2.1

The Policy relating to the general provisions regarding exports and imports is given in Chapter-2 of the Policy.

2.2

Unless otherwise specifically provided, import/ export will be valid from/to any country. However, import/exports of arms and related material from/to Iraq shall be prohibited.

The above provisions shall, however, be subject to all conditionality, or requirement of licence, or permission, as may be required under Schedule II of ITC (HS).

2.3

Unless otherwise exempted, specified fee shall be paid for making an application under any provision of the Policy and this Handbook. The scale of fee, mode of payment, procedure for refund of fee and the categories of persons exempted from the payment of fee are contained in Appendix-21B

2.4

Every application, unless otherwise specified, shall be submitted to the licensing authority concerned, as per the territorial jurisdiction of the licensing authorities indicated in Appendix-1

2.5

Every application for an Import/Export licence/ certificate/permission or any other purpose should be complete in all respects as required under the relevant provisions of the Policy/Procedures and shall be signed by the applicant as defined in paragraph 9.9 of the Policy.

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

2.6

Each importer/exporter shall be required to file importer/exporter profile once with the licensing authority in Part 1 of ‘Aayaat Niryaat Form’. Licensing authority shall enter the information furnished in Part 1 of ‘Aayaat Niryaat Form’ in their database so as to dispense with the need for asking the repetitive information. In case of any change in the information given in Part 1 of ‘Aayaat Niryaat Form’, importer/exporter shall intimate the same to the licensing authority.

2.7

The applicant shall furnish a self addressed envelope of 40 x 15 cm with postal stamp affixed on the envelope as follows for all documents required to be sent by Speed Post:

(a)

Within local area Rs. 20.00

(b)

Up to 200 Kms. Rs. 25.00

(c)

Between 200 to 1000 Kms Rs. 30.00

(d)

Beyond 1000 Kms. Rs. 50.00

2.8

The following categories of importers or exporters are exempted from obtaining Importer - Exporter Code (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 the Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993.

(ii)

Ministries/Departments of the 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 provided the CIF value of a single consignment does not exceed Indian Rs.25,000.

(v)

Persons importing/exporting goods from/to Myanmar through Indo-Myanmar border areas provided the CIF value of a single consignment does not exceed Indian Rs.25,000.

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

(vi)

The following permanent IEC numbers shall be used by the 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 the Central Government and agencies wholly or partially owned by them.

2.

0100000029

All Ministries/Departments of the State Government and agencies wholly or partially owned by them.

3.

0100000037

Diplomatic personnel, Counselor officers in India and the officials of the UNO and its specialised agencies.

4.

0100000045

Indians returning from/going abroad and claiming benefit under the 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 provided the CIF value of a single consignment does not exceed Indian Rupees 25000/-.

7.

0100000070

Persons importing/ exporting goods from/to Myanmar through Indo-Myanmar border areas provided the CIF value of a single consignment does not exceed Indian Rupees 25000/-.

8.

0100000088

Ford Foundation

9.

0100000096

Importers importing goods for display or use in fairs/exhibitions or similar events under the provisions of ATA carnet.

10.

0100000100

Director, National Blood Group Reference Laboratory, Bombay or their authorized offices.

11.

0100000126

Individuals/Charitable Institutions/ Registered NGOs importing goods, which have been exempted from Customs duty under the Notification issued by Ministry of Finance for bonafide use by the victims affected by natural calamity.

Commercial Public Sector Undertaking (PSU) who have obtained PAN will however be required to obtain Importer Exporter Code number. The permanent IEC number as mentioned above, shall be used by non-commercial PSUs.

2.9

An application for grant of IEC number shall be made by the Registered/Head Office of the applicant to the licensing authority under whose jurisdiction, the Registered office in case of company and Head office in case of others, falls in the ‘Aayaat Niryaat Form’ and shall be accompanied by documents prescribed therein. In case of STPI/ EHTP/ BTP units, the Regional Offices of the DGFT having jurisdiction over the district in which the Registered/ Head Office of the STPI unit is located shall issue or amend the IECs.

