Status Certificates

3.1

The Policy relating to the status holder is given in Chapter- 3 of the Policy.

Application for Grant of Status

3.2

For grant/renewal of any status, the application shall be filed before 31^st March. The application for One to Five Star Export House shall be filed in ‘Aayaat Niryaat Form’. The application for One to Five Star Export House for service providers

shall be filed in ‘Aayaat Niryaat Form’.

An existing status holder shall be automatically treated to be an equivalent star export house as per the table given herein under:

Erstwhile status under Exim Policy 2002-07

Converted Status as per the Foreign Trade Policy 2004-09

Export House

One Star Export House

Trading House

Three Star Export House

Star Trading House

Four Star Export House

Super Star Trading House

Five Star Export House

However, any exporter irrespective of whether he is a status holder or not can apply afresh in ‘Aayaat Niryaat Form’ for grant of status or upgradation of his existing status.

3.2.1

Application for grant/ renewal of certificate for One to Five Star Export House shall be filed with the concerned regional licensing authority headed by Joint DGFT. Provided further that, application for grant/ renewal of status certificate in respect of EOU/ SEZ units, shall be filed with the concerned Development Commissioner if it does not involve clubbing of FOB value of exports of its other company (ies) in the DTA. However in case of clubbing, the application shall be filed with Joint DGFT.

3.2.2

Such application shall be made by the Registered Office/Head Office/Corporate Office in the case of a Company and Head Office in case of others. Where the applicant is the Registered Office/Head Office/Corporate Office in case of a Company, it shall furnish (a) Self certified copy of valid RCMC where the name of the Registered Office or Head Office or Corporate Office is given and (b) A disclaimer from the Head Office and Corporate Office (or Registered Office and Corporate Office or Registered Office and Head Office as the case may be) that no such application has been filed by the Company earlier against the period of entitlement for the status certificate.

3.2.3

Deleted

Target Plus Scheme

3.2.5

The Policy for the Target Plus Scheme is given at Chapter 3 of the Foreign Trade Policy.

I.

For direct as well as third party exports, the Export documents viz Export Order, Invoice, GR form, Bank Realization Certificate should be in the name of applicant only.

However for the third party exports, where goods have been procured from a manufacturer, the shipping bill should contain the name of the exporter as well as the supporting manufacturer.

II.

Goods allowed to be imported under this scheme shall have a broad nexus with the products exported. For the purpose of import entitlements under this scheme, ‘broad nexus’ would mean goods imported with reference to any of the product groups of the exported goods within the overall value of the entitlement certificate.

III.

The licensing authority shall at the time of issuance of the duty credit entitlement certificate endorse the name of the associate manufacturer/ supporting manufacturer/job worker on the certificate as declared by the applicant. Goods imported against such entitlement certificate shall be used by the applicant or his supporting manufacturer/ job worker.

Further in order to enable supporting manufacturers, whose names appear in the shipping bills, to import directly, Licensing Authority concerned shall endorse the names of such supporting manufacturers on the certificate as co-licensees.

IV.

The last date for filing of such applications shall be 31^st December.

V.

For each duty credit certificate, split certificates subject to a minimum of Rs 5 lakh each and multiples thereof may also be issued. A fee of Rs 1000/- each shall be paid for each split certificate. However, a request for issuance of split certificate(s) shall be made at the time of application only and shall not be considered at a later stage.

VI.

The duty credit certificate shall normally be issued with a single port of registration. However the applicant may choose for different ports of registration for each split certificate.

VII.

The duty credit certificate shall be valid for a period of 24 months from the date of issue.

Revalidation of duty credit entitlement certificate shall not be allowed.

VIII.

The applicants shall within one month of the last imports made under this certificate or within one month of expiry of the certificate which ever is earlier, submit a statement of imports/ utilization made under the certificate as per ‘Aayaat Niryaat Form’, to the jurisdictional Regional Licensing Authority who have issued the Certificate with a copy to the jurisdictional Excise authorities.

