Foreign Trade Procedure 2015-20

CHAPTER 2

GENERAL PROVISIONS REGARDING EXPORTS AND IMPORTS

(Relevant Policy Chapter 2)

Policy relating to general provisions regarding exports and imports is given in Chapter-2 of FTP.

2.01 Coverage

This chapter covers procedure for various applications including their complete documentation. Procedure for applications for authorisations/ license/ permissions/ certificates for import/export and applications for benefits under FTP are spelt out.

2.02 Countries of Imports / Exports

Unless otherwise specifically provided, international trade (i.e. import into India and /or export from India) can take place from/to any country. Country specific prohibitions/limitations, if any, are specified in the FTP/ITC (HS).

Applications:

2.03 Filing of Application

(b) Applicants may ensure while submitting documents that documents are either in English or Hindi. Documents in regional languages may be got translated into English or Hindi and the translated copy may be self-certified and submitted along with the Original copy.

2.04 Territorial Jurisdiction of RA

Territorial jurisdiction of RAs is given in Appendix 1A of Appendices and Aayat Niryat Forms. The address of applicant determines the jurisdiction of RA. Each application, unless otherwise specified, shall be submitted to jurisdictional RA

2.05 Incomplete Application

(a) An incomplete or unauthorised application is liable to be rejected by the competent authority with specific reason for rejection. Such incomplete application may be re-opened on rectifying the deficiencies.

(b) If the deficiencies are not rectified by the applicant within a period of 90 days, the application will be deemed to have been withdrawn.

2.06 Application Fee

The scale of fee, mode of payment, procedure for refund of fee and categories of persons exempted from payment of fee are provided for in Appendix-2K.

Importer Exporter Code (IEC):

2.07 IEC Number Exempted Categories

2.08 Application for IEC

¹³[(d) RAs would conduct post-verification of online IECs as per the guidelines.]

2.09 IEC Format

An IEC will be issued in prescribed format (ANF 2(A) (II)). A copy of such IEC shall be endorsed to concerned banker (as per details given in ANF 2A). Such endorsement should ordinarily be done using emails.

2.10 Validity of IEC

An IEC allotted to an applicant shall have permanent validity unless cancelled by the competent authority. The IEC will cover all branches / divisions / units / factories of the applicant.

2.11 Validity of IEC for EOUs / SEZs

An IEC will remain valid irrespective of a firm’s status as a DTA unit or an EOU or a SEZ/ EHTP Electronic Hardware Technology Park/STP/BTP Biotechnology Park unit and the procedure to be followed in case a firm/unit is de-bonded and converted to DTA is as under:

(a) An unit which is an EOU or in SEZ/EHTP Electronic Hardware Technology Park/STP/BTP Biotechnology Park after de-bonding will not surrender the IEC obtained from its jurisdictional DC Development Commissioner, SEZ.

(b) The jurisdictional DC Development Commissioner, SEZ will send the original IEC file to concerned RA of DGFT after de-bonding.

(c) RA becomes the custodian of such file and will allow de-bonded unit to make necessary modification in IEC. 24

(d) The de-bonded unit to be eligible for benefits from the RA as per FTP.

2.12 One PAN-One IEC

Only one IEC shall be issued against a single PAN. Multiple IECs against a single PAN stands deactivated suo-motu after 31.03.2015.

2.13 Surrender of IEC

If an IEC holder does not wish to operate allotted IEC, he may surrender the same to the issuing authority. On receipt, the issuing authority shall immediately cancel the IEC and electronically transmit it to DGFT and Customs authorities.

2.14 Modification of IEC

¹¹[(a) Modifications in IECs / e-IEC's can be done online only. Applicants seeking modification in their IECs / e-IEC's may log on to dgft.nic.in and click on Importer Exporter Code (IEC) under Quick Links and select "Modify your IEC" to amend their e-IEC Electronic Importer-Exporter Codes and IECs in physical format with applicable fees and requisite documents.

Applicant shall upload relevant document s to substantiate the changes sought to be made, besides uploading the signed copy of the modification application. The modification application has to be signed by Proprietor/ Managing Partner/ Designated Partner /Director / Company Secretary in case of companies or Chief Executive of the Society/ Managing Trustee / Karta as the case may be, before uploading/submitting the online application.

However, request for (i) Cancellation of existing numeric IEC and (ii) PAN change in existing numeric IECs has to be made to the concerned jurisdictional Regional Authority. Once RAs have changed the PAN and the change is reflected on central server, such applicant can seek further modifications online, if any so desired.]

^old[(a) Modifications in e-IEC Electronic Importer-Exporter Code’s/ IEC’s can be done online only. Applicants seeking modification in their IEC’s may log on to dgft.nic.in and click on Importer Exporter Code (IEC) under Quick Links and select “Modify your IEC” to amend their e-IEC Electronic Importer-Exporter Code’s and IEC’s in physical format by paying requisite fees and submitting requisite documents to the concerned jurisdictional RA, from where IEC was originally issued. List of RAs, along with their jurisdiction is given in Appendix 1A.]

(b) An application for modification may be made for change in details like name, address, constitution, ownership in Proprietorship firms, change in nature of the firm e.g. from proprietorship to partnership etc.

¹¹[(c) RAs shall consider applications seeking modification in IEC (all numeric), involving change in PAN, by ensuring that liabilities of the previous applicant/applicant firm are transferred to the new applicant/applicant firm whose PAN will be reflecting in the modified IEC.]

^old[(c ) RAs shall consider applications seeking modification in IEC, involving change in PAN, by ensuring that liabilities of the previous applicant/applicant firm are transferred to the new applicant/applicant firm whose PAN will be reflecting in the modified IEC. RAs must also share the modified IEC, with the changed PAN incorporated in it, with all concerned authorities.]

⁴⁵[(d) In case of change in constitution of a PAN based IEC by way of merger, acquisition, liquidation, inheritance etc. such that PAN of the new entity so formed is different from the earlier one, an IEC can be availed against the new PAN, if not existing already. Previous IEC(s) can also be operationally linked to the PAN/IEC of the new entity.

(e) An application for linking the obligations under the old/ previous IEC may be submitted online to the jurisdictional RA of the new entity along with supporting documents. Concerned RA may sanction the given linkage after due scrutiny of the evidence provided by the applicant including submission of affidavits etc. After RA's approval, previous IEC(s) shall be treated as surrendered.]

^12deleted(d) RAs shall also take cognizance of the applications digitally signed by power of attorney holders/authorised signatories.]

2.14 (A) Modifications / Change in Branch Office / Head Office / Registered Office Address in IEC involving a shift in jurisdictional RA.

¹[When    an    IEC    holder    seeks modification/ change of Head Office/ Registered Office address in its IEC and which involves a shift in its jurisdictional RA, a request to that effect will have to be made to the new RA. to whose jurisdiction the applicant is shifting its office.

The new RA shall make appropriate amendments,    based    on    documents submitted to it by the applicant. The new RA will also separately inform the RA. who had initially issued the IEC. of the changes made in the concerned IEC. Thereafter, the new RA shall allow the applicant to carry out necessary functions and also apply for eligible benefits as per FTP through its office.]

^old[When an IEC holder seeks modification/ change of Branch Office/ Head Office/ Registered Office address in its IEC and which involves a shift in its jurisdictional RA, a request to that effect will have to be made to RA concerned under whose jurisdiction the applicant exists.

On the basis of this request, the RA (Custodian of the IEC File till now) will process such requests and amend IEC, if found appropriate, under intimation to the RA under whose jurisdiction the applicant wants transfer. The new RA shall allow the person in its new address to carry out necessary functions and also apply for eligible benefits as per FTP.]

2.15 Profile of Importer / Exporter

(b) Documents which are uploaded in the Importer-Exporter Profile are not required to be filed each time the importer/exporter applies for authorisations/scrips under different schemes of this FTP. However, persons seeking any benefit from any authority, by claiming status as manufacturer exporter, have to prove its credence for the same independently to that authority.  

Issue of Authorisation:

2.16 Validity period of Authorisation/ Licence  / Certificate / Authorisation / Permissions / CCPs

However, EXIM Facilitation Committee (EFC) (for non-SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items) and Inter Ministerial Working Group  (IMWG) (for SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items) may approve the grant of Export Authorisation for a shorter / longer duration in specific cases to meet contractual obligations/delivery schedule or on specific recommendation of the concerned Technical / Administrative Ministry / Department / or any other agency.

(b) DGFT may decide to issue specific authorisation/ class of authorisations for a longer/shorter validity period. Any extension /revalidation in such cases to be allowed only by DGFT.

*2.17 Date of reckoning of Import / Export

2.18 Validity of Authorisation/ Licence  for import/export 

(a) Authorisations must be valid on the date of import.
(b) Similarly, export obligation period of an Authorization must be valid on the date of export.

Scrips under Chapter 3 and 5 must be valid on the date on which actual debit of duty is made

2.20 Revalidation of Import / Export  Licence  Certificate/ Authorisation / Permissions for Non-SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology and SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items

Notwithstanding anything contained above, these provisions of revalidation shall not apply wherever, the authorisation/scrip holder had clear 6 months period in hand for utilisation]].

2.21 Authority to Revalidate

Such revalidation under Paragraph 2.20 above would be permitted under specific speaking orders of Head of concerned Office and suchorder of revalidation shall be uploadedon websites of RAI Zonal Office concerned for easy verification by Customs authorities

2.22 Application for Revalidation

An application for revalidation of authorization (other than SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Authorization), may be made to RA concerned. RA would consider such application as per FTP/ HBP. Where DGFT (HQ) IS concerned authority, original application shall be submitted to RA concerned and self-attested copy of same shallbe submitted to DGFT (HQ).