Only one IEC would be issued against a single PAN number. Any proprietor can have only one IEC number and in case there are more than one IECs allotted to a proprietor, the same may be surrendered to the licencing office for cancellation.

2.9.1

The Licensing Authority concerned shall issue an IEC number in the format as given in Appendix-18B. A copy of such IEC number shall be endorsed to the concerned banker (as per the details given in the IEC application form).

A consolidated statement of IEC numbers issued by the licensing authority shall be sent to the offices of the Exchange Control Department of the RBI as given in Appendix-18D as per the statement given in Appendix-18C.

2.9.2

An IEC number allotted to an applicant shall be valid for all its branches/divisions/units/factories as indicated in the format of IEC given in Appendix- 18B.

2.9.3

Where an IEC Number is lost or misplaced, the issuing authority may consider requests for grant of a duplicate copy of IEC number, if accompanied by an affidavit.

2.9.4

If an IEC holder does not wish to operate the allotted IEC number, he may surrender the same by informing the issuing authority. On receipt of such intimation, the issuing authority shall immediately cancel the same and electronically transmit it to DGFT for onward transmission to the Customs and RLAs.

2.9.5

Each IEC holder (barring those who have obtained IEC in the preceding licensing year i.e 1.4.2004 to 31.3.2005) shall be required to furnish yearly details of imports/exports made by him in the preceding licensing year by 31st December. The information shall be furnished online by the IEC holder by accessing the website at www.nic.in/eximpol.

2.10

An application for grant of a licence/certificate/ permission for import or export of items mentioned as restricted in ITC(HS) may be made in the form and to the licensing authorities specified under the relevant chapters of this Handbook.

2.11

Import of specified capital goods, raw materials, components, etc. from the United States of America is subject to US Export Control Regulations.

US suppliers of such items are required to obtain an export licence/ certificate/permission based on the import certificate furnished by the Indian importer to the US supplier. The following are the designated Import Certificate Issuing Authorities (ICIA):

(i)

The Department of Electronics, for import of computer and computer based systems;

(ii)

The Department of Industrial Policy and Promotion, Technical Support Wing (TSW), for organised sector units registered under it, except for import of computers and computer based systems;

(iii)

The Ministry of Defence, for defence related items;

(iv)

The Director General of Foreign Trade for small scale industries and entities not covered above as well as on behalf of any of the above;

(v)

The Embassy of India, Washington, DC, on behalf of any of the above.

A request for an import certificate shall be made in the ‘Aayaat Niryaat Form’. The import certificate in Appendix-31 may be issued by the ICIA directly to the importer with a copy to (i) Ministry of External Affairs (AMS Section), New Delhi, (ii) Department of Electronics, New Delhi; and (iii) Directorate General of Foreign Trade, New Delhi.

However, this import certificate will not be regarded as a substitute for an import licence/certificate/ permission in respect of the items mentioned as restricted in ITC(HS) and an import licence/certificate/permission will have to be obtained wherever required for such items.

2.12

The validity of import licence/certificate/ permission from the date of issue of licence/ certificate/ permission shall be as follows:

(i)

Advance Licence (including Advance Licence for Annual Requirement), DFRC and Replenishment licence for Gem & Jewellery as per Chapter- 4 of the Policy

24 months

(ii)

EPCG licence (other than spares)

36 months

(iii)

EPCG Licence for Spares, refractories, catalyst and consumables

Co-terminus with the Export Obligation Period of the EPCG Licence.

(iv)

Others including CCP and Duty Entitlement Passbook Scheme, unless otherwise specified

24 months

(v)

Advance Licence for deemed export (including Advance Licence for Annual Requirement)

24 months or Co-terminus with the contracted duration of execution of the project whichever is later.

2.12.1

Where the date of expiry of the licence/ certificate/ permission/ duty credit certificates falls before the last day of the month, the licence/certificate/ permission/ duty credit certificate shall be deemed to be valid until the last day of the month.

This proviso would be applicable even for a revalidated licence/ certificate/ permission/ duty credit certificates.

