Duty Exemption - Remission Scheme
|
| Policy |
4.1 |
Policy relating to Duty Exemption / Remission Scheme is
prescribed in Chapter 4 of FTP. |
| General Provision |
4.2 |
An application for grant of an Advance Authorisation / Advance
Authorisation for Annual Requirement / DEPB / DFIA may be made by
Registered office or Head office or a branch office or manufacturing
unit of eligible exporter, to RA concerned. |
| |
4.3 |
Where applicant is branch office or manufacturing unit(s) of an
exporter, it shall furnish self certified copy of valid RCMC where name
of branch office or manufacturing unit is given. |
| Advance Authorisation |
4.4 |
Where SION have been published, an application in ANF 4A, along with
documents prescribed therein, shall be submitted to RA concerned. |
| |
4.4.1 |
In case of export of gold /silver / platinum jewellery and articles
thereof, quantity, wastage and value addition norms shall be as
prescribed in paragraph 4A of FTP and HBP v1. |
| 4.4.2 |
In case where norms have not been published, an application in ANF
4B, along with prescribed documents, shall be furnished to concerned
Norms Committee (NC) at DGFT Headquarters for fixation of Norms.
In such cases, original copy of application along with prescribed fee
shall be filed with RA concerned and a self attested copy of same shall
be filed with NC.
Authorisation in such cases shall be issued by RA as per NC
recommendation.
NC shall also function as a recommendatory authority for SION. DGFT may
notify such norms. |
| 4.4.3 |
Where import of Acetic Anhydride, Ephedrine and Pseudoephedrine is
required as an input, applications shall be filed with RA concerned.
Copies of such applications shall also be simultaneously endorsed to the
Drug Controller of India, Nirman Bhawan, New Delhi, Narcotics
Commissioner, Central Bureau of Narcotics, Gwalior and respective Zonal
Director of Narcotics Control Bureau, alongwith a declaration that
applicant will maintain prescribed records and also submit prescribed
returns. |
| 4.4.4 |
RA, while issuing Advance Authorisation for import of Acetic
Anhydride, Ephedrine and Pseudo- ephedrine, shall endorse a condition
that before effecting imports, NOC shall be obtained from Narcotics
Commissioner of India, Central Bureau of Narcotics, Gwalior and shall
also endorse a copy of Authorisation to Drug Controller, Nirman Bhawan,
New Delhi and concerned Zonal Director of Narcotics Control Bureau.
|
|
4.4.5 |
Where import of meat and meat
products of any kind including fresh, chilled and frozen meat, tissue or
organs of poultry, pig, sheep, goat; egg & egg powder; milk & milk
products; bovine, ovine and caprine embryos, ova or semen; and pet food
products of animal origin has been sought as an input under Advance
Authorisation, the RA, while issuing advance authorisation, shall
endorse a condition that before effecting imports of any of these
inputs, Sanitary Import Permit shall be obtained from the Department of
Animal Husbandry, Dairying and Fisheries (DAHDF). RA shall also endorse
a copy of authorisation to DAHDF, Krishi Bhawan, New Delhi. |
Advance
Authorisation for
applicants with
multiple units |
4.5 |
Transfer of any duty free material imported or
procured against Advance Authorisation from one unit of company to
another for manufacturing purpose shall be done with prior intimation to
jurisdictional Excise Authorities with a clear understanding that no
benefit of CENVAT shall be claimed on such transferred inputs. However,
such transfers shall not be allowed to units located in areas covered by
Central Excise Notification No.39/2003 and 50/2003 (i.e. Himachal
Pradesh / Uttaranchal). In case of non-excisable company / products,
units should maintain a proper record. However to avail facility, all
such units should be available in IEC certificate and follow rules and
regulation of Central Excise for job work. Large Taxpayer Units (LTUs)
having multiple units, may not follow above job work procedure,
after fulfillment of EO. Duty Free material imported or procured against
advance authorization can be taken from the port directly to the project
site of the project authority as per provisions stated in ANF 4 A and
DOR guidelines. |
Advance
Authorisation for
Free of Cost and
Paid Material |
4.6 |
For policy in paragraph 4.1.8, a specific endorsement shall be made
on exchange control copy of Advance Authorisation disallowing
remittances for material being supplied free of cost. All inputs
imported shall be utilised in manufacturing of product except wastage. |
Self Declared
Authorisations
where SION
does not exist |
4.7 |
RA may also issue Advance Authorisations,
where SION are not fixed, based on self declaration and an undertaking
by applicant for a final adjustment as per Adhoc / SION fixed by NC.
However, no Advance Authorisation shall be issued under this paragraph
for import of following products:-
i. All vegetable / edible oils classified under Chapter - 15 and all
types of oilseeds classified under Chapter - 12 of ITC (HS) book;
ii. All types of cereals classified under Chapter – 10 of ITC (HS) book;
iii. All spices other than light black pepper (light berries) having a
duty of more than 30%, classified under Chapter-9 and 12 of ITC (HS)
book;
iv. All types of fruits/vegetables having a duty of more than 30%,
classified under Chapter 7 and 8 of ITC (HS) book;
v. Horn, hoof and any other organ of animal;
vi. Honey;
vii. Rough Marble Blocks/ Slabs; and
viii. Rough Granite.
For export of perfumes, perfumery compounds and various feed ingredients
containing vitamins, no Authorisation shall be issued by RA and
applicants may apply under Para 4.4.2 above. Where export and/or import
of biotechnology items are involved,Authorisation under this paragraph
shall be issued by RA only on submission of a “No Objection Certificate”
from Department of Biotechnology. |
| Entitlement |
4.7.1 |
CIF value of one or more such authorisations shall be maximum 500%
of FOB and / or FOR value of preceding year’s exports and / or supplies
in case of status holders and Rs. 5 crore or 500% of the FOB and / or
FOR value of preceding year exports and / or supply, whichever is more,
for others.
However, in cases where NC has already ratified norms for same export
and import products in respect of an authorization obtained under
paragraph 4.7, such norms shall be valid for a period of one year
reckoned from the date of ratification.
In such cases Authorisations shall be issued by RA concerned under
“Adhoc Norms Fixed” category and application copies need not be
forwarded to NC for fixation / ratification of norms.
Authorisation holder in such cases shall be entitled for further
authorisation (s) as per norms ratified by NC without need for
subsequent ratification by NC. In such cases, applicant would file
application under Adhoc Norms Fixed category.
However, NC should ensure that such adhoc norm(s), if not notified
already, are notified within six months of the ratification of such
adhoc norm(s). |
| |
4.7.2 |
Once norms are fixed by NC, value limits mentioned in above
paragraph would not be applicable to advance authorisations issued under
this paragraph. Such authorisations, subsequent to fixation of norms by
NC, may be enhanced.
It is mandatory for industry to provide production data etc. as may be
required by DGFT / EPC for fixation of SION. Otherwise, applicant shall
not be allowed to take benefit of Advance Authorization scheme for
taking repeat advance authorizations on self-declared basis. |
| Authorisation in Excess of Entitlement |
4.7.3 |
An applicant shall be entitled for authorisation in excess of
entitlement mentioned in paragraph 4.7.1 subject to furnishing of 100%
Bank Guarantee to Customs authority to cover exemption from customs
duties. A specific endorsement to this effect shall be made on
authorisation. |
| Application |
4.7.4 |
Original application with prescribed documents shall be submitted to
concerned RA. RA shall forward a copy of application within 7 days from
Authorisation issue date to NC for fixation of norms within prescribed
time. |
| Undertaking |
4.7.5 |
Applicant shall give an undertaking that he shall abide by norms
fixed by NC and accordingly pay duty, together with interest, on
unutilised inputs as per norms fixed by NC. However
Authorisation holder has option to undertake additional EO in proportion
to excess unutilized inputs. In case application is rejected by NC,
authorization holder shall pay customs duty saved along with interest on
imported inputs, as notified.
However in such cases where the NC decides adhoc norms based on
information available to it and the exporter represents against the
decision of the NC, time limit for filing representation, if any, before
the Norms Committee shall be four months from the date of communication
of decision of the fixation of adhoc norms by NC .
For project supplies, the time limit for filing representations, if any,
against the decision of Norms Committee shall be one year from the date
of communication of decision of the Norms Committee. In addition, an
amount as per Para 4.28(i)(b) below has to be
deposited. |
|
4.7.6 |
In such cases, where norms are not finalised by NC within four
months from Authorisation issue date, norms as applied for shall be
treated as final and no adjustment will be made.
However, where application for fixation of adhoc / SION is rejected on
account of non-furnishing of required documents/information,
Authorisation holder shall be liable for penalty as stated in above
paragraph. In case SION for the said product is notified, SION would be
made applicable for deciding wastage norm and EO. In such cases where
export obligation is completed pending fixation of norms by NC,
entitlement for authorisation as given in paragraph 4.7.1 may be
re-credited upon production of documentary evidence (copies of Shipping
bill / bill of export / Central Excise certified copies of invoices)
showing fulfillment of export obligation in respect of previous
authorisations. However, bond waiver / redemption shall not be allowed
pending fixation of norms in such cases. |
| Advance authorisation for Pharma products under
Non-Infringing (NI) process. |
4.7A. |
Provision: RA may issue advance authorisation for pharmaceutical
products manufactured through Non-Infringing (NI) process. A
manufacturer exporter can avail the benefit of this provision even if
the Standard Input Output Norm (SION) or the adhoc norm (under self
declared basis in terms of paragraph 4.7 of the HBP, v1) for the said
product is available. “Input combination permitted under NI process, as
approved by the concerned agency of the regulated markets”, shall be
exporter specific and country specific and shall be available only when
the exports are destined for the same country.
Application &
Processing: An application for grant of an advance authorisation under
this provision shall be made in ANF 4 J along with the documents
prescribed therein, to RA concerned. Each and every application for
advance authorisation in ANF 4 J shall be accompanied with the required
documents stated therein.
Input combination permitted under NI process for manufacturing the
product shall be certified by the Chartered Engineer (Chemical) in the
format given in Appendix 32C, after due verification of the details of
each input and its quantity as given in Abbreviated New Drug Application
(ANDA) / Drug Master File (DMF) of the applicant. RA shall cross verify
the requirement of inputs as per the Chartered Engineer certificate
submitted along with the application to that shown in the application
and issue the authorisation accordingly. RA shall not forward such
application to NC and the inputs and export product so allowed by RA,
shall be treated as input combinations permitted under NI Process.