Procedure for issuing Duplicate copies:

2.23 Duplicate copies of Export / Import Authorisation

Where an Authorisation/ Permissions/ CCPs / Licence  / Certificate / is lost or misplaced, an application for issue of a duplicate may be made along with Self declaration, as given in Appendix 2M, to concerned RA where the original license was issued.

2.24 Documents required for duplicate copy of freely transferable Authorisation

(i) An application with fee equivalent to 10% of duty saved or duty credit (of unutilized balance).
(ii) A copy of FIR reporting loss. 30
(iii) Self- declaration to indemnify revenue loss, which may be caused on account of issue of such duplicate.

2.25 Exception

When an Authorisation is lost by a Government agency and a proof to this effect is submitted, documents at serial nos. (i) to (iii) of Paragraph 2.24 above shall not be required. In such cases, revalidation shall be for six months from date of endorsement.

2.26 Mechanism for issuing duplicates

RA concerned shall obtain a report regarding utilization of such Authorisation from Custom authority at port of registration before issuing duplicate, for balance unutilized.

2.27 Validity of duplicate Authorisation

Validity of duplicate Authorisation shall be co-terminus with original period. No request shall be entertained if validity has expired.

2.28 Applicability of the provision

Provision of Paragraph 2.26 and 2.27 shall be applicable for cases covered under both Paragraph 2.23 and 2.24.

Bank Guarantee /LUT Legal Undertaking

2.29 Execution of BG Bank Guarantee/Legal undertaking for Advance Authorisation/ EPCG Authorisation

(a) Before clearance of goods through Customs, Authorisation holder shall execute a BG Bank Guarantee/LUT Legal Undertaking with Customs Authorities. In such cases, RA shall endorse the following condition on the licence  / Authorisation: "BG Bank Guarantee / LUT Legal Undertaking as applicable, to be  executed with concerned Customs Authorities.

(b) In case of indigenous sourcing, Authorisation holder shall furnish BG Bank Guarantee/ LUT Legal Undertaking to RA as per Customs Circular No.58/2004 dated 31.10.04, as amended from time to time. In case, the firm has already executed 31 BG Bank Guarantee/LUT Legal Undertaking for the full value of the licence  / certificate/ authorisation/ permission (covering the items indigenously procured) to the Customs and furnishes proof of the same to Regional Authority (RA), no BG Bank Guarantee/LUT Legal Undertaking shall be required to be executed with the RA. The RA concerned shall endorse on the authorisation that the Customs Authority shall release/redeem BG Bank Guarantee/LUT Legal Undertaking only after receipt of NOC or EODC Export Obligation Discharge Certificate from the RA concerned. RA shall endorse a copy of the same along with a forwarding letter to the Customs Authority at the Port of registration for their information and record.

³⁴[2.29A operational modalities to be followed for the cases referred to National Company Law Tribunal.

A Any firm / company coming under the NCLT proceedings shall make a summary of statement of outstanding export obligations/liabilities under the FTP schemes, indicating duty saved amounts and applicable interest till the date of start of proceedings before the National Company Law Tribunal (NCLT), any penalty imposed under FTD&R Act, any other dues such as fee etc., and submit the same to the RA concerned and to NCLT, before the start of NCLT proceedings as part of the statutory filings. The statement of consumption of inputs/procurement of capital goods, attested by chartered engineer/chartered accountant, shall also be submitted along with other documentary details of any partial fulfillment of Export Obligation claimed towards offsetting the duty saved amount]

2.30 Corporate Guarantee

A status holder or a PSU may also submit Corporate Guarantee in lieu of Bank Guarantee/LUT Legal Undertaking in terms of the provisions of relevant Customs Circular in this regard.

2.31 Advance Payment

In case, payment is received in advance and export / deemed export takes place subsequently, application for an Authorisation shall be filed within specific period following the month during which exports/ deemed export is made, unless otherwise specified.

2.32 Import under Lease Financing

Import under lease financing shall be available under EOU/ SEZ scheme. Domestic supply of capital goods to eligible categories of deemed exports shall be eligible for benefits of deemed export as in paragraph 7.03 of FTP, even in cases where supplies are under lease financing.

In case of loss of Documents:

2.33 Issuance of scrips against lost EP copy of the Shipping Bills

(i) A duplicate /certified copy of relevant document issued by Customs Authority in lieu of original;

(ii) An application fee equivalent to 2% of relevant entitlement. However, no fee shall be charged when such document is lost by Government agencies and a documentary proof to this effect is submitted

(iii) Self-declaration by exporter about loss of document and an undertaking to surrender it immediately to concerned RA, if found subsequently

(iv) Self-declaration by exporter to effect that he would indemnify Government for financial loss if any on account of duty credit issued against lost Shipping Bills. Customs Authority, before allowing clearance, shall ensure that benefit / duty credit against such shipping bill has not been availed.

2.34 Claims against lost copy of shipping bill

Claim against lost Shipping Bill shall be preferred within a period of six months from date of release of duplicate copy of Shipping Bill. Any application received thereafter shall be rejected.

2.35 Submission of Certified Copies of Documents

Wherever original documents have been submitted to a different RA / nominated agencies or to a different division of same RA, applicant can furnish photocopy of documents duly certified by him in lieu of original.

(b) Goods can be re-exported without payment of customs duty provided shipping bill or a bill of export is presented in respect of such goods; and order for export of such goods has been made by competent customs authorities.

Certificates:

*2.37 Free Sale and Commerce Certificate

(ii) An application for grant of Free Sale and Commerce Certificate may be made to RA concerned as per format in ANF 2H of Appendices and Aayat Niryat Forms with Annexure A therein. RA shall issue Free Sale and Commerce Certificate as per Annexure B of ANF 2H.

(b) (i) RAs may also issue, on application, Free Sale and Commerce Certificate for export of any other item which is not restricted or prohibited for export. Validity of such certificate shall be two year from date of issue unless otherwise specified.

2.38 End User Certificate

In case of import of any freely importable item in India, if a foreign Government insists on certification of end user of the item, before permitting export of the same from their country, RA may issue such certificates as per Appendix 2Q of Appendices and Aayat Niryat Forms. The certificate shall be issued based on application made under ANF 2J along with documents prescribed therein.

2.39 Imports under Indo-US Memorandum of Understanding

(i) Department of Electronics (DoE), for computer and computer based systems.
(ii) Department of Industrial Policy and Promotion (DIPP), Technical Support Wing (TSW), for organised sector units registered under it, except for computers and computer based systems;
(iii) Ministry of Defence (MoD), for defence related items;
(iv) DGFT for small scale industries and entities not covered above as well as on behalf of any of the above;
(v) Embassy of India, Washington, DC Development Commissioner, on behalf of any of the above.

(b) Application for an import certificate shall be made in ANF 2K(i). Import certificate in Appendix-2P(Ia) may be issued by ICIA directly  to importer with a copy to (i) Ministry of External Affairs (MEA) (AMS Section), New Delhi, (ii) DoE, New Delhi; and (iii) DGFT.

Imports:

2.40 Import of Consumer or Other goods as Gifts

(b) Where recipient of a gift is a charitable, religious or an educational institution registered under any law in force, and gift sought to be imported has been exempted from payment of customs duty, such import shall be allowed by customs authorities without a CCP Customs Clearance Permit.

2.41 Import of Cheque Books /Ticket Forms etc.

Indian branches of foreign banks, insurance companies and travel agencies may import chequebooks, bank draft forms and travellers cheque forms without a CCP Customs Clearance Permit. Similarly, airlines / shipping companies operating in India, including persons authorised by such airlines / shipping companies, may import passenger ticket forms without a CCP Customs Clearance Permit.

2.42 Import of Reconditioned/ Second Hand Aircraft Spares

Import Authorisation for reconditioned / second hand aircraft spares is not needed on recommendation of Director General of Civil Aviation, Government of India (DGCA).

2.43 Import of Replacement Goods

Goods or parts thereof on being imported and found defective or otherwise unfit for use or which have been damaged after import, may be exported without an Authorisation, and goods in replacement thereof may be supplied free of charge by foreign suppliers or imported against a marine insurance or marine-cum-erection insurance claim settled by an insurance company. Such goods shall be allowed clearance by the customs authorities without an import Authorisation provided that:

2.44 Other Conditions for Import of Replacement Goods

(a) In case of short-shipment, short-landing or loss in transit, import of replacement goods will be permitted based on certificate issued by customs authorities without an import Authorisation.

(b) This procedure shall also apply to cases in which short shipment of goods is certified by foreign supplier, who has agreed to replace free of cost.

(c) Cases not covered by above provisions will be considered on merits by DGFT for grant of Authorisation for replacement of goods for which an application may be made as per paragraph 2.50 of HBP.

2.45 Import of Overseas Office Equipment

On winding up of overseas offices, set up with approval of RBI, used office equipments and other items may be imported without Authorisation.

2.46 Import of Ammunition by Licensed /Authorised Arms Dealers

(a) Import of following types of ammunition are allowed against an Authorisation by licensed arms dealers subject to  conditions as may be specified:

(c) An application for grant of an Authorisation for items listed above may be made to RA in ANF 2M along with documents prescribed therein.

2.47 Duty Free Imports for specific Sectors:

(A) R&D Equipment for Pharmaceuticals and Bio- technology Sector

2.48 Import under Govt. to Govt. Agreements

Import of goods under Government to Government agreements may be allowed without an Authorisation or CCP Customs Clearance Permit on production of necessary evidence to satisfaction of Customs authorities.