2.12.2

"The period of validity means the period for shipment/ dispatch of goods covered under the licence/certificate/ permission. The validity of an import licence/ certificate/ permission is decided with reference to the date of shipment/ dispatch of the goods from the supplying country as given in Paragraph 9.11 A of this Handbook and not the date of arrival of the goods at an Indian port."

2.12.3

The provisions of paragraph 2.12.2 above shall not be applicable to DEPB, Duty Free Entitlement Certificate for Status Holders & Service Providers, Target Plus Scheme and the Vishesh Krishi Upaj Yojana. DEPB, Duty Free Entitlement Certificate for Status Holders and Service Providers, Target Plus Scheme and the Vishesh Krishi Upaj Yojana which are in the nature of duty credit entitlement and must be valid on the date on which actual debit of duty is made.

2.12.4

Similarly, where the date of expiry of either original or extended export obligation period falls before the last day of the month, such export obligation period shall be deemed to be valid until the last day of the month. The original validity of export licence for restricted items shall be 12 months from the date of issuance unless otherwise specified.

2.13

The licence/certificate/permission may be revalidated on merits by the licensing authority concerned, which has issued the licence/ certificate/permission, for a period of six months at a time but not beyond a period of 12 months reckoned from the date of expiry of the validity period.

2.13.1

However, revalidation of freely transferable licence/certificate/permissions and stock and sale licence/certificate/permission shall not be permitted unless the licence/ certificates/ permissions have expired while in custody of the Customs authority/ licensing authority.

2.13.2

In case the licence/ certificates/ permissions expires in the custody of the concerned licencing authority, revalidation would be permitted under the specific orders of the Head of the Office for a period for which the Licence/ Certificate/ Permissions has remained in Custody with the concerned licencing authority.

2.13.3

Notwithstanding the provisions of para 2.13 and in cases covered under paras 2.13.1 and 2.13.2 above, the revalidation would be for a period for which the Licence/ Certificate/ Permissions remains in the custody of the Customs or Licencing Authority .

An application for revalidation may be made to the licensing authority concerned in the ‘Aayaat Niryaat Form’. However, in such cases where revalidation of the licence/certificate/permissions is to be considered by DGFT, the original application alongwith Treasury Receipt (TR) /Demand Draft shall be submitted to the regional licensing authorities concerned and self-attested copy of the same shall be submitted to DGFT.

2.14

Where a licence/certificate/permission or an actual user duty credit certificate is lost or misplaced, an application for grant of a duplicate copy thereof may be made along with a copy of an affidavit, as given in Appendix-24, to the licensing authority which has issued the original licence/ certificate/ permission.

The licensing authority concerned may, on merits, issue a duplicate copy of the same after issuing an order for cancellation of the original licence/certificate/ permission and after informing the customs authority where the original licence/ certificate/permission was registered.

2.15

Duplicate copy of freely transferable licence/ certificate/ permissions, may be issued against an application accompanied by the following documents:

a.

An application with a fee equivalent to 10% of duty saved or duty credit.  

b.

A copy of FIR reporting the loss.  

c.

A copy of the original affidavit on notorised stamp paper.

d.

Indemnity bond on a stamp paper undertaking to indemnify the revenue loss to the Government which may be caused on account of issue of duplicate licenses covering the duty saved/ duty credit amount.

2.15.1

However, when the licence/certificate/permission has been lost by the Government agency and a proof to this effect is submitted, the documents at serial nos. (a) to (d) shall not be asked for.

In such cases, licence/certificate/permissions shall be revalidated for a period for six months from the date of endorsement, not withstanding anything stated below.

2.15.2

The licensing authority, before issuing the licenses, shall obtain the report regarding utilisation of the licence/ certificate/permissions from the Custom authority at the port of registration mentioned in the original licence/ certificate/permission.

The duplicate licence/ certificate/ permission shall be issued only for the balance, which remained unutilised as per the report furnished by the Customs authority at the port of registration.

2.15.3

The validity of duplicate licence/certificate/ permission shall be co-terminus with the original license and therefore no request shall be entertained if the validity of the original licence/ certificate/ permission has expired.

