy himself of
genuine nature of lease.

6.2.9 On completion of approval period as provided for in para 6.6
of FTP, it shall be open to unit to continue under scheme or
opt out of scheme. Where unit opts to continue, DC will extend
approval period. If no intimation in this regard is received
from unit within a period of six months of expiry of approval
period, DC will take action, suo moto, to cancel approval
under EOU scheme and take further action in this regard. Where
units give their option to continue after expiry of six months as
stipulated above, DC will grant extension after obtaining
approval of BoA.

Legal Undertaking 6.3.1 Approved EOU / EHTP / STP / BTP unit shall execute an
(LUT) LUT with DC / Designated Officer concerned as in Appendix
14- I-F.

6.3.2 All EOU / EHTP / STP / BTP units should have permanent e-
mail address. No LUT for new units shall be executed unless
unit has its permanent e-mail address and digital signature on
said e-mail ID. In event of an EOU not having permanent e-
mail address and digital signature, further imports and DTA
sale shall not be permitted by DC.

Export of goods 6.4.1 Software units may undertake exports using data
and services communication links or in form of physical exports (which may
be through courier service also), including export of professional
services.

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6.4.2 EOUs shall be permitted to export jewellery on basis of a
notional rate certificate issued by nominated agency. This rate
will be based on prevailing Gold / US$ rate and US$ / INR
rate in notional rate certificate. Certificate issued by nominated
agency should not be older than 7 working days of date of
shipment.

6.4.3 Exporter shall have flexibility to fix price and repay gold loan
within 180 days from date of export. Price shall be
communicated to nominated agencies who will issue a certificate
showing final confirmation of rate to bank negotiating
document, to ensure export proceeds are realized at this rate.

6.4.4 Gems & Jewellery EOUs may re-export imported goods and
export domestically procured goods, including goods generated
out of partial processing / manufacture. Besides, supply of
unsuitable / broken cut and polished diamonds, precious and
semi-precious stones upto 5% of value of imported or
indigenously procured goods to DTA against valid Gems &
Jewellery REP as applicable on payment of appropriate duty
is also permitted.

Import / Domestic 6.5.1 Goods permitted to be imported / procured from DTA shall
Procurement of Goods include:
(a) Raw materials, components, consumables,
intermediates, spares and packing materials;
(b) Capital goods, whether new or second-hand, including
inter-alia following and their spares:
(i) DG sets, captive power plants, transformers and
accessories for all above.
(ii) Pollution control equipment.
(iii) Quality assurance equipment.
(iv) Material handling equipment, like fork lifts and
overhead cranes, mobile cranes, crawler cranes,
hoists and stackers.
(v) Un-interrupted Power Supply System (UPS),
Special racks for storage, storage systems,
modular furniture, computer furniture, anti-static
carpet, teleconference equipment, Servo Control
System, Air-conditioners / Airconditioning
system, panel for electricals and special data
transmission cable.
(vi) Security Systems.

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(vii) Tools, jigs, fixtures, gauges, moulds, dyes,
instruments and accessories.
(c) Raw materials for making capital goods for use within
unit.
(d) Others including:
(i) Prototypes and technical samples for existing
product(s) and product diversification
development or evaluation.
(ii) Drawings, blue prints, charts, microfilms and
technical data.
(iii) Office equipment, including PABX, Fax
machines, projection system, Computers,
Laptop and Server.
(e) Spares and consumables for above items.
(f) Any other items not mentioned above with approval of
BoA.
6.5.2 EOUs may import plain / studded gold / platinum or silver
jewellery for export after repairs / remaking.

Conditions of Import 6.6 Import of goods by EOU / EHTP / STP / BTP units shall be
subject to following conditions:

(a) Goods shall be imported into EOU / EHTP / STP /
BTP premises. However, agriculture and allied sectors
and granite sector units in EOU may supply / transfer
capital goods and inputs in farm / fields / quarries with
prior intimation to jurisdictional Customs / Central
Excise authorities, provided ownership of goods rests
with EOUs. Granite sector would also be allowed to
take spares upto 5% of value of Capital Goods to quarry
site.
(b) Procedure as prescribed under Customs / Central
Excise rules for EOUs and units in EHTP / STP / BTP
will be followed and appropriate bond executed with
Customs / Central Excise authorities.
(c) Goods, except capital goods and spares, shall be utilized
by EOU / EHTP / STP / BTP units within a period of
three years or as may be extended by Customs
authorities. However, imported tea shall be utilized
within a period of 6 months from date of import.
Similarly, export obligation against import of items
{covered by Chapter 9 of ITC(HS)} and coconut oil

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shall be fulfilled within a period of 90 days from the
date on which first import consignment is cleared by
Customs Authorities.However, in case of import of
spices for VA purpose like crushing / grinding /
sterilization or for manufacture of oils and oleoresins of
pepper, cardamom and chillies (and not for simple
cleaning, grading, re-packing etc.), EO shall be fulfilled
within 120 days from the date of importation of first
consignment. However, for imports completed up to
31.12.2008, export obligation period shall be 150 days
from the date of clearance. In case of import of spices
(other than pepper, cardamom and chillies) for
manufacture of spice oils and oleoresins, EO shall be
fulfilled within 12 months.
(d) Goods already imported / shipped / arrived before issue
of LoP / LoI are also eligible for duty free clearance
under EOU / EHTP / STP / BTP scheme, provided
customs duty has not been paid and goods have not
been cleared from Customs.
(e) Consumption of inputs by the EOU / EHTP / STP /
BTP unit shall be based on the Standard Input Output
Norms (SION) provided that:
(i) where no SION have been notified, generation
of waste, scrap and remnants upto 2% of input
quantity shall be allowed;
(ii) where additional items other than those given in
SION are required as inputs or where generation
of waste, scrap and remnants is beyond 2% of
input quantity, use of such inputs shall be allowed
by the jurisdictional DC within a period of three
months from the date of and based on self
declared norms, with the unit undertaking to
adjust self-declared / ad hoc norms in
accordance with norms as finally fixed by Norms
Committee in DGFT;
(iii) in case of any difficulty in fixation of SION as
above, BoA in consultation with Norms
Committee in DGFT, will decide on a case to
case basis.