2.49 Transfer of Imported Goods

(a) Cases where prior permission is required:

Import of Restricted Items:

*2.50 Import of Restricted Items

An application for grant of an Authorisation for import or export of items mentioned as ‘Restricted’ in ITC (HS) may be made to RA, with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein. Original application along with Treasury Receipt (TR) / Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA.

Refer Trade Notice No.22 Dt. 11/12/2017

Refer Trade Notice No. 49/2015-20 Dt. 15/03/2019

2.51 EXIM Facilitation Committee

(c) EXIM Facilitation Committee (EFC) shall normally meet once every month. Where a case has been deferred in EFC Exim Facilitation Committee for want of comments from the Technical Authorities and Departments /Ministries concerned but subsequently, NOC(s) has / have been received from the concerned agency(ies) with no divergence in views, authorisation shall be issued with the approval of Chairman, EFC Exim Facilitation Committee and the case shall be brought before EFC Exim Facilitation Committee in its subsequent meeting for approval on expost facto basis.

2.52 Import of Restricted items required by Hotels, Restaurants, Travel Agents, Tour Operators and other Specified Categories

Items mentioned as restricted for imports in ITC (HS) required by hotels, restaurants, travel agents and tour operators may be allowed against an Authorisation, based on recommendation of Director General, Tourism, Government of India.

(e) An application for grant of an Authorisation under paragraphs 2.52 (a) and 2.52 (b) may be made in ANF 2M to DGFT through Director of Tourism, Government of India who will forward application to RA concerned along with their
recommendations.

2.53 Import of Restricted items for R&D by units of Government

All restricted items and items permitted to be imported by STEs, except live animals, required for R&D purpose may be imported without an Authorisation by Government recognized Research and Development units.

2.54 Import of Metallic Waste and Scrap

Import of any form of metallic waste, scrap will be subject to the condition that it will not contain hazardous, toxic waste, radioactive contaminated waste / scrap containing radioactive material, any type of arms, ammunition, mines, shells, live or used cartridge or any other explosive material in any form either used or otherwise.

(i) At the time of the clearance of goods, importer shall furnish to the Customs pre-shipment inspection certificate as per the format in Appendix 2H from any of the Inspection& Certification agencies given in Appendix-2G to the effect that the consignment does not contain any type of arms, ammunition, mines, shells, cartridges, or any other explosive material in any form either used or otherwise, and that the consignment was checked for radiation level and it does not contain radiation level (gamma and neutron) in excess of natural background. The certificate shall give the value of background radiation level at that place as also the maximum radiation level on the scrap.

(ii) The imported item (s) is actually a metallic waste/ scrap /seconds /defective as per the internationally accepted parameters for such a classification.

(iii) Copy of the contract between the importer and the exporter stipulating that the consignment does not contain any  type of arms, ammunition, mines, shells, cartridges, radioactive contaminated, or any other explosive material in  any form either used or otherwise.

(iv) Import of scrap would take place only through following designated ports and no exceptions would be allowed even  in case of EOUs, SEZs:- 1. Chennai, 2. Cochin, 3. Ennore, 4. JNPT, 5. Kandla, 6. Mormugao, 7. Mumbai, 8. New  Mangalore, 9. Paradip, 10. Tuticorin, 11.Vishakhapatnam, 12.Pipava 13.Mundra, 14. Kolkata ⁶[15.Krishnapatnam]  ³⁵[16. Kattupalli] ⁴³[17. Hazira] ⁵³[18. Kamarajar.]

(v) Only entry sea ports will be designated and notified for import of un- shredded Metallic Waste and Scrap subject  to the following:

 (i) Any sea port to be designated for import of un–shredded metallic scrap will be required to install Radiation Portal Monitors and Container Scanner with adequate security. The sea port having completed the above shall approach jurisdictional Customs for inspection and certification. Customs may give necessary clearance on receipt of certification from AERB. On getting clearance from Customs, DGFT will notify such a port as designated port for import of un–shredded scrap.

 ¹⁷[(ii) The existing designated sea ports namely Chennai, Cochin, Ennore, JNPT, Kandla, Mormugao, Mumbai, New Mangalorc, Paradeep, Tuticorin, Vishakhapatnam, Pipava, Mundra and Kolkata will be allowed to import un-shredded scrap till ⁵⁹[30.09.2022] ^old[⁵⁵[31.03.2022] ^old[⁴⁸[30.09.2021]] ^old[⁴⁶[31.03.2021]] ^old[⁴²[31.12.2020] ^old[³⁶[31.03.2020]  ^old[ ³¹[31.12.2019]] ^old[²⁷[30.09.2019]] ^old[ ²⁵[30.06.2019]] ^old[31st March, 2019] by which time they are required to install and operationalize Radiation Portal Monitors and Container Scanner. Such sea ports which fail to meet the deadline will be derecognized for the purpose of import of un-shredded metallic scrap w.e.f ³⁶[01.04.2020] ^old[ ³¹[01.01.2020]] ^old[²⁷[01.10.2019]] ^old[ ²⁵[01.07.2019]] ^old[1.4.2019.]

^old[ ²[(ii) The existing designated sea ports namely Chennai, Cochin, Ennore, JNPT, Kandla, Mormugao, Mumbai,
 New Mangalore, Paragraphdip, Tuticorin, Vishakhapatnam, Pipava, Mundra and Kolkata will be allowed to import un-shredded scrap till 31st October, 2018 by which time they are required to install and operationalize Radiation Portal Monitors and Container Scanner. Such sea ports which fail to meet the deadline will be derecognised for the purpose of import of un-shredded metallic scrap w.e.f 1.11.2018.]

  ^old[(ii) The existing designated sea ports namely Chennai, Cochin, Ennore, JNPT, Kandla, Mormugao, Mumbai,
 New Mangalore, Paragraphdip, Tuticorin, Vishakhapatnam, Pipava, Mundra and Kolkata will be allowed to  import unshredded scrap till 31st March, 2018 by which time they are required to install and operationalize Radiation Portal Monitors and Container Scanner. Such sea ports which fail to meet the deadline will be derecognised for the purpose of import of un-shredded metallic scrap w.e.f 1.4.2018.]

(iii) Further, any ICD Inland Container Depot can handle clearance of un–shredded metallic scrap provided the same passes through any  of the designated sea ports as mentioned above or any new ports to be notified/designated from time to time, where Radiation Portal Monitors and Container Scanner are in operation and the consignment is subjected to  risk based scanning/ monitoring as per the protocol laid down by Customs.

⁵⁸[(vi) Import consignments of metallic waste and scrap shall be subject to pre-shipment inspection certificate (PSIC) from the country of origin. However, metallic waste and scrap (both shredded and unshredded) imported from safe countries / region i.e. the USA, the UK, Canada, New Zealand, Australia and the EU will not require PSIC if consignments are cleared through these ten (10) ports namely, Chennai, Tuticorin, Kandla, JNPT, Mumbai, Krishnapatnam, Mundra, Kattupalli, Hazira and Kamarajar. Consignments from these six countries / regions will be accompanied by certificate from the supplier / scrap yard authority to the effect that it does not contain any radioactive materials / explosives. These will however be subject to radiation and explosive checks through portal monitors and container scanner at these ports. Transshipments through these countries / regions will not be allowed this facility. Import through remaining eight (8) other ports (for both shredded and unshredded scrap / waste), irrespective of country of origin, will be subject to PSIC.]

^old[³⁸[(vi) Import consignments of metallic waste and scrap shall be subject to pre-shipment inspection certificate (PSIC) from the country of origin. However, metallic waste and scrap (both shredded and unshredded) imported from safe countries/region i.e. the USA, the UK, Canada, New Zealand, Australia and the EU will not require PSIC if consignments are cleared through eight (8) ports namely, Chennai, Tuticorin, Kandla, JNPT, Mumbai, Krishnapatnam, Mundra and Kattupalli. Consignments from these six countries / region will be accompanied by certificate from the supplier/scrap yard authority to the effect that it does not contain any radioactive materials/ explosives. These will however be subject to radiation and explosive checks through portal monitors and container scanner at these ports. Trans-shipments through these countries /regions will not be allowed this facility. Import through remaining eight(8) other ports (for both shredded and unshredded scrap/waste), irrespective of country of origin, will be subject to PSIC.]]

[²⁴[(iv) Import consignments of metallic waste and scrap shall be subject to pre-inspection certificate (PSIC) from the country of origin. However, metallic waste and scrap (both shredded and unshredded) imported from safe countries/region i.e. the USA, the UK, Canada, New Zealand, Australia and the EU will not require PSIC if consignments are cleared through seven (7) ports namely, Chennai, Tuticorin, Kandla, JNPT, Mumbai, Krishnapatnam and Mundra. Consignments from these five countries / region will be accompanied by certificate from the supplier/scrap yard authority to the effect that it does not contain any radioactive materials/ explosives. These will however be subject to radiation and explosive checks through portal monitors and container scanner at these ports. Trans-shipments through these countries /regions will not be allowed this facility. Import through all other ports including nine (9) ports (for unshredded scrap/waste), irrespective of country of origin, will be subject to PSIC.]]

 ^old[⁷[(iv) Import consignments of metallic waste and scrap shall be subject to pre-inspection certificate (PSIC) from
 the country of origin. However, metallic waste and scrap (both shredded and unshredded) imported from safe  countries/region i.e. the USA, the UK, Canada, New Zealand, Australia and the EU will not require PSIC if consignments are cleared through six (6) ports namely, Chennai, Tuticorin, Kandla, JNPT, Mumbai and Krishnapatnam. Consignments from these five countries / region will be accompanied by certificate from the  supplier/scrap yard authority to the effect that it does not contain any radioactive materials/ explosives. These  will however be subject to radiation and explosive checks through portal monitors and container scanner at these ports. Transshipments through these countries /regions will not be allowed this facility. Import through all other ports including nine (9) ports (for unshredded scrap/waste), irrespective of country of origin, will be subject to PSIC.]]