However, in case when DEPB/ DFRC is lost by Customs/Licensing Authority, duplicate licence/ certificate/ permission shall be issued for a validity of six months.

However in the case of loss of DEPB not involving either the Customs or the Licencing Authorities, the duplicate DEPB issued would have a validity equivalent to the balance period of validity of the original DEPB on the date of application for the duplicate DEPB.

2.15.4

The 10% duty saved as given in para 2.15(a) is applicable for DFRC and would be the duty saved amount for the balance quantity and proportionate CIF value as per the information available in serial no 6 of sub section V of ‘Aayaat Niryaat Form’. However in case of duty credit certificates such as DEPB, 10% duty credit as given in para 2.15 (a) will be equivalent to 10% of the available credit balance on the lost duty credit certificate.

2.15.5

The provision of paragraph 2.15.2 and 2.15.3 shall be applicable both for cases covered under paragraph 2.14 and 2.15.

2.16

To facilitate collection of licence/ certificate/ permissions and other documents, identity cards may be issued to the proprietor/ partners/ directors and the authorised employees (not more than three), of the importers and exporters.

However in case of limited companies, the Head of the Regional Office may approve the allotment of more than three identity cards per company. An application for issuance of an Identity Card may be made in the form given in Appendix-20A.

The documents/licence/ certificate/permissions may be delivered to the identity card holder and the officials of the DGFT shall not be responsible for any loss etc. of the documents/ licence /certificate/ permissions thereafter.

In case of loss of an identity card, a duplicate card may be issued on the basis of an affidavit. The identity card shall be issued in the format as given in Appendix-20B and shall be valid for a period of three years from the date of issuance.

In the normal circumstances, one authorized employee is allotted one identity card pertaining to the company he represents. However, to take care of cases like common directors/ partners, group company or any other similar issues, Head of the Regional Office may issue multiple identity cards to authorized employee after recording the reasons in writing.

2.17

Importer/Exporter and their employees shall have free access to the offices of the licensing authorities and to the officers authorised to grant interviews. Such officers may also grant interview at their discretion to authorised representative of the importer/exporter for making specific representation. Interviews/ clarifications may also be sought through E-mails with the officer concerned.

2.18

Units other than small scale units are permitted to expand or create new capacities in respect of items reserved for the small scale sector, subject to the condition that they obtain an Industrial licence under the Industries (Development and Regulation), Act, 1951.

It is a condition of such licence that the manufacturer shall undertake export obligation as may be specified by the Ministry of Industry and the licensee is required to furnish a Legal Undertaking to the Directorate General of Foreign Trade in this behalf. The Directorate General of Foreign Trade shall monitor the export obligation.

2.19

Public/Private Customs Bonded Warehouses may be set up in Domestic Tariff Area by following the procedure envisaged in Chapter-IX of the Customs Act, 1962. Such warehouses shall be permitted to import the items in terms of paragraph 2.28 of the Policy.

On receipt of goods, such warehouses shall keep the goods for a period of one year without payment of applicable customs duties. Goods can be cleared against the Bill of Entry for home consumption, on payment of applicable custom duty and on submission of licence/certificate/permission wherever required, provided the competent customs authorities have made an order for clearance of such goods for home consumption.

In case of clearance against duty free categories/ concessional duty categories, exemption/ concession from duty, as the case may be, allowed.

In case of clearance against DEPB, customs duty on imports may be adjusted against DEPB credit.

The 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.

Import, storage, clearance or re-export are subject to the provisions of the Customs Act, 1962 and the Rules, Orders, Notifications or Instructions issued in respect of these provisions.

2.20

In cases of direct import before clearance of goods through customs, the licence holder shall execute a legal undertaking (LUT)/Bank Guarantee(BG) with the customs authorities in the manner as prescribed by them.

For cases of direct imports, the Licensing Authority shall endorse the following condition on the licence :

"Bank Guarantee/ LUT as applicable to be executed as per relevant Customs Notification/ Circular"

However, in case of indigenous sourcing, the licence/certificate/permission holder shall furnish Bank Guarantee/LUT to the licensing authority as prescribed below before sourcing the material from the nominated agencies or indigenous supplier:-

1

All Status holders (both merchandise exporter and service providers)/Public Sector Undertaking (PSUs) .