Redemption of
Authorisation: Provisions contained in paragraph 4.28 of HBP v1,
2009-14, except sub-paragraph (v), shall be applicable. RA shall compare
the details of Appendix-23A, duly verified and certified by the
jurisdictional Excise Authority, with that of the inputs made/allowed in
the authorisation, before allowing redemption or Bond-waiver against
individual advance authorization issued for pharmaceutical product(s)
manufactured through NI process. In this verification process, in case,
it is found that the Authorisation holder has consumed lesser quantity
of inputs than imported, Authorisation holder shall be liable to pay
customs duty on unutilized imported material, alongwith interest thereon
as notified, or effect additional export within the EO period. However,
for the customs duty component, the authorisation holder has also the
option to furnish valid duty credit scrips issued under Chapter 3 of FTP
and DEPB.
Maintenance of
Proper Accounts: Every advance authorisation holder shall maintain a
true and proper account of consumption and utilization of duty free
imported / domestically procured inputs against each authorisation as
prescribed in Appendix 23A. This record in Appendix 23A format, duly
verified and certified by the jurisdictional Excise Authority, shall be
submitted to the concerned RA at the time of filing application for
redemption / bond waiver. RA shall compare the details of Appendix-23A,
with that of the inputs allowed in the authorisation, before allowing
redemption or bond waiver against individual authorization. Such records
shall be preserved for a period of at least three years from the date of
redemption.
2. A new Aayaat Niryaat form namely, ANF 4J related to Application form
for “Advance Authorisation / Advance Release Order (ARO) / Invalidation
letter for Pharmaceutical Product, manufactured through Non-Infringing
(NI) process” stands added, as appended to this Public Notice, as
Annexure I.
3. A new Appendix, namely, Appendix 32C related to “Format of Chartered
Engineer (Chemical) certificate for Pharmaceutical products manufactured
through NI process” stands added, as appended to this Public Notice, as
Annexure II.
4. A new Appendix i.e., Appendix 23A related to “consumption and stocks
of duty free material allowed under Advance authorization for
Pharmaceutical product manufactured through NI process” along with the
Central Excise certificate on consumption introduced, as appended to
this Public Notice, as Annexure III.
5. “Guidelines for applicants” in Aayaat Niryaat form (ANF 4F) related
to “Application Form for Redemption / No Bond Certificate (Bond waiver
certificate) against Advance Authorisation* stands replaced by the
amended Guidelines as at Annexure IV appended to this Public Notice.
Vide DGFT PUBLIC NOTICE No.29/(RE 2010)/2009-14 DT.14-02-2011 |
Standardisation
of Adhoc Norms |
4.8 |
For standardization of norms, an application may be made by
manufacturer exporter or merchant exporter tied to supporting
manufacturer, duly filled in with complete data. Such applications shall
be made to NC in ANF 4B. Import of fuel may also be allowed under SION
by NC subject to following: -
(a) Facility of import of fuel shall be allowed only to manufacturer
having captive power plant.
(b) In cases where SION specifically allows fuel, 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 above.
(c) Fuel should be allowed only against an actual user Authorisation.
However in case of DFIA, fuel can only be transferred to agencies
granted marketing rights by the Ministry of Petroleum and Natural Gas.
(d) Applications of fixation for fuel entitlement for new sectors and
modification of the existing entitlement as per General Note for Fuel in
HBP v2 would be made to NC along with requisite data in ANF 4B.
|
| Modification of SION |
4.9 |
An application for modification of existing SION may be filed before
the NC by manufacturer exporter or merchant-exporter, tied to supporting
manufacturer, in form given in ANF 4B. |
Amendment of
Export item
and inputs |
4.10 |
An application for amendment of an export item or inputs SION or
under Adhoc Norms may be filed by manufacturer or merchant exporter as
per ANF 4B.
Applicant would give justification for seeking amendment and same would
be considered by Regional Authority with specific approval of Head of
office. In case of any major change in
input or request for more wastage to that allowed under SION or adhoc
norm, same should be referred to NC for ratification. |
Revision of SION
by NC |
4.10.1 |
NC may identify SIONs which in its opinion are required be reviewed.
Exporters are required to submit revised ANF 4B for such revision. It is
mandatory for industry exporter(s) to provide production and consumption
as may be required by DGFT / EPC for revision of
Otherwise, applicant shall not be allowed to take benefit Advance
Authorization scheme. |
| Description of an
Advance Authorisation |
4.11 |
An Advance Authorisation shall specify:
(a) names and description of items to be imported and exported /
supplied;
(b) quantity of each item to be imported or wherever quantity cannot be
indicated, value of item shall be indicated. However, if in SION,
quantity and value of individual inputs is a limiting factor, same shall
be applicable.
(c) aggregate CIF value of imports; and
(d) FOB / FOR value and quantity of exports / supplies. |
Exports in
Anticipation of
Authorisation |
4.12 |
Exports / supplies made from the date of EDI generated file number
for an Advance Authorisation, may be accepted towards discharge of EO.
Shipping / Supply document(s) should be endorsed with File Number or
Authorisation Number to establish co-relation of exports / supplies with
Authorisation issued. The requirement of endorsement of file number or
authorisation number on the shipping bill would be dispensed with once
the EDI Data Transmission System for the shipments becomes operational.
If application is approved, authorisation shall be issued based on input
/ output norms in force on the date of receipt of application by RA in
proportion to provisional exports /
supplies already made till any amendment in norms is notified.
For remaining exports, Policy / Procedures in force on authorisation
issue date shall be applicable. |
| |
4.12.1 |
Exports / supplies made in anticipation of grant of an Advance
Authorisation shall be entirely on risk and responsibility of exporter. |
| 4.12.2 |
Conversion of duty free shipping bills to drawback shipping bills
may also be permitted by customs authorities in case application for an
Advance Authorisation is rejected or modified by RA. |
Advance
Authorisation or
DFIA for
Intermediate
Supplies |
4.13 |
Application for grant of Advance Authorisation or DFIA for
Intermediate supply may be made on the basis of a tie-up agreement with
exporter (physical / deemed) holding an Advance Authorisation or DFIA.
RA concerned shall consider such requests.
Advance Authorisation or DFIA for Intermediate supply shall be issued
after making Authorisation invalid for direct import of items, to be
supplied by intermediate manufacturer. In such cases, a copy of the
invalidation letter will be given to Authorisation holder and copy
thereof will be sent to intermediate supplier as well as RA of
intermediate supplier.
Authorisation holder in such case has an option either to supply
intermediate product to the holder of Advance Authorisation or DFIA or
to export (physical / deemed) directly. Intermediate supplier can also
supply the product(s) directly to the port for export by the ultimate
exporter (holder of Advance Authorisation or DFIA). In such cases,
shipping bill shall be in the name of the ultimate exporter with the
name of intermediate supplier endorsed on it. However, once Electronic
message transfer facility among the RAs becomes fully operational,
sending copy of invalidation letter / ARO to jurisdictional RA shall not
be required.
Facility of Advance Authorisation shall be available even in cases where
intermediate supplier has supplied or intend to supply material
subsequent to fulfilment of EO by exporter holding Advance Authorisation
/ DFIA from where invalidation letter was issued. |
| Advance Release Order (ARO) |
4.14 |
An application may be made to RA concerned for grant of ARO to
procure inputs from indigenous sources / STEs. |
|
4.14.1 |
Application shall specify:
(i) name, description and quantity of items and
(ii) individual value of items to be procured. An ARO may be issued
along with Advance Authorisation / DFIA or subsequently, and its
validity shall be co-terminus with
validity of Advance Authorisation / DFIA.
An ARO issued for procurement of an individual item shall be
automatically valid for procurement from one or more indigenous sources. |
Back to Back
Inland Letter
of Credit (L/C) |
4.15 |
Exporter may alternatively avail facility of a back to back inland
letter of credit from banks. An Advance Authorisation / DFIA holder may
approach a bank for opening an inland letter of credit (L/C) in favour
of an indigenous supplier. |
|
4.15.1 |
Before opening the L/C, bank will ensure that necessary BG LUT has
been executed by Advance Authorisation / Non Transferable DFIA holder
and an endorsement to that effect has been made on the Authorisation.
However, execution of BG / LUT shall not be required against
transferable DFIA. After opening inland L/C, bank shall make following
endorsement on Exchange Control and Customs copy of Advance
Authorisation / DFIA:
Value of this Advance Authorisation / DFIA stands reduced by a sum of
Rs. __________ , being value of inland L/C No.________ opened today by
authorisation holder in favour
of M/s ______________________ (name and address of indigenous supplier). |
| 4.15.2 |
Authorisation shall be invalidated by bank for direct import only in
respect of full quantity and value of item being sourced indigenously. |
| 4.15.3 |
Original Letter of credit (L/C) may be retained by bank for
negotiation and only non-negotiable copy of L/C may be given to
indigenous supplier. |
| 4.15.4 |
Responsibility of bank shall be confined to making endorsement. Bank
shall not be liable for any misrepresentation or false statement made by
authorisation holder while requesting bank to make endorsement. Inland
L/C opened by bank in favour of indigenous supplier shall not be
cancelled for any reason whatsoever. |
| 4.15.5 |
Non negotiable copy of inland L/C together with photocopy of Advance
Authorisation / DFIA duly carrying endorsements made by bank shall be
sufficient for indigenous supplier to claim deemed export benefits. L/C
issued shall be entitled to benefits given in paragraph 8.3 (b) and (c)
of FTP, as applicable. |
| 4.15.6 |
Where import is permitted as an input under this scheme, gold/silver
can be sourced through nominated agencies as given in FTP (Chapter 4)
for supply against the Advance Authorisations/DFIA issued. Before supply
of material, nominated agencies should follow same procedure as given in
paragraph 4.15.1 above. |
Facility of
Supporting
Manufacturer(s)/
Jobber/co-licensee |
4.16 |
Imported material may be used in any unit of holder of Advance
Authorisation or Non Transferable DFIA (subject to condition of
paragraph 4.5 of this Handbook) or jobber / supporting manufacturer
provided same is endorsed on authorisation by RA. If applicant desires
to have name of any manufacturer or jobber added to authorisation, he
may apply. Such endorsement shall be mandatory where prior import before
export is a condition for availing Advance Authorisation / DFIA scheme
and authorisation holder desires to have material processed through any
other manufacturer or jobber.