^old[(iv) Notwithstanding the above, import consignments shall be subject to pre-inspection certificate from the country of origin. However, requirement of Pre-Shipment Inspection Certification (PSIC) will be reviewed with the operationalisation of the above mechanism governing the clearance of imports of un– shredded metal scrap, based on assessment of risk associated with un-shredded metal scrap imports.]

*2.55 Recognition as Pre-shipment Inspection Agency (PSIA) and issuance of Pre- shipment Certificate (PSIC)

(a) Applications for recognition in respect of PSIAs have to be made in proforma prescribed in ANF 2L. The scanned copy of application in ANF 2L, along with relevant annexures and documents should be sent by e-mail to DGFT (at  psiadgft@nic.in), in addition to sending the same by post.

(b) For applicants based in India application fee will be Rs. 7500/- and for applicants based abroad the application fee will be US $200. The fees may be amended from time to time by DGFT.

(c) The applications will be considered by an Inter- Ministerial Committee.

*2.56 Responsibility and Liability of PSIA and Importer

^old[(e) The photographs and/or video clippings [as per 2.56 (d) above] and PSIC shall be uploaded on DGFT website by PSIA, through digital signatures or sent to psicdgft@gov.in through registered e-mail of PSIA. Till such time the DGFT website link is operationalized, the PSIC and photographs/videos will be emailed to the DGFT (at psicdgft@gov.in).]

2.57 Import of other kinds of metallic waste and scraps

Import of other kinds of metallic waste and scrap will be allowed in terms of conditions of ITC (HS).

2.58 Imports of seconds and defectives

Import policy for second and defective, rags, PET bottles /waste, and ships is given in ITC (HS).

2.59 Services of Inspection and Certification Agencies

Customs or any other Central or State Government authority may avail of services of Inspection and Certification Agencies in Appendix 2I of the Appendices and Aayat Niryat Forms, for certifying residual life as well as valuation / purchase price of capital goods.

Tariff Rate Quota Scheme:

2.60 Procedure for import under the Tariff Rate Quota Scheme

⁴⁴[(a) Imports under the Tariff Rate Quota Scheme is governed as per the Customs Notification No.28/2020-Customs dated 23.06.2020 of Department of Revenue, Ministry of Finance, Government of India as amended from time to time.]

^old[Attention is invited to Government of India, Ministry of Finance (Department of Revenue), Notification No. 21/2002- Customs dated 01.03.2002 and Notification No. 33/2010- Customs dated 12.03.2010. As per these, import of four items viz., (1) Skimmed and whole milk powder, milk food for babies etc. (0402.10 or 0402.21) and White Butter, Butter oil, Anhydrous Milk Fat (0405) (2) Maize (corn): other (1005.90) (3) Crude sunflower seed or safflower oil or fractions thereof (1512.11) and (4) Refined rape, colza or mustard oil, other (1514.19 or 1514.99) is allowed in a financial year, up to quantities as well as such concessional rates of customs duty as indicated below:

*2.61 Eligible entities for allocation of quota

⁶⁶[(a) Milk Powder (Tariff Code No. 0402.10 or 0402.21) and White Butter, Butter oil, Anhydrous Milk Fat (0405): National Dairy Development Board (NDDB), National Cooperative Dairy Federation (NCDF) and National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED).

(b) Maize (corn) (Tariff Code No. 1005.90): National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and State Cooperative Marketing Federations.

(c) Crude sunflower seed or safflower oil or fractions thereof (Tariff Code No. 1512.11) and Refined rape, colza, canola or mustard oil, other (Tariff Code No. 1514.19 or 1514.99): National Dairy Development Board (NDDB), National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED) and Central Warehousing Corporation (CWC), State Cooperative Marketing Federation & State Cooperative Civil Supplies Corporation".]

^old[(a) Milk Powder (Tariff Code No. 0402.10 or 0402.21) and White Butter, Butter oil, Anhydrous Milk Fat (0405): National Dairy Development Board (NDDB), State Trading Corporation (STC), National Cooperative Dairy Federation (NCDF), National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), Minerals and Metals Trading Corporation (MMTC), Projects & Equipment Corporation of India Limited (PEC) and Spices Trading Corporation Limited (STCL).

All eligible entities are eligible to avail quotas subject to the conditions as detailed below:

Exhibits and Samples:

(b) Extension beyond six months for re-export / re-import will be considered by Customs authorities on merits. Consumables such as paints, printed material, pamphlets, literature etc. pertaining to exhibits need not be re-exported/re-imported.

(c) If goods brought for exhibition are not re-exported or sold within bond period due to circumstances beyond control of importer, Customs Authorities may allow extension of bond period on merits.

2.65 Import of Samples

(a) No Authorisation shall be required for Import of bonafide technical and trade samples of items restricted in ITC (HS) except vegetable seeds, bees and new drugs. Samples of tea not exceeding Rs.2000 (CIF) in one consignment shall be allowed without an Authorisation by any person connected with Tea industry.

(b) Duty free import of samples upto Rs.3,00,000 for all exporters shall be allowed as per terms and conditions of Customs Notification.

(a) Exports of bonafide trade and technical samples of freely exportable item shall be allowed without any limit.

Exports

Policy relating to Exports is given in Chapter-2 of FTP. Further, Schedule 2, Appendix-1 of ITC (HS) specifies list of items, which may be exported without an Authorisation but subject to terms and conditions specified.

For export of gifts, indigenous / imported warranty spares and replacement goods in excess of ceiling / period prescribed for exports of Gifts; export of Spares and export of replacement goods in FTP, an application may be made to DGFT in ANF 2Q.

Units other than small scale units are permitted to expand or create new capacities in respect of items reserved for small scale sector, subject to condition that they obtain an Industrial licence under the Industries (Development and Regulation) Act, 1951, with export obligation as may be specified. Such licensee is required to furnish a LUT Legal Undertaking to RA and DGFT in this regard. DGFT / RA concerned shall monitor export obligation.

(a) Bank Certificate of Export and Realisation as in e-BRC Electronic Bank Realisation Certificate in Appendix2U
(b) Relevant postal receipt
(c) Invoice duly attested by Customs Authorities.

(a) Permission from RBI allowing direct negotiation of documents (not required for status holders),
(b) Copy of Foreign Inward Remittance Certificate (FIRC) as per Form 10-H of Income Tax department in lieu of BRC Bank Realisation Certificate, and
(c) Statement giving details of shipping bills / invoice against which FIRC Foreign Exchange Inward Remittance Certificate was issued.

SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology

Application for Grant of Export Authorisation/Certificate/ Permission for non-SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Items

Note: “Military use” shall mean incorporation into items listed in SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Categories 5D or 6 or for the use, development, or production of military items listed in these categories.

Refer vide Trade Notice No.50/2018-19 dt.18.03.2019

(a) An application for grant of Export Authorisation in respect of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items mentioned in Appendix 3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items may be made in ANF 2O to DGFT (Hqrs) along with documents prescribed therein.

a) All documents submitted while making an application for SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Authorization.
b) Correspondence with buyer/consignee/end-user or DGFT or relevant Government agency;
c) Relevant Contracts;
d) Relevant Books of account;
e) Relevant Financial records;
f) Any communication from any government agency related to an application for authorization for any item on the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology list or a commodity classification request;
g) Shipping documents including shipping bill, bill of entry and bill of lading.

An Inter-Ministerial Working Group (IMWG) in DGFT (Hqrs.) shall consider applications for export of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items as specified in Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items based on following guidelines:

IX. The Inter Ministerial Working Group shall normally meet once every month. Where a case has been deferred in   the IMWG and subsequently, NOC(s) has / have been received from all concerned agencies with no divergence in views, authorisation shall be issued with the approval of Chairman, IMWG and the case shall be brought before IMWG in its subsequent meeting for approval on ex-post facto basis. Case(s) where a decision could not be arrived at in IMWG  shall be placed before Director General  of Foreign Trade for appropriate decision on grant of authorization.

2.75 Applicability of WMD Act

Export of items not on SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology List may also be regulated under provisions of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005.

Note 5: ‘Technology’ (see also entry ‘Technology’ in glossary in Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items): Approval of export of an item on the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology List also authorizes the export to same end-user of minimum ‘technology  ’ required for installation, operation, maintenance and repair of the item.

⁵⁶[2.76 Supply of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Items from DTA to SEZ/EOU and outside the country

No export authorization is required for supply of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items from DTA to SEZ/EOU. Export Authorisation is, however, required if the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items are to be physically exported outside the country from SEZ/EOU, i.e. to another country (Refer Rule 26 of the SEZ Rules, 2006). All supplies of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items from DTA to SEZ /EOU will be reported to the Development Commissioner (DC) of the respective SEZ/EOU by the supplier in the prescribed proforma [Annexure1 to Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items] within one week of the supplies getting effected. An annual report of such supplies from DTA to SEZ/EOU shall be reported to SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Section, DGFT (Hqrs), Udyog Bhavan, New Delhi-110011 by the DC Development Commissioner of the respective SEZ/EOU in the prescribed proforma [Annexure 2 to Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items] by 15thMay of every financial year, in respect of supplies effected  from DTA to SEZ/EOU during the preceding financial year.]

