| Exports and Imports
free unless regulated |
2.1 |
Exports and Imports shall be free, except where
regulated by FTP or any other law in force. The item wise export and
import policy shall be, as specified in ITC (HS) notified by DGFT, as
amended from time to time.
Import of rough diamond from Cote d’Ivoire shall be prohibited in
compliance to Paragraph 6 of UN Security Council Resolution (UNSCR)
1643(2005).
Above Para has been added by
DGFT NOTIFICATION No. : 09/2007 Dated 11-06-2007
|
| |
2.1.1 |
Import / export of arms and related material from / to Iraq shall be
prohibited. |
| |
2.1.2 |
Direct or indirect export and import of following items, whether or not
originating in Democratic People’s Republic of Korea (DPRK), to / from, DPRK is
prohibited:
All items, materials equipment, goods and technology including as set out in
lists in documents S/2006/814,S/2006/815 and S/2006/853(United Nations Security
Council Documents) which could contribute to DPRK’s nuclear-related, ballistic
missile-related or other weapons of mass destruction-related programmes. |
|
2.1.3 |
Direct or indirect export and import of all items, materials, equipment,
goods and technology which could contribute to Iran’s enrichment-related,
reprocessing or heavy water related activities, or to development of nuclear
weapon delivery systems, as mentioned below whether or not originating in Iran,
to / from Iran is prohibited:
- items, listed in INFCIRC/254/Rev8/Part I in document S/2006/814, in Sections
B.2 to B.7 as well as A.I and B.I except supply, sale or transfer of equipment
covered by B.I when such equipment is for light water reactors and low- enriched
uranium covered by A.1.2 when it is incorporated in assembled nuclear fuel
elements for such reactors;
- items listed in S/2006/815 except supply sale or transfer of items covered
by 19.A.3 of Category II.
Above-mentioned UN Security Council documents are
accessible from DGFT web site.
|
| Compliance with Laws |
2.2 |
Every exporter or importer shall comply with the
provisions
of FT (D&R) Act, Rules and Orders made there-under, FTP and terms and conditions
of any Authorisation granted to him. All imported goods shall also be subject to
domestic Laws, Rules, Orders, Regulations, technical specifications,
environmental and safety norms as applicable to domestically produced goods. No import or export of rough diamonds shall be permitted unless
accompanied by Kimberley Process (KP) Certificate as specified by Gem & Jewellery EPC (GJEPC). |
| Interpretation of Policy |
2.3 |
If any question or doubt arises in respect of
interpretation of any provision contained in FTP, or classification of any item
in ITC (HS) or HBP v1 or HBP v2 or Schedule of DEPB Rates (including content,
scope or issue of an authorization there under), said question or doubt shall be
referred to DGFT whose decision thereon shall be final and binding. |
| Procedure |
2.4 |
DGFT may, specify procedure to be followed for an exporter
or importer or by any licensing or any other competent authority for purpose of
implementing provisions of FT
(D&R) Act, the Rules and the Orders made there under and FTP. Such procedures
shall be published by means of a Public Notice, and may, in like manner, be
amended from time to time. |
Exemption from Policy
/ Procedure |
2.5 |
DGFT may pass such orders or grant such relaxation or relief, as he may deem
fit and proper, on grounds of genuine hardship and adverse impact on trade.
DGFT may, in public interest, exempt any person or class or category of persons
from any provision of FTP or any procedure and may, while granting such
exemption, impose such conditions as he may deem fit. Such request may be
considered only after consulting committees as under:
| Sl. No. |
Description |
Committee |
| ( i ) |
Fixation., modification of product norms under all schemes |
NormsCommittee |
| (ii) |
Nexus with Capital Goods(CG) and benefits underEPCG Schemes |
EPCG Committee |
| (iii) |
All other issues |
Policy RelaxationCommittee(PRC) |
|
Principles of
Restriction |
2.6 |
DGFT may, through a notification, adopt and enforce any
measure necessary for: -
- Protection of public morals.
- Protection of human, animal or plant life or health.
- Protection of patents, trademarks and copyrights and the prevention of
deceptive practices.
- Prevention of use of prison labour.
- Protection of national treasures of artistic, historic or archaeological
value.
- Conservation of exhaustible natural resources.