Legal Undertaking (LUT).

2

Manufacturer exporter (except Proprietorship and Partnership firms)

Registered with Central Excise authority and

• Having a minimum export turn- over of Rs.1 Crore and above in the preceding year. and

   

   

• Having exported during the previous two financial years.

Legal Undertaking (LUT).

3

Manufacturer Exporter

Registered with Central Excise Authority and

• Having paid Central Excise Duty of Rs.1 Crore or more during the preceding financial year.

   

   

  The exporter must submit a Certificate issued by Jurisdictional Superintendent of Central Excise where the factory is located validating clause (b) above.

   

Legal Undertaking (LUT).

4

having an export turnover of at least Rupees 5 crore in the preceding licencing year and

• have a good track record and three years of export performance

   

   

Legal Undertaking (LUT).

5

Other Manufacturer Exporter not covered under 1, 2 3 & 4 above (except Proprietorships and Partnership firms)

exporting for last 3 years, or

• exporting in any of the last 3 years and satisfying the following conditions:

   

  Registered with Excise Authorities,

  or

  Registered with State Sales Tax Authorities;

  Shall be required to furnish:

   

• A Central Excise certificate certifying preceding years exports as per customs Circular No.74/2003 dated 21.8.2003, and

   

  (ii) Registration Certificate and Excise Control Code (E.C.C.) Number issued by Central Excise Authorities or Registration Certificate issued by State Sales Tax Authorities, as the case may be. This provision is not required for category (a) above.

Bond supported by Bank Guarantee to the extent of 15% of duty saved on excise and education cess, if applicable.

6

Manufacturing companies (as distinguished from Proprietorship and Partnership firm, who may also be manufacturers) having not exported in each of the preceding three licencing years but fulfilled the following criterion:

The company is registered with Central Excise Authorities and has paid Central Excise duty (unless exempted); and

• The company is registered with State Sales Tax Authorities and has paid sales tax (unless exempted); and

   

   

• The company furnishes copy of their audited balance sheet; and the minimum investment in plant and machinery must be Rs 50 lakhs.

Bond supported by Bank Guarantee to the extent of 15% of duty saved on excise duty and education cess, if applicable.

7

Merchant Exporter, all types of Proprietorship and Partnership firms (Other than Status Holders/ PSUs and category 4 above)

Bond supported by Bank Guarantee to the extent of 100% of the duty saved on excise and education cess if applicable.

8

Service providers other than those in category 1and 4 above.

Bond supported by Bank Guarantee to the extent of 100% of the duty saved on excise and education cess if applicable.

However, Manufacturer / Merchant Exporters falling under any of the following two categories based on risk profile of the exporter are required to execute bond supported by Bank Guarantee to the extent of 100% of the duty saved amount on excise and education cess if applicable. This can be prescribed by the Head of the office not being below the rank of Deputy Director General of Foreign Trade by recording the reasons in writing.

Have come under the adverse notice of Customs/ DGFT / Central Excise for serious irregularities;

In cases where the Excise Duty is nil on the items of indigenous procurement, the Bank Guarantee furnished would be for 25% of the basic Customs Duty on the same product. The Bank Guarantee and LUT should be valid as per the terms and conditions incorporated in the Appendix-25A & 25B respectively. The validity of the Bank Guarantee/LUT is required to be extended in case of extension in export obligation period. Specific endorsement to this effect shall be made in the licence by the licensing authority.

In respect of categories 3, 4 & 5 above, if the exporter has not exported for all the 3 preceding years, 15% Bank Guarantee condition shall be imposed on the duty saved amount provided the CIF value does not exceed 200% of the domestic turnover or 200% of FOB/FOR value of supplies of the preceding licensing year, whichever is higher. Licence beyond 200% entitlement shall be subject to 100% BG on the duty saved amount for the CIF value exceeding 200% entitlement. However the entitlement may be re-credited on production of documentary evidence showing fulfillment of export obligation and realization of export/ supply proceed.

In respect of categories at S No. 2 and 4, the licencee would be required to submit the Export Performance Certificate issued by a Chartered Accountant as per Appendix 26.

However, for import/domestic procurement of car under EPCG scheme, 100% Bank Guarantee will be required to be furnished except in case of status holders/ PSUs who will furnish Bank Guarantee/LUT as per aforesaid conditions

Bank Guarantee exemption/relaxation as mentioned above shall also be available in respect of past licences where licence holder had earlier filed Bank Guarantee but as on date the licence holder is entitled for Bank Guarantee exemption.

In case, the firm has already executed BG/ LUT for the full value of the licence/ certificate/ permission covering the items indigenously procured, to the Customs and furnishes proof of the same, no BG/ LUT shall be required to be executed with the licencing authority.

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.

2.21

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

2.21.1

The 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), Bangkok Agreement, India–Srilanka Free Trade Agreement (ISLFTA) and Indo- Thailand Free Trade Agreement. These arrangements/ agreements prescribe Rules of origin which have to be fulfilled for the exports to be eligible for the tariff preference.

The authorised agencies shall provide services relating to issuance of certificate of origin, including details regarding the rules of origin, list of items covered by an agreement, extent of tariff preference, verification and certification of eligibility etc. Export Inspection Council (EIC) is the sole agency authorised to print blank certificates. The authorised agencies may charge a fee, as approved by Ministry of Commerce and Industry, for services rendered.

(a)

GSP is a non contractual instrument by which industrialized (developed) countries unilaterally and on the basis of non reciprocity extend tariff concessions to developing countries. The following countries extend tariff preferences under their GSP Scheme.

United States,

European Union,

Canada,

Australia (only to LDCs)

New Zealand

Japan

Norway

Switzerland

Bulgaria

Belarus

Russia

GSP schemes of these countries details the sectors/ products and tariff lines under which these benefits are available, besides the conditions and the procedures governing the benefits. These schemes are renewed and modified from time to time. Normally the Customs of GSP offering countries require information in Form ‘A’ (prescribed for GSP Rules Of Origin) duly filled by the exporters of the beneficiary countries and certified by authorised agencies. List of agencies authorised to issue GSP Certificate of Origin is given in Appendix-4A.

(b)

Under the agreement establishing Global System of Trade Preference (GSTP), tariff concessions are exchanged among developing countries, who have signed the agreement. Presently, there are 46 member countries of GSTP and India has exchanged tariff concessions with 12 countries on a limited number of products. Export Inspection Council (EIC) is the sole agency authorised to issue Certificate of Origin under GSTP.

(c)

The Agreement establishing SAPTA was signed by seven SAARC members namely 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 the SAARC countries. The list of agencies, which are authorised to issue Certificate of Origin under SAPTA are notified under Appendix – 4B.

(d)

The Bangkok agreement is a preferential trading arrangement designed to liberalise and expand trade in goods progressively in the 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. The agencies authorised to issue Certificate of Origin under Bangkok agreement are listed in Appendix – 4B.

(e)

A Free Trade Agreement (FTA) between India and Sri Lanka was signed on 20^th December, 1998. The agreement was operationalised in March, 2000 following notification of the required Customs tariff concessions by the Government of Sri Lanka and India in February, and March, 2000 respectively. Export Inspection Council is the sole agency to issue the Certificate of Origin under ISLFTA.

(f)

A Preferential Trade Agreement between the Transitional Islamic State of Afghanistan and Republic of India was signed on 6th March, 2003 and was operationalised with the issuance of the Customs Notification No 76/2003 dated 13th May, 2003. Export Inspection Council is the sole agency to issue the Certificate of Origin under India Afghanistan Preferential Trade Agreement .

(g)

India and Thailand have signed the protocol to implement Early Harvest Scheme under India- Thailand Free Trade Agreement on 1^st September 2004.The tariff preferences for imports on the items of Early Harvest Scheme would be available only to those products, which satisfy the Rules of Origin Criteria, which have been notified by Department of Revenue, Ministry of Finance, vide notification No.101/2004-Customs dated 31^st August 2004. Export Inspection Council of India would be the sole agency to issue the Certificate of Origin under the Early Harvest Scheme of the Framework Agreement on the India-Thailand Free Trade Agreement.

2.21.2

The Government has also nominated certain authorised agencies to issue Non Preferential Certificate of Origin in accordance with Article II of International Convention Relating to Simplification of Customs formalities, 1923. These Certificates of Origin evidence the origin of goods and do not bestow any right to preferential tariffs. The list of these agencies is provided in Appendix – 4C.

All the exporters who are required to submit Certificate of Origin (Non Preferential) would have to apply to any of the agencies enlisted in Appendix–4C with the following documents:

(a)

Details of quantum/origin of the inputs/ consumables used in the export product.

(b)

Two copies of invoices.

(c)

Packing list in duplicate for the concerned invoice.

(d)

Fee not exceeding Rs.100 per certificate as may be prescribed by the concerned agency.

The agency would ensure that the goods are of Indian origin as per the general principles governing the rules of origin before granting the Certificate of Origin(non preferential). The Certificate would be issued as per the Format of Certificate of Origin (Non Preferential) given in Annexure-II to Appendix–4C. It should be ensured that no correction/re-type is made on the certificate.

Any of the agencies desirous of enlistment in Appendix–4C may submit their application as per Annexure I to Appendix 4C to the concerned Licensing Authority under whose Jurisdiction the applicant falls as given in Appendix 1.

In case of tea, all exporters who are required to submit Certificate of Origin (Non-Preferential) shall apply to the Tea Board or any Inspection Agency authorized by the Tea Board and enlisted in Appendix-4C of the Handbook of Procedures, (Vol.I) with the documents listed above.

2.22

The status holders shall be issued licence/ certificate/ permissions automatically within the stipulated time period. Deficiency, if any, shall be informed in the covering letter which shall be required to be rectified by the status holders within 10 days from the date of communication of deficiency.

2.23

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

2.24

In case, payment is received in advance and export/ deemed exports takes place subsequently, the application for a licence/certificate/permission shall be filed within specific period following the month during which the exports/deemed exports are made, unless otherwise specified

2.25.1

In cases where the export has been completed but the payment has not been realised from the buyer, such exports shall be taken into account for the purpose of benefits under the Policy provided the payment has been realised by the Indian exporter through ECGC cover.

2.25.2

In cases where exports have been made and payment realized through the General Insurance Cover on account of transit loss or other circumstances, the amount of the insurance cover paid would be treated as payment realized on account of exports under the various export promotion schemes.

2.26

In case of export by post, the exporter shall submit the following documents in lieu of documents prescribed for export by sea/air.

1)

Bank Certificate of Export and Realisation as given in Appendix-22A.

2)

Relevant postal receipt

3)

Invoice duly attested by the Customs

 2.26.1

Imports/Exports through a registered courier service is permitted as per the Notification issued by the Department of Revenue. However, importability/ exportability of such items shall be regulated in accordance with the Policy.

2.26.2

In cases where the exporter directly negotiates the document ( not through the authorised dealer) with the permission of the RBI, he is required to submit the following documents for availing of the benefits under the export promotion schemes:

a.

Permission from RBI allowing direct negotiation of documents (however this is not required for status holders who have been granted a general permission),

b.

Copy of the Foreign Inward Remittance Certificate (FIRC) as per Form 10-H of the Income Tax department in lieu of the BRC and

c.

Statement giving details of the shipping bills/ invoice against which the FIRC was issued.

2.27

No licence/certificate/permission shall be required for Imports of bonafide technical and trade samples of items mentioned as restricted in ITC(HS) except vegetable seeds, bees and new drugs by any importer. However, samples of tea not exceeding Rs.2000 (CIF) in one consignment shall be allowed without a licence/certificate/permission by any person connected with Tea industry.

Duty free import of samples upto Rs 60000 for all exporters barring those in the gems and jewellery sector and Rs.300,000 for those in the gems and jewellery sector shall be allowed as per the terms and conditions of Customs notification.