^old[2.76 Supply of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Items from DTA to SEZ

No export authorisation is required for supply of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items from DTA to SEZ. However, all supplies of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items from DTA to SEZ will be reported to the Development Commissioner of the respective SEZ by the supplier in the prescribed proforma [Annexure 1 to Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items] within one week of the supplies getting effected. An annual report of such supplies from DTA to SEZ shall be sent to SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Section, DGFT (Hqrs), Department of Commerce, Udyog Bhawan, Maulana Azad Road, New Delhi110011, by the Development Commissioner (DC), SEZ in the prescribed proforma [Annexure 2 to Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items]. Report by the DC Development Commissioner, SEZ is to be filed by 15th May of every financial year for the supplies effected during the preceding financial year. Export Authorisation is, however, required if the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items are to be physically exported outside the country from SEZ i.e. to another country (Refer Rule 26 of the SEZ Rules, 2006). ]

2.77 Outreach Programmes on SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Export Control System

DGFT in association with Administrative Ministries/ Departments and Trade Associations will organize Industry Outreach Programme on regular basis for an effective awareness among the exporters/ importers dealing with trade, in particular, in SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items.

2.78 Procedure/ Guidelines for filing / Evaluation of Applications for Entering into an Arrangement or Understanding for Site Visits, On-site Verification and Access to Records / Documentation

An application for entering into an arrangement or understanding involving site visit, on-site verification or access to records/documentation by a foreign government or a foreign third party either acting directly or through an Indian party as mentioned in Appendix 3 of Schedule 2 of ITC (HS) Classifications of Export and Import Items shall be made in ANF 2P to DGFT (Hqrs.), New Delhi along with documents prescribed therein. These applications shall be considered by an Inter-Ministerial Working Group (IMWG) in DGFT (Hqrs.) based on following guidelines/general criteria:

IV. Any violation of any condition of the license shall invite civil/ criminal prosecution as per law.

2.79 Issue of authorisation for repeat orders

¹⁰[Applications for grant of authorization for repeat orders to the applicant exporter for export of same SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items to the same country/entities shall be approved by Chairman IMWG, without any consultation with IMWG members. However, in cases of repeat orders for export of same SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items to different country/entities, approval will be granted by Chairman, IMWG after verification of the credentials of foreign buyer/consignee/end user only.

The approval will be subject to the fulfillment of the following criteria:

(i) Same SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items would imply that the products, along with the technical specifications, are exactly the same for which export authorization has been issued to the applicant exporter earlier after due consultation/verification;

(ii) Same country/entities would imply that (a) the foreign buyer (b) the consignee or the intermediaries, if any (c) the end user and (d) the end use are exactly the same for which export authorization has been issued to the applicant exporter earlier after due consultation/verification;

(iii) Only the applications submitted within three years from the date of issue of original SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology authorization, after due verification/consultation process, will be eligible for repeat authorization;

(iv) The cumulative quantity permitted against repeat export authorizations shall be commensurate with the operational capacity of the end user in respect of the relevant product, as certified by the end user. A certificate to this effect from the end user shall be submitted by the exporter alongwith the application for a repeat authorization;

(v) A declaration by the authorized signatory on the qualifying conditions as per (i) to (iv) above shall be submitted by the exporter along with the application for consideration under the repeat order route;

(vi) The authorizations(s) for repeat orders shall be liable for recall/termination by the DGFT on receipt of an adverse report in respect of any of the export consignments;

(vii) All authorizations for repeat orders shall be brought before IMWG in its subsequent meeting for confirmation of approval, on ex-post facto basis, and the IMWG would reserve its right to refuse further repeat authorizations based on its assessment of proliferation concerns.]

^old[Applications for grant of authorizations for repeat orders for export of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items shall be approved by Chairman IMWG and the case shall be brought before IMWG in its subsequent meeting for approval on ex-post facto basis. The approval will be subject to the fulfillment of the following criteria:

(v)  A declaration by the authorised signatory on the qualifying conditions as per (i) to (iv) above shall be submitted along with the application for consideration under the repeat order route.]

2.79A Issue of export authorisation for "Stock and Sale" of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items

⁷⁰[Application for grant of authorization for bulk export of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items (excluding Category 0. Category 3A4001, Category 6 and transfer of technology  under any category) from an Indian exporter to an entity abroad (hereinafter referred to as "stockist') for subsequent transfer to the ultimate end users shall be considered by IMWG. on the following conditions:

Applicability and scope of policy

a. 'Stockist' refers to the entity abroad to whom the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items are originally exported by Indian principal/wholly owned subsidiary. The Stockist entity should be a subsidiary/principal company abroad of the Indian exporter:

b. Export shall be permitted from the Indian parent company (applicant exporter) to its foreign subsidiary company or from the Indian subsidiary of foreign company (applicant exporter) to its foreign parent/another subsidiary of foreign parent company and; on the basis of an End Use declaration from the stockist, through the specified End User Certificate (EUC)for 'stock & sale' purpose;

Note: IMWG may relax the provisions of a. and b. above in certain cases, considering the description/end use/end user of the item.

Application for export to stockist abroad and transfer to end users in specific countries

c. The exporter shall submit application in prescribed proforma (ANF-2O) along with following documents from the stockist:

i. Documentary proof regarding corporate relationship between the Indian exporter and stockist;
ii. End-use/End-user Certificate from stockist entity abroad in Appendix-2S (iii);
iii. List of countries (in the EUC) to which the items imported from India would be exported by the stockist;
iv. Purchase Order(s)/Invoice(s) or a document in lieu thereof;
v. Technical specifications of the product(s);
vi. Copy of Internal Compliance Program (if applicant exporter/ stockist entity has one)

In-principle approval for export to the stockist, and, for sale by stockist within the country of the stockist, and, for re-export by stockist to end user in other countries

d. The application would be assessed for grant of authorization for export to the stockist, and, for grant of in-principle approval for re-export to specified countries of ultimate end use approved by the IMWG;

e. No authorization would be required for transfer from the stockist to the ultimate end user(s) within the country of the stockist and for re-export to end users in such approved countries;

f. Re-export to such approved countries would be subject to the export control regulations of the country of the stockist;

g. Country would denote an independent sovereign entity which is a distinct national entity in political geography. Hence, transfers within an economic union or a customs union would not qualify as "same country transfers";

Post-reporting for same country transfer and re-export to pre-approved countries by the stockist

h. In case of sale/transfer by the stockist within the same country and for re-export/re-transfer to the end users in countries, for which, in-principle approval has been granted, the Indian exporter/licensee shall submit details of all such transfers to SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Division of DGFT (Hqrs) in ANF-2O(a). including EUCs[Appendix-2S (i) /2S(ii). as applicable] from all ultimate end users and Bill of Entry into the ultimate destination countries(for export outside the country of stockist), within 3 months of every such transfer;

Application for re-export to other countries (other than pre-approved)

i. In respect of re-export/re-transfer of items from the stockist entity to the end users outside the country of the stockist, for which, in-principle approval has not been granted at the initial stage, the Indian exporter (stock and sale authorization holder) shall submit application for re-export/re-transfer to SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Division in DGFT (Hqrs), in ANF 2O(a), through email (scomet-dgft@nic.in), after obtaining following documents from the stockist entity:
(i) End-use/End-user Certificate from each link in the supply chain as per Appendix-2S (i) /2S(ii), as applicable;
(ii) Purchase Order(s)/Invoice(s) or a document in lieu thereof;
(iii)Technical specifications of the product to be transferred (only if there is any value addition in the product by the stockist)

j. IMWG shall consider export authorizations for allowing such re-export/re-transfer based on end use/end user verification;

Repeat Order cases

k. Applications for export of same SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items to same stockist entity, and re-export/re-transfer of same SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items from the stockist entity to the end-users (within the country of stockist entity and only the countries of ultimate end use where in-principle approval has been granted), i.e. repeat orders, shall be considered by Chairman IMWG, without any consultation with IMWG members;

Annual reporting on inventory of the stockist and transfers/re-exports

I. The Indian exporter (Stock & Sale Authorization holder) shall submit a statement of exports made from India to the stockist, transfers made by the stockist to the final end-users and inventory with the stockist, as on 31st December of each calendar year, by 31st January of the following year. A failure to do so may entail imposition of penalty and /or cancellation of authorization under the stock and sale policy:
m. The items exported to the stockist entity under the stock and sale authorization should be transferred to the final end-user(s) within the validity period of the authorization as in paragraph 2.16 of HBP;
n. The authorization may be revalidated as per the procedure mentioned in paragraph 2.80 of HBP;]

^old[¹⁸[Application for grant of authorization for bulk export of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items (excluding Category 0, Category 3A4001, Category 6 and transfer of technology under any category) from an Indian exporter to an entity abroad (hereinafter referred to as 'stockist') for subsequent transfer to the ultimate end users shall be considered by IMWG, on the following conditions:

Applicability and scope of policy

a. 'Stockist' refers to the entity abroad to whom the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items are originally exported by Indian principal/wholly owned subsidiary. The Stockist entity should be a subsidiary/principal company abroad of the Indian exporter;

b. Export shall be permitted only from the principal company/the wholly owned subsidiary in India (exporter) to their subsidiaries/principal company abroad (stockist) on the basis of an End Use declaration from the stockist, through the specified End User Certificate (EUC) for 'stock & sale' purpose;
 

Application for export to stockist abroad and transfer to end users in specific countries

c. The exporter shall submit application in prescribed proforma (ANF-2O) alongwith following documents from the stockist:

i. Documentary proof regarding corporate relationship between the Indian exporter and stockist;
ii. End-use/End-user Certificate from stockist entity abroad in Appendix-2S (iii);
iii. List of countries (in the EUC) to which the items imported from India would be exported by the stockist;
iv. Purchase Order(s)/lnvoice(s) or a document in lieu thereof;
v. Technical specifications of the product(s);
vi. Copy of Internal Compliance Program (if applicant exporter/ stockist entity has one)