- Protection of trade of fissionable material or material from which they are
derived; and
- Prevention of traffic in arms, ammunition and implements of war.
|
| Restricted Goods |
2.7 |
Any goods, export or import of which is restricted under
ITC(HS) may be exported or imported only in accordance with an Authorisation or
in terms of a public notice issued in this regard. |
Terms and Conditions of a licence / Certificate
/ Permission / Authorisation |
2.8 |
Every Authorisation shall be valid for prescribed period of validity and
shall contain such terms and conditions as may be specified by RA which may
include:
- Quantity, description and value of goods;
- Actual User condition;
- Export obligation;
- Value addition to be achieved; and
- Minimum export / import price.
|
Authorisation / Licence
/ Certificate / Permission not a Right |
2.9 |
No person may claim an Authorization as a right and DGFT
or RA shall have power to refuse to grant or renew the same
in accordance with provisions of FT (D&R) Act, Rules made there under and FTP. |
| Penalty |
2.10 |
If an Authorisation holder violates any condition of such
Authorisation or fails to fulfill export obligation, he shall be liable for
action in accordance with FT (D&R) Act, the Rules and Orders made there under,
FTP and any other law for time being in force. |
| State Trading |
2.11 |
Any goods, import or export of which is governed through
exclusive or special privileges granted to STE(s), may be imported or exported
by STE(s) as per conditions specified in ITC (HS). DGFT may, however, grant an Authorisation to any other person to import or export any of these goods.
Such STE(s) shall make any such purchases or sales involving imports or exports
solely in accordance with commercial considerations, including price, quality,
availability, marketability, transportation and other conditions of purchase or
sale in a non discriminatory manner and shall afford enterprises of other
countries adequate opportunity, in accordance with customary business practices,
to compete for participation in such purchases or sales. |
Importer-Exporter
Code (IEC) Number |
2.12 |
No export or import shall be made by any person without an IEC number
unless specifically exempted. An IEC number shall be granted on application by
competent authority in accordance with procedure specified in HBP v1. |
| Trade with Neighbouring Countries |
2.13 |
DGFT may issue instructions or frame schemes as may be required to promote
trade and strengthen economic ties with neighbouring countries. |
| Transit Facility |
2.14 |
Transit of goods through India from / or to countries
adjacent
to India shall be regulated in accordance with bilateral treaties between India
and those countries and will be subject to such restrictions as may be specified
by DGFT in accordance with International Conventions. |
Trade with Russia
under Debt-Repayment
Agreement |
2.15 |
In case of trade with Russia under Debt Repayment Agreement, DGFT may issue
instructions or frame schemes as may be required, and anything contained in FTP,
in so far as it is inconsistent with such instructions or schemes, shall not
apply. |
| Actual User Condition |
2.16 |
Capital goods, raw materials, intermediates,
components, consumables, spares, parts, accessories, instruments and other
goods, which are importable without any restriction, may be imported by any
person.
However, if such imports require an Authorisation, actual user alone may import
such goods unless actual user condition is specifically dispensed with by RA. |
| Second Hand Goods |
2.17 |
All second hand goods, except second hand capital goods,
shall be restricted for imports and may be imported only in accordance with
provisions of FTP, ITC (HS), HBP v1, Public Notice or an Authorisation issued in
this regard.
Import of second hand capital goods, including refurbished /
re-conditioned spares shall be allowed freely. However, second hand personal
computers / laptops, photocopier machines, air conditioners, diesel generating
sets will only be allowed against a licence.
Import of re-manufactured goods shall be allowed only against a licence. |
| Import of samples |
2.18 |
Import of samples shall be governed by HBP v1. |
| Import of Gifts |
2.19 |
Import of gifts shall be permitted where such goods are
otherwise freely importable under FTP. In other cases, a Customs Clearance
Permit (CCP) shall be required from DGFT. |
| Passenger Baggage |
2.20 |
Bonafide household goods and personal effects may be
imported as part of passenger baggage as per limits, terms and
conditions thereof in Baggage Rules notified by Ministry of
Finance.
Samples of such items that are otherwise freely importable under FTP may also be
imported as part of passenger baggage without an Authorisation.