Fax machines / 6.7.1 EOU / EHTP / STP / BTP units may install one fax machine at
laptop computers a place of its choice, outside premises of unit, subject to
outside approved intimation of its location to concerned Customs / Central Excise
premises authorities.

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6.7.2 EOU / EHTP / STP / BTP units may, temporarily take out of
premises of unit, duty free laptop computers and video
projection systems for working upon by authorized employees.

6.7.3 EOU / EHTP / STP / BTP units may install personal computers
not exceeding two in number, imported / procured duty free in
their registered / administrative office subject to DoR guidelines.

6.7.4 For IT and IT enabled services, persons authorized by software
units may access facility installed in EOU / EHTP / STP / BTP
unit through communication links.

Leasing of 6.8 Value of imported capital goods financed through leasing
Capital Goods companies or obtained free of cost and / or on loan / lease
basis, shall also be taken into account for purpose of calculation
of NFE as defined in FTP.

Net Foreign 6.9.1 EOU / EHTP / STP / BTP unit shall be a positive net foreign
Exchange (NFE) exchange earner. NFE earnings shall be calculated cumulatively
Earnings in the block period as per para 6.5 of FTP, according to the
formula given below. Items of manufacture for export specified
in LoP / LoI alone shall be taken into account for calculation
of NFE.

Positive NFE = A – B> 0

Where

‘NFE’ is Net Foreign Exchange;

‘A’ is FOB value of exports by EOU / EHTP / STP / BTP unit;

‘B’is sum total of CIF value of all imported inputs and CIF
value of all imported capital goods, and value of all payments
made in foreign exchange by way of commission, royalty, fees,
dividends, interest on external borrowings / high sea sales during
first five year period or any other charges. It will also include
payment made in Indian Rupees on high sea sales. “Inputs”
mean raw materials, intermediates, components, consumables,
parts and packing materials.

6.9.2 If any goods are obtained from another EOU / EHTP / STP /
BTP / SEZ unit, or procured from an international exhibition
held in India, or bonded warehouses or precious metals
procured from nominated agencies, value of such goods shall
be included under ‘B’.

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6.9.3 If any capital goods are imported duty free or leased from a
leasing company, received free of cost and / or on loan basis
or transfer, CIF value of capital goods shall be included pro-
rata, under ‘B’ for period it remains with units.

6.9.4 For annual calculation of NFE, value of imported capital goods
and lump sum payment of foreign technical know-how fee shall
be amortized as under:

1st – 10th year : 10%

Provided that above amortization rates would be applicable
only if an undertaking is given by a unit that it will not exit to
DTA in the first 10 years. For existing units, proportionate
Customs and excise duty must be paid where NFE is less than
depreciation already claimed, before exit.

Maintenance of 6.10.1 EOU / EHTP / STP / BTP unit shall maintain proper account,
accounts and shall file digitally signed quarterly and annual report as
prescribed in Annexure to Appendix 14-I-F to DC /
Designated Officer in DoIT / DoBT and Customs and Central
Excise authorities.

6.10.2 Unit shall be able to account for entire quantity of each category
of homogenous goods imported / procured duty free, by way
of exports, sales / supplies in DTA or transfer to other SEZ /
EOU / EHTP / STP / BTP units and balance in stock. However,
at no point of time, units shall be required to correlate every
import consignment with its exports, transfer to other SEZ /
EOU / EHTP /STP / BTP units, sales in DTA and balance in
stock. Any matter for clarification as to whether goods are
homogenous or not shall be decided by Units Approval
Committee.

Monitoring of NFE 6.11 Performance of EOUs shall be monitored by Units Approval
Committee as per guidelines given in Appendix 14-I-G.
Performance of EHTP / STP / BTP shall be monitored by
DoIT / DoBT jointly with jurisdictional Central Excise /
Customs authority.

Conversion of Scrap / 6.12 Scrap / dust / sweeping of gold / silver / platinum may be sent
dust / sweeping of Gold / to Government of India Mint / private mint from EOU / EHTP
silver / platinum into / STP units and returned to them in standard bars in accordance
standard Bars with procedure prescribed by Customs authorities, or may be
permitted to be sold in DTA on payment of applicable customs
duty, on basis of gold / silver / platinum content, as may be
notified by Customs authorities.

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DTA supplies 6.13 Notwithstanding provision of DTA sales in para 6.8 of FTP,
such DTA sales shall not affect application, to any goods, of
any other prohibition or regulation affecting import thereof in
force at the time, when such goods are imported. This also
does not confer any immunity, exemption or relaxation at any
time from any commitment or compliance with any requirements
to which importer may be subject to under other laws or
regulations.

Supplies to other 6.14 Supplies to other EOU / EHTP / STP / BTP / SEZ units shall
EOU / EHTP / STP / be counted towards NFE provided that such goods are
SEZ /BTP units permissible for procurement by these units.

Transfer of Power 6.15 Transfer of power from Captive Power plants (DG Sets)
from one unit to from one unit of EOU / EHTP / STP / BTP to another is
another permitted as prescribed in sector specific condition in
Appendix 14-I-C.

Supply of precious / 6.16 Supplier of precious and semi-precious stones, synthetic stones
semiprecious / Synthetic and processed pearls from DTA to EOUs shall be eligible for
stones from DTA grant of Replenishment Authorisation at rates and for items
mentioned in HBP v1. Procedure for submission of application
for grant of Replenishment Authorisation as contained in relevant
Chapter of HBP v1 shall be applicable. However, application
shall be made to DC concerned. Such supplies to EOUs are
not treated as deemed exports for purpose of any of deemed
export benefits.

Application for 6.17 Application for grant of all entitlements may be made to DC
grant of entitlements concerned.

Export through 6.18 An EOU / EHTP / STP / BTP unit may export goods
other exporters manufactured / software developed by it through other exporter,
or any other EOU / EHTP / STP / BTP / SEZ unit subject to
condition that:

(a) Goods shall be produced in EOU / EHTP / STP / BTP
unit concerned.
(b) Level of NFE or any other conditions relating to imports
and exports as prescribed shall continue to be
discharged by EOU / EHTP / STP / BTP unit
concerned.
(c) Export orders so procured shall be executed within
parameters of EOU / EHTP / STP / BTP schemes and
goods shall be directly transferred from unit to port of
shipment.