In-principle approval for export to the stockist, and, for sale by stockist within the country of the stockist, and, for re-export by stockist to end user in other countries

d. The application would be assessed for grant of authorization for export to the stockist, and, for grant of in-principle approval for re-export to specified countries of ultimate end use approved by the IMWG;

e. No authorization would be required for transfer from the stockist to the ultimate end user(s) within the country of the stockist and for re-export to end users in such approved countries;

f. Re-export to such approved countries would be subject to the export control regulations of the country of the stockist;

g. Country would denote an independent sovereign entity which is a distinct national entity in political geography. Hence, transfers within an economic union or a customs union would not qualify as "same country transfers";

Post-reporting for same country transfer and re-export to pre-approved countries by the stockist

h. In case of sale/transfer by the stockist within the same country and for re- export/re-transfer to the end users in countries, for which, in-principle approval has been granted, the Indian exporter/licensee shall submit details of all such transfers to SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Division of DGFT(Hqrs) in ANF-2O(a), including EUCs
[Appendix-2S (i) /2S(ii), as applicable] from all ultimate end users and Bill of Entry into the ultimate destination countries(for export outside the country of
stockist), within 3 months of every such transfer;

Application for re-export to other countries (other than pre-approved)

i. In respect of re-export/re-transfer of items from the stockist entity to the end users outside the country of the stockist, for which, in-principle approval has not been granted at the initial stage, the Indian exporter (stock and sale authorization holder) shall submit application for re-export/re-transfer to SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Division in DGFT (Hqrs), in ANF 2O(a), through email (scomet- dgft@nic.in), after obtaining following documents from the stockist entity:

   (i) End-use/End-user Certificate from each link in the supply chain as per Appendix-2S (i) /2S(ii), as applicable;
   (ii) Purchase Order(s)/lnvoice(s) or a document in lieu thereof;
   (iii) Technical specifications of the product to be transferred (only if there is any value addition in the product by the stockist)

j. IMWG shall consider export authorizations for allowing such re-export/re-transfer based on end use/end user verification;

Repeat Order cases

k. Applications for re-export/re-transfer of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items from the stockist entity to the end-users for repeat orders shall be considered by IMWG in accordance with paragraph 2.79 of HBP;

Annual reporting on inventory of the stockist and transfers/re-exports

I. The Indian exporter (Stock & Sale Authorization holder) shall submit a statement of exports made from India to the stockist, transfers made by the stockist to the final end-users and inventory with the stockist, as on 31st December of each calendar year, by 31st January of the following year. A failure to do so may entail imposition of penalty and /or cancellation of authorization under the stock and sale policy;

m. The items exported to the stockist entity under the stock and sale authorization should be transferred to the final end-user(s) within the validity period of the authorization as in paragraph 2.16 of HBP;

n. The authorization may be revalidated as per the procedure mentioned in paragraph 2.80 of HBP;]

^old[Stockist’ refers to the entity abroad to whom the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items are originally exported by Indian principal/wholly owned subsidiary. The Stockist entity should be a subsidiary/principal company abroad of the Indian exporter. Applications for grant of authorization for export of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items for 'Stock & Sale' purpose shall be evaluated/considered by IMWG subject to the conditions prescribed as under:

(iv) Applications for re-export/re-transfer of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items from the stockist entity to the end-user for repeat orders shall be considered by IMWG on automatic basis, subject to the condition that the product along with the technical  specifications; the foreign buyer; the consignee or the intermediaries, if any; the end user; the end use and the country of destination, shall be the same as the earlier permission.]]

2.79B Issue of export authorisation for spare parts of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items under stock and sale

¹⁸[At the request of the applicant, export permission for spare parts covered under SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology may be considered by IMWG along with the application for the main item/ equipment which shall be considered on the same conditions, as applicable for the main item/component. Accordingly, the applicant seeking permission for export of spare parts, under stock and sales arrangement, may indicate the requirement of spare parts in the application for main item/equipment after judicious and reasonable assessment thereof, and provide the justification of the same."]

^old[At the request of the applicant, export permission for spare parts covered under SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology may be considered by IMWG along with the application for the main item/ equipment. Accordingly, the applicant seeking permission for export of spares may indicate the requirement of spares in the application for main equipment after judicious and reasonable assessment thereof, and provide the justification for the same.]

¹⁴[2.79C Issue of authorizations for repair/replacement of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items

³²[A. Authorization for export of imported SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items for repair/replacement:

i. Conditions to be fulfilled:"

(a) The SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items were imported to India and are to be exported for the purpose of repair and replacement, on being defective;

(b) There has been no change to the original characteristics/specifications of the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology item (s);

(c) The SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items are to be exported to the same entity from which they have been imported or to the OEM (including, agency¹ authorized by OEM);

(d) No Export Authorization would be granted if the initial export authorization has been suspended, modified or revoked by the exporting country;

(e) No Export authorization would be granted for UNSC sanctioned destinations or countries/entities of high risk, as assessed by the IMWG, from time to time; and

(f) No 'End Use' and 'End Use Certificate' would be required.

ii. Documents required:

1. Proof of import of the item (s):

a. Bill of entry containing details of the items to be repaired/replaced;
b. Export License (if applicable) issued by the foreign country for original import of the items to India;
c. Documentary proof and/or self declaration that the item exempted from license requirement or place under no license requirement for India.

2. Proof of obligation for replacement or repair of defective/damaged items:

Any of the applicable document (s):

a. Contract agreement with the supplier/OEM (including agency authorized by OEM); or
b. Purchase order containing terms of import; or
c. Warranty policy/conditions on replacement/repair of defective/damaged items;

3. An Undertaking from the applicant firm;

An Undertaking from the applicant exporter (on the letter head of the firm duly signed and stamped by the authorized signatory) stating:

a. Details of imported items to be exported after repair along with their SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Category /Sub-category number (s), quantity, item description and ECCN of foreign country;

a. That item (s) are being exported to the entity from which it was imported or to the OEM (including agency authorized by OEM) (whichever is applicable) for replacement/ repair;

b. That there has been no change to the original characteristics/specifications of the item (s) after import;

c. That the replacement or repair of defective/damaged items (whichever is applicable) is allowed under the conditions of import or contractual agreement;

d. That the defective/damaged item (s) after repair/replacement shall be brought back to India within 90 days of its export;

e. That, in case the defective/damaged item (s) cannot be imported due to any reason (beyond repair, testing failure analysis etc.), evidence of destruction in the importing country shall be submitted to DGFT within 90 days of export.

f. That, in case time beyond 90 days is required for repair of imported defective/damaged item (s) before re-import, permission from DGFT shall have to be obtained in advance indicating detailed justification for seeking extension of time.

iii. Applications for grant of authorizations for export to the entity from which it was imported or to the OEM (including agency authorized by OEM) shall be approved by Chairman IMWG, without any consultation with IMWG members. However, in cases of export to an entity other than the OEM (including agency authorized by OEM), approval will be granted by Chairman, IMWG after verification of the credentials of the foreign entity to which the item (s) are to be exported.

B. Authorization for re-export of indigenous SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items after repair/replacement:

i. Conditions to be fulfilled:

(a) The SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items manufactured in India, were exported and brought back to India for repair or being replaced, on being found defective/damaged;

(b) The items are to be re-exported after repair/replacement to the same entity to which the item (s) were originally exported by the applicant exporter;

(c) There has been no change to the original characteristics/specifications of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology item (s);

(d) That the defective/damaged item (s) has/have already been brought back or would be brought back to India within 90 days of its replacement (if applicable);

(e) No authorization for re-export would be granted if the original license has been suspended, modified or revoked.

(f) No Export authorization would be granted for UNSC sanctioned destinations or countries/entities of high risk, as assessed by the IMWG, from time to time; and

(g) No 'End Use' and 'End Use Certificate' would be required;

ii. Documents Required

1. Proof of the original export of the item (s):

a. Copy of the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology License issued for the export of the items to be replaced/repaired;
b. Shipping bills containing the details of the initial export of these items;
c. Bill of Entry containing details of the items imported for replacement or repair;

2. Proof of obligation for replacement or repair of defective/damaged items:

Letter from the foreign buyer on its letter head, duly signed and stamped, raising the demand for the repair or replacement of the item(s) to be exported and the reason thereof and any of the applicable document (s):

a. Contract agreement of the Indian exporter/OEM (including agency authorized by OEM) with the foreign buyer; or
b. Purchase order containing terms of replacement/repair; or
c. Warranty policy/conditions on replacement/repair of defective/ damaged items;

3. An Undertaking from the applicant firm;

An Undertaking from the applicant exporter (on the letter head of the firm duly signed and stamped by the authorized signatory) stating:

a. Details of items to be exported as replacement or after repair along with their SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Category /Sub-category numbers);

b. That there has been no change to the original characteristics/specifications of the item (s) after repair (if imported and repaired) or is of the same specifications as of the item (s) being replaced;

c. That they are being exported to the same entity (ultimate end user) after repair or as replacement (as applicable) to which it was exported earlier;

d. That replacement/repair whichever is applicable) is allowed under the conditions of export or purchase order or contractual agreement;

e. That the defective/damaged item (s) has/have already been brought back or would be brought back to India within 90 days of its replacement (in case of replacement);

f. That, in case the defective/damaged item (s) cannot be imported due to any reason (beyond repair, testing failure analysis etc.), evidence of destruction in the importing country shall be submitted to DGFT within 90 days of export of replacement.

iii. Applications for grant of authorizations to export the replaced/repaired item (s) to/through the same entity (ies), as specified in the original SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology license, shall be approved by Chairman IMWG, without any consultation with IMWG members. However, in cases of export through a new entity (consignee), approval will be granted by Chairman, IMWG after verification of the credentials of the new foreign entity (ies) through which the item (s) are to be exported.