Upon such endorsement made by RA, authorisation holder and co-
authorisation holder shall jointly and severally be liable for
completion of EO. Any one of co-authorisation holders
may import goods in his name or in joint names. BG/LUT shall also be
furnished in their joint names.
However if authorisation holder is registered with Central Excise, he
has an option of getting names of jobber endorsed by Central Excise as
per Central Excise Rules in lieu of RA’s endorsement. In case
manufacturer exporter holding authorisation is not registered / not
required to be registered with Central Excise authority, job work may be
allowed as
per Central Excise Rules and regulations without insisting for
endorsement of supporting manufacturer’s name. However, authorisation
holder shall be solely responsible for imported
items and fulfillment of EO. |
| |
4.17 |
In case BG / LUT has been redeemed, advance authorization holder can
get duty free inputs processed from any manufacturer under Actual User
condition as per job work regulations prescribed under Central Excise
Rules. However such restriction shall not be applicable in case of
transferable DFIA holder. |
| Acceptance of BG/LUT |
4.18 |
At the time of issue of authorisation, acceptance of undertaking
given by applicant to RA concerned in relevant ANF will be endorsed on
the reverse of Advance Authorisation. Authorisation holder shall execute
Bank Guarantee / Legal Undertaking, as the case may be, in terms of para
2.20 of HBP v1. |
| Port of Registration |
4.19 |
Advance Authorisation shall be issued for purpose of import and
export through one of sea ports or airports or ICDs or LCS specified
below. Authorisation holder shall register authorisation at the port
specified in authorisation and thereafter all imports against said
authorisation shall be made only through that port, unless the
authorisation holder obtains permission from customs authority concerned
to import through any other specified port.
However, exports may be made through any of the specified ports.
Sea Ports
Mumbai, Kolkata, Cochin, Kakinada, Kandla, Mangalore, Marmagoa, Chennai,
Paradeep, Pipavav, Sikka, Tuticorin Vishakhapatnam, Dahej,Nagapattinam,
Okha, Mundhra, Surat (Magdalla),
Jamnagar, Nhava Sheva, Haldia, Krishnapatnam, Bedi (including
Rozi-Jamnagar), Dharamtar, Muldwarka,Porbander, Vadinar.
|
|
Airports |
Ahmedabad, Bangalore, Bhubaneshwar, Mumbai,Kolkata Coimbatore Air
Cargo Complex, Cochin,
Delhi, Hyderabad, Jaipur, Srinagar, Trivandrum,Varanasi, Nagpur,
Chennai, Indore, Dabolim (Goa),Lucknow (Amausi), Rajasansi (Amritsar). |
| ICDs |
Agra, Bangalore, Coimbatore, Delhi, Faridabad,Guwahati (Amingaon),
Guntur, Hyderabad, Jaipur, Jallandhar, Kanpur, Ludhiana, Moradabad,
Nagpur,Pimpri (Pune), Pitampur (Indore), Surat, Tirupur,Varanasi, Nasik,
Rudrapur(Nainital), Dighi (Pune),Vadodara, Daulatabad, (Wanjarwadi and
Maliwada),Waluj (Aurangabad), Anaparthy, Salem, Mallanpur,Singanalur,
Jodhpur, Kota, Udaipur, Ahmedabad, Bhiwadi, Madurai, Bhilwara,
Pondicherry, Garhi Harsaru, Bhatinda, Dappar, Dera Bassi, Chheharata (Amritsar),
Karur, Miraj, Rewari, Bhusawal,
Jamshedpur, Surajpur, Dadri, Tuticorin, Babarpur, Bhadohi, Durgapur
(Export Promotion Industrial Park), Kundli, Loni (District Ghaziabad),
Mandideep (District Raisen), Raipur, Talegoan (District Pune), Dhannad
Rau (District Indore), Kheda (Pithampur, District Dhar), Patli (Gurgaon). |
| LCS |
Ranaghat , Singhabad , Raxaul, Jogbani, Nautanva (Sonauli),
Petrapole, Mahadipur, Hilly, Chengrabanda,Dawki, Atari, Ghojadanga,
Agartala, Amritsar Rail Cargo, Nepalganj Road, Sutarkhandi. |
| SEZ |
As notified by Central Government any SEZ can be a
specified port for import and export. |
| 4.19.1 |
Commissioner of Customs may permit imports and exports from any
other seaport / airport / ICD or LCS . |
| 4.19.2 |
For imports from Airport / Seaport / ICD / LCS other than port of
registration, a TRA shall be issued by the customs authority at the port
of registration to customs authority at port of import. |
| Facility of Clubbing |
4.20 |
Facility of clubbing shall be available only for redemption /regularisation
of cases and no further import or export shall be 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 2004-09 period and
thereafter, Advance Authorisations with different customs notification
can be clubbed. Advance authorisation for annual requirement can also be
clubbed with the advance authorisation. |
| |
4.20.1 |
RA, under whose jurisdiction authorisation is issued or DGFT (HQ) in
other cases, shall consider a request in ANF 4D for clubbing all imports
and exports of more than one Advance Authorisation provided imported
inputs are properly accounted for as per norms. Value addition of the
authorisations so clubbed shall be average of minimum value addition
prescribed in FTP and Procedure laid thereunder, imposed on individual
authorisations. Upon clubbing, authorisations shall, for all purposes,
be deemed to be one Authorisation and thereafter shortfall, if any,
shall be regularized in terms of para 4.28 of HBP v1. |
| 4.20.2 |
Accountability of imports and exports shall be restricted in
relation to individual categories of Advance Authorisations including
Advance Authorisation for annual requirements. |
| 4.20.3 |
Facility is available only for Advance Authorisation(s) where there
is shortfall in fulfillment of EO, and which is sought to be clubbed
with an advance Authorisation(s) which is valid for imports. For expired
Authorisation(s) with EO shortfall and which is sought to be clubbed
with an advance Authorisation(s) which is valid for imports, applicant
shall pay composition fee for EO period extension as per paragraph 4.22
below. |
| |
4.20.4 |
Wherever exports are effected beyond EO extension period (allowed
vide paragraph 4.22 below) of earlier authorisation, no clubbing shall
be permitted. |
| 4.20.5 |
Notwithstanding provisions of para 4.20.3 and 4.20.4 above, Clubbing
of all expired Authorisations may also be permitted provided all expired
Authorisations have been issued during Exim Policy period 1992-1997 &
1997-2002 i.e., 1st April 1992 to 31st March, 2002. However clubbing of
erstwhile Value Based Advance licences shall not be allowed. |
Enhancement/
Reduction in the
value of Authorisation |
4.21 |
In respect of an Advance Authorisation, RA concerned may consider a request
for:
(a) enhancement / reduction in CIF value of advance authorisation;
(b) enhancement / reduction in CIF value, quantity of inputs,
FOB value and quantity of exports of an advance authorization;
provided VA after such enhancement does not fall below minimum VA stipulated in
FTP and HBP v1 laid thereunder and there is no change in input-output norms and
FTP under which
advance authorisation was issued.
However, in case of advance authorisations issued prior to 27.8.09 under the
FTP, 2004-09, the following conditions shall apply for any enhancement in the
value of the authorisation:
68
(i) Wherever, exports are subsequent to 27.8.09,enhancement in CIF/FOB values
shall be subject to a minimum value addition (VA) of 15% for that component
of exports.
(ii) Wherever, the exports are prior to 27.8.09, enhancement
of CIF/ FOB value shall be subject to a minimum Value
addition of 15% or the V.A. declared in the original
Advance Authorization application, whichever is lower. |
| |
4.21.1 |
Request for prorata enhancement in value and quantity may be made either
before or after exports. In such cases where there is a change in SION prior to
export of said product,
pro-rata enhancement shall be given after calculating entitlement on revised
SION. |
| |
4.21.2 |
The application for the enhancement/ reduction in the value of
Authorisation shall be made in ANF 4E. |
| Application fee for enhancement |
4.21.3 |
Application fee leviable for enhancement would be on the difference in CIF
values of original and final Authorisation. However, no application fee would be
charged if value of Authorisation is being reduced or applicant has paid maximum
fee of Rs 100,000 (for manual applications) and Rs 50,000 (for digitally signed
applications) respectively in original application for Advance
Authorisation/DFIA. |
Export Obligation (EO) Period
its Extension |
4.22 |
Fulfillment Period of EO under an Advance Authorisation shall
commence from Authorisation issue date, unless otherwise specified. EO
shall be fulfilled within 36 months except in case of supplies to
projects / turnkey projects in India / abroad under deemed exports
category, where EO must be fulfilled during contracted duration.
EO period for Advance Authorizations issued with input (s) as mentioned
in Appendix 30A shall be as per the period stipulated against each entry
therein. Facility of extension of
EOP shall not be allowed in case of Advance Authorisation issued for
these inputs. RA shall make an endorsement in Advance Authorisation to
this effect. |
| |
4.22.1 |
Whenever a ban / restriction is imposed on export of any product,
export obligation period in respect of Advance Authorisation already
issued prior to imposition of ban, would stand automatically extended
for a period equivalent to the duration of ban, without any composition
fee.
For the Advance Authorisation (erstwhile licences) where raw sugar has
been imported between 21.09.04 and 15.4.08, but the export obligation is
yet to be fulfilled, the export obligation period stands automatically
extended upto 31.03.2011 without payment of composition fee. Advance
licence / authorisation holder has the option to pay the customs duty as
applicable, on the date of import for the quantity of import
proportionate to
unfulfilled E.O. and get the case regularized accordingly.
|
| |
4.22.2 |
Customs may allow provisional clearance of export consignment as and
when Authorisation holder produces documentary evidence of having
applied for EO extension to concerned RA. |
Revalidation
of Authorisation |
4.23 |
RA may consider a request of original Authorisation holder and grant
one revalidation for six months from expiry date. Request(s) for
revalidation of Authorisation shall be made in ANF 4E. |
| Monitoring of Obligation |
4.24 |
RA, with whom undertaking is executed by Advance
Authorisation holder, shall maintain a proper record in a master
register indicating starting and closing dates of obligation period and
other particulars to monitor EO.
Within two months from date of expiry of period of obligation,
Authorisation holder shall submit requisite evidence in discharge of
export obligation in accordance with paragraph 4.25 below.
However, in respect of shipments where six months period (one year in
case of status certificate holder and others as per RBI guidelines) for
realisation of foreign exchange has not become due, RA shall not take
action for non submission of bank certificate of exports and
realisation, provided other document substantiating fulfillment of EO
have been furnished. |
| |
|
| |
4.24.1 |
In case Authorisation holder fails to complete EO or fails to submit
relevant information / documents, RA shall take action by refusing
further Authorisations, enforce condition of Authorisation and
Undertaking and also initiate penal action as per law. |
Advance Authorisation for Annual
Requirement
|
4.24A |
Exporters eligible for such Authorisations shall file an application
in ANF 4A to RA concerned. All provisions as to Advance Authorisation
given above would apply except the following:
(i) RA while issuing Authorisation shall mention technical
characteristics quality and specifications in respect of following
inputs:-Alloy steel including stainless steel,
copper alloy, synthetic rubber, bearings, solvents, perfumes/ essential
oils/aromatics chemicals, surfactants, relevant fabrics and marble.
(ii) Authorisation holder shall have flexibility to export any product
falling under export product group using duty exempted material.
(iii) (iii) “Within eligible entitlement, an exporter may apply for one
or more than one authorisation in a licensing year, subject to the
condition that against one Port of registration, not more than five
authorisations can be issued for same product group.”
Effect of this amendment:
This facility shall enable the exporter to avail upto 5 Advance
Authorisations for Annual requirement, per port of import, per product
group. Earlier the exporters were permitted only one Authorisation per
port of import, per product group.
Vide DGFT PUBLIC NOTICE No.30/(RE 2010)/2009-14 DT. 14-02-2011.
[Old
(iii) Within eligible entitlement, an exporter may apply for one or more
than one authorisations in a licensing year, subject to condition that
against one port of registration only one authorisation can be issued
for same product group. One time enhancement / reduction of the
authorisation shall be available in terms of paragraph
4.21 above.]
(iv) On completion of EO against one or more authorisations, all issued
in same licensing year, entitlement of an exporter for that licensing
year shall be deemed to be revived by an amount equivalent to EO
completed against authorisation(s).
(v) In respect of export product for which Standard Input Output Norms
(SION) does not exist, the authorization holder shall submit an
application in “Aayaat-Niryaat Form” along with prescribed documents to
NC before making the shipment. The applicant shall also furnish Advance
Authorisation for Annual Requirement No. and date along with the File
No. from which the same was issued in the covering letter to the
application. |
| Fulfillment of Export Obligation |
4.25
|
Authorisation holder shall furnish prescribed documents in ANF 4F in support of fulfillment of EO. |
Discharge of export obligation against advance licences
issued prior to 1.4.2002 |
4.25A |
Quantity Based Advance licences issued prior to 1.4.2002 shall be
disposed off as per Public Notice No. 79 dated 2.1.2006, PN 151 dated
26.2.09, as amended from time to time. |
| Redemption / No Bond Certificate |
4.26
|
In case EO has been fulfilled, RA shall redeem the case. After
redemption, RA shall forward a copy of redemption letter indicating
shipping bill number(s), date(s), FOB value in Indian rupees as per
shipping bill(s) and description of export product in respect of
shipment which were taken into account for the purpose of fulfillment of
EO to Customs authority at port of registration. Such details shall also
be placed by the Zonal Offices in their website immediately after
issuance of export obligation discharge/redemption letter/No Bond
Certificate (in case of “No BG / LUT” facility) and by DGFT Hqr in DGFT
website on monthly basis for customs authority to access it from
website.
Cancellation/ redemption of BG / LUT would be undertaken by Customs
within 30 days of issue of Export Obligation Discharge Certificate
(EODC) / bond waiver by RA.
Ordinarily, redemption of BG / LUT shall not preclude customs authority
from conducting random checks and from taking action against
Authorisation holder for any misrepresentation, mis-declaration and
default detected subsequently.
Further RA shall also take action against authorisation holder in case
of non-submission of Appendix 23, duly filled in, as stipulated in
Paragraph 4.30 below or for any misrepresentation, misdeclaration and
default detected subsequently in details declared and furnished in
Appendix 23. An endorsement to this effect shall be made by RA in the
redemption certificate. |
Transitional
Arrangement for
Authorisations
issued upto
26.08.2009 |
4.27 |
Advance Licences including Advance Licences for Annual Requirement
issued upto 26.08.2009 shall be governed by provisions contained in
Chapter-7 of HBP v1 (RE-2001),Chapter 4 of HBP v1 (2002-2007) as
Notified on 31.3.2002 and Chapter 4 of HBP v1 (2004-2009) as notified on
31.8.2004 respectively as amended from time to time,excepting provisions
relating to clubbing and extension in E.O. period, which shall be
governed by provisions of paragraphs
4.20 and 4.22.1 respectively above and any other provision, as notified
by DGFT.
However, wherever Customs duty is to be paid on unutilised material,
same shall be paid alongwith interest thereon as notified. |
| Regularisation of Bonafide Default |
4.28
|
Cases of bonafide default in fulfillment of EO may be regularised
by RA as under:
(i) If EO is fulfilled in terms of value, but there is a shortfall in
terms of quantity, the Authorisation holder shall, for regularization,
pay:-
a) to customs authorities, customs duty on unutilized value of imported/
indigenously procured material along with interest as notified; however,
for the customs duty component, the authorisation holder has the option
to furnish valid duty credit scrips issued under Chapter 3 of FTP and
DEPB; and
b) an amount equivalent to 3% of the CIF value of unutilised imported
material through a TR in authorised branch of Central Bank of India
indicating the “Head Account: 1453, Foreign Trade and Export Promotion
and Minor Head 102”. Authorisation holder shall also be required to
obtain a separate authorisation for regularisation of excess imported
input. However, provisions of this sub paragraph shall not be applicable
if unutilised imported material was freely importable on the date of
import.
ii) If the EO is fulfilled in quantity but there is shortfall in value,
no penalty shall be imposed if Authorisation holder has achieved minimum
value addition prescribed.
However, if value addition falls below the minimum value addition
prescribed Authorisation holder shall be required to deposit an amount
equal to 1% of shortfall in FOB value in Indian Rupee through TR in
authorised branch of Central Bank of India as above or through
EFT mode.
Value wise shortfall shall be calculated with reference to actual
quantity of exports and FOB value of realisation with reference to
prorata quantity of imports and CIF
value. For example, if export performance is only 50% quantitywise but
import has been for complete CIF value permitted, then value addition
would be calculated on a prorata basis, i.e with reference to 50% of CIF
value of imports. This would accordingly imply that
where Authorisation holder is unable to export, no penalty on valuewise
shortfall shall be imposed.
(iii) If EO is not fulfilled both in terms of quantity and value, the
Authorisation holder shall, for the regularisation, pay as per (i) and
(ii) above.
(iv) In case an exporter is unable to complete EO undertaken in full and
he has not made any import under Authorisation, Authorisation holder
will also have an option to get the Authorisation cancelled and apply
for drawback after obtaining permission from Customs
authorities for conversion of shipping bills to Drawback Shipping Bills.
(v) RA shall compare relevant portion of Appendix-23 duly verified and
certified by Chartered Accountant with that of norms allowed in
Authorisation(s) and actual quantity imported against Authorisation(s)
in the beginning of licensing year for all such Authorisations redeemed
in preceding licensing year. In this verification process, in case it is
found that Authorisation holder has consumed lesser quantity of inputs
than imported,
Authorisation holder shall be liable to pay customs duty on unutilized
value of imported material, alongwith interest thereon as notified, or
effect additional export
within the EO period. However, for the customs duty component, the
authorisation holder has the option to furnish valid duty credit scrips
issued under Chapter 3 of FTP and DEPB. |
| Time Period For Depositing Fines Customs Duty, Etc. |
4.29 |
Customs duty with interest to be recovered from Authorisation holder on
account of regularisation or enforcement of BG LUT, shall be deposited by
Authorisation holder in relevant Head of Account of Customs Revenue i.e., “Major
Head 0037 - Customs and minor head 001- Import Duties” in prescribed T.R.
Challan within 30 days of demand raised by regional
customs authority and documentary evidence shall be produced to this effect to
RA / customs authority immediately. However, for the customs duty component, the
authorisation holder has the option to furnish valid duty credit scrips issued
under Chapter 3 of FTP and DEPB.
On receipt of such documentary evidence from Authorisation holder, RA shall
intimate details of recovery/ deposits made to Customs Authority at port of
registration under intimation to Joint Secretary (Drawback), Department of
Revenue, Ministry of Finance, Jeevan Deep Building, New Delhi.
Payment of amount of duty, interest and any dues for regularisation shall,
however, be without prejudice to any other action that may be taken by Customs
Authorities at any stage
under Customs Act, 1962. |
Maintenance of
Proper Accounts |
4.30 |
Every Advance Authorisation holder shall maintain a true and proper account
of consumption and utilisation of duty free imported / domestically procured
goods against each authorisation as prescribed in Appendix-23. These records are
required to be sent to the concerned RA at the beginning of each licensing year
for all those authorisations, which have been redeemed in previous licencing
year. However, these records in said format are required to be submitted for
authorisations issued on or after 13-05-2005. Such records should be preserved
for a period of at least three years from date of redemption. |
Consideration of
cases against lost
EP copy of the
Shipping Bills and /
or Bank Realisation
Certificate
|
4.30A |
In case where Original EP copy of Shipping Bill / original BRC has
been lost, request for EODC, "No BG / LUT condition" under Advance
Authorisation / DFIA scheme or endorsement of transferability under DFIA
scheme can be considered, subject to submission of following documents
in lieu of those original documents:
a) A duplicate / Customs Certified / Self-attested copy of the shipping
Bill in lieu of the original; Duplicate / Bank certified copy of BRC in
lieu of original;
b) An application fee equivalent to 1% of duty saved amount. However, no
fee shall be charged when such document is lost by Government agencies
and a documentary proof to this effect is submitted;
c) An affidavit by exporter about loss of document and an undertaking to
surrender it immediately to concerned RA, if found subsequently;
d) An indemnity bond by exporter to the effect that he would indemnify
Government for financial loss, if any, on account of duty free import
entitlement availed /allowed against lost Shipping Bills / BRC. Customs
Authority, before allowing redemption of BG / LUT or
clearance after endorsement of “No BG / LUT condition” or endorsement of
transferability, shall verify the genuineness of such shipping bill (s)
and ensure that no double benefit against such shipping bill has been
availed. This specific condition shall be endorsed by RA concerned on
the EODC.
|
DUTY FREE IMPORT
AUTHORISATION (DFIA) SCHEME
|
Duty Free Import
Authorisation (DFIA)
Scheme |
4.31
|
Policy relating to the Duty Free Import Authorisation (DFIA) Scheme
is prescribed in Chapter 4 of FTP. |
| Application |
4.32 |
An application in ANF 4H along with documents therein, shall be
submitted to RA concerned. |
| |
4.32.1 |
Guidelines as in paragraph 4.4.1 and 4.4.3 above would be adhered
to. |
| |
4.32.3 |
However in respect of following items, exporter shall be required to
give declaration with regard to technical characteristics, quality and
specification in shipping bill. RA while issuing DFIA shall mention
technical characteristics,quality and specification in respect of such
inputs:
Alloy steel including Stainless Steel, Copper Alloy, Synthetic Rubber,
Bearings, Solvent, Perfumes/ Essential Oil/ Aromatic Chemicals,
Surfacatants, Relevant Fabrics, Marble, Articles made of polypropylene,
Articles made of Paper and Paper Board, Insecticides, Lead Ingots, Zinc
Ingots, Citric Acid, Relevant Glass fibre reinforcement (Glass fibre,
Chopped / Stranded Mat, Roving Woven Surfacing Mat), Relevant Synthetic
Resin (unsaturated polyester resin, Epoxy Resin, Vinyl Ester Resin,
Hydroxy Ethyl Cellulose), Lining Material. |
Facility for Split
DFIA |
4.32.4 |
Split Authorisations of DFIA subject to a minimum of CIF value of
Rs. 10 lakhs each and multiples thereof may also be issued, on request
at the time of seeking transferability. A fee of Rs. 1000/- each shall
be paid for each split authorization.
Split-up DFIAs shall be permitted with same Port of Registration as
appearing on the original DFIA. |
| |
4.33 |
Provisions of paragraphs 4.6, 4.11, 4.12, 4.12.1, 4.18, 4.19, 4.21,
4.22, 4.23, 4.24, 4.26 and 4.28 of this Handbook shall also be
applicable for DFIA Scheme. |
DFIA for
applicants
with multiple
units |
4.34 |
Transfer of any duty free material imported or procured against
actual user DFIA shall be governed by provisions of paragraph 4.5 above. |
Re-export of
goods imported
under DFIA Scheme |
4.35 |
Goods imported against transferable DFIA, which are found defective
or unfit for use, may be re-exported, as per DoR guidelines. In such
cases 95% of CIF value debited against DFIA for export of such goods,
shall be generated by concerned Commissioner of Customs as an
Authorisation, containing amount generated and the details of original
DFIA.Based on the certificate, a fresh DFIA shall be issued
by concerned RA.Fresh DFIA, so issued, shall have same port of
registration and shall be valid for a period equivalent to balance
period available on date of import of such defective/ unfit goods. |
Fulfillment of Export
Obligation and
maintenance of
proper accounts
of imports |
4.36 |
Provision of paragraph 4.25 above shall apply.Original DFIA holder
shall maintain a true and proper account of consumption and utilisation
of duty free imported / domestically procured goods against each
authorisation as as prescribed in Appendix-23. These records are
required to be sent to concerned RA along with request for bond waiver
/redemption / discharge of export obligation/ transferability. Such
records should be preserved for a period of at least three years from
date of redemption. |
Transferability
of DFIA |
4.36A |
Once export obligation is fulfilled and required documents as
stipulated in Paragraph 4.36 above have been furnished, RA shall make
authorisation transferable subject to conditions
stipulated for this scheme including an endorsement on the authorisation
itself as to liability of additional customs duty / excise duty in
respect of imported / indigenously procured inputs, as the case may be,
which have already been imported under Actual User DFIA and are sought
to be transferred after fulfillment of E.O. DFIA holder shall deposit
additional customs duty / excise duty alongwith applicable interest as
per Customs Notification in relevant Head of Account of Customs Revenue
i.e., “Major Head 0037 – Customs and Minor Head 001 – Import Duties” in
prescribed T.R. Challan and furnish a documentary evidence to RA
alongwith the application for endorsement of transferability. |
DUTY ENTITLEMENT PASSBOOK (DEPB) SCHEMES
|
| Duty Entitlement Passbook (DEPB) Scheme |
4.37 |
Policy relating to Duty Entitlement Passbook (DEPB) Scheme is given
in Chapter-4 of FTP. Duty credit under the scheme shall be calculated by
taking into account deemed import content of said export product as per
SION. Value addition achieved by export of such product shall also be
taken into account while determining the rate of duty credit under the
scheme. |
| Fixation of DEPB Rate |
4.38 |
ANF 4C prescribes form regarding fixation of DEPB rates. All
applications for fixation of DEPB rates shall be routed through
concerned EPCs which shall verify the FOB value of exports as well as
international price of inputs covered under SION. |
Provisional
DEPB Rate |
4.38A |
To encourage diversification and to promote export of new products,
DEPB Committee would be empowered to notify provisional DEPB rates.
However, such DEPB rates would be valid for a limited period of time
during which exporter would furnish data on export and import for
regular fixation of rates. |
Exports in anticipation
of DEPB Rate |
4.39 |
No exports shall be allowed under DEPB scheme unless rate of
concerned export product is notified.. |
| Port of Registration |
4.40 |
Exports/imports made from specified Sea Ports, Airports, ICD & LCSs
given in paragraph 4.19 above and made to any Special Economic Zone
(SEZ), notified by Central Government, are entitled to DEPB. |
| |
4.40.1 |
DEPB shall be issued with single port of registration, which will be the
port from where exports have been effected. |
| Maintenance of Record |
4.40.2 |
Each Custom House at ports shall maintain a separate record of
details of exports made under DEPB. |
| Credit under DEPB and Present Market Value |
4.41
|
In respect of products where rate of credit entitlement under DEPB
Scheme comes to 10% or more, amount of credit against each such export
product shall not exceed 50% of Present Market Value (PMV) of export
product. During export, exporter shall declare on shipping bill that
benefit under DEPB Scheme would not exceed 50% of PMV of export product.
However PMV declaration shall not be applicable for products for which
value cap exists irrespective of DEPB rate of product. |
| Utilization of DEPB credit |
4.42 |
As notified in FTP. |
| Application for DEPB |
4.43 |
An application for grant of credit under DEPB may be made to RA
concerned in ANF 4G alongwith prescribed documents. Agency commission
shall be allowed for DEPB entitlement
upto 12.5% of FOB value only. FOB value in free foreign exchange shall
be converted into Indian rupees as per exchange rate for exports,
notified by Ministry of Finance, as applicable on the date of order of
“Let Export” by Customs. |
| |
4.43A |
In respect of consignment exports wherein exporter has declared FOB
value on a provisional basis, exporter shall be eligible for final
assessment of such shipping bill based on actual FOB realised upon sale
of such goods in freely convertible currency. |
| 4.43B |
An application for grant of credit for supplies from DTA to SEZ can
be made by DTA unit or SEZ unit. DTA unit may claim benefits either from
RA or Development Commissioner concerned. In case claims have been filed
with RA, RA while allowing benefits to the DTA unit will simultaneously
endorse a copy of communication to concerned Development Commissioner
alongwith details of export documents . In case DTA supplier prefers
claim with Development Commissioner, the Development Commissioner will
verify Denied Entity List
(DEL) status of supplier from DGFT website before allowing DEPB
benefits. SEZ unit will file application with Development Commissioner
concerned in ANF 4G along with prescribed
documents. |
| 4.44 |
DEPB shall be issued with transferable endorsement. |
| Monitoring
of Realisation |
4.45 |
RA shall monitor all such cases wherein the Scrip(s) has been issued
without Bank Realisation Certificate(BRC) and ensure that the BRC is
submitted within 12 months from the date of issuance of the Scrip. In
case no RBI extension is produced, RA shall initiate action for recovery
of the same. In such cases, DEPB holder (the original applicant) shall
deposit in cash or through debit of the valid DEPB / adjustment of
pending DEPB claim for an amount equivalent to the Duty Free Credit
allowed. If amount realized in Free Foreign Exchange is less, then
payable amount would be reduced proportionately. However, if the DEPB
holder does not pay the amount within 60 days of the expiry of the 12
months time period from the date of issue of the Scrip, he shall be
required to pay the said amount along with 15% interest per annum from
the date of issuance of Scrip(s) for the Duty Credit for which BRC or
Documentary evidence (evidencing realisation of export proceeds as
required under FTP or the Procedure laid thereunder) could not be
produced by the DEPB holder. In case he surrenders the unutilized /
partially unutilized Duty Credit Scrip, then unutilized/ partially
unutilized Credit shall be deducted from the payable amount.
In case of Cash Payment, the same shall be deposited in the Head of
Account of Customs as stated in paragraph 4.29 above.
|
| Time Period |
4.46 |
Application for obtaining credit shall be filed within a period of
twelve months from the date of exports or the date of up linking of EDI
shipping bill details in the DGFT website, or within three months from
the date of printing / release of shipping bill, whichever is later, in
respect of shipments for which claim has been filed.
However, in case the application is filed along with BRC, the time
period for filing shall be within a period of twelve months from the
date of exports or six months from the date of realisation of export
proceeds or the date of up-linking of EDI shipping bill details in the
DGFT website or within three months from the date of printing / release
of shipping bill, whichever is
later, in respect of shipments for which claim has been filed.
In case the FOB realisation in free foreign exchange is higher as per
BRC than the FOB value in the shipping bill(s) on which original DEPB
was issued, supplementary claim shall be filed within a period of six
months from the date of realisation, in respect of shipments for which
claim has been filed.
|
| |
4.47 |
Wherever provisional shipment has been allowed by customs
authorities, DEPB against such exports shall be issued only after
release of shipping bill by Customs. In such cases, application for DEPB
shall be filed within six months from date of release of such shipping
bill. |
| Frequency of Application |
4.48 |
All shipping bills in any one application must relate to exports
made from one Custom House only. There is no limit on number of shipping
bills which can be filed through EDI mode in a single application. |
Verification
by Customs |
4.49 |
In case of EDI shipping bills before 1.10.2005 and non-EDI shipping
bills, RA shall ensure that while issuing DEPB, Shipping Bill No(s) and
date(s), FOB value in Indian Rupees as per Shipping Bill(s) and
description of export product are endorsed on DEPB. Before allowing
imports against such DEPB, Customs shall verify that details of exports,
as given on DEPB, are as per their records. However, in case of EDI
shipping bills issued on or after 1-10-2005 from EDI ports which are
being transmitted electronically by Customs to DGFT, DEPBs issued shall
be sent to Customs at port of registration through an electronic message
exchange system and DEPB shall be registered at port of registration
electronically. No verification of shipping bills against which such
DEPBs have been issued, will be required before allowing imports against
these DEPBs. |
| Revalidation |
4.50 |
No revalidation shall be granted beyond original period of validity
of DEPB unless covered under paragraph 2.13.1 and paragraph 2.13.2 of
HBP v1. |
| Re-export of goods
imported under DEPB Scheme |
4.51 |
Goods imported under DEPB scheme, which are found defective or unfit
for use, may be re-exported, as per guidelines given in paragraph 3.11.6
of HBP v1. |
| Issuance of DEPB and other duty credit certificates against lost
EP copy of the
Shipping Bills |
4.52 |
In case where EP copy of Shipping Bill has been lost,DEPB and other duty
credit certificates, claim can be considered subject to submission of following
documents:-
a) A duplicate / certified copy of Shipping Bill issued by Customs authority in
lieu of original;
b) An application fee equivalent to 2% of the DEPB or other duty credit
entitlement in respect of lost Shipping Bills. However, no fee shall be charged
when Shipping
Bill is lost by Government agencies and a documentary proof to this effect is
submitted;
c) An affidavit by exporter about loss of Shipping Bills and an undertaking to
surrender it immediately to concerned RA, if found subsequently; and
d) An indemnity bond by exporter to the effect that he would indemnify
Government for financial loss if any on account of DEPB or other duty credit
certificate issued against lost Shipping Bills.
Customs authority, before allowing clearance, shall ensure that no DEPB benefit
has been availed against same shipping bill. |
| |
4.52.1 |
Claim against lost Shipping Bill shall be preferred within a period
of six months from date of release of duplicate copy of shipping bill
and any application received thereafter will be rejected. This is
subject to the condition that the request for duplicate copy of Shipping
Bill to Customs Authority was filed within the time period similar to
that mentioned in paragraph 4.46 above. However, if a provisionally
assessed DEPB shipping bill is lost, time period for filing an
application for DEPB would be six months from the date of release of the
finally assessed shipping bill. |
| Loss Of Original Bank Certificate |
4.53 |
In such cases where original Bank Realisation Certificate (BRC) has
been lost, the DEPB claim can be considered subject to submission of
following documents:
a) A duplicate copy of BRC issued by bank authority in lieu of original
loss;
b) An application fee equivalent to 2% of the DEPB entitlement in
respect of lost BRC;
c) An affidavit by exporter about loss of BRC and an undertaking to
surrender it immediately to RA, if found subsequently;
d) An indemnity bond by exporter to the effect that he would indemnify
Government for financial loss, if any, on account of DEPB issued against
lost BRC.
Claim against lost BRC shall be preferred within a period of six months
from date of realisation and application received thereafter will be
rejected.
In such cases, where both documents have been lost, exporter shall
follow procedure laid down in paragraph 4.52 and 4.53.
Time period for such application shall be as per paragraph 4.52 and
4.53, whichever is later.
Late cut provision stated in paragraph 9.3 shall be applicable. |
GEMS AND - JEWELLERY
|
| |
4A |
Policy relating to Gem Replenishment Authorisation, and scheme for
gold/ silver/platinum jewellery is given in paragraph 4A of FTP. |
| Replenishment Authorisation |
4A.1 |
An application for REP Authorisation may be made in ANF 4I alongwith
documents prescribed therein to RA concerned as in Appendix-1A. |
| |
4A.1.1 |
Application shall be filed within six months following the month
during which the export proceeds are realised. For export proceeds
realised during the month, consolidated application for entire month
shall be filed. |
| 4A.1.2 |
In case where payment is received in advance and exports take place
subsequently, application for REP Authorisation shall be filed within
six months following the month during which exports are made. |
| 4A.1.3 |
For purpose of clarity, it is again reiterated that the month in
which the export has been made in case of advance payment and the month
in which export proceeds have been realised in part or full after making
of exports, shall be excluded while calculating period of six months for
filing of application for REP Authorisation. |
| Wastage Norms |
4A.2 |
Wastage or manufacturing loss on gold/silver/ platinum jewellery and
articles thereof is as follows:
| Sl No. |
Item of exports
|
Percentage of wastage by weight with reference to
Gold/ Platinum/ Silver content in export item |
| |
Gold/ Platinum |
Silver |
| a |
Plain jewellery and articles and
ornaments like Mangalsutra
containing gold and black beads/
imitation stones, cubic zirconia
diamonds, precious, semiprecious
stones. |
3.5% |
4.5% |
| b |
Studded jewellery and articles
thereof |
7.0% |
7.0% |
| c |
Mountings and findings
manufactured (by non-mechanised
process) indigeneously |
3.5% |
4.5% |
| d |
Any jewellery/articles
manufactured by a fully
mechanised process and unstudded. |
1.25% |
1.25% |
| e |
Mountings, whether imported or
indigenously procured/
manufactured, used in studded
jewellery |
2.5% |
2.5% |
| f |
Gold/silver/platinum medallions
and coins (excluding coins of
nature of legal tender) |
0.25% |
0.25% |
| g |
Findings and mountings
manufactured by mechanized
process |
1.25% |
1.25% |
|
| |
|
|
| Value Additions |
4A.2.1 |
Under scheme for export of jewellery, value addition shall be
calculated as per paragraph 4A.6 of FTP. Minimum value addition shall
be:
| S.No. |
Item of Export |
Minimum Value Addition |
|
| a) |
Plain gold/platinum /silver jewellery and Articles and ornaments
like Mangalsutra containing gold and black beads/imitation stones,
except in studded form of jewellery. |
3% |
|
| b) |
All types of Studded gold/ platinum/ silver Jewellery and articles
thereof. |
5% |
|
| c) |
Any jewellery/ articles manufactured by fully mechanised process. |
1.5% |
|
| d) |
Gold/ silver/ platinum medallions & coins (excluding coins of the
nature of legal tender) |
1.5% |
|
| e) |
Gold/ silver/ platinum findings/ mountings
manufactured by mechanised process |
2.25% |
|
|
|
4A.2.2 |
Entitlement of quantity of gold / silver / platinum against the
export shall be quantity of gold / silver / platinum in item of export
plus admissible wastage / manufacturing loss. |
Loss of Gem
and Jewellery |
4A.3 |
Consignments of gem and jewellery items exported out of country and
lost in transit after exports, where foreign exchange against such
exports has been realised or insurance claims settled, will also be
eligible for REP Authorisation. |
| Gem & Jewellery Replenishment Authorisations |
4A.4
|
Gem REP Authorisations shall be valid for import of precious stones,
semi-precious and synthetic stones and pearls. In addition,
Authorisation shall also be valid for import of empty jewellery boxes
upto 5% of value of Authorisation within its overall CIF value. Gem REP
Authorisations issued against export of studded gold / silver / platinum
jewellery articles, shall also be valid for import of cut and polished
precious semi-precious stones other than emerald upto 10% of CIF value
of Authorisation within its overall CIF value. |
| |
4A.4.1 |
Gem REP Authorisation are available as per scale given in
Appendix-12B. |
| Filing of Application |
4A.4.2 |
(i) An application for Gem Rep Authorisation may be given to RA
concerned as given in Appendix-1A in the form given in Appendix-22-F
alongwith prescribed documents.
(ii) In case E.P Copy of Shipping Bill and Customs attested invoice is
submitted to nominated agencies, exporter shall furnish a self certified
photo copy of same along with a certificate from nominated agencies
certifying carat/value of studdings in case of studded jewellery and
excess value addition achieved in case of plain jewellery and articles.
(iii) Provision of paragraph 4A.1.1 to 4A.1.4 will also be applicable
for Gem Rep Authorisations. |
| Agency Commission |
4A.5 |
Exporter availing scheme of gold / silver / platinum jewellery are
allowed to pay agency commission. Value addition shall be calculated
after deducting agency commission. |
Endorsement on
shipping Bill
and Invoice |
4A.6 |
During export of jewellery, shipping bill and invoice presented to
customs authorities shall contain description of item, its purity,
weight of gold/ silver/ platinum content, wastage claimed thereon, total
weight of gold/ silver/ platinum content plus wastage claimed and its
equivalent quantity in terms of 0.995/ 0.999 fineness for gold/ silver
and in terms of 0.9999 fineness for platinum and its value, fob value of
exports and value addition achieved. If purity of gold/silver/platinum
used is same in respect of all or some of items made out from each of
these metals for export, exporter may give total weight of gold/silver/
platinum and other details of such similar items which are of same
purity. In case of studded items, shipping bill shall also contain
description, weight and value of precious/ semiprecious stones/diamonds/
pearls used in manufacture, and
weight / value of any other precious metal used for alloying
gold/silver. |
| Conditions of Exports |
4A.7 |
Exports shall be allowed by customs authorities provided endorsement
made on shipping bill and invoice are correct and value addition
achieved is not below minimum prescribed
in FTP. |
| Proof of Exports |
4A.8 |
Exporter has to furnish the proof of exports, wherever required for
export of gold / silver / platinum jewellery and articles thereof,by
furnishing following documents:
(a) E.P copy of the shipping bill;
(b) Customs attested invoice;
(c) Bank certificate of realisation in Appendix 22A.
In case of Personal carriage of jewellery by foreign buyer, following
documents should be submitted by the exporter/seller
as proof of exports for claiming export entitlements:
(a) Copy of shipping bill filed by Indian Seller;
(b) A copy of Currency Declaration Form filed by Foreign Buyer with
Customs at the time of his arrival; and
(c) Foreign Exchange Encashment Certificate from Bank.In addition to
this, Personal Carriage on Documents Against Acceptance (DA)/ Cash On
Delivery (COD) basis is also allowed. Exporter will have to furnish
following documents as proof of exports for claiming
export entitlements:
(i) Copy of Shipping Bill filed by Indian Seller; and
(ii) Bank Certificate of Export and Realisation
Instructions issued by Customs Department in this regard should be
followed mutatis mutandis. |
Conversion of
Purity/Fineness |
4A.9 |
For conversion of quantity of gold/ silver/platinum in terms of
equivalent quantity in terms of fineness, following formula shall be
used:
(i) Where items of gold has been exported in terms of carats, quantity
of gold shall be multiplied by number of carat of gold exported, divided
by 24 and thereafter again divided by 0.995/0.999/0.900 to arrive at
equivalent quantity of gold in terms of fineness of 0.995/ 0.999/0.900
respectively; and
(ii) Wherever purity of item of export is expressed in terms of
fineness, the quantity of gold/silver/platinum shall be multiplied by
fineness of gold/silver/platinum exported and thereafter divided by
0.995 / 0.999 / 0.900 to arrive at equivalent quantity of gold/
silver/platinum in terms of 0.995 / 0.999 / 0.900 fineness
respectively’. |
| Release of Gold/Gold / silver / platinum
by Nominated Agencies |
4A.10 |
Gold / silver / platinum shall be released to exporter of jewellery
by nominated agencies/RBI authorised banks in multiples of 10 gms or in
Ten Tola Bars in respect of golds. However, silver shall be released to
exporters in multiples of 1 Kg only.Any balance of gold/ silver/
platinum shall be available to exporter along with his future
entitlement. Gold/ silver shall be released by the nominated agencies in
terms of 0.995 fineness or more and platinum in terms of 0.900 fineness
or more. |
| Terms of payment |
4A.11 |
Export of gold / silver / platinum jewellery and articles thereof
shall be against irrevocable letter of credit, payment of cash on
delivery basis, Documents Against Acceptance or advance payment in
foreign exchange. |
| Port of Export |
4A.12
|
Exports under schemes of gold /silver/platinum jewellery and
articles thereof shall be allowed by airfreight and Foreign Post Office
through the Customs House at Mumbai, Calcutta, Chennai, Cochin, Delhi,
Jaipur, Bangalore, Kochi, Coimbatore, Ahmedabad, Dabolin Airport, Goa,
Hyderabad and Surat (Surat Hira Bourse). Export by courier shall also be
allowed through Custom Houses at Mumbai, Calcutta, Chennai, Cochin,
Coimbatore, Delhi, Jaipur, Bangalore, Ahmedabad and Hyderabad upto FOB
value of Rs.20 lakhs per consignment. |
| Export by Post |
4A.13 |
Policy for export of gems and jewellery parcel by post is in
paragraph 4A.16 of FTP. At the time of exports, exporter shall submit
following documents:
(i) Shipping bills or invoice presented at foreign Post Office;
(ii) Certificate from nominated agencies indicating price at which gold/
silver/platinum was booked or given on outright sale basis or loan
basis;
(iii) Three copies of invoice. |
Import of Diamonds
for Certification/
Grading & re-export |
4A.14 |
This facility has been stated in Paragraph 4A.2 of FTP. At the time
of imports of diamonds, the bill of entry shall have the detailed
description, including the dimensions /specifications of the diamonds.
At the time of re-export after grading/ certification, the Bill of entry
details should be endorsed in the shipping bill, so far as the
dimensions and other specifications/ details of the diamonds are
concerned, so as to establish a clear correlation between the imported
diamonds and the diamonds being re-exported. In addition, a separate
self certificate shall be attached by GIA (or any other approved agency)
along with the shipping bill at the time of shipment, for matching of
the imports to that of the exports as per the documents and GIA (or any
other approved agency) certificate.
GIA (or any other agency approved in this regard) shall obtain GR waiver
as per the procedure laid down by RBI, in all such cases.
Re-export of the imported diamonds shall be completed within a maximum
time period of 3 months from the date of import(s). At the time of
import, the agency shall give an undertaking to the customs to this
effect. GIA (or any other agency approved in this regard) shall furnish
a quarterly report to the customs authority at the port of import by
25th of the month, succeeding the end of the quarterly period, to ensure
that the exports are effected within the stipulated time period. |
Export Against
Supply By
Foreign Buyer |
4A.15
|
Before clearance of each consignment of import supplied by foreign
buyer, nominated agency shall execute a bond with Customs, undertaking
to export within stipulated period in contract, gold/silver/platinum
jewellery or articles equivalent to entire import quantity of
gold/silver/platinum, mountings and findings etc excluding admissible
wastage.
In case of direct supply of gold/silver/platinum, alloys, findings and
mountings of gold/silver/platinum and plain semi-finished
gold/silver/platinum jewellery to status holder/ exporter, Status
Holder/exporter shall furnish a Bank Guarantee/LUT, as per
Customs Rules and regualtions to Customs equivalent to Customs Duty
leviable on imported gold/ silver/ platinum, alloys, findings and
mountings of gold/ silver/ platinum and plain semi-finished gold/
silver/ platinum jewellery etc.
BG /LUT, executed with Customs shall be valid for one year. In case of
direct supply to Status Holder/exporter, exports shall be completed
within 90 days. In case of non-fulfillment of EO / non-achievement of
stipulated value addition, Customs Department shall proceed to recover
custom duty alongwith interest which may include enforcement of BG /LUT.
Besides importer will be liable to penal action under Customs Act. |
|
4A.15.1 |
Nominated agency/Status Holder/exporter shall be liable to pay
customs duty leviable on that quantity which is proved to have been not
exported. |
|
4A.15.2 |
Goods shall be cleared through Customs by nominated agency/Status
Holder/exporter. Even where export order is received by an Associate,
goods shall be cleared through Customs by
nominated agency only and not Associate. Associate shall, in such cases,
authorise nominated agency to act as its agent to file Bill of Entry and
shipping bill. |
|
4A.15.3 |
At time of export, shipping bill presented to Customs shall also
contain the following:
(i) Name and address of associate/Status Holder/exporter;
(ii) An endorsement by nominated agency that export is made against an
order received by concerned associate, its date of registration with
nominated agency. In case of exports by Status Holder/exporter, a Self
Declaration shall be provided to this effect;
(iii) Name of Customs House through which gold/ silver/platinum/plain
semi-finished gold/ silver/ platinum jewellery was imported and
corresponding Bill of Entry No. and date and date of import.
|
|
4A.15.4 |
Each shipping bill shall be valid for exports only through Customs
House located at the place where office of nominated agency/Status
Holder/ exporter concerned is situated. It shall be valid for shipment
for a period of seven days including the date on which endorsement was
made by nominated agency in case of exports through nominated agency. If
exports cannot be made within this period, exporter shall file a fresh
shipping bill. |
|
4A.15.5 |
At the time of export, exporter shall submit following documents:
(i) Shipping bill with two extra copies where exports are made from a
Customs House other than Customs House through which corresponding
import of gold/ silver/ platinum/plain semi-finished gold/silver/
platinum jewellery was effected. In other cases, shipping bill with an
extra copy;
(ii) Three copies of invoice;
(iii) Certificate from nominated agency indicating quantity and value of
items supplied by foreign buyer. |
|
4A.15.6 |
Customs authorities shall return two copies of shipping bill and
connected invoice duly attested. One copy shall be sent to person who
presented documents and the other copy shall be sent by Customs to
office of nominated agency/Status holder/ exporter.
|
|
4A.15.7 |
In case of exports through nominated agency, exporter shall submit
proof of exports to nominated agency within 15 days of exports, who
shall, after verifying documents, release admissible quantity of the
gold/ silver/ platinum etc. to exporter. |
|
4A.15.8 |
Exporter may also obtain, in advance, gold/ silver/ platinum etc.
supplied by foreign buyer by furnishing a BG /LUT for an amount equal to
international price of such items plus customs duty payable thereon. BG
/LUT shall be redeemed only when the exporter has furnished proof of
exports to nominated agency and accounted for the use of items supplied
in advance in export product.
|
|
4A.15.9 |
For redemption of bond/ BG /LUT executed with Customs,nominated
agency/Status Holder/exporter shall furnish a statement indicating
items, its quantity and value supplied by foreign buyer, corresponding
Bill of Entry number and date, number of each of shipping bills against
which corresponding exports was made. |
Maintenance of
Accounts |
4A.16 |
Nominated agency shall maintain complete account,consignment-wise,
of the gold, silver, platinum, mountings, findings/ plain semi-finished
gold/silver/ platinum jewellery etc. imported for execution of each
export order, exports effected and quantity of gold, silver, platinum
mountings, findings etc. released against such exports. For direct
exports, similar accounts shall also be maintained by Status Holder.
Such accounts shall be maintained for a minimum period of three years
from date of exports. |
Export Through
Exhibitions /Export
Promotion Tours /
Export of Branded
Jewellery |
4A.17
|
Nominated agencies shall produce to Customs Authorities letter in
original or its certified copy, containing Government’s approval for
holding exhibition/export of branded jewellery.
Any other person shall produce to Asst. Commissioner, customs letter in
original or its certified copy containing GJEPC’s approval for holding
exhibitions/ export promotion tour/export of branded jewellery.
In case of re-import, such items, on arrival, shall be verified
alongwith export documents before clearance. |
|
4A.18 |
(a) Exports under this scheme shall be subject to following conditions
for following modes of export:
(i) Export of Gems and Jewellery for holding/ participating in overseas
exhibition.Exports under this scheme shall be subject to the following
conditions:Items not sold abroad shall be reimported within 60 days of
close of exhibition.
However in case exporter is participating in more than one exhibition
within 45 days of close of first exhibition, then 60 days shall be
counted from date of close of last exhibition. . In case of exhibition
in USA, the time period shall be 90 days instead of 60 days mentioned
above. In case of personal carriage of gems and jewellery for holding
/participating in overseas exhibitions, value of such gems and jewellery
shall not exceed US $ 5 million. Gold/ silver/ platinum content on items
sold in such exhibitions may be imported
as replenishment. Exporter shall take replenishment from nominated
agency within 120 days from the close of the exhibition gold
/silver/platinum for replenishment content against items sold abroad in
exhibition.
(ii) Personal Carriage of gems & jewellery or export through
airfreight/post parcel route for Export Promotion Tours/photo
shoots/fashion shows overseas.Personal carriage/export through
airfreight/post parcel route of gold/silver/ platinum jewellery, cut and
polished diamonds, precious, semi-precious stones, beads and articles as
samples upto US$ 1 Million for export promotion tours/photo
shoots/fashion shows and temporary display/ sale abroad is also
permitted with approval of Gem & Jewellery EPC subject to the condition
that promoter would bring back jewellery / goods or repatriate sale
proceeds within 45 days from date of departure through normal banking
channel. In case of personal carriage for export promotion tours,
exporter shall declare personal carriage of such samples to Customs
while leaving country and obtain necessary endorsement on Export
Certificate issued by Jewellery Appraiser of Customs. In such cases
exporter shall book with nominated agency, within 120 days after export
promotion tour or expiry of stipulated period of 45 days, whichever is
earlier, gold/silver/platinum for replenishment content against items
sold abroad.
(iii) Export of branded jewellery.Export of branded jewellery is also
permitted with approval of Gem & Jewellery EPC for display/sale in
permitted shops set up abroad or in showroom of their distributors/
agents. Items not sold abroad within 365 days shall be re-imported.
Exporter shall book with nominated agency within 120 days after the end
of stipulated period of 365 days, gold/silver/platinum for replenishment
content against items sold abroad.
(b) Following documents shall be submitted for claiming such
replenishment:
(i) Customs attested invoice;
(ii) Copy of the approval letter issued by Government/GJEPC;
(iii) Certificate from nominated agency/ GJEPC as in Appendix-22F.
(c) In case of exhibitions organised by nominated agencies, gold/silver/
platinum shall be imported as replenishment by nominated agencies within
60 days from close of exhibition
|
|
4A.19 |
Nominated agencies shall maintain a complete account of exports
made, goods sold abroad, goods re-imported, and metals purchased abroad
and imported into India. Such account
shall be maintained for a minimum period of three years from date of
close of exhibition. |
Export Against
Supply By Nominated
Agencies |
4A.20 |
Exporter may obtain gold/silver/ platinum on following basis:-
(i) Replenishment basis after completion of exports;
(ii) Outright purchase basis in advance;
(iii) Loan basis. |
| Replenishment Basis |
4A.21 |
Exporter may apply to nominated agency for booking of precious metal
gold/silver/platinum. Quantity of precious metal booked with nominated
agency shall be equivalent to precious metal content in the export
product and admissible wastage. |
|
4A.21.1 |
Applicant shall at the time of booking deposit an earnest money for
a minimum amount of 20% of notional price of precious metal, which shall
be adjusted at actual sale. |
|
4A.21.2 |
Exporter may also export jewellery on a notional rate based on
certificate provided by Bank. Exporter must fix price within credit
terms allowed to buyer and realise proceeds within the due date of the
credit terms or 180 days, whichever is earlier. Exporter exporting on a
notional basis under Replenishment Scheme must book the same quantity of
gold with Nominated Agency on same rate that he may have booked with
buyer. Nominated agencies shall purchase precious metal on behalf of
exporter at the rate so fixed and thereafter issue a purchase
certificate bearing a serial number to exporter indicating quantity of
gold/ silver/platinum and CIF value, in dollars including the Rupee
equivalent. Price shall be actual price at which gold/ silver/platinum
is purchased by nominated agencies plus permitted service charges levied
by nominated agencies shall be included with the price of gold/ silver/
platinum for value addition. Duplicate and triplicate copies of
exporter’s application together with copies of purchase certificate for
exporter shall be sent by nominated agencies to concerned Custom House
as well as to the negotiating bank who will confirm realization at which
gold has been purchased. Exporter exporting under notional rate will get
replenishment only after proceeds are realised.
|
|
4A.21.3 |
Exports shall be effected within a period of 120 days from date of
booking and drawal of precious metal shall be completed within a period
of 150 days from date of booking or within 30 days from date of export
whichever is later. |
Outright Purchase
Basis in Advance |
4A.22 |
Exporter may obtain required quantity of precious metal in advance
on outright purchase basis subject to furnishing of BG / LUT to
nominated agencies for an amount as may be prescribed by nominated
agency. On failure to effect exports within period prescribed, the
nominated agencies shall enforce BG / LUT, as the case may be. |
|
4A.22.1 |
Exports shall be effected within a maximum period of 90 days from
date of outright purchase of precious metal. |
| Loan Basis |
4A.23 |
Exporter may obtain required quantity of precious metal on loan
basis subject to furnishing of BG / LUT, for customs duty to nominated
agencies for an amount as may be prescribed by nominated agencies. On
failure to effect exports within the period prescribed, the nominated
agencies shall enforce the BG / LUT. |
|
4A.23.1 |
Exporter has to pay interest on gold taken on loan basis at the rate
as may be specified. |
|
4A.23.2 |
Export has to be completed within a maximum period of 90 days from
date of release of gold on loan basis. No extension for fulfillment of
EO shall be allowed. |
|
4A.23.3 |
Exporter shall be permitted to export jewellery on the basis of a
notional rate certificate to be issued by nominated agency / GJEPC. This
rate will be based on prevailing Gold/US$ rate and the US$/INR rate in
notional rate certificate. Certificate issued by nominated agency/GJEPC
should not be older than 7 working days of date of shipment. Value
addition will have to be achieved on rate as may be got fixed with buyer
and Nominated Agency.Exporter shall have flexibility to fix the price
and repay Gold Loan within 180 days from date of export. This price
shall be communicated to nominated agencies who will issue a certificate
showing final confirmation of the rate to the bank negotiating
documents, to ensure export proceeds are realized at this rate. |
|
4A.24 |
Nominated agencies may accept payment in dollars towards cost of
import of precious metal from EEFC account of exporter. |
Exports against
Advance
Authorisation |
4A.25 |
Procedure applicable to Advance Authorisations under Chapter-4 of
HBP v1 shall generally apply to this scheme except norms for value
addition, EO period and regularization of default. Value addition for
Gems and Jewellery items shall be as per paragraph 4A.2.1 of this
Handbook. |
|
4A.25.1 |
EO will be required to be fulfilled within 120 days from date of
import of each consignment against Authorisation. However EO period
shall be 180 days from date of import of findings, mountings made of
gold, platinum and silver and export of jewellery. No further extension
in EO period will be allowed. Advance Authorisation holder may also
import gold as replenishment after completion of exports.
|
|
4A.26 |
Advance Authorisation holder may obtain gold /silver / platinum from
nominated agencies in lieu of direct imports. In such a case, nominated
agency shall make, both exchange control copy and customs purpose copy
of Authorisation invalid for direct imports.
|
| Regularization of Bonafide Default |
4A.27 |
Cases of bonafide default in fulfillment of EO by an exporter who
has obtained precious metals from nominated agencies may be regularised
provided exporter has paid customs duty alongwith interest thereon as
notified by Customs. However, for the customs duty component, the
authorisation holder has the option to furnish valid duty credit scrips
issued under Chapter 3 of FTP and DEPB. Further, in case of Advance
Authorisation, the provisions as given in paragraph 4.28 above shall
apply. This shall be without prejudice to any action that may be taken
against exporter under FT(D&R) Act, Order or Rules issued thereunder. |
Replenishment
Authorisation for
Import of
Consumables etc. |
4A.28 |
A replenishment authorization for duty free import of consumables
and tools (as notified by Customs) for Jewellery made out of precious
metals (other than Gold & Platinum) equal to 2% and for Cut and Polished
Diamonds and Jewellery made out of Gold and Platinum equal to 1% of FOB
value of exports of the preceding year, may be issued on production of
Chartered Accountant Certificate indicating the export performance.
However, in case of Rhodium finished Silver jewellery, entitlement will
be 3% of FOB value of exports of
such jewellery. This Authorisation shall be non-transferable and subject
to actual user condition.
Application for import of consumables etc., as given above, may be made
to the concerned RA in ANF 4I. |
| Personal Carriage of Gems & Jewellery Export Parcels |
4A.29 |
Personal Carriage of gems & jewellery parcels by Foreign Bound
Passengers from all EOU/SEZ units and all firms in DTA through Airports
in Delhi, Mumbai, Kolkata, Chennai,Cochin, Coimbatore, Bangalore,
Hyderabad, Jaipur is permitted. Procedure for Personal Carriage of
exports shall be as prescribed by Customs. Export proceeds shall,
however, be realised through normal banking channel. For claiming
Replenishment in case of Personal Carriage of Exports by Foreign Bound
passenger, documents shall be same as mentioned under paragraph 4A.21.2
above. Authorised Courier Companies are also permitted to operate on the
above lines. |
| Personal Carriage of Gems & Jewellery Import Parcels |
4A.30 |
Personal carriage of gems & jewellery import parcels by an Indian
importer/ Foreign National may be permitted into all EOUs/SEZ units and
all firms in DTA through airports in Delhi, Mumbai, Kolkata, Chennai,
Bangalore, Hyderabad Jaipur.Procedure will be same as for import of
goods by air-freight except that parcels shall be brought to Customs by
Importer / Foreign National for examination and release. Clearance of
imports under this scheme shall be as per normal customs clearance
procedure. |
Duty free import of
samples |
4A.31 |
Duty free import of gems and jewellery samples upto Rs 3 lakhs or
0.25% of the average of last three years export turnover of gems and
jewellery items, whichever is lower, shall be allowed in a financial
year as per Customs notification. |
Re-import of
rejected jewellery |
4A.32 |
An exporter of plain/ studded precious metal
jewellery shall be allowed to re-import duty free jewellery rejected and
returned by buyer upto 2% of FOB value of exports in preceding licencing
year (based on CA certified copy of export of preceding year) with
refund of any duty exemption/refund/ replenishment benefit availed on
inputs used as per customs rules and regulations. |
|
|
4A.32.1 Deleted. |
Diamond & Jewellery
Dollar Accounts |
4A.33 |
Policy for Diamond and Jewellery Dollar Accounts is given in
paragraph 4A.17 of FTP. Detailed procedure for its operation will be
notified separately. |
Export of Diamond,
Gemstone & Jewellery
on consignment basis |
4A.34 |
Policy for export of diamond, gemstone and jewellery on consignment
basis is given in paragraph 4A.20 of FTP.
Detailed procedure in this regard shall be governed as per the relevant
Customs Rules & Regulations. Re-import of these items (either in
complete or partial lot) exported on consignment basis shall be subject
to condition that exporter follows prescribed provisions of relevant
customs notification to establish that goods are the same which were
exported. |