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(d) Fulfillment of NFE by EOU / EHTP / STP / BTP units
in regard to such exports shall be reckoned on basis of
price at which goods are supplied by EOUs to other
exporter or other EOU / EHTP / STP / BTP / SEZ unit.
(e) All export entitlements, including recognition as Status
Holder would accrue to exporter in whose name foreign
exchange earnings are realized. However, such export
shall be counted towards fulfillment of obligation under
EOU / EHTP / STP / BTP scheme only.
Other Entitlements 6.19.1 FOB value of export of an EOU / EHTP / STP / BTP unit can
be clubbed with FOB value of exports of its parent company
in DTA or vice versa for the purpose of according Export
House and Trading House status.

6.19.2 Sectoral norms as notified by Government shall apply to FDI
in service activities.

6.19.3 Software units may also use computer system for training
purpose (including commercial training), subject to condition
that no computer terminal shall be installed outside bonded
premises for this purpose.

6.19.4 Export of iron ore shall be subject to decision of Government.
Requirements of other conditions of exports like minimum
export price / export in consumer pack etc. as per ITC(HS)
shall apply in case raw materials are sourced from DTA and
exported without further processing / manufacturing by EOU.
Export of textile items shall be covered by bilateral agreements.
Wood based units shall comply with direction of Supreme
Court contained in its order dated 12.12.1996 in Writ (civil)
No 202 of 1995- T.N.Godavarman Thirrumulppad v/s Union
of India and others with WP(Civil) No 171 of 1996 in regard
to use of timber / other wood.

Sub-Contracting 6.20.1 Sub-contracting by EOU gems and jewellery units through
other EOUs, or SEZ units, or units in DTA shall be subject to

(a) Goods, finished or semi finished, including studded
jewellery, taken out for sub- contracting shall be brought
back to unit within 90 days.
(b) No cut and polished diamonds, precious and
semiprecious stones (except precious, semi-precious
and synthetic stones having zero duty) shall be allowed
to be taken out for sub-contracting.

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(c) Receive plain gold / silver / platinum jewellery from DTA
/ EOU / SEZ units in exchange of equivalent quantity of
gold / silver / platinum, as the case may be, contained
in said jewellery.
(d) EOUs shall be eligible for wastage as applicable as per
para 4A.2 of HBP v1 for sub-contracting and against
exchange.
(e) DTA unit undertaking job work or supplying jewellery
against exchange of gold / silver / platinum shall not be
entitled to deemed export benefits.
6.20.2 Facility of getting job work done from DTA unit will be available
even when job worker is not registered with Central Excise
authority, subject to condition that goods are brought back to
premises of unit on completion of job work.

6.20.3 Export of finished goods from job worker’s premises may be
permitted, provided such premises are registered with Central
Excise authorities. Where job worker is SEZ / EOU / EHTP /
STP / BTP unit, no such excise registration is required and
export may be effected either from job worker’s premises or
from premises of unit. Export of such products from job
worker’s premises shall not be allowed through third parties
as provided in FTP.

6.20.4 EOUs may be permitted to remove moulds, jigs, tools, fixtures,
tackles, instruments, hangers and patterns and drawings to
premises of sub-contractors, subject to condition that these
shall be brought back to premises of units on completion of
job work within a stipulated period. Raw materials may or
may not be sent along with these goods.

6.20.5 In case of sub-contracting of production process abroad,
goods may be exported from sub-contractor premises subject
to conditions that at the time of clearance of goods, the EOU
/ EHTP / BTP / STP unit shall declare (i) the transaction value
of the finished goods to be cleared from the sub-contractor’s
premises abroad; (ii) job work charges to be paid to the sub-
contractor abroad; and (iii) value of intermediate goods;
supported with documents like (a) sale price contract / or invoice
for the finished goods, (b) job work contract and (c) the basis
of arriving at the value of intermediate goods. The EOU /
EHTP / BTP / STP unit shall also ensure full repatriation of
foreign exchange declared as the transaction value of the
finished goods cleared from the sub-contractor’s premises
abroad.

110

Contract Farming 6.21 EOUs engaged in production / processing of agriculture /
horticulture / aquaculture products may, on basis of annual
permission from Customs authorities, take out inputs and
equipments (specified in Appendix 14-I-J) to DTA farm subject
to following conditions:-

(a) Supply of inputs by EOUs to contract farm(s) shall be
subject to input-output norms approved by DGFT /
BoA.
(b) There shall be contract farming agreement between
EOU and DTA farmer(s).
(c) Unit has been in existence for at least two years and
engaged in export of agriculture / horticulture /
aquaculture products; otherwise it shall furnish bank
guarantee equivalent to duty foregone on capital goods
/ inputs proposed to be taken out, to Deputy / Assistant
Commissioner of Customs / Central Excise, till unit
completes two years.

Export through 6.22 EOU / EHTP / STP / BTP units may export goods for holding
Exhibitions / Export / participating in exhibitions abroad, with permission of DC,
Promotion tour subject to following conditions:-

(a) Unit shall produce to Customs authorities letter in
original, or its certified copy containing approval of DC.
For gems and jewellery items, a self certified photograph
of products shall also be submitted.
(b) In case of re-import, such items, on arrival shall be
verified along with export documents before clearance.
(c) 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.
(d) In case of personal carriage of goods and for holding /
participating in overseas exhibitions, value of such gems
and jewellery shall not exceed US $ 5 million.

Personal Carriage 6.23 Personal carriage of gold / silver / platinum jewellery, cut and
of gems and jewellery polished diamonds, precious, semi-precious stones, beads and
for Export promotion articles as samples upto US $ 1 million for export promotion
tours tours, and temporary display / sale abroad by EOUs, is also
permitted with approval of DC subject to following conditions:-

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(a) EOU shall bring back goods or repatriate sale proceeds
within 45 days from date of departure through normal
banking channel.
(b) Unit shall declare personal carriage of such samples to
Customs while leaving country and obtain necessary
endorsement.

Export through 6.24 Export of goods is also permitted for display / sale in permitted
show-rooms abroad / shops set up abroad or in showrooms of their distributors /
duty free shops agents. Items not sold abroad within 180 days shall be re-
imported within 45 days.