C. Authorization for export of imported SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items to same entity abroad, or any authorised entity after repair in India:

i. Conditions to be fulfilled:

(a) The SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items were imported to a designated/authorized repair facility in India for the purpose of repair under a contract agreement/Master Service agreement (MSA); or

Imported under a contract agreement between Indian exporter, entities of repair facility (if different from exporter) and entity abroad defining 'Statement of Work (SOW)'/ 'Scope of Work' including conditions for undertaking repair in India;

(b) The items are to be exported to the same entity abroad from which the item (s) has/have been imported or to the OEM (including agency2 authorized by OEM);

(c) There has been no change to the original characteristics/specifications of the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology item (s) after repair;

(d) No Export Authorization would be granted when the initial export authorization has been suspended, modified or revoked by country of import;

(e) No Export authorization would be granted for UNSC sanctioned destinations or countries/entities of high risk, as assessed by the IMWG, from time to time;

(f) No details of 'End Use' and 'End Use Certificate' would be required;

ii. Documents Required

1. Proof of import of the item (s):

a. Bill of entry containing details of the items to be repaired;
b. Export License (if applicable) issued by the foreign country for original import of the items to India;
c. Documentary proof and/or self declaration that the item exempted from license requirement or place under no license requirement for India.

2. Proof of obligation for repair of defective/damaged items:

Contract agreement and/or 'Statement of Work (SOW)'/ Master Service agreement (MSA) between Indian exporter and entities of repair facility (if different from exporter) with the entity abroad /OEM (including agency authorized by OEM) defining conditions for undertaking repair in India.

3. An Undertaking from the Indian exporter;

An Undertaking from the applicant exporter (on the letter head of the firm duly signed and stamped by the authorized signatory) stating:

a. Details of imported items to be exported after repair along with their SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Category /Sub-category number (s), quantity, item description and ECCN of foreign country;

b. That item (s) are being exported to the same entity from which it was originally imported for repair and return purpose or to the OEM (including agency authorized by OEM);

c. That there has been no change to the original characteristics/specifications of the item (s) after import;

d. That the repair of defective/damaged items is allowed under the conditions of import or contractual agreement between Indian exporter, entities of repair facility (if different from exporter) and the entity abroad /OEM (including agency authorized by OEM) (name and address);

iii. Applications for grant of authorizations for export to the entity from which it was imported or to the OEM (including agency authorized by OEM) shall be approved by Chairman IMWG, without any consultation with IMWG members. However, in cases of export to an entity other than the OEM (including agency authorized by OEM), approval will be granted by Chairman, IMWG after verification of the credentials of the foreign entity to which the item (s) are to be exported.]

^old[A. Authorization for export of imported SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items for replacement/repair:

Application for grant of authorization for export of imported SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items to the entity from which it has been imported or to its OEM (including agency authorized by OEM), for the purpose of repair or replacement of damaged/defective items, shall be considered by Chairman IMWG, on the following conditions:

    (a) The export should only be to the entity from which the item(s) has/have been imported or to the OEM (including agency authorized by OEM);
    (b) No details on 'End Use' and 'End Use Certificate' would be required;
    (c) The application is accompanied with the following additional documents (depending on whichever is applicable/appropriate):

        i. Proof of import of the item(s):
            a. Bill of entry containing details of the items to be repaired/replaced;
            b. Export License (if applicable) issued by the foreign country for original import of the items to India;

       ii. Proof of obligation for replacement or repair of defective/damaged items:

           Any of the applicable document(s):
            a. Contract agreement with the supplier/OEM (including agency authorized by OEM); or
            b. Purchase order containing terms of import; or
            c. Warranty policy/conditions on replacement/repair of defective/damaged items;

       iii An Undertaking from the applicant firm :

          An Undertaking on the letter head of the firm duly signed and stamped by the authorized signatory stating:

           a. Details of imported items to be exported after replacement or repair along with their SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Category/Sub-category numbers;
           b. That item (s) are being exported to the entity from which it was imported or to the OEM (including agency authorized by OEM) (whichever is applicable) for replacement/ repair;
           c. That there has been no change in the specifications of the item(s) after import;
           d. That the replacement or repair of defective/damaged items (whichever is applicable) is allowed under the conditions of import or contractual agreement;

(d) Applications for grant of authorizations for export to the entity from which it was imported or to the OEM (including agency authorized by OEM) shall be approved by Chairman IMWG, without any consultation with IMWG members. However, in cases of export to an entity other than the OEM (including agency authorized by OEM), approval will be granted by Chairman, IMWG after verification of the credentials of the foreign entity to which the items are to be exported.

(e) All such authorizations shall be brought before IMWG in its subsequent meeting for confirmation of approval, on ex-post facto basis.

B. Authorization for replacement/repair of indigenous exported SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items:

Application for grant of authorization for export of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items, which on being exported from India, were brought back for repair or being replaced, on being found defective/damaged, and are now being re-exported after replacement/ repair, shall be considered by Chairman IMWG, on the following conditions:

(a) The export should only be to the same entity (ultimate end user) to which the item were originally exported by the applicant exporter;
(b) No details on 'End Use' and 'End Use Certificate' would be required;
(c) The application is accompanied with the following additional documents (depending on whichever is applicable):

i. Proof of the original export of the items:

    a. Copy of the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology License issued for the export of the items to be replaced/repaired;
    b. Shipping bills containing the details of the initial export of these items;
    c. Bill of Entry containing details of the items imported for replacement or repair;

ii. Proof of obligation for replacement or repair of defective/damaged items:

Letter from the foreign buyer on its letter head, duly signed and stamped, raising the demand for the repair or replacement of the item(s) to be exported and the reason thereof and any of the applicable document(s):

a. Contract agreement of the Indian exporter/OEM (including agency authorized by OEM) with the foreign buyer; or
b. Purchase order containing terms of replacement/repair; or
c. Warranty policy/conditions on replacement/repair of defective/damaged items;

iii An Undertaking from the applicant firm :

An Undertaking on the letter head of the firm duly signed and stamped by the authorized signatory stating:

a. Details of items to be exported as replacement or after repair along with their SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Category /Sub-category number(s);
b. That there has been no change in the specifications of the item(s) after repair (if imported and repaired) or is of the same specifications as of the item(s) being replaced;
c. That they are being exported to the same entity (ultimate end user) after repair or as  replacement (as applicable) to which it was exported earlier;
d. That replacement/ repair (whichever is applicable) is allowed under the conditions of export or purchase order or contractual agreement;
e. That the defective/damaged item(s) has/have already been brought back or would be brought back to India within 90 days of its replacement (if applicable);
f. That, in case the defective/damaged item(s) cannot be imported due to any reason, evidence of destruction in the importing country shall be submitted to DGFT within 90 days of export of replacement.

(d) Applications for grant of authorizations to export the replaced/repaired item(s) to/through the same entity (ies), as specified in the original SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology license, shall be approved by Chairman IMWG, without any consultation with IMWG members. However, in cases of export through a new entity (consignee), approval will be granted by Chairman, IMWG after verification of the credentials of the new foreign entity (ies) through which the items are to be exported.

(e) All such authorizations shall be brought before IMWG in its subsequent meeting for confirmation of approval, on ex-post facto basis.]

⁶⁵[D. Authorization for export of same imported SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items to same entity abroad under General Authorization for Export after Repair in India (GAER)"

A. Export of imported SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items to the same entity abroad after repair in India will be allowed on the basis of a onetime General authorization for Export after Repair in India (GAER) subject to post reporting on quarterly basis issued by DGFT, subject to the following conditions:

a. The SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items were imported to a designated/authorized repair facility in India for the purpose of repair under a contract agreement/Master Service agreement (MSA); or Imported under a contract agreement between Indian exporter, entities of repair facility (if different from exporter) and entity abroad defining ' Statement of Work (SOW)'/ ' Scope of Work' including conditions for undertaking repair in India;

b. The items are to be exported to the same entity and location abroad from which the item(s) has/have been imported;

c. The exporter is required to register and obtain General authorization for export after repair only once during the validity period. Subsequent export/re-export is subject to post reporting;

d. The exporter is required to provide Bill of Entry for the imported item while applying for GAER for the first shipment.

e. General authorization for export after repair shall be valid for a period of one year from the date of issue of General authorization subject to subsequent post reporting(s) within 30 days from the date of such export;

f. Subsequent export would be allowed to the same entity and location to which the license has originally been issued. Note: Same entity would imply that (a) foreign buyer {b) consignee or intermediaries, if any (c) the end user are exactly the same for which authorisation has been issued to the applicant exporter.

g. There has been no change to the original characteristics/specifications of the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology item(s) after repair and no value addition has been done during the repair work;

h. No Export Authorisation would be granted when the initial export authorisation has been suspended, modified or revoked by country of import;

i. No Export authorisation would be granted for UNSC sanctioned destinations or countries/entities of high risk, as assessed by the IMWG, from time to time;

j. No details of 'End Use' and 'End Use Certificate' would be required;

k. GAER issued for specific item and specific entity (buyer/end user) shall not be applicable in case the re-export is of a different imported item or to a different entity or Authorised OEM. In such cases, either a new GAER authorization may be applied or application may be filed under Para 2.79 C (C) of HBP.