Maintenance of Accounts

3.3

The status holder shall maintain true and proper accounts of its exports and imports based on which such recognition has been granted and the exports and imports made during the validity period of such recognition certificate. The record shall be maintained for a minimum period of three years from the expiry of the validity of such certificate. These accounts shall be made available for inspection to the licensing authority or any authority nominated by the Director General of Foreign Trade.

Refusal/ Suspension/ Cancellation of Certificate

3.4

The status certificate may be refused or suspended or cancelled by the authority which is competent to issue/renew such certificate, if the certificate holder/ applicant or any agent or employee acting on his behalf:

(a)

Fails to discharge the export obligation imposed;

(b)

Tampers with licences;

(c)

Misrepresents or has been a party to any corrupt or fraudulent practice in obtaining any licence;

(d)

Commits a breach of the Foreign Trade (Development and Regulation) Act, 1992, or the Rules and Orders made there under; or

(e)

Fails to furnish the information required by the Director General of Foreign Trade or any person or authority authorized by him.

3.4.1

A reasonable opportunity shall be given to the status holder before taking any action under paragraph 3.4 of Handbook.

Appeal

3.5

An applicant who is not satisfied with the decision taken to suspend or cancel the certificate, may file an appeal to the Director General of Foreign Trade within 45 days of the date of the said decision. The decision of the DGFT shall be final.

Export Promotion Council

3.6

The general policy relating to the Export Promotion Councils (EPCs) is given in Chapter-2 of the Policy. A list and product category of Export Promotion Councils/ Commodity Boards is given in Appendix-2.

3.7

The major functions of the EPCs are:

(a)

To provide commercially useful information and assistance to their members in developing and increasing their exports;

(b)

To offer professional advice to their members in areas such as technology up gradation, quality and design improvement, standards and specifications, product development, innovation etc;

(c)

To organise visits of delegations of its members abroad to explore overseas market opportunities;

(d)

To organise participation in trade fairs, exhibitions and buyer-seller meets in India and abroad;

(e)

To promote interaction between the exporting community and the Government both at the Central and State levels; and

(f)

To build a database on the exports and imports of their members.

Non-Profit, Autonomous and Professional Bodies

3.8

The EPCs are non-profit organizations registered under the Companies Act or the Societies Registration Act, as the case may be.

3.9

The EPCs shall be autonomous and regulate their own affairs. However, if the Central Government frames uniform bylaws for the constitution and/or for the transaction of business for EPCs, they shall adopt the same with such modifications as Central Government may approve having regard to the special nature or functioning of such EPC.

The EPCs shall not be required to obtain the approval of the Central Government for participation in trade fairs, exhibitions etc. and for sending sales teams/delegations abroad.

The Ministry of Commerce and Industry/ Ministry of Textiles of the Government of India, as the case may be, would interact with the Managing Committee of the Council concerned, twice a year, once for approving their annual plans and budget and again for a mid-year appraisal and review of their performance.

3.10

In order to give a boost and impetus to exports, it is imperative that the EPCs function as professional bodies. For this purpose, executives with a professional background in commerce, management and international marketing and having experience in government and industry should be brought into the EPCs.

Government Support

3.11

The EPCs may be provided financial assistance by the Central Government.

Authorities Issuing RCMC

3.12

An exporter desiring to obtain a Registration-cum-Membership Certificate (RCMC) shall declare his main line of business in the application, which shall be made to the Export Promotion Council (EPC) relating to that line of business. However, a status holder has the option to obtain RCMC from Federation of Indian Exporters Organization (FIEO).

Notwithstanding anything stated above, exporters of Drugs & Pharmaceuticals shall obtain RCMC from Pharmexcil only.

The service exporters (except software service exporters) shall be required to obtain RCMC from FIEO. In respect of exporters having their head office/registered office in the State of Orissa, RCMC may be obtained from FIEO office in Bhubaneshwar irrespective of the product being exported by them.

In order to give proper guidance and encouragement to the Services Sector, an exclusive Export Promotion Council for Services shall be set up.

3.12.1

In addition, an exporter has the option to obtain an RCMC from FIEO or any other relevant EPC. if the products exported by him relate to those EPC's.

3.12.1.1

If the export product is such that it is not covered by any EPC, RCMC in respect thereof may be issued by FIEO.

Registration cum-Membership

3.12.2

An exporter may, on application given in Appendix-19A, register and become a member of an Export Promotion Council. On being admitted to membership, the applicant shall be granted forthwith Registration-cum-Membership Certificate (RCMC) of the EPC concerned, in the format given in Appendix-19B subject to such terms and conditions as may be specified in this behalf. 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 export promotion council.

Validity Period of RCMC

3.12.3

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

Intimation Regarding Change In Constitution

3.12.4

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

Furnishing Of Returns

3.13

The exporter shall furnish quarterly returns/ details of his exports of different commodities to the concerned registering authority. This will be in addition to any other returns as may be prescribed by the registering authority. However, status holders shall also send quarterly returns to FIEO in the format specified by FIEO.

De-Registration

3.14

The registering authority may de-register an RCMC holder for a specified period for violation of the conditions of registration. Before such de-registration, the RCMC holder shall be given a show cause notice by the registering authority, and an adequate and reasonable opportunity to make a representation against the proposed de-registration. Upon de–registration, the concerned export promotion council shall intimate the same to all the licensing authorities.

Appeal Against De-registration

3.15

A person aggrieved by a decision of the registering authority in respect of any matter connected with the issue of RCMC may prefer an appeal to the Director General of Foreign Trade or an officer designated in this behalf within 45 days against the said decision and the decision of the appellate authority shall be final.

Directives of DGFT

3.16

The Director General of Foreign Trade 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 the provisions of the Act, the Rules and Orders made there under, the Policy or this Handbook.

3.17

Deleted.

Electronic Data Interchange

3.17.1

The role and functions of EDI are defined in Para 2.45 of the Foreign Trade Policy. The basic purpose of EDI Initiatives is to improve the services for DGFT user community thereby achieving greater transparency of operations and reducing transaction costs by decreasing the processing time for obtaining licences /permission/ certificate from the DGFT. These EDI initiatives have made our exports competitive in international markets.

Eligibility

3.17.2

The facility of electronic filing of applications shall be available to all exporters.

Procedure

3.17.3

Under this scheme, an exporter would be able to file his application on the DGFT website at http://dgft.delhi.nic.in. The application will then be processed in accordance with the prevalent rules and regulations.

The applicant will have to visit the concerned office to hand-over the hard copy of the application along with the requisite documents including the application fee. The license shall be issued on receipt of the hard copies of the documents as mentioned above after due scrutiny as prescribed in this Handbook (Vol.I).

Fiscal Incentives for EDI

3.17.4

The following deductions in Application Fee would be admissible for applications signed digitally or/ and where application fee is paid electronically through EFT (electronic fund transfer)

S. No

Mode of Application

Fee Deduction (as a % of normal application fee)

1

Digitally signed

25%

2

Application fee payment vide EFT

25%

3

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

50%

Benefits

3.17.5

The 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.

3.17.6

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

New EDI Initiatives

3.17.7

To further improve the quality of services some new EDI Initiatives are being taken by DGFT.

In order to reduce documentation, a multiple purpose common application form ‘Aayaat Niryaat Form’ is being introduced.

SERVED FROM INDIA SCHEME

3.18

a)

The Policy for the Served From India Scheme is elaborated at Chapter 3 of Foreign Trade Policy.

b)

A single consolidated application for the duty credit entitlement certificate shall be filed with the jurisdictional regional licensing authority in ‘Aayaat Niryaat Form’ by the Registered office in case of a company and Head Office in case of others. The last date for filing of such application shall be 31^st December.

c)

deleted

d)

For each duty credit certificate, split certificates subject to a minimum of Rs 5 lakh each and multiples thereof may also be issued. A fee of Rs 1000/- each shall be paid for each split certificate. However, a request for issuance of split certificate(s) shall be made at the time of application only and shall not be considered at a later stage.

The duty credit certificate shall normally be issued with a single port of registration. However the applicant may choose different ports of registration for each split certificate.

e)

deleted

f)

The entitlement can be used for import from private/public bonded warehouses subject to the fulfillment of provision of paragraph 2.28 of Foreign Trade Policy and the terms and conditions of the notification issued by Department of Revenue from time to time in respect of private/public bonded warehouses.

g)

The duty credit entitlement certificate shall be valid for a period of 24 months.

Revalidation of duty credit certificate shall not be allowed.

The service provider shall within one month of the completion of imports made or the expiry of the validity of the duty credit entitlement certificate whichever is earlier, submit a statement of imports made under the certificate as per ‘Aayaat Niryaat Form’to the jurisdictional Regional Licensing Authority with a copy to the jurisdictional Excise authorities (service tax cell).

h)

All the applicants under this scheme who are hotels (1 star and above, heritage hotels) and stand alone restaurants would ensure that they pass on the benefit of the duty credit entitlement to the consumer.

(i)

Only such foreign exchange remittances as are earned as amounts in lieu of the services rendered by the service exporter would be counted for computation of the entitlement under this scheme.

Other sources of foreign exchange earnings such as equity or debt participation, donations, repayment of loans and any other inflow of foreign exchange unrelated to the service rendered would not be counted for the computation of entitlement under the scheme.

Ineligible Remittances and Services

3.18.1

(a)

The following Foreign Exchange remittances shall not be eligible for entitlement under this scheme:

I. Remittances related to Financial Services Sector

1.      Raising of all types of foreign currency Loans.

2. Export proceeds realisation 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 the services rendered by the financial institutions.

II. Remittances earned through contract/regular employment abroad (e.g. labour remittances).

(b)

Payments received from Export Earners Foreign Currency (EEFC) Account shall not be counted for benefits under the scheme.

Vishesh Krishi Upaj Yojana

3.19

The Policy pertaining to the Vishesh Krishi Upaj Yojana is given in Chapter 3 of the Foreign Trade Policy.

3.19.1

A single consolidated application for the duty credit entitlement certificate against exports made through one port shall be filed with the jurisdictional Regional Licensing Authority by the Registered office in case of a company and Head Office in case of others. The last date for filing of such application shall be 31st December.

3.19.2

The application in the ‘Aayaat Niryaat Form’ shall be accompanied by EP copy of the shipping bill and bank realization certificate as per Appendix-22A.

3.19.3

For direct as well as third party exports, the Export documents viz Export Order, Invoice, GR form, Bank Realization Certificate should be in the name of applicant only.

3.19.4

In cases where the applicant applies for the credit entitlement certificate after realization or shipments are made against irrevocable letter of credit or bill of exchange is unconditionally Avalised/ Co-Accepted/ Guaranteed by a bank and the same is confirmed by the exporters bank and certified by the bank in the relevant Bank certificate of export and Realization, the credit entitlement certificate shall be issued with transferable endorsement. In other cases, the credit entitlement certificate shall be initially issued with non-transferable endorsement. Upon realization of export proceeds, such credit entitlement certificates can be endorsed as transferable, if the applicant so desires.

3.19.5

The duty credit certificate shall be issued with a single port of registration and this will be the port from which the exports have been made. However, the applicant may use this duty credit for imports from any other port after obtaining TRA from the port of registration.

3.19.6

For each duty credit certificate, split certificates subject to a minimum of Rs 5 lakh each and multiples thereof may also be issued. A fee of Rs 1000/- each shall be paid for each split certificate. However, a request for issuance of split certificate(s) shall be made at the time of application only and shall not be considered at a later stage. The split certificate will have the same port of registration for the purposes of imports as appearing in the main certificate.

3.19.7

The entitlement can be used for import from private/public bonded warehouses subject to the fulfilment of provision of paragraph 2.28 of Foreign Trade Policy and the terms and conditions of the notification issued by Department of Revenue from time to time in respect of private/public bonded warehouses.

3.19.8

The duty credit entitlement certificate shall be valid for a period of 24 months.

Revalidation of duty credit entitlement certificate shall not be allowed.