Exports of bonafide trade and technical samples of freely exportable item shall be allowed without any limit.

2.28

Permission of the licensing authority is not required for import of capital goods under lease financing. However, the condition of actual user or licence/ certificate/ permission, wherever required under the Policy or this Handbook, shall be applicable in case of import of capital goods under such lease financing.

The facility shall also be available under EPCG Scheme, EOU/SEZ scheme. The domestic supplier of capital goods to eligible categories of deemed exports shall be eligible for the benefits of deemed exports as given in paragraph 8.3 of the Policy even in such cases where the supplies are under lease financing.

2.29

Import/export of exhibits, including construction and decorative materials required for the temporary stands of the foreign/ Indian exhibitors at the exhibitions, fair or similar show or display for a period of six months on re-export/re-import basis, shall be allowed without a licence/certificate/ permission on submission of a certificate from an officer of a rank not below that of an Under Secretary/Deputy Director General of Foreign Trade to the Government of India in the Department of Commerce/ Directorate General of Foreign Trade or an officer of the Indian Trade Promotion Organization duly authorised by its Chairman in this behalf, to the effect that such exhibition, fair or similar show or display, as the case may be,

(i)

has been approved or sponsored by the Government of India in the Department of Commerce or the India Trade Promotion Organization; and

(ii)

is being held in public interest.

Extension beyond six months for re-export/re-import will be considered by the Customs authorities on merits. Consumables such as paints, printed material, pamphlets, literature etc. pertaining to the exhibits need not be re-exported/re-imported.

2.30

The Policy relating to the general provisions regarding import of capital goods, raw materials, intermediates, components, consumables, spares, parts, accessories, instruments and other goods is given in Chapter 2 of the Policy.

2.31

Wherever an import licence/certificate/permission, including Customs Clearance Permit (CCP), is required under the Policy, the procedure contained in this chapter shall be applicable.

2.32

The following items may be imported without a licence/ certificate/ permission.

(i)

Any form of metallic waste, scrap, seconds and defectives, other than those which are of a value below the value specified for any such items by a notification issued in this behalf, and excluding hazardous, toxic waste, radio active contaminated waste/ scrap containing radio active material;

However, import of any form of metallic waste, scrap referred to above shall be subject to the following conditions:-

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:

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.

In case any agency wishes to be enlisted under Appendix 5, they may furnish an application to the office of the Director General of Foreign Trade with the following documents:

(a)

A brief on the activities of the agency, its history, membership, organisational structure, manpower etc.

(b)

Infrastructural setup, logistics, testing labs etc for carrying out the inspection of metallic scrap.

(c)

List of companies/ agencies for which testing has been carried out.

DGFT will review the performance of the Inspection and Certification Agencies in Appendix 5 on a regular basis.

(ii)

Woolens rags/ synthetic rags/ shoddy wool in completely mutilated form subject to the condition that mutilation must conform to the requirements as specified by the customs authorities.

(iii)

PET bottle/waste

(iv)

Import of all types of ships may be made without a licence/certificate/permission on the basis of guidelines issued by Ministry of Shipping and as per the age/residual life norms prescribed by the Ministry of Shipping.

All kinds of metal scrap which has been shipped or has arrived in India on or before 25.10.2004 and has not been cleared for home consumption will be given the option to :

(a) produce a pre-shipment inspection certificate as laid down in Appendix – 5 (Annexure – I); or

(b) subject the consignment to 100% physical examination in terms of Custom Circular No. 56 / 2004 dated 18.10.2004.

2.33

Import of second hand capital goods including refurbished/reconditioned spares, shall be allowed freely, subject to conditions for the following categories:

The Import of second hand computers including personal computers and laptops are restricted for imports.

The import of refurbished/ reconditioned spares will be allowed on production of a Chartered Engineer certificate that such spares have a residual life not less than 80% of the life of the original spare.

2.33.1

Notwithstanding the 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 the following category of donees:

(i)

School run by Central or State Government or a local body,