| Status Certificates |
3.1 |
The Policy relating to the status holder is given in Chapter- 3 of
the Policy. |
| Application for Grant of Status Certificate |
3.2 |
For grant of any status, the application shall be filed before 31st
March. The application by exporters of goods and services for grant of
One to Five Star Export House status 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 of certificate for One to Five Star Export
House shall be filed with the concerned regional authority headed by
Joint DGFT. Provided further that, application for grant 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 |
Deleted |
| 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 regional 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:
- Fails to discharge the export obligation imposed;
- Tampers with authorisations/licences;
- Misrepresents or has been a party to any corrupt or fraudulent
practice in obtaining any authorisation/licence;
- Commits a breach of the Foreign Trade (Development and
Regulation) Act, 1992, or the Rules and Orders made there under; or
- 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 of Procedures (Vol.
I). |
| 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:
- To provide commercially useful information and assistance to
their members in developing and increasing their exports;
- 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;
- To organise visits of delegations of its members abroad to
explore overseas market opportunities;
- To organise participation in trade fairs, exhibitions and
buyer-seller meets in India and abroad;
- To promote interaction between the exporting community and the
Government both at the Central and State levels; and
- 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.
Further, exporters of minor forest produce and their value added
products shall obtain RCMC from Shellac Export Promotion Council.
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 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 1st 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 regional 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 |
Electronic Data Interchange |
| 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 authorisations/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.gov.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 authorisation/ license shall be
issued on receipt of the hard copies of the documents as mentioned above
after due scrutiny as prescribed in this Handbook. |
| 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)
| Sr. 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 |
Authorisation/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
authorisations/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’ has been introduced. |
|
3.18 |
SERVED FROM INDIA SCHEME
- The Policy for the Served From India Scheme is given in Chapter
3 of Foreign Trade Policy.
- A single consolidated application for the duty credit
entitlement certificate shall be filed with the jurisdictional
regional 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 31st December.
- deleted
- 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.
- deleted
- 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.
- 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 Authority with a copy
to the jurisdictional Excise authorities (service tax cell) wherever
applicable.
- 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.
Only such
|
| Ineligible Remittances and Services |
3.18.1 |
- The following Foreign Exchange remittances shall
not be eligible for entitlement under this scheme:
- Remittances related to Financial Services Sector
- Raising of all types of foreign currency Loans.
- Export proceeds realisation of clients.
- Issuance of Foreign Equity through ADRs /GDRs or other
similar instruments.
- Issuance of foreign currency Bonds.
- Sale of securities and other financial instruments.
- Other receivables not connected with the services
rendered by the financial institutions.
- Remittances earned through contract/regular employment
abroad (e.g. labour remittances).
- Payments received from Export Earners Foreign
Currency (EEFC) Account shall not be counted for benefits under the
scheme.
- The foreign exchange turnover for Healthcare
Institutions like equity participation, donations etc. (However
remittances received on account of medical treatment, surgery,
testing, consultancy and health care provided by the institution
shall not be ineligible.)
- The foreign exchange turnover for Educational
Institutions like equity participation, donations etc. (However
remittances received on account of the course fees and consultancy
provided by the institution shall not be ineligible.)
- Export turnover of units operating under
SEZ/EOU/ EHTP/STPI/ BTP Schemes or supplies made to such units or
products manufactured by them and exported through DTA units
|
| Re-export of goods imported under the Scheme |
3.18.2 |
Goods imported under the scheme, which are found defective or unfit
for use, may be re-exported, as per the guidelines issued by the
Department of Revenue. In such cases, 98% of the credit amount debited
against the scrip for the export of such goods, shall be generated by
the concerned Commissioner of Customs in the form of a Certificate,
containing the amount generated and the details of the original Scrip.
Based on the certificate, a fresh Scrip shall be issued by the concerned
Regional Authority. The fresh Scrip, so issued, shall have the same port
of registration and shall be valid for a period equivalent to the
balance period available on the date of import of such defective/unfit
goods. |
| Vishesh Krishi and Gram Udyog Yojana |
3.19 |
The Policy pertaining to the Vishesh Krishi and Gram Udyog Yojana is
given in Chapter 3 of the Foreign Trade Policy. |
|
3.19.1 |
The application for grant of credit under Vishesh Krishi and Gram
Udyog Yojana for export made from 01.04.2006 onwards shall be made to
the regional authority concerned in the Aayaat Niryaat Form along with
the documents prescribed therein. The applicant may file one or more
applications subject to the condition that each application shall
contain not more than 25 shipping bills. All the shipping bills in any
one application must relate to exports made from one Customs House only.
This procedure will equally apply to the exports made from 01.04.2005
till 31.03.2006 under the then Vishesh Krishi Upaj Yojana.
The application for obtaining credit shall be filed within a period of
twelve months from the date of exports or within six months from the
date of realization or within three months from the date of printing/
release of shipping bill, whichever is later, in respect of shipments
for which the claim have been filed.
However, in respect of the exports made from 01.04.2005 till 31.03.2006,
application for grant of credit for products eligible under the Vishesh
Krishi Upaj Yojana, the last date for filing such applications shall be
30th September 2006 or within six months from the date of realization or
within three months from the date of printing/ release of shipping bill,
which ever is later. |
|
3.19.2 |
The application in the ‘Aayaat Niryaat Form’ shall be accompanied by
Export Promotion 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 that
includes ICD/LCS. |
|
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 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. |
|
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. |
| Re-export of goods imported under the Scheme |
3.19.9 |
Goods imported under the scheme, which are found defective or unfit
for use, may be re-exported, as per the guidelines issued by the
Department of Revenue. In such cases 98% of the credit amount debited
against the scrip for the export of such goods, shall be generated by
the concerned Commissioner of Customs in the form of a Certificate,
containing the amount generated and the details of the original Scrip.
Based on the certificate, a fresh Scrip shall be issued by the concerned
Regional Authority. The fresh Scrip, so issued, shall have the same port
of registration and shall be valid for a period equivalent to the
balance period available on the date of import of such defective/unfit
goods.
FOCUS MARKET SCHEME |
|
3.20 |
The policy pertaining to Focus Market Scheme is given in Chapter 3
of the Foreign Trade Policy. |
|
3.20.1 |
The application for grant of credit under Focus Market Scheme shall
be made to the regional authority concerned in the Aayaat Niryaat Form
along with the documents prescribed therein. The application shall be
filed on a six monthly basis i.e. April– September and October – March.
However, each application within the same six monthly period shall
include shipping bills from the same customs port only and separate
applications shall be made for exports made from different custom ports.
The application for claiming duty credit under the scheme shall be
submitted within a period of six months from the end of the period of
the application or within a period of six months of the date of
realization of the last export covered by the said application, which
ever is later. |
|
3.20.2 |
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. |
|
3.20.3 |
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. |
| Port of Registration |
3.20.4 |
The duty credit entitlement 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 that includes ICD/LCS. |
| Facility for Split Scrips |
3.20.5 |
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. |
| Import from private/ public bonded warehouses |
3.20.6 |
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. |
| Re-export of goods imported under the Scheme |
3.20.7 |
Goods imported under the scheme, which are found defective or unfit
for use, may be re-exported, as per the guidelines issued by the
Department of Revenue. In such cases 98% of the credit amount debited
against the scrip for the export of such goods, shall be generated by
the concerned Commissioner of Customs in the form of a Certificate,
containing the amount generated and the details of the original Scrip.
Based on the certificate, fresh Scrip shall be issued by the concerned
Regional Authority. The fresh Scrip, so issued, shall have the same port
of registration and shall be valid for a period equivalent to the
balance period available on the date of import of such defective/ unfit
goods. |
| Validity Period |
3.20.8 |
The duty credit entitlement certificate shall be valid for a period
of 24 months.
Revalidation of duty credit entitlement certificate shall not be
allowed.
FOCUS PRODUCT SCHEME |
|
3.21 |
The policy pertaining to Focus Product Scheme is given in Chapter 3
of the Foreign Trade Policy |
|
3.21.1 |
The application for grant of credit under Focus Product Scheme shall
be made to the regional authority concerned in the Aayaat Niryaat Form
along with the documents prescribed therein. The application shall be
filed on a six monthly basis i.e. April – September and October – March.
However, each application within the same six monthly period shall
include shipping bills from the same customs port only and separate
applications shall be made for exports made from different custom ports.
The application for claiming duty credit under the scheme shall be
submitted within a period of six months from the end of the period of
the application or within a period of six months of the date of
realization of the last export covered by the said application, which
ever is later. |
|
3.21.2 |
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. |
|
3.21.3 |
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. |
| Port of Registration |
3.21.4 |
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 that
includes ICD/LCS. |
| Facility for Split Scrips |
3.21.5 |
For each duty credit entitlement 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. |
| Import from private/ public bonded warehouses |
3.21.6 |
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. |
| Re-export of goods imported under the Scheme |
3.21.7 |
Goods imported under the scheme, which are found defective or unfit
for use, may be re-exported, as per the guidelines issued by the
Department of Revenue. In such cases 98% of the credit amount debited
against the scrip for the export of such goods, shall be generated by
the concerned Commissioner of Customs in the form of a Certificate,
containing the amount generated and the details of the original Scrip.
Based on the certificate, fresh Scrip shall be issued by the concerned
Regional Authority. The fresh Scrip, so issued, shall have the same port
of registration and shall be valid for a period equivalent to the
balance period available on the date of import of such defective/ unfit
goods. |
| Validity Period |
3.21.8 |
The duty credit entitlement certificate shall be valid for a period
of 24 months.
Revalidation of duty credit entitlement certificate shall not be
allowed. |