Exporters coming from abroad are also allowed to import drawings, patterns,
labels, price tags, buttons, belts, trimming and embellishments required for
export, as part of their passenger baggage without an Authorisation. |
| Import on Export basis |
2.21 |
Freely exportable new or second hand capital goods,
equipments, components, parts and accessories, containers meant for packing of
goods for exports, jigs, fixtures, dies and moulds may be imported for export
without an Authorisation
on execution of LUT / BG with Customs Authorities. |
| Re-import of goods repaired abroad |
2.22 |
Capital goods, equipments, components, parts and accessories, whether
imported or indigenous, except those restricted under ITC (HS) may be sent
abroad for repairs, testing, quality improvement or upgradation or
standardization of technology and re-imported without an Authorisation. |
| Import of goods used in projects abroad |
2.23 |
After completion of projects abroad, project contractors may import,
without an Authorisation used goods including capital goods provided they have
been used for at least one year. |
| Sale on High Seas |
2.24 |
Sale of goods on high seas for import into India may be
made subject to FTP or any other law in force. |
Import under Lease
Financing |
2.25 |
Permission of RA is not required for import of capital goods under lease
financing. |
| Clearance of Goods from Customs |
2.26 |
Goods already imported / shipped / arrived, in advance, but not cleared
from Customs may also be cleared against an Authorisation issued subsequently. |
| Execution of BG / LUT |
2.27 |
Wherever any duty free import is allowed or where
otherwise specifically stated, importer shall execute prescribed LUT / BG / Bond
with Customs Authority before clearance of goods. In case of indigenous
sourcing, Authorisation holder shall furnish LUT / BG / Bond to RA concerned
before sourcing material from indigenous supplier / nominated agency as
prescribed in HBP v1. |
|
2.27.1 |
Deleted |
Private / Public Bonded
Warehouses for
Imports |
2.28 |
Private / Public bonded warehouses may be set up in DTA as per terms and
conditions of notification issued by DoR.
Any person may import goods except prohibited items, arms
and ammunition, hazardous waste and chemicals and
warehouse them in such bonded warehouses.
Such goods may be cleared for home consumption in accordance with provisions of
FTP and against Authorisation, wherever required. Customs duty as applicable
shall be paid
at the time of clearance of such goods.
If such goods are not cleared for home consumption within a period of one year
or such extended period as the custom authorities may permit, importer of such
goods shall re-export the goods. |
| Free Exports |
2.29 |
All goods may be exported without any restriction except to
extent such exports are regulated by ITC (HS) or any other provision of FTP or
any other law for time being in force.
DGFT may, however, specify through a public notice such terms and conditions
according to which any goods, not included in ITC (HS), may be exported without
an Authorisation.
|
| Export of Samples |
2.30 |
Export of samples and Free of charge goods shall be
governed
by provisions given in HBP v1. |
| Export of Passenger
Baggage |
2.31 |
Bonafide personal baggage may be exported either along with passenger or,
if unaccompanied, within one year before or after passenger's departure from
India. However, items mentioned as restricted in ITC (HS) shall require an
Authorisation.
Government of India officials proceeding abroad on official postings
shall, however, be permitted to carry alongwith their personal baggage,
food items (free, restricted or prohibited) strictly for their personal
consumption. (This Para is added by DGFT
Notification No.: 48(RE-2007)/2004-2009, Dated : 12th November 2007). |
| Export of Gifts |
2.32 |
Goods, including edible items, of value not exceeding
Rs.5,00,000/- in a licensing year, may be exported as a gift.
However, items mentioned as restricted for exports in ITC
(HS) shall not be exported as a gift, without an Authorisation.
|
| Export of Spares |
2.33 |
Warranty spares (whether indigenous or imported) of plant,
equipment, machinery, automobiles or any other goods,
(except those restricted under ITC (HS)) may be exported along with main
equipment or subsequently but within contracted warranty period of such goods
subject to approval of RBI. |
| Third Party Exports |
2.34 |
Third party exports, as defined in Chapter 9 shall be
allowed under FTP. |
Export of Imported
Goods |
2.35 |
Goods imported, in accordance with FTP, may be exported in same or
substantially same form without an Authorisation provided that item to be
imported or exported is not restricted for import or export in ITC (HS). |
|
2.36 |
Goods, including those mentioned as restricted for import
(except prohibited items) may be imported under Customs Bond for export in
freely convertible currency without an Authorisation provided that item is
freely exportable without any conditionality / requirement of Licence /
permission as may be required under ITC (HS) Schedule II.
|
Export of Replacement
Goods |
2.37 |
Goods or parts thereof on being exported and found defective
/ damaged or otherwise unfit for use may be replaced free of charge by the
exporter and such goods shall be allowed clearance by Customs authorities
provided that replacement goods are not mentioned as restricted items for
exports in ITC
(HS). |
Export of Repaired
Goods |
2.38 |
Goods or parts, except restricted under ITC (HS), thereof on being exported
and found defective, damaged or otherwise unfit for use may be imported for
repair and subsequent re- export.
Such goods shall be allowed clearance without an
Authorisation and in accordance with customs notification. |
| Private Bonded Warehouses for Exports |
2.39 |
Private bonded warehouses exclusively for exports may be set up in DTA as
per terms and conditions of notifications issued by DoR.
Such warehouses shall be entitled to procure goods from domestic manufacturers
without payment of duty. Supplies made by a domestic supplier to such notified
warehouses shall be treated as physical exports provided payments are made in
free foreign exchange. |
Denomination of
Export Contracts |
2.40 |
All export contracts and invoices shall be denominated either
in freely convertible currency or Indian rupees but export proceeds shall be
realised in freely convertible currency.
However export proceeds against specific exports may also be realized in rupees
provided it is through a freely convertible Vostro account of a non resident
bank situated in any country other than a member country of ACU or Nepal or
Bhutan. Additionally, rupee payment through Vostro account must be against
payment in free foreign currency by buyer in his non- resident bank account.
Free foreign exchange remitted by buyer to his non-resident bank (after
deducting the bank service charges) on account of this transaction would be
taken as export realization under export promotion schemes of FTP.
Contracts [for which payments are received through Asian Clearing Union (ACU)]
shall be denominated in ACU Dollar. Central Government may relax provisions of
this paragraph in appropriate cases. Export contracts and Invoices can bedenominated in Indian rupees against EXIM Bank /Government of India line of credit.
|
Realisation of Export
Proceeds |
2.41 |
If an exporter fails to realise export proceeds within time specified by
RBI, he shall, without prejudice to any liability or penalty under any law in
force, be liable to action in accordance with provisions of FT (D&R) Act, Rules
and Orders made there under and FTP.
|
| Free movement of export goods |
2.42 |
Consignments of items meant for exports shall not be withheld / delayed for
any reason by any agency of Central / State Government. In case of any doubt,
authorities concerned may ask for an undertaking from exporter.
|
| No seizure of Stock |
2.42.1 |
No seizure of stock shall be made by any agency so as
to disrupt manufacturing activity and delivery schedule of exports. In
exceptional cases, concerned agency may seize the stock on basis of prima facie
evidence. However, such seizure should be lifted within 7 days. |
Export Promotion
Councils (EPC) |
2.43 |
Basic objective of Export Promotion Councils (EPCs) is to promote and
develop Indian exports. Each Council is responsible for promotion of a
particular group of products, projects and services as given in HBP v1. |
| Registration -cum- Membership Certificate (RCMC) |
2.44 |
Any person, applying for:
(i) an Authorisation to import / export, [except items listed as restricted
items in ITC(HS)] or
(ii) any other benefit or concession under FTP
shall be required to furnish RCMC granted by competent authority in accordance
with procedure specified in HBP v1 unless specifically exempted under FTP.
|
|
2.45 |
Deleted |
| Trade Facilitation through EDI Initiatives |
2.45.1 |
It is endeavor of Government to work towards greater simplification,
standardization and harmonization of trade documents using international best
practices. As a step in this direction, DGFT shall move towards an automated
environment for electronic filing, retrieval and authentication of documents
based on agreed protocols and message exchange with other community partners
including Customs and Banks. |
DGCI&S Commercial
Trade Data |
2.45.2 |
To enable users to make commercial decisions in a professional manner,
DGCI&S trade data shall be made available with a minimum time lag in a query
based structured format on a commercial criteria. |
| Fiscal Incentives to promote EDI Initiatives adoption |
2.45.3 |
With a view to promote use of Information Technology, DGFT will provide
fiscal incentives to user community.
Deductions in Application Fee would be admissible for applications
signed digitally or / and where application fee is paid electronically through
EFT (Electronic Fund Transfer). Details are enumerated in HBP v1. |
Regularization of EO default and settlement of customs duty and interest through
Settlement Commission |
2.46 |
With a view to providing assistance to firms who have defaulted under FTP
for reasons beyond their control as also facilitating merger, acquisition and
rehabilitation of sick units,
it has been decided to empower Settlement Commission in
CBEC to decide such cases also with effect from 01.04.2005.
|
Easing Of Documentation Requirement
|
2.47 |
Pending finalisation of Single Common Document (SCD) for international
trade, Government Departments dealing with exports and imports will honour
Authorisation issued by other Government departments based on verification of
export documents Like shipping bill, bank realization certificate, Packing list,
bill of lading etc. and will not insist upon fresh submission of these
documents. |
Exemption / Remission of Service Tax in DTA
|
2.48.1 |
For all goods and services which are exported from units in DTA and units
in EOU / EHTP / STP / BTP, exemption / remission of service tax levied and
related to exports shall be allowed, as per prescribed procedure in Chapter 4 of
HBP v1. |
Exemption from
Service Tax in SEZ |
2.48.2 |
Units in SEZ shall be exempted from service tax. |
Exemption from
Service Tax on Services received abroad
|
2.48.3 |
For all goods and services exported from India, services received /
rendered abroad, where ever possible, shall be exempted from service tax. |