B. Documents Required for GAER

1. Proof of import of the item(s):

a. Export License (if applicable) issued by the foreign country for original import of the items to India;

b. Documentary proof and/or self declaration that the item exempted from license requirement or place under no license requirement for India.

c. Bill of Entry (first time)

2. Proof of obligation for repair of defective/damaged items:

Contract agreement and/or 'Statement of Work (SOW)' I Master Service agreement (MSA) between Indian exporter and with the entity abroad (from which the goods were imported initially) defining conditions for undertaking repair in India.

3. An Undertaking from the Indian exporter;

An Undertaking from the applicant exporter (on the letter head of the firm duly signed and stamped by the authorized signatory) stating:

a. Details of imported items to be exported after repair alongwith their SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Category /Sub-category number(s), quantity, item description and ECCN of foreign country (if available);

b. That item(s) are being exported to the same entity from which it was originally imported for repair and return purpose.

c. That there has been no change to the original characteristics/specifications of the item(s) after import and no value addition has been done during the repair work;

d. That the repair of defective/damaged items is allowed under the conditions of import or contractual agreement between Indian exporters and entities from which goods were imported.

e. That Shipping Bills and Bill of Entry into destination country of subsequent re-exports and any other information as sought by DGFT shall be submitted to DGFT on quarterly basis.

f. That items would not used for military applications or to develop, acquire, manufacture, possess, transport, transfer or use, chemical, biological, nuclear weapons or for missile capable of delivering such weapons.

C. Post reporting for re-export of items/software/technology under GAER

i. The Indian exporter shall submit post-shipment details of each transfer/consignment of exports of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items/software/technology under GAER to the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Division of DGFT (Hqrs), New Delhi, via E-mail (scomet-dgft@nic.in ) or a procedure as prescribed by DGFT, on quarterly basis (March/June/September/December), by the end of subsequent month of each quarter, in respect of the exports made in the previous quarter.

ii. The post-shipment details shall include submission of Bill of Entry (wherever available), shipping bill details, valid export license copy within the timelines mentioned above.

iii. Failure to do so may entail imposition of penalty and / or suspension/revocation of GAER and action as per FTDR Act.

D. Validity

a) GAER issued for export of imported SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items after repair shall be valid for a period of 1 year from the date of issue of GAER subject to subsequent post reporting(s) within 30 days from such export;

b) GAER cannot be re-validated in terms of Paragraph 2.80 of HBP of FTP 2015-20.

E. Suspension/Revocation

GAER issued shall be liable to be suspended I revoked by the DGFT on receipt of an adverse report on proliferation concern or for non-submission of mandatory reports /documents within the prescribed timelines or for non-compliance with the conditions of this Public Notice.

F. General conditions

i. GAER would not be issued in case of items to be used to design, develop, acquire, manufacture, possess, transport, transfer and I or used for chemical, biological, nuclear weapons or for missiles capable of delivering weapons of mass destruction and their delivery system;

ii. GAER would not be issued for countries or entities covered under UNSC embargo/ sanctions N on assessment of proliferation concerns, or national security and foreign policy considerations, etc.;

iii. DGFT shall reserve the right to deny issuance of GAER or recall GAER without assigning any reason(s).

G. Applications for grant of General authorizations for export to the same entity from goods were imported shall be approved by Chairman IMWG, without any consultation with lMWG members after the first export/shipment. In exceptional cases, consultation with IMWG may be done prior to issuance of GAER, incase required.

H. All such authorizations shall be brought before lMWG in its subsequent meeting for confirmation of approval, on ex-post facto basis.]

³⁷[2.79D (A) Authorization for export of indigenous/imported SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology item(s) for demo/displav/exhibition /tender/ RFP/RFQ/NIT abroad

Authorizations for export of items in SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology List (other than those under Category 0, 1, 2 and 6 or ‘technology’ or ‘Software’ in any category) solely for purposes of (a) Demo (b) Display (c) Exhibition (d) Tenders/RFP/RFQ/NIT shall be considered by Chairman IMWG, on the following conditions:

(a) Such cases would be considered purely on temporary export basis for a specified time period;

(b) No end user certificate would be insisted upon in such cases;

(c) There shall not be any commercial transaction in the form of selling/buying/renting/leasing;

(d) The number of item(s) should be commensurate with the nature of export items and the purpose for which the application is being made;

(e) There shall not be any exchange/disclosure of information which could lead to transfer of technology  ;

(f) No export authorisation would be granted for UNSC sanctioned destinations or countries/entities of high risk, as assessed by the IMWG, from time to time;

(g) The application is accompanied with the following additional documents (depending on whichever is applicable):

(i) Proof of event (Demo/Display/ Exhibition/ Tenders/RFP/RFQ/NIT)
Invitation letter / Advertisement/Notice for RFP/RFQ/NIT or any other document to authenticate (i) the event or purpose of participation (ii) schedule (in case dates not decided, probable time period) (iii) specific location of event [venue, city, country etc.];

(ii) Proof of participation :
Documents confirming participation of applicant in the event (demo/display/ exhibition/ tender/RFP/RFQ/NIT);

(iii) An undertaking from the applicant firm:
An Undertaking on the letter head of the firm duly signed and stamped by the authorized signatory stating:

a. Purpose of export, details of invitee alongwith schedule and specific location of event;

b. Details of items to be exported for Demo/Display/Exhibition /tender/ RFP/RFQ/NIT alongwith their SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Category /Sub-category number(s), quantity and item description.

c. that the exported items will be in the custody of the exporter during the entire period of export;

d. that the exported items shall be brought back to India within 90 days after the event gets over or within the extended time, as allowed by DGFT;

e. that the Bill of Entry confirming the return back of the exported items to India shall be submitted to DGFT.

(h) Applications for grant of authorizations shall be approved by Chairman, IMWG after verifying the credentials of the event/organizer.

(B) Authorization for export of imported SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items after participation in demo/displav/exhibition /tenders/ RFP/RFQ/NIT in India

Application for grant of authorization for export of imported SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items to the entity from which it has been originally imported or to its OEM (including agency authorized by OEM), after Demo/Display/Exhibition/tender/RFP/RFQ/NIT, shall be considered by Chairman IMWG, on the following conditions:

a) The SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology item(s) were imported in India for the purpose of demo/display/exhibition /tender/ RFP/RFQ/NIT under a contract agreement between Indian exporter and supplier/OEM(including agency authorized by OEM);

b) The export should only be to the entity from which the item(s) has/have been imported or to the OEM (including agency authorized by OEM);

c) No details on ’End Use’ and ‘End Use Certificate* would be required;

d) No export authorisation would be granted for UNSC sanctioned destinations or countries/entities of high risk, as assessed by the IMWG, from time to time;

e) The application is accompanied with the following additional documents (depending on whichever is applicable/appropriate):

i. Proof of import of the item(s):

a. Bill of entry containing details of the items being exported after completion of Demo/Display/Exhibition /tender/ RFP/RFQ/NIT;
b. Export License (if applicable) issued by the foreign country for original import of the items to India;

ii. Proof of event/participation (Exhibition/ Demo/Display/ Tenders/RFP/ RFQ/NIT)

Invitation letter / Advertisement/Notice for RFP/RFQ/NIT or any other document to authenticate (i) the event or purpose of participation (ii) schedule (iiij specific location of event (venue, city etc.] iv) Documents confirming participation of applicant in the event (exhibition/ display/ demo/tender/RFP/RFQ/NIT

iii. An Undertaking from the applicant firm:

An Undertaking on the letter head of the firm duly signed and stamped by the authorized signatory stating:

a. Purpose of import of item in India, invitee alongwith schedule and specific location of event;

b. Details of imported items to be exported after Demo/Display/Exhibition tenders/ RFP/RFQ/NIT alongwith their SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Category /Sub-category number(s), quantity, item description and ECCN of foreign country;

c. That item (s) are being exported to the entity from which it was originally imported or to the OEM (including agency authorized by OEM) (whichever is applicable) for Demo/Display/Exhibition/ tenders/ RFP/RFQ/NIT;

d. That there has been no change in the specifications of the item(s) after import;

e That the Demo/Display/Exhibition tenders/ RFP/RFQ/NIT items (whichever is applicable) is allowed under the conditions of import or contractual agreement;

f. That the export of the imported item(s) is allowed under the conditions of import or contractual agreement between Indian exporter and entity abroad /OEM (including agency authorized by OEM).

f) Applications for grant of authorizations for export to the entity from which it was originally imported or to the OEM (including agency authorized by OEM) shall be approved by Chairman IMWG, without any consultation with IMWG members. However, in cases of export to an entity other than the original supplier or OEM (including agency authorized by OEM), approval will be granted by Chairman, IMWG after verification of the credentials of the foreign entity to which the item(s) are to be exported.

3. All such authorizations shall be brought before IMWG in its subsequent meeting for confirmation of approval, on ex-post facto basis.

Note:-

• RFP refers to Request for Proposal
• RFQ refers to Request for Quotation
• NIT refers to Notice Inviting Tender]

 ^old[¹⁵[2.79D Issue of export authorizations for display/exhibition/tenders/RFP/RFQ/NIT of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items

Authorizations for export of items in SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology List (other than those under Category 0, 1, 2 and 6 or 'Technology' or 'Software' in any category) solely for purposes of (a) Display (b) Exhibition (c) Tenders/RFP/RFQ/NIT shall be considered by Chairman IMWG, on the following conditions:

(a) Such cases would be considered purely on temporary export basis for a specified time period;

(b) No end user certificate would be insisted upon in such cases;

(c) There shall not be any commercial transaction in the form of selling/buying/renting/leasing;

(d) The number of items should be commensurate with the nature of export items and the purpose for which the application is being made;

(e) There shall not be any exchange/disclosure of information which could lead to transfer of technology  ;

(f) No export authorisation would be granted for UNSC sanctioned destinations or countