5Foreign Trade (Development and Regulation) Act, 1992 Ministry ofCommerceDGFTForeign Trade PolicyForeign Trade (Development and Regulation) Act, 19921) Foreign Trade Policy2) Handbook of Procedures Vol.13) ITC (HS) Classification of Export and Import Items4) Handbook of Procedures Input-Output Norms Vol.25) Schedule DEPB RatesTools : Notification, Public Notice, Policy Circular, ALC Circular and Trade Notice
6Ministry of Finance Customs Excise Validity of Imports and Exports ExportCollection of Duty Under Bond - ExemptionInspection and Supervision Rebate of Excise Dutyof Cargo Monitoring Factory Stuffed ContainerImportMonitoring CenvatGoverning Acts and Laws Governing Acts and Laws1) Customs Act, ) Central Excise Act, 19442) Customs Tariff Act, ) Central Excise Tariff Act, 19853) Customs Law Manual 3) Central Excise Law ManualTools : Notification, Tools : Notification,Public Notice Central Excise CircularCustoms Circular, General Exemption NotificationGeneral Exemption Notification
9Revalidation of Import/Export Licence Certificate/Authorisation/Permissions Licence/certificate/Authorisation/permissions can be revalidated for a period of six months from the date of expiry of validity period.No revalidation is allowed to transferable Authorisation unless the same is expired while in the custody of Customs Authority/Regional Authority
10Duplicate Copies of Export-Import Licence/Certificate/Authorisation/ Permissions/ CCPs In case of loss of Licence/Authorisation, an application for grant of a duplicate copy thereof can be made along with a copy of an affidavit, as given in Appendix-24, to the Regional Authority which has issued the original licence/ Authorisation.
11Duplicate Copies of Export-Import Licence/Certificate/Authorisation/ Permissions/ CCPs The following documents are to be submitted along with the Application:An application with a fee equivalent to 10% of duty saved or duty credit.A copy of FIR reporting the loss.A copy of the original affidavit on notorised stamp paper.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.
12Duplicate Copies of Export-Import Licence/Certificate/Authorisation/ Permissions/ CCPs The validity of duplicate licence/ Authorisation shall be co-terminus with the original license. No request will be entertained if the validity of the original licence/Authorisation has expired.However, in case when DEPB, scrips issued under Focus Market scheme/scrips issued under Focus Product scheme/Transferable DFIA is lost by Customs/Regional Authority, duplicate licence/ Authorisation/ can be issued for a validity of six months.
13Duplicate Copies of Export-Import Licence/Certificate/Authorisation/ Permissions/ CCPs However, in the case of loss of DEPB/scrips issued under Focus Market scheme/scrips issued under Focus Product scheme/Transferable DFIA not involving either the Customs or the Regional Authorities, the duplicate issued would have a validity equivalent to the balance period of validity of the original on the date of application for the duplicate.
14Execution of Bank Guarantee and LUT In cases of direct import before clearance of goods through customs, the licence/ Authorisation holder shall execute a legal undertaking (LUT)/Bank Guarantee (BG) with the customs authorities in the manner as prescribed by them.Regional Authority will endorse the following condition on the licence/ Authorisation:“Bank Guarantee/ LUT as applicable to be executed as per relevant Customs Notification/ Circular”
15Execution of Bank Guarantee and LUT In case of direct import the authorisation holder will have to follow Customs Circular No. 58/2004 dtd. 21/10/2004 as amended vide Customs Circular No. 49/2005 dtd. 29/11/2005.In case of indigenous sourcing the norms of BG/LUT is given in the Para 2.20 of HBP.
17Star Export House Export Performance based Scheme. Merchant, Manufacturer, Service Provider, EOUs, EHTPs, STPs, BTPs, SEZs, AEZs can apply for Star Export House Certificate.The applicant has to make application depending on his total FOB/FOR export performance during the current plus the previous three years. The criteria isCategoryPerformance(Rupees in Crores)One Star Export House15Two Star Export House100Three Star Export House500Four Star Export House1500Five Star Export House5000
18Star Export HouseA Star Export House shall be eligible for the following facilities:Authorisation/ Licence/ certificate/ permissions and Customs clearances for both imports and exports on self-declaration basis;Fixation of Input-Output norms on priority within 60 days;Exemption from compulsory negotiation of documents through banks. The remittance, however, would continue to be received through banking channels;
19Star Export House 100% retention of foreign exchange in EEFC account; Enhancement in normal repatriation period from 180 days to 360 days;Exemption from furnishing of Bank Guarantee in Schemes under this Policy.Two Star Export Houses and above shall be permitted to establish Export Warehouses, as per the guidelines issued by Department of Revenue in this regard.
20Focus Market SchemeIntroduced in the Foreign Trade Policy [Annual Updation].Export of all products to the notified countries.Entitlement – 2.5% of the FOB value of exports.List of Countries notified vide Public Notice No. 19 Dtd This covers Latin American Countries and African Countries. However, South Africa and Brazil are not covered.
21[HANDBOOK OF PROCEDURES VOL. I] APPENDIX 37C[HANDBOOK OF PROCEDURES VOL. I]Sr. No.Focus Market CodeCountry CodeCountryCountries in Latin American Block1L 001015ARGENTINA2L 002039BOLIVIA3L 003073CHILE4L 004109ECUADOR5L 005317PARAGUAY6L 006319PERU7L 007427URUGUAY8L 008433VENEZUELA
22[HANDBOOK OF PROCEDURES VOL. I] APPENDIX 37C[HANDBOOK OF PROCEDURES VOL. I]Countries in African Block9A 001011ANGOLA10A 002035BENIN11A 003041BOTSWANA12A 004050BURKINA FASO13A 005053BURUNDI14A 006057CAMEROON15A 007061CANARY IS16A 008063CAPE VERDE IS17A 009067C AFRI REP18A 010069CHAD19A 011085COMOROS20A 012087CONGO P REP
23[HANDBOOK OF PROCEDURES VOL. I] APPENDIX 37C[HANDBOOK OF PROCEDURES VOL. I]Countries in African Block21A 013115ETHIOPIA22A 014116ERITREA23A 015117EQUTL GUINEA24A 016135FR S ANT TR25A 017141GABON26A 018143GAMBIA27A 019167GUINEA28A 020169GUINEA BISSAU29A 021199COTED' IVOIRE30A 022227LESOTHO
24[HANDBOOK OF PROCEDURES VOL. I] APPENDIX 37C[HANDBOOK OF PROCEDURES VOL. I]Countries in African Block31A 023229LIBERIA32A 024231LIBYA33A 025241MADAGASCAR34A 026243MALAWI35A 027249MALI36A 028255MAURITANIA37A 029257MAURITIUS38A 030265MOROCCO39A 031267MOZAMBIQUE40A 032269NAMIBIA
25[HANDBOOK OF PROCEDURES VOL. I] APPENDIX 37C[HANDBOOK OF PROCEDURES VOL. I]Countries in African Block41A 033289NIGER42A 034339REUNION43A 035345RWANDA44A 036347SAHARWI A.DM RP45A 037349SAO TOME46A 038353SENEGAL47A 039355SEYCHELLES48A 040357SIERRA LEONE49A 041363SOMALIA50A 042371ST HELENA
26[HANDBOOK OF PROCEDURES VOL. I] APPENDIX 37C[HANDBOOK OF PROCEDURES VOL. I]Countries in African Block51A 043385SWAZILAND52A 044399TOGO53A 045407TUNISIA54A 046417UGANDA55A 047459CONGO D. REP.56A 048461ZAMBIA57A 049463ZIMBABWENote: The export performance of notified markets under Para of Policy shall be regularly reviewed and the list of countries in Appendix 37 C may be modified from time to time, in terms of Para of the Policy.
27Target Plus SchemeStar Export Houses entitled for a duty credit based on incremental exportsBenefit is allowed for the year only [for Petroleum Products this scheme is discontinued with retrospective effect for the year vide NTF. NO. 48/2005, DT. 20/02/2006.Non-transferable, however, can be used for group companies.Allows import of freely permissible items and capital goods subject to Actual User Condition.
30Duty Exemption SchemeThe facility of Advance Authorisation entitles exporter to import required inputs for export production without payment of duty subject to export obligation to be completed within prescribed time. This scheme reduces burden of customs duties on the inputs and thereby facilitates cost-competitiveness.The facility of Newly introduced Duty Free Import Authorisation entitles exporter to avail the benefit of duty free import of inputs plus transferability after the exports have been completed.The Scheme has been operationalized by issue of Customs Ntfn No. 40-Cus. Dtd
32Advance Authorisation Based on SION or Adhoc NormsExemption from payment ofBasic Customs DutyAdditional Customs DutyEducation CessAnti-dumping Duty if anySafeguard Duty if anyHowever, the imports for supplies covered under paragraph 8.2 (i) [projects funded by UN agencies] & (j) nuclear power projects through competitive bidding] will not be exempted from the payment of applicable anti-dumping and safeguard duty, if any.
33Advance Authorisation Exemption from payment of Special CVD:In terms of notification No. 20/2006-Cus. dated (vide Sr.No.1 of the table to the said notification), all goods which are exempt from basic customs duty and additional duty [leviable under Section 3(1) of CTA, 1975] are exempt from the 4% special CVD. Hence payment of Special CVD is also exempted under Advance Authorisation.[clarified vide Customs Circular No. 18/2006 dtd ]
34Advance Authorisation Advance Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s):i) for Physical exports (including exports to SEZ); and/orii) for Intermediate supplies; and /oriii) to the main contractor for supply of goods to the categories mentioned in paragraph 8.2 (b), (c), (d), (e), (f), (g), (i) and (j) of the Policy; for import of inputs required in the manufacture of goods.iv) supply of ship stores on board of the foreign going vessel/aircraft subject to the condition that there is specific SION in respect of the item(s) supplied.Subject to actual user conditionPositive Value Addition
35Advance Authorisation Transferability: Advance Authorisation and/or materials imported there under shall not be transferable even after completion of export obligation. However, the Authorisation Holder will have the option to dispose off the product manufactured out of the duty free inputs once the export obligation is completed.Validity: 24 months.Revalidation: One revalidation for 6 month is granted.Value Addition: Advance Authorisation shall be issued with positive value addition.Import through registered port as mentioned in Para 4.19 of HBP. Export can take place from any port.
36Advance Authorisation Standardization of Adhoc Norms:An application may be made by the manufacturer exporter or merchant exporter tied to supporting manufacturer, duly filled in with complete data.applications shall be made to the Norms Committee (NC) in the form given in ‘Aayaat Niryaat Form’.Import of fuel may also be allowed under SION by NC subject to the following: -(a) The facility of import of fuel shall be allowed only to the manufacturer having captive power plant.
37Advance Authorisation Standardization of Adhoc Norms:(b) In cases where SION specifically allows fuel, the 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 of HBP.(c) Fuel should be allowed only against an actual user authorisation. However in case of transferable DFIA/DFRC, fuel can only be transferred to agencies granted marketing rights by the Ministry of Petroleum and Natural Gas.(d) Even where fuel is included as an input under SION, it shall not be taken into account while fixing the DEPB rate for such products against which fuel has been allowed as an input.
38Advance Authorisation Standardization of Adhoc Norms:(e) The applications of fixation for fuel entitlement for new sectors and modification of the existing entitlement as per the General Note for Fuel in the Handbook of Procedures (Vol.2) would be made to the Norms Committee along with the requisite data in ‘Aayaat Niryaat Form’ pertaining to the “Data Sheet for Fuel Rate”.The Advance Authorisation holders wishing to procure the fuel indigenously may apply for an Advance Release Order or Back to Back Inland Letter of Credit.
39Advance Authorisation Standardization of Adhoc Norms:The indigenous supplier supplying fuel shall be entitled for deemed export benefits given in paragraph 8.3(a), (b) & (c) of the Policy, as the case may be. In case the indigenous supplier is not willing to avail of deemed exports benefits under such supplies of fuel to the Advance Authorisation holder, he may issue a disclaimer (along with his IEC Number enclosed on it) on the basis of which the Advance Authorisation holder can avail of the deemed export benefits as per procedure given in Chapter 8 of this Handbook.[Note: All oil Companies can issue Disclaimer and recipient can claim Deemed Export benefits. Quoting of IEC no. on Disclaimer is mandatory.]
40Advance Authorisation Financial Powers for Petroleum and Petrochemical Products:Regional Authority : if CIF value of authorisation is less then 500 crores.Regional Authorities on the recommendation of Norms Committee : if CIF value of authorisation is 500 crores or above.
41Advance Authorisation Port of Registration:To facilitate accounting of duties exempted, accounts need to be maintained at a particular port. The port of registration, therefore, plays a very vital role.In application, one has to give specific port where Authorisation would be registered. The authorisation holder is permitted to import only through registered port unless permission is taken from the Customs.Exports, however, can take place from any port.
42Advance Authorisation Port of Registration:If imports are desired from any other port than the port of registration, authorisation holder can make an application for Telegraphic Release Advice (TRA) to the customs authorities at the port of registration.The list of such seaports, airports, ICDs, LCSs is given in Para 4.19 of HBP.
43Advance Authorisation Export Obligation:Export obligation [EO] has two limiting factors –quantity andvalue.Hence, export obligation is treated as complete only when quantity stated is physically exported and value stated is actually realized. Any shortfall is required to be regularized by paying applicable duty plus interest on unutilised inputs and penalty if any.
44Advance Authorisation Fulfillment of Export Obligation [EO]:Export obligation is to be fulfilled by the Advance Authorisation Holder.Where merchant exporter is authorisation holder and (supporting manufacturer is endorsed on the authorisation), export obligation is his responsibility.Once the export obligation is fulfilled in terms of value and quantity both, the licence holder needs to submit documents [as per Para 4.25 of HBP] in support of having fulfilled the EO.
45Advance Authorisation For Physical Exports(i) Bank Certificate of Exports and Realisation in the form given at Appendix-22A or Appendix 22B or Foreign Inward Remittance Certificate (FIRC) in the case of direct negotiation of documents. Realisation is not insisted upon if the shipments are made against :(a) confirmed irrevocable letter of credit or(b) bill of exchange is unconditionally Avalised/ Co-Accepted/ Guaranteed by a bank and the same is confirmed by the exporters bank.In above mentioned cases, column 14/15 of Appendix- 22A must be certified by the Bank.Contd…..
46Advance Authorisation For Physical Exports(ii) EP copy of the shipping bill(s) containing details of shipment effected or bill of export in case of export to SEZ. (iii) A statement of exports giving details of shipping bill wise exports indicating the shipping bill number, date, FOB value as per shipping bill and description of export product. (iv) A statement of imports indicating bill of entry wise item of imports, quantity of imports and its CIF value.
47Advance Authorisation For Deemed Exports(i) A copy of the invoice or a statement of invoices duly signed by the unit receiving the material and their jurisdictional excise authorities certifying the item of supply, its quantity, value and date of such supply.However in case of supply of items which are non excisable or supply of excisable items to a unit producing non excisable product(s), a project authority certificate (PAC) certifying quantity, value and date of supply would be acceptable in lieu of excise certification.However, in respect of supplies to EOU, the supplier has the additional option to furnish a copy of CT-3/ARE-3 duly signed by the jurisdictional excise authorities/Bond Officer certifying the item of supply, quantity, value and date of such supply in lieu of the excise attested invoice (s) or statement of invoices as given above.Contd…..
48Advance Authorisation For Deemed Exports(ii) Payment certificate from the project authority in the form given in Appendix-22C. In the case of supplies to EOUs, deemed exports (including Intermediate Supplies), documentary evidence from the bank substantiating the realisation of proceeds from the Authorisation holder or EOUs or the Project Authority, as the case may be, through the normal banking channel, shall be furnished in the form given at Appendix-22B. However realisation of proceeds shall not be insisted upon if the shipments are made against:(a) confirmed irrevocable inland letter of credit or(b) inland bill of exchange is unconditionally Avalised/Co- Accepted/ Guaranteed by a bank and the same is confirmed by the exporters bank.The stipulations at (a) or (b) above must be certified by the bank in column 5/6/7 of Appendix- 22B.Contd…..
49Advance Authorisation For Deemed Exports(iii) A statement of supplies giving details of supply invoices and indicating the invoice number, date, FOR value as per invoices and description of product. (iv) A statement of imports indicating bill of entry wise item of imports, quantity of imports and its CIF value.Contd…..
50Advance Authorisation Extension of Export Obligation PeriodThe period of fulfillment of export obligation under an Advance Authorisation will commence from the date of issuance of licence.The export obligation shall be fulfilled within aperiod of 24 months except in the case of supplies to the projects/turnkey projects in India/abroad under deemed exports category where the export obligation must be fulfilled during the contracted duration of execution of the project/ turnkey project.
51Advance Authorisation Extension of Export Obligation PeriodApplication in Aayaat Niryaat Form – Sub section XI1st Extension for 6 months – subject to payment of composition fees of 2% of the duty saved on all the unutilized imported items as per authorisation.2nd Extension for 6 months – subject to payment of composition fees of 5% of the duty saved on all the unutilized imported items as per authorisation.The composition fee on the duty saved on all the unutilized imported items is to be computed with reference to the actual exports and imports made by the Authorisation holder.Contd…..
52Advance Authorisation Extension of Export Obligation PeriodThe Customs may allow provisional clearance of export consignment as and when the Authorisation holder produces documentary evidence of having applied for EO extension to the concerned Regional Authority.
53Advance Authorisation Facility of Clubbing:The facility of clubbing shall be available only for redemption/regularisation of the cases.No further import or export is 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 period, Advance Authorisations of different customs notification can be clubbed.
54Advance Authorisation Facility of Clubbing:The Regional Authority, under whose jurisdiction the authorisation is issued or NC in other cases, can consider a request for clubbing all imports and exports of more than one Advance Authorisation.ProvidedThe imported inputs are properly accounted for as per norms.The value addition of the authorisations so clubbed shall be the average of the minimum value addition prescribed in the Policy and the Procedure laid thereunder, imposed on individual authorisations.Upon clubbing, the authorisations can, for all purposes, be deemed to be one authorisation.
55Advance Authorisation Facility of Clubbing:The accountability of imports and exports shall be restricted in relation to the individual categories of Advance Authorisations including Advance Authorisation for annual requirements issued under this scheme.The facility is available only for Advance Authorisation(s) where there is shortfall in fulfillment of export obligation, and which is sought to be clubbed with an Advance Authorisation(s) which is valid for imports.
56Advance Authorisation Facility of Clubbing:For expired authorisation(s) with EO shortfall and which is sought to be clubbed with an Advance Authorisation(s) which is valid for imports, the applicant will have to pay the composition fee for E.O. period extensionIn such cases, the exports effected beyond the E.O. extension period after the issuance of the earliest authorisation can not be considered for clubbing.Clubbing of all expired licences may also be permitted provided all the expired licences have been issued during the Exim Policy period & i.e., 1st April, 1992 to 31st March, 2002.However clubbing of erstwhile Value Based Advance licences is not allowed.
57Advance Authorisation for Annual Requirement Advance Authorisation can also be issued on the basis of annual requirement for physical exports, intermediate supplies and / or deemed exports.One to Five Star Export House can be entitled for the Advance Authorisation for annual requirement.All other categories of exporters having past export performance (in the preceding two years) shall also be entitled for the Advance Authorisation for annual requirement.A merchant exporter can also be issued the Advance Authorisation for Annual Requirement provided they agree to the endorsement of the name(s) of the supporting manufacturer(s) on the relevant Authorisation.
58Advance Authorisation for Annual Requirement The entitlement in terms of CIF value of imports under this scheme is upto 300% of the FOB value of physical export and / or FOR value of deemed export in the preceding licensing year or Rs 1 crore, whichever is higher.Advance Authorisation can be issued with a positive value addition.Validity : 24 months. One revalidation for six months is granted.Extension of Export Obligation : Same as Advance Authorisation.
59Indigenous procurement against the Authorisation Many times the input covered by the Authorisation is also available indigenously. In such cases it would be wise to examine whether indigenous procurement against the Authorisation is cost-effective and commercially viable. There are a number of reasons for opting out in favour of indigenous procurement. Some of them are as under:Shorter delivery timeLogistical advantagesFinancial ease (local supplier may not insist on letter of credit)
60Indigenous procurement against the Authorisation The same material may be available at cheaper cost if the supplier is in a position to claim benefits available under deemed exports.Possibility of inspecting the cargo (since the supplier is within the country, there is comparative ease to inspect the cargo)Indigenous procurement is free of currency risk since payment can be made in Indian Rupees.
61Indigenous procurement against the Authorisation Owing to these reasons, Authorisation holder may look to procure goods indigenously. To facilitate such procurement, following instruments are available :Advance Authorisation [for Intermediate Supplies]Advance Authorisation [for Deemed Exports]Advance Release OrderBack-to-Back Letter of Credit
62Advance Authorisation for Intermediate Supplies Original Advance Authorisation is made invalid for direct import of one or more inputs and invalidation letter is issued in favour of local supplier.The supply price would be a negotiated price as the indigenous supplier is entitled to obtain an Advance Authorisation against such invalidation letter.This in turn allows the indigenous supplier to claim duty-free inputs thereby neutralising the duty component for such imports.
63Advance Authorisation for Intermediate Supplies Indigenous supplier can supply the goods without payment of excise duty following the conditionalities of excise notification no. 44-CE(NT) dtdIn this case the indigenous supplier is entitled to duty free imports of inputs and clearance of goods without payment of excise duty under bond.
64Advance Authorisation for Deemed Exports Advance Authorisation for Deemed Exports offer benefits similar to those of Advance Authorisation for Intermediate Supplies. The only difference is that the recipient of the goods is not an Advance Authorisation holder.Instead the recipient is an EOU/SEZ unit or project authority.The inputs required by the local supplier can be imported duty free.
65Advance Authorisation for Deemed Exports When local supplier supplies the goods indigenously, he may not be able to execute a bond for supply purposes without payment of excise duty particularly in respect of projects which are not registered under excise.In such cases the holder of Advance Authorisation for Deemed Exports can pay Terminal Excise Duty (TED) and ask for refund from DGFT office. As per the provisions of Foreign Trade Policy, excise duty exemption is available if goods are supplied against International Competitive Bidding.
66Advance Release Order (ARO) ARO is useful in case where indigenous supplier do not want to import his inputs.The indigenous supplier is entitled to Deemed Exports Drawback in lieu of duty free import of inputs.For this purpose the original Advance Licence is invalidated for direct imports and a document called Advance Release Order is issued to the local supplier.The purpose of ARO is to help the indigenous supplier claim Deemed Exports Duty Drawback and refund of Terminal Excise Duty.
67Back to Back Letter of Credit Back to Back Letter of Credit is similar in operation. The only difference is ARO is issued by Regional Authority whereas Back to Back Letter of Credit is issued by the Bank directly making and endorsement on the Authorisation copy towards invalidation of direct imports.Before opening the LC, the bank will ensure that the necessary BG / LUT has been executed by the Advance Authorisation holder and an endorsement to that effect has been made on the Authorisation.
68Back to Back Letter of Credit The non negotiable copy of inland LC together with the photocopy of the Advance Authorisation duly carrying endorsements made by the bank shall be sufficient for the indigenous supplier to claim deemed export benefits.LC for Advance Authorisation shall be entitled to benefits of Deemed Export Drawback and Refund of Terminal Excise duty.
69Advance Authorisation Redemption:In case the export obligation has been fulfilled, the Regional Authority will redeem the case.After redemption, the Regional Authority will forward a copy of the redemption letter indicatingthe shipping bill number(s),date(s),FOB value in Indian rupees as per shipping bill(s) anddescription of export productto the Customs Authority at the port of registration.
70Advance Authorisation Redemption:Discharge of BG/LUT:Before discharging BG/LUT,in case of physical exports, Customs will verify all the details as given in Redemption Letter as per their records.in case of intermediate supplies and deemed exports, Customs will verify details of supplies from the Central Excise Authority/Bond Officer.
71Advance Authorisation Redemption:After verification, Customs will discharge BG/LUT within 30 days of issuance of EODC/bond waiver by the Regional Authority.The Regional Authority can also take action against the Authorisation holder in case of non-submission of Appendix 23, or for any misrepresentation, misdeclaration and default detected subsequently in the details declared and furnished in Appendix 23. An endorsement to this effect will be made by the Regional Authority in the redemption certificate.
72Advance Authorisation Maintenance of Proper AccountsTrue and proper account of consumption and utilisation of duty free imported / domestically procured goods against each authorisation is to be maintained as prescribed in Appendix-23.Appendix 23 is to be submitted at the beginning of each licensing year for all those Authorisations which have been redeemed in the previous licensing year.These records in Appendix 23 are mandatory to be submitted for authorisations issued on or after This does not however mean that you are not required to maintain details for licences issued prior toRecords is to be preserved for a period of atleast 3 years from the date of redemption.
73Checklist WHILE PREPARATION OF APPLICATION Whether product is covered under SIONsProduct group and Sr. No.Application for ad-hoc norms (Only in case of Advance Authorisation)Input-output ratio (quantity required per unit of resultant product)Quantity and value of resultant products / inputsPort of registrationValue addition (Positive or Minimum prescribed value addition)
74Checklist WHILE PREPARATION OF APPLICATION Application fees (Mode of payment – on Electronic Fund Transfer mode) - EFT transaction status, BID number (Proof of successful transactions) etc.Outstanding authorisation detailsPast export performance, if anyAny changes in provisions related to policy and proceduresCustoms notification under which the scheme falls.Exact classification of the products [ITC (HS) Code].Transferable or Non transferable (Only in case of DFIA)Declarations
75Checklist WHILE PREPARATION OF APPLICATION Additional Precautions to be taken only in case of Application for Adhoc Norms (Only in case of Advance Authorisation)Detailed manufacturing process flow chart with stage wise generation of wastages.Generation of by-product with quantity and value.Production and consumption data of Manufacturer/supporting manufacturer for last three years.
76Checklist Contd…. POST SUBMISSION OF ONLINE APPLICATION Creation of file number (Electronically generated)POST-RECEIVING THE AUTHORISATIONChecking details on the authorisationAny specific endorsement by regional authority (BG/LUT, etc)Description, quantity, value of inputs and resultant productsEndorsement of notification pertaining to the authorisationPort of registrationDetails of supporting manufacturerCurrency area (GCA/RPA)Export product group and serial no.Contd….
77Checklist POST-RECEIVING THE AUTHORISATION Checking details on the authorisationSignature and seal of officer of the regional authorityIn case of amendments, endorsement of amendment on the authorisation/ amendment sheetAny specific condition incorporated in condition sheet.Submission of authorisation for registration at portExecution of LUT/Bank Guarantee. In case of local procurement, it should be submitted to regional authority
78Checklist MAINTENANCE OF AUTHORISATION Day to day monitoring of imports and exports taking place against the authorisationEnhancement / ReductionApplication to be made before or after exports when requiredRevalidation / ExtensionOne month prior to the expiry of the authorisation, if required.Consumption register in Appendix 23 to be maintained
79Checklist MAINTENANCE OF AUTHORISATION Clubbing In case of redemption/regularization, clubbing provisions as per Para 4.20 of HBP Vol.I should be checked.Redemption of licenceDescription on shipping bill should tally with description of resultant product.Exempted material list should also be given.Correlation with ARE also to be kept in mindBank Realisation CertificateREFERENCE:Input Output norms (SION), refer Hand Book of Procedure Vol. 2ITC (HS) Code, Duty Structure and Import Policy notes.
80GENERAL NOTE FOR FUELDuty free import of fuel shall be allowed as per the quantity indicated in the relevant Standard Input Output Norms (SION). However, in cases where fuel has not been specifically included in the SION, duty free imports of fuel shall also be allowed under Actual User Advance Authorisation subject to the condition given in the Foreign Trade Policy/Handbook of Procedures as per percentage rate indicated against each product as under:
81GENERAL NOTE FOR FUEL Sl. No. Product Group Value of fuel to be permitted as percentage FOB value of exports.1.Bulk Drug and Drug Intermediates5%2.Dye and Dye Intermediates4%3.Glass4.Ceramic Products5.Paper made from wood pulp/waste paper6.Pesticides (Technical)/ Pesticides formulation from Basic Stage
82GENERAL NOTE FOR FUEL Sl. No. Product Group Value of fuel to be permitted as percentage FOB value of exports.7.Refractory items of the following types:-a. Shaped and Fired7%b. Shaped and Tempered3%c. Others2%8.Ferrous engineering products manufactured through forging/castings process9.Non-ferrous basic metals (including down-stream products of aluminium)4%
83GENERAL NOTE FOR FUEL Sl. No. Product Group Value of fuel to be permitted as percentage FOB value of exports.10.Plastic and plastic products from Basic/Monomer Stage5%11.Fibre to yarn4%12.Yarn to finished fabrics/made-ups3%13.Fibre to finished fabrics/made-ups7%14.Organic Chemicals15.Inorganic Chemicals
84GENERAL NOTE FOR FUEL Sl. No. Product Group Value of fuel to be permitted as percentage FOB value of exports.16.Glass Artwares3%17.Leather Footwears and its Leather components18.Graphite Electrodes (against SION at C-485)6%19.Bras Art Wares2%
85GENERAL NOTE FOR FUEL Sl. No. Product Group Value of fuel to be permitted as percentage FOB value of exports.20.For export of Rice, fuel is allowed at the rate of 2% of FOB value with a value cap of Rs. 15 per kg of rice with the condition that (a) The fuel entitlement will be only for those firms having captive power plant (installed and in running condition) (b) Licence / ARO will be subject to actual user condition. (c) No DFRC will issued. (d) HSD will be procured only through the canalizing agency. (e) Export of rice will be subject to export policy in vogue
86GENERAL NOTE FOR FUEL Sl. No. Product Group Value of fuel to be permitted as percentage FOB value of exports.21.Finished fabric to garment2%22.Yarn to garment5%23.Carbon Steel submerged Arc welded pipes coated/uncoated4%
87GENERAL NOTE FOR FUELFor the purpose of import of fuel under Actual User Advance Licence, the applicant shall indicate the name of the specific fuel sought for import in their application. Import of fuel however shall not be permitted against DFRC or under para 7.5 of Handbook of Procedures or against Ad hoc Norms. Also, for the calculation of DEPB rates, the cost of the fuel shall not be taken into account.Note: In any case, as per above General Note, the fuel shall not be allowed more than 7% of FOB value of exports.
88Standard Input Output Norms [SION] In addition to the above norms, there are specific norms where fuel is used as an input and not for generation of power.Wherever, such products are exported the exporter is entitled to claim duty free import of fuel as per specific norm.A list of such norms is as under:
89Standard Input Output Norms [SION] SION Sl. No.Description of export productDescription of inputQty. allowedChemical and Allied ProductsA2691Paraxylene Naphtha1.58 MTA2692Orthoxylene 1.44 MTA2693Benzene 1.04 MTA3174White Cement Clinker Furnace Oil 0.100 MT
90Standard Input Output Norms [SION] SION Sl. No.Description of export productDescription of inputQty. allowedEngineering ProductC258PVC 3 Core Flat Cable suitable upto 1100 V of size - 3x4.0 sq.mm(57/.3) Overall Dimension = Width(mm)xThickness(mm) i.e. 17.2x7.4 Lubricants1.36 KG.
91Standard Input Output Norms [SION] SION Sl. No.Description of export productDescription of inputQty. allowedLeather ProductsG1All type Leather garments including coats/jackets having consumption of finished leather above 25 Sq.ft. HSD4.76 litreHSD (High Speed Diesel) is allowed subject to actual user condition. These norms for fuel are applicable only to those units having facilities for captive power generation using HSD as fuel
92Standard Input Output Norms [SION] Standard norms for your own products are covered under following sr. nos.A2689 – for LDO & HSDA2688 – for Naphtha & Motor SpiritA2687 – for LPGA2690 – for LSHS & Furnace OilA2897 and A3238– Lubricating Oil AdditivesA1806 – LubricantsFor comparison purpose related DEPB rate is given along with SION. [Wherever such rates are available].
93Standard Input Output Norms [SION] All Industry Rate of Drawback is not available for Chapter 27However Drawback can be availed on furnace oil and HSD as per following Notifications issued by DGFT.NOTIFICATION NO. 49/2005 DT. 02/03/2006 – for Furnace OilNOTIFICATION NO. 29/2005, DT. 06/10/2005 – for HSD
94ITC HS Classifications SION Sr. No. and description of the product under SION.Description of Export Item [as per SION]Description of the import itemsQty. allowedDEPB RatesDrawback Rates[HSD]A2689Note:- This norm does not include lubricating oils and petrochemical products like Benzene, Toluene, MTBE etc.Middle Dietlliates (MD) viz., ATF, SKO, HSD (Gas Oil) MTO, LABFS, AROMEX, JBO, LDO, VGO, Solvents 1 Crude Oil2 Relevant catalysts and chemicals used in refineries1.072 MTCIF value limited to 0.1% of FOB value of export. However, for HSD and ATF CIF value shall be limited to 0.25% of FOB value of export.N.AN.A.
95ITC HS Classifications SION Sr. No. and description of the product under SION.Description of Export Item [as per SION]Description of the import itemsQty. allowedDEPBDBKMotor spiriti)ii)iii)iv)v)A2688Note:- This norm does not include lubricating oils and petrochemical products like Benzene, Toluene, MTBE, etc.Light Ends (LE) viz., Naphtha, Motor Spirit (Gasoline) solvents, Reformate, Hexane, TAME, excluding C3,C4 Hydrocarb-ons and mixtures thereof 1 Crude Oil2 Relevant catalysts and chemicals used in refineries1.265 MTCIF value limited to 0.1% of FOB value of export. However, for Naphtha and Motor Spirit CIF value shall be limited to 0.25% and 1% of FOB value of export respectively.N.A.
96ITC HS Classifications SION Sr. No. and description of the product under SION.Description of Export Item [as per SION]Description of the import itemsQty. allowedDEPBDBKLDOA2689Note:- This norm does not include lubricating oils and petrochemical products like Benzene, Toluene, MTBE etcMiddle Dietlliates (MD) viz., ATF, SKO, HSD, Gas Oil, MTO, LABFS, AROMEX, JBO, LDO, VGO, Solvents 1 Crude Oil2 Relevant catalysts and chemicals used in refineries1.072 MTCIF value limited to 0.1% of FOB value of export. However, for HSD and ATF CIF value shall be limited to 0.25% of FOB value of export.N.A.N.A
97ITC HS Classifications SION Sr. No. and description of the product under SION.Description of Export Item [as per SION]Description of the import itemsQty. allowedDEPBDBKFurnace OilA2690Note:- This norm does not include lubricating oils and petrochemicals products like Benzene, Toluene, MTBE, etcHeavy Ends (HE) viz., FO, Furnace Oil, Fuel Oil, LSHS, HPS, Puch, Asphalt, Petroleum Bitumen, Raw Petroleum Coke & Calcined Petroleum Coke, Slack Wax Paraffin Wax, Microcrystallin Wax, CBFS, RPO, Sulphur 1 Crude Oil2 Relevant catalysts and chemicals used in refineries0.820 MTCIF value limited to 0.1% of FOB value of export.N.A.
98ITC HS Classifications SION Sr. No. and description of the product under SION.Description of Export Item [as per SION]Description of the import itemsQty. allowedDEPBDBKNaphthaA2688Note:- This norm does not include lubricating oils and petrochemical products like Benzene, Toluene, MTBE, etc.Light Ends (LE) viz., Naphtha, Motor Spirit (Gasoline) solvents, Reformate, Hexane, TAME, excluding C3,C4 Hydrocarbons and mixtures thereof 1 Crude Oil2 Relevant catalysts and chemicals used in refineries1.265 MTCIF value limited to 0.1% of FOB value of export. However, for Naphtha and Motor Spirit CIF value shall be limited to 0.25% and 1% of FOB value of export respectively.N.A.
99ITC HS Classifications SION Sr. No. and description of the product under SION.Description of Export Item [as per SION]Description of the import itemsQty. allowedDEPBDBKLSHSA2690Note:- This norm does not include lubricating oils and petrochemicals products like Benzene, Toluene, MTBE, etcHeavy Ends (HE) viz., FO, Furnace Oil, Fuel Oil, LSHS, HPS, Puch, Asphalt, Petroleum Bitumen, Raw Petroleum Coke & Calcined Petroleum Coke, Slack Wax Paraffin Wax, Microcrystallin Wax, CBFS, RPO, Sulphur 1 Crude Oil2 Relevant catalysts and chemicals used in refineries0.820 MTCIF value limited to 0.1% of FOB value of export.N.A.
100ITC HS Classifications SION Sr. No. and description of the product under SION.Description of Export Item [as per SION]Description of the import itemsQty. allowedDEPBDBKA2687Note:- This norm does not include lubricating oils and petrochemical products like Benzene, Toluene, MTBE, etc.C3/C4 Hydrocarbons Viz. Propane, Propylene, Butane, Butylene/ Butene (Various grades), Liquified Petroleum Gas (LPG) (Various grades) and mixtures thereof1 Crude Oil2 Relevant catalysts and chemicals used in refineries1.564 MTCIF value limited to 1% of FOB value of exports.N.A.
101ITC HS Classifications SION Sr. No. and description of the product under SION.Description of Export Item [as per SION]Description of the import itemsQty. allowedDEPBDBKLubricating OilA2897Calcium Dodecyl Phenate Detergent (Lubricating Oil Additive) Containing Calcium Dodecyl Phenate 40% Min. 1. Dodecyl Phenol2. Isodecyl Alcohol3. C20-C24 Linear Alkyl Benzene Sulfonic Acid4. Slaked Lime5. Filter Aid6. Monoethelene Glycol (MEG)7. Base Oil0.367 KG0.010 KG0.023 KG0.141 KG0.015 KG/KGKG/KG0.387 KG/KGSr. No. 769Speciallity Textile Lubricating Oil (STLO)DEPB RATE:4%N.A.
102ITC HS Classifications SION Sr. No. and description of the product under SION.Description of Export Item [as per SION]Description of the import itemsQty. allowedDEPBDBKLubricating OilA3238Lubricating Oil Additive (200 TBN) containing Calcium Dodecyl Phenate 40% Min. and Polybutene Succinic Anhydride 4.5% 1. Dodecyl PhenolSolvent Neutral3. Polybutene4. Hydrated Lime5. Filter Aid (Diatomaceous Earth)0.409 KG0.395 KG0.042 KG0.141 KG0.015 KGSame as AboveN.A.
103ITC HS Classifications SION Sr. No. and description of the product under SION.Description of Export Item [as per SION]Description of the import itemsQty. allowedDEPBDBKA1806Industrial/Automotive Lubricants 1 Base Mineral Oil (Industrial grade)2 Lube Oil Additives1.03 kg/kg content in the export productSr. No. 545Industrial/automotive lubricantsDEPB RATE:7%VALUE CAPRs. 140/kgN.A.