Sale through 6.25 EOUs may set up showrooms / retail outlets at International
showrooms / retail Airports for sale of goods in accordance with procedure laid
outlets at International down by Customs authorities. Items remaining unsold after a
Airports period of 60 days shall be exported or returned to respective
EOUs.

Personal carriage of 6.26.1 For Personal carriage of jewellery by foreign bound passenger,
Import / export Parcels following documents shall be submitted by EOUs as proof of
including through exports:
foreign bound passengers (a) Copy of shipping bill filed by EOUs;
(b) A copy of Currency Declaration Form filed by Foreign
buyer with Customs at time of his arrival; and
(c) Foreign Exchange Realisation / Encashment Certificate
from Bank.

6.26.2 In addition to this, Personal Carriage by foreign bound
passenger on Document Against Acceptance (DA) / Cash On
Delivery (COD) basis is also allowed. EOUs will have to furnish
following documents as proof of exports:-
(a) Copy of Shipping Bill;
(b) Bank Certificate of Export and Realisation.

6.26.3 Procedure for personal carriage of import parcels will be same
as for import of goods by airfreight except that parcels shall
be brought to Customs by EOUs / foreign national for
examination and release. Instructions issued by Customs
authorities in this regard should be followed mutatis mutandis.

6.26.4 Personal carriage of parts by foreign bound passengers shall
be allowed in case same are required for repairs of exported
goods at customer site. Following documents should be
submitted as proof of exports:-

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(a) Permission letter from Customs for exports.
(b) Invoice with value (for payment or free of charge).

Replacement / 6.27.1 Units may send capital goods abroad for repair with permission
Repair of imported / of Customs authorities. Any foreign exchange payment for
indigenous goods this purpose will also be allowed. However, no permission
will be required for sending capital goods for repair within
country.

6.27.2 EOU / EHTP / STP / BTP units may, on basis of records
maintained by them and prior intimation to Customs authorities:-

(a) Transfer goods to DTA / abroad for repair / replacement,
testing or calibration and return.
(b) Transfer goods for quality testing / R&D purpose to
any recognised laboratory / institution upto Rs.5 lakhs
per annum without payment of duty, on giving suitable
undertaking to Customs for return of goods. However,
if goods have been consumed / destroyed in process
of testing etc. a certificate from laboratory / institution
to this effect be furnished to Customs.

Samples 6.28.1 EOU / EHTP / STP / BTP units may on basis of records
maintained by them, and on prior intimation to Customs
authority, supply or sell samples in DTA for display / market
promotion on payment of applicable duties.

6.28.2 Remove samples without payment of duty, on furnishing a
suitable undertaking to Customs authorities for bringing back
samples within a stipulated period.

6.28.3 An EOU may export free samples, without any limit, including
samples made in wax moulds, silver mould and rubber moulds
through all permissible mode of export including through courier
agencies / post. For statutory requirement of Stability &
Retention sample with manufacturer, an EOU / EHTP / BTP /
STP unit may re-import without payment of duty, those samples,
which were exported by it, under intimation to Custom
Authorities, and FOB value of such samples shall not be
counted for NFE purpose and other export benefits, if any.

6.28.4 An EOU, on basis of records maintained by them and on prior
intimation to Customs authorities, may send samples to other
EOUs for display on returnable basis within a period of 30
days.

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Donation of Computer 6.29 EOU / EHTP / STP / BTP unit may be allowed by Customs
and Computer authorities concerned to donate imported / indigenously
peripherals procured (bought or taken on loan) computer and computer
peripherals, including printer, plotter, scanner, monitor,
keyboard and storage units without payment of duty, two years
after their import / procurement and use by units, to a school
run by Central Government, or Government of a State or, a
Union Territory or, a local body; an Educational Institution run
on non-commercial basis by any organization; a Registered
Charitable Hospital; a Public Library; a Public Funded
Research and Development Establishment; a Community
Information Center run by Central Government or, Government
of a State or, a Union Territory or local body; an Adult
Education Center run by Central Government or, Government
of a State or, a Union Territory or a local body; or an
organization of Central Government or, a Government of a
State or, a Union Territory as per Customs / Central Excise
notification.

Distinct Identity 6.30 If an industrial enterprise is operating both as a domestic unit
as well as an EOU / EHTP / STP / BTP unit, it shall have two
distinct identities with separate accounts, including separate
bank accounts. It is, however, not necessary for it to be a
separate legal entity, but it should be possible to distinguish
imports and exports or supplies effected by EOU / EHTP /
STP / BTP units from those made by other units of enterprise.

Unit Approval 6.31.1 Powers and functions of Unit Approval Committee of EOUs
Committee for EOUs shall be as under:-

(a) To consider applications for setting up EOUs other than
proposals for setting up of unit in services sector (except
R&D, software and IT enabled services, or any other
service activity as may be delegated by BoA). Items of
manufacture requiring industrial licence under Industrial
(Development & Regulation) Act, 1951 shall be
considered by BoA.
(b) to consider and permit conversion of units in SEZ to
EOU;
(c) to monitor performance of units;
(d) to supervise and monitor permission, clearances,
licences granted to units and take appropriate action in
accordance with law;

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(e) to call for information required to monitor performance
of unit under permission, clearances, licenses granted
to it;
(f) to perform any other function delegated by Central
Government or its agencies;
(g) to perform any other function as may be delegated by
State Governments or its agencies; and
(h) to grant all approvals and clearances for establishment
and operation of EOUs.

Approval of 6.31.2 In case of units under EHTP / STP scheme, necessary approval
EHTP / STP / / permission shall be granted by officer designated by DoIT/
BTP units Director (STPI). Designated officer shall also exercise powers
of adjudication under Section 13 read with Section 11 of FT
(D&R) Act, 1992 in respect of STP / EHTP as mentioned in
Gazette Notification No. S.O. 106 (E) dated 30-1-2006.
Similarly in case of units under BTP, necessary approval /
permission shall be granted by officer designated by DoBT.
However, designated officers shall adopt criteria for automatic
approval of new units as laid down in Appendix 14-I-B.

Administration of 6.32 DC / Designated Officer shall have following powers in respect
EOUs / Powers of to units. Jurisdiction of DC is given in Appendix 14-I-K.
DC / Designated
Officer (1) Conversion of sick / closed DTA unit into EOU;
(2) Conversion of EOU to STP / EHTP / BTP and vice-
versa as per prescribed procedure;
(3) To allow increase in value of capital goods in terms of
Indian Rupees, on account of foreign exchange rate
fluctuations;
(4) To permit capacity enhancement without any limit in
case of de-licensed industries only;
(5) Permit broad-banding for similar goods and activities
mentioned in LoP or to provide for backward or
forward linkages to existing line of manufacture;
(6) Authorize change in name of company or implementing
agency and change from a company to another
provided new implementing agency / company
undertakes to take over assets and liabilities of existing
unit;
(7) Permit change of location from place mentioned in LoP
to another and / or include additional location provided

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that no change in other terms and conditions of approval
is envisaged and that new location is within territorial
jurisdiction of DC / Designated Officer;
(8) Extend validity period of LoP by three years beyond
initial validity period of LoP (except in case where there
is a restriction on initial period of approval, like setting
up of oil refinery projects);
(9) Cancel LoP wherever warranted;
(10) Permit merger of two or more units into one unit provided
units fall within jurisdiction of same DC / Designated
Officer subject to condition that activities are covered
under provision of broad banding;
(11) Exercise powers of adjudication under Section 13 read
with Section 11 of FT (D&R) Act, in respect of EOUs
as mentioned in Gazette Notification No. SO. 194(E)
dated 6.3.2000;
(12) Do valuation of exports declared on SOFTEX form
by EOUs as per RBI A.D. (M.A Series) Circular AP
(DIR series Circular No.9 dated 25.10.2001);
(13) Issue eligibility certificates for grant of employment visa
to low level foreign technicians to be engaged by EOUs
as per Ministry of Home Affairs letter No. 25022 / 7 /
99- F.1 dated 20.9.1999;

Registration – (14) Function as a Registering authority for EOU / EHTP /
cum -Membership STP / BTP unit. A separate Registration cum-
Certificate Membership Certificate shall not be required in their
cases as provided for in paragraph 2.44 of FTP except
in case of spices. In case of spices, it would be
mandatory for units to get themselves registered with
Spices Board also.

Importer Exporter (15) Allot Importer-Exporter Code number for EOUs, if
Code No. same has already not been allotted to entity;

Green Card (16) Issue of Green Card automatically after execution of
LUT;
(17) Grant / renewal of Status Certificate in respect of EOUs
provided it does not involve clubbing of FOB value of
exports of its parent company in DTA;
(18) Publicity of EOU / EHTP / STP / BTP Scheme under
their jurisdiction.

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Change of location / 6.33 BoA may consider change of location of EOU / EHTP / STP
inclusion of additional / BTP unit from place mentioned in LoP to another and / or to
location with BoA include additional location outside territorial jurisdiction of
approval original DC / Designated Officer, subject to such conditions
as BoA may decide.

Clearance of Capital 6.34 Clearance of capital goods, including second hand, in DTA
Goods in DTA shall be allowed as per FTP on payment of applicable duty
and import policy in force on date of such clearance.

Depreciation norms 6.35.1 Depreciation up to 100% is permissible for Computers and
Computer peripherals in 5 years and 10 years in case of other
items.

Depreciation norms 6.35.2 Depreciation for computers and computer peripherals shall
for Computers and be as follows:-
Computer peripherals
10% for every quarter in first year;
8% for every quarter in second year;
5% for every quarter in third year;
1% for every quarter in fourth and fifth year.

Depreciation norms 6.35.3 For capital goods, other than above, depreciation rate would
for other Capital goods be as follows:

4% for every quarter in first year;
3% for every quarter in second and third year;
2.5% for every quarter in fourth and fifth year;
2% for every quarter thereafter.

Conversion 6.36.1 Existing DTA units, may also apply for conversion into an EOU/
EHTP / STP / BTP unit, but no concession in duties and taxes
would be available under scheme for plant, machinery and
equipment already installed. On conversion, they would get
Income Tax concessions but limited to period of 10 years from
original commencement of manufacture or that prescribed under
Section 10 of Income Tax Act whichever is earlier. For this
purpose, DTA unit may apply to DC / Designated Officer
concerned in same manner as applicable to new units. In case
there is an outstanding export commitment under EPCG
scheme / Advance Authorization Scheme, it will follow the
procedure laid down in Appendix 14-I-O of HBP v1.

6.36.2 Existing EHTP / STP / BTP units may also apply for conversion/
merger to EOU and vice-versa. In such cases, units will
continue to avail permissible exemption in duties and taxes as

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applicable under relevant scheme. EHTP / STP / BTP units
desiring conversion as an EOU may apply to DC concerned
through Officer designated by DoIT / DoBT in same manner
as applicable to new units. Likewise, EOU desiring conversion
into EHTP / STP / BTP may apply to officer designated by
DoIT / DoBT through DC concerned.

6.36.3 An EOU may be shifted to SEZ with approval of DC provided
EOU has achieved pro-rata obligation under EOU scheme.

Revival of Sick units 6.37 Subject to a unit being declared sick by appropriate authority,
proposals for revival of unit or its take over may be considered
by BoA. Guidelines on revival of sick units are given in
Appendix 14-I-M.

6.38 FAST TRACK CLEARANCE PROCEDURE

Eligibility 6.38.1 EOUs having a status holder certificate under FTP shall be
eligible for Fast Track Clearance Procedure.

Examination of 6.38.2 Status holder units shall be exempted from examination of
Import Cargo import cargo at port of import. However, jurisdictional
Commissioner of Customs / Central Excise may examine
consignments at unit’s place on random basis.

Domestic procurement 6.38.3 Units having physical export turnover of Rs. 15 crores and
and import of goods above in preceding financial year shall be allowed to import
goods without payment of duty on basis of pre-authenticated
procurement certificate issued by jurisdictional Customs /
Central Excise Authority.

Installation of Fax 6.38.4 Eligible EOUs may install one fax machine and two computers
Machine / Computers in their administrative / registered office outside bonded
premises under prior intimation to jurisdictional Asstt. / Deputy
Commissioner of Customs or Central Excise.

Procurement of 6.38.5 Procurement of DG set of capacity commensurate with actual
DG sets requirement of unit shall be permitted under intimation to DC
and jurisdictional Central Excise authority.

Temporary removal 6.38.6 Eligible EOU may remove their capital goods or parts thereof
of Capital Goods for repairs under prior intimation to jurisdictional Asstt. / Deputy
Commissioner of Customs or Central Excise.

Personal carriage 6.38.7 Personal carriage of samples of Gems & Jewellery by status
of samples holder EOUs are allowed subject to limit fixed in para 6.23

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without a need for prior permission from DC / Customs / Central
Excise.

Activities which 6.38.8 In respect of following activities of a status holder, permission
do not require will not be required from DC or jurisdictional Central Excise
permission authority:

DTA sale of finished products in terms of para 6.8(a) of FTP;
Participation in exhibition and personal carriage of Gems &
Jewellery for export promotion tours subject to fulfillment of
conditions of para 6.23 of HBP v1. However, prior intimation
thereof needs to be given.

Time bound 6.39 DC shall dispose off applications expeditiously. Following time
disposal of schedule shall normally be followed to dispose off applications
applications provided application is complete in all respects and is
accompanied with prescribed documents.

S. No Category of Application Time limit for disposal
(days)
1 Issue of LoP / LoI 15
2 Conversion of LoP / LoI 15
3 Acceptance of LUT 3
4 Renewal of LUT 3
5 Permission for broad banding / diversification 3
6 Permission for change in locations 7
7 Permission for Advance DTA sale 2
8 Permission for merger of units 7
9 Permission for enhancement of production capacity 3
10 Cancellation of LoP 3
11 Permission for debonding / exit 7
12 Permission for DTA sale 2
13 Eligibility certificate for employment visa for lower level technicians 2
14 Issue of Green Card 2
15 Renewal of Green Card same day
16 Permission to lease CG 1
17 Permission for disposal of scrap / waste 2
18 Permission for change in name 2
19 Inter Unit Transfer 2
20 Wastage Norms, ad-hoc 2
21 Permission for re-import same day
22 Permission for re-export same day

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23 Permission for replacement / repair of goods same day
24 Allotment of I.E. Code 1
25 Authorization of softex form 1
26 Reimbursement of CST claims 7
27 Issue of GSP Certificate same day
28 Permission for conversion of EOU to STPI, EPCG 5
29 Permission of final exit of EOU 5
30 Permission of extension of EOU 2
31 Permission to allow increase in value of CG 2
32 Permission for export through exhibition / tour 2
33 Reimbursement of Duty Drawback / TED 7

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CHAPTER 7

SPECIAL ECONOMIC ZONES

Procedure relating to Special Economic Zones is contained in Special Economic Zone Rules,
2006 notified in the Gazette of India, Extraordinary No. GSR 54(E) dated 10.2.2006.

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CHAPTER 8

DEEMED EXPORTS

Policy 8.1 Policy relating to Deemed Exports is in Chapter 8 of FTP.

Criteria for claiming 8.2.1 In respect of supplies under paragraph 8.2(a) of FTP,
Deemed Export procedure for issue of ARO and Back-to-Back Inland Letter
Benefits of Credit is given in paragraphs 4.14 and 4.15 of HBP v1.

8.2.2 In respect of supplies under paragraph 8.2(b) of FTP and
DFIA, deemed export benefits may be claimed from DC or
RA concerned. Advance Authorisation and DFIA shall be
claimed from the concerned RA. Such supplies shall be certified
by receiving agencies.

8.2.3 In respect of supply of capital goods under paragraph 8.2 (c)
of FTP, supplier shall produce a certificate from EPCG
Authorisation holder evidencing supplies / receipt of
manufactured capital goods.

8.2.4 In respect of supplies under categories mentioned in paragraphs
8.2(d), (e), (f), (g), (i) and (j) of FTP, application for Advance
Authorisation shall be accompanied with a Project Authority
Certificate in Appendix 27. Payment against such supplies shall
be certified by Project Authority concerned as in Appendix
22 C.

Procedure for 8.3.1 Procedure for claiming benefits under paragraphs 8.3(b) and
claiming Deemed (c) of FTP shall be as under:-
Export Drawback & (i) An application in ANF 8 along with prescribed
Terminal Excise Duty documents, shall be made by supplier to RA concerned.
Refund / Exemption Recipient may also claim benefits on production of a
suitable disclaimer from supplier along with a self
declaration in the format given in Annexure II of ANF
8, regarding non-availment of CENVAT credit in
addition to prescribed documents.
(ii) In case of supplies under paragraphs 8.2(a), (b) & (c)
of FTP, claim shall be filed against receipt of payment
through normal banking channel as in Appendix 22B.
Claims should be filed within a period of twelve months
from the date of payment. In cases where payment is
received in advance, last date for submission of
application may be correlated with date of supply

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instead of date of receipt of payment. Claim can be
filed ‘Invalidation Letter / ARO wise’ against individual
Authorisations within the time limit as specified above.
100% TED refund may be allowed after 100% supplies
have been made physically and payment received at
least up to 90%. However, grant of deemed export
duty drawback will be limited to the extent of payment
received.
(iii) In respect of supplies under paragraph 8.2(b) of FTP,
where supplier wants to claim benefits from RA, RA
shall allow deemed export benefits to DTA supplier, on
receipt of certified copies of Central Excise attested
invoice as proof of supplies made and / or Central
Excise attested CT3 form and proof of validity of LoP.
For supply of High Speed Diesel / Furnace Oil from
Depots of domestic oil Public Sector Undertakings
under Para 8.2 (b) of FTP, terminal excise duty shall
be refunded on the basis of duty paid certificate issued
by concerned domestic oil Public Sector Undertakings
in the format given in Annexure I to ANF 8. Duty
refund will be allowed for quantity of HSD / Furnace
oil procured by EOU / EHTP / STP / BTP unit for its
production activities, as certified by concerned DC /
Bond authorities.
(iv) In respect of supplies under categories mentioned in
paragraphs 8.2(d), (e), (f), (g), (h), (i) & (j) of FTP,
claim may be filed either on the basis of proof of supplies
effected or payment received. Claims should be filed
within a period of twelve months from date of receipt
of supplies by project authority or from date of receipt
of the payment as per the option of applicant, either
against a particular project or all the projects. Claims
may also be filed where part payments have been
received. 100% TED refund may be allowed after
100% supplies have been made physically and payment
received at least up to 90%. However, grant of deemed
export duty drawback will be limited to the extent of
payment received.

8.3.2 For claiming exemption from payment of terminal excise duty,
procedure prescribed by Central Excise authority shall be
followed.

8.3.3 Where All Industry Rate of Drawback is not available or same
is less than 4/5th of duties actually paid on materials or
components used in production or manufacture of the said

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goods, an application in ANF 8 along with prescribed
documents may be made to RA or DC, for fixation of brand
rate. Recipient may claim benefits on production of a suitable
disclaimer from supplier along with a self declaration in the
format given in Annexure II of ANF 8, regarding non-availment
of CENVAT credit in addition to prescribed documents.

8.3.4 Claim application shall be filed along with application for fixation
of brand rate of duty drawback, in case brand rate is required
to be fixed. Provision of late cut under paragraph 9.3 and
supplementary claim under paragraph 9.4 shall also be
applicable under this sub-paragraph.

8.3.5 RA may consider provisional payment up to 75% of drawback
claim in case of private companies and 90% in case of PSUs,
pending fixation of brand rate.

8.3.6 Subject to procedure laid down in HBP, Customs and Central
Excise Duty Drawback Rules, 1995 shall apply mutatis
mutandis to deemed exports.

Procedure for 8.4 In respect of supplies made by sub-contractor to main
claiming deemed contractor under paragraphs 8.2(d), (e), (f), (g), (i) and (j),
export benefits by main contractor may make payment to sub-contractor and
Sub-contractor issue payment certificate as in Appendix 22-C as Form 1-C.
However, for supplies under paragraph 8.2(d), (e), (f), (g)
and (j), payment certificate from main contractor shall not be
insisted for refund of terminal excise duty. Deemed export
benefits to sub-contractor would be available to the extent of
goods that are manufactured and supplied by him or outsourced
from other manufacturers, for value as indicated in Appendix
22-C of HBP v1.

Payment of interest 8.5 For payment of interest, in accordance with Para 8.5.1 of FTP,
on delayed refund separate application for claiming interest is not required and a
of Duty Drawback / single cheque for main claim and interest can be issued to the
TED claimant. However, separate account will be maintained by
RAs for the amount of interest disbursed by them.

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CHAPTER 9

MISCELLANEOUS MATTERS

Change In Name 9.1 An IEC holder must get the change in name / address /
and Constitution constitution incorporated within 90 days of such change.
Provided, however, RA issuing IE Code may, condone delay
on payment of penalty of Rs. 1000/-.

Change in constitution, aforesaid, does not include change in
directors of Public Limited Company.

Denomination of 9.2 CIF value of Authorisation / FOB value of export obligation
Import Authorisation/ shall be indicated both in Rupees and in freely convertible
Licence/ Certificate/ currency(s) at the exchange rate(s) prevailing on Authorisation
Permissions issue date.

9.2.1 Remittance of foreign exchange and discharge of export
obligation against Authorisation shall be regulated in freely
convertible currency.

9.2.1.1 No enhancement in Rupee value shall be necessary if remittance
of foreign exchange is covered by CIF value of Authorisation
shown in freely convertible currency.

9.2.2 However, on Advance Authorisation(s), issued for exports to
ACU countries, export obligation shall be denominated and
discharged in ACU dollars.

9.2.3 Export obligation in Advance Authorisation for intermediate
supply and for deemed export, where supplies are to be made
within the country, shall be denominated and discharged in
Indian rupees.

Applications 9.3 Wherever any application is received after expiry of
Received After last date for submission of such application, the application
Expiry of Prescribed may be considered after imposing a late cut in the following
Date of Receipt manner:

1. Application received after the expiry of last 2%
date but within six months from
the last date
2. Application received after six months from 5%
the prescribed date of submission but not
later than one year from the prescribed
date

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3. Application received after 12 months from 10%
the prescribed date of submission but not
later than 2 years from the prescribed date

Supplementary 9.4 Wherever any application for supplementary claim is received,
Claims within specified time limits, such application may also be
considered after imposing a cut @2% on the entitlement.

Furnishing of 9.5 Every importer/ exporter shall furnish such information as may
Information be called for by DGFT or any officer duly authorised.

Clarifications On 9.6 A request seeking clarifications on any provision of FTP or
Policy/Procedures HBP, importability or exportability of items under ITC(HS),
may be made to DGFT in the form in Appendix-28.
Clarification may also be sought on E-mail.

Consumption Register 9.7 Importer shall maintain a register as in Appendix-23 (for 3
years period) of items imported under an Authorisation and
separately for items imported with actual user condition and
its consumption. In respect of particular schemes such register
shall be maintained for specified period.

Export Facilitation 9.8 In order to resolve exporters’ problems in a co-ordinated
manner, field offices of DGFT shall act as Export Facilitation
Centres and nodal agencies. In addition, Nodal Officers have
also been nominated in other Ministries/ Departments and a
list of such officers nominated to assist exporters is given in
Appendix-17.

Standing Grievance 9.9 Detail of the Grievance Redressal Mechanism is given in para
Committee 2.49 of FTP.

For speedy redressal of genuine grievances of trade and
industry pertaining to FTP and Procedure, Grievance
Committees have been constituted chaired by (i) DGFT at
Headquarters and (ii) head(s) of RA(s) in regional offices.
Grievance Committee will include representatives of Federation
of Indian Export Organisations (FIEO), Export Promotion
Councils/ Commodity Boards, Development Authorities, and
Government Departments/ technical authorities as their
members.

9.9.1 Chairman of the respective Grievance Committee(s) may also
co-opt any other member. Meetings of such Committees shall
be held on a monthly basis.

9.9.2 Every exporter/importer shall have a right to seek and have an
opportunity to make a representation (in writing) to and be
personally heard, if he so desires, by Grievance Committee.

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9.9.3 A representation to Grievance Committee may be made in as
in Appendix-26.

Counter Assistance 9.10 For speedy disposal of applications, “Counter Assistance” will
function in all offices of DGFT. An FTDO shall be in charge
of counter in each office. On submission of application at the
counter, applicant will be handed over a token and would be
advised on same day whether his application is complete and
admitted for further processing by the office or whether there
is any deficiency that needs to be rectified.

9.10.1 Counter Assistant will send application to concerned section
on day of receipt for necessary scrutiny. If there are any
deficiencies, these will be noted by concerned section and
returned to counter on the same day. In case of complete
applications, applicant will be given a formal receipt indicating
file number for further reference. Deficient applications will be
returned to applicant for complying with all deficiencies.
Complete applications shall be processed by concerned section
within the time frame as given under paragraph 9.11.

The application for refund of Duty Drawback and Terminal
Excise Duty under deemed export scheme would be received
at the counter, scrutinized and deficiency, if any, would be
pointed out at the counter itself and such application would be
returned. Applicant will have to rectify this deficiency and a
complete application would be accepted.

Communication of any deficiency noted subsequently should
be undertaken only with approval of head of office who shall
be responsible for effective functioning of Counter Assistance.

9.10.2 Counter Assistance may also be availed of for amendments of
minor nature/enquiries. Applications, in such cases, will be
received in regional offices at counter against a proper receipt.
Authorisation/licence/list/enquiry, shall be returned after carrying
out necessary amendments/ giving necessary reply as far as
possible on the same day, across the Counter.

Time Bound disposal 9.11 RA shall dispose off applications expeditiously. Following time
of applications schedule shall normally be followed to dispose of applications
provided it is complete in all respects and is accompanied by
prescribed documents.

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S.No. Category of Application Time Limit For
Disposal
(in working days)
a) IEC Number 2
b) Advance Authorisation where 3
Input-Output norms are
notified or under
paragraph 4.7, Advance
Authorisation for Annual
Requirement and DFIA

Advance Authorisation where 15
Input-Output norms are
notified but where cases are
to be approved by Commerce
& Industry Minister
Advance Authorisations where 45
Input-Output Norms are not
notified
Fixation of input output norms 90
c) DEPB 3
d) (i) EPCG Authorisations on 3
self declaration basis
(ii) EPCG Authorisations for 45
fixation of nexus (other
than those covered in
(i) above
e) All Authorisations under Gem 3
& Jewellery scheme
f) Revalidation of Authorisation 3
and extension of export
obligation period by R.A
g) Acceptance of BG/LUT 3
Redeemption of BG/LUT for 15
Advance Authorisations and
DFIA
Redeemption of BG/LUT for 30
EPCG Authorisations
h) Issuance/renewal of status 3
certificate

130

i) Amendment of any category 3
of Authorisation
j) Fixation of deemed exports 45
Drawback rate
k) Miscellaneous 10
l) All applications filed through 1
EDI mode
m) Refund of DBK/ TED under 30 days from the
deemed export date of receipt of
complete application

Cases of undue delay in disposal of applications may be brought
to notice of head of regional offices by way of a written
representation, which shall be promptly enquired into and
responded to.

Date of Shipment/ 9.11 A Date of shipment/dispatch for imports will be reckoned as
Dispatch in respect under:-
of Imports
Mode of Date of Shipment / Dispatch
Transportation
(i) By Sea Date affixed on the Bill of Lading
(ii) By Air Date of relevant Airway Bill
provided this represents date on
which goods left last airport in the
country from which the import is
effected
(iii) From land-locked Date of dispatch of goods by rail,
countries road or other recognised mode of
transport to consignee in India
through consignment basis
(iv) By Post Parcel Date stamp of office of dispatch on
the packet or dispatch note
(v) By Registered Date affixed on Courier Receipt/
Courier Service Waybill
(vi) Multimodal Date of handing over goods to first
transport carrier in a combined transport Bill
of Lading

131

Date of Shipment/ 9.12 Date of shipment/despatch for exports will be reckoned as
Dispatch in respect under:-
of Exports
Mode of Date of Shipment / Dispatch
Transportation
(i) By Sea For bulk cargo, date of Bill of Lading or
date of mate receipt, whichever is later.
a) For containerised cargo, date of
“Onboard Bill of Lading”, or
“Received for Shipment Bill of
Lading”, where the L/C provides for
such Bill of Lading. For exports by
containers from Inland Container
Depot (ICD), date of Bill of Lading
issued by shipping agents at the time
of loading of export goods in ICD
after customs clearance.
b) For Lash barges, date of Bill of
Lading evidencing loading of export
goods on board.
(ii) By Air Date mentioned by appropriate Officer of
Customs on Shipping Bill, evidencing
loading or handing over of goods to air
cargo complex, which are not international
airports, or by way of rotation of flight
number and date.
(iii) By Post Date stamped on postal receipt.
Parcel
(iv) By Rail Date of RR (Railway Receipt).
(v) By Date affixed on Courier
Registered Receipt/ Waybill.
Courier
Service
(vi) By Road Date on which goods crossed Indian
border as certified by Land Customs
Authorities.
However, wherever Procedural / Policy provisions have been
modified to disadvantage of exporters, same shall not be
applicable to consignments already handed over to Customs
for examination and subsequent exports upto Public Notice /
Notification date.

132

Similarly, in such cases where goods are handed over to the
customs authorities before expiry of export obligation period,
but actual Exports take place after expiry of the export
obligation period, such exports shall be considered within export
obligation period and taken towards fulfilment of export
obligation.

General Power 9.13 DGFT may, on his own or otherwise, call for records of any
of Review case pending with or decided by an officer subordinate to him
or an officer of any EPC/FIEO including a Group/ Committee
of officers nominated, appointed or authorised by him and pass
such orders as he may deem fit.

133

APPENDICES

APPENDICES ARE AN INTEGRAL PART OF THE HANDBOOK OF PROCEDURES –
VOLUME 1 (2009-2014) AS NOTIFIED BY THE PUBLIC NOTICE NO.1 (RE-2009) / 2009-
2014 DATED 27TH AUGUST 2009 AND HAVE BEEN PUBLISHED SEPERATELY.

APPENDICES ARE ALSO AVAILABLE ON THE DGFT WEBSITE AND CAN BE ACCESSED
AT http://dgft.gov.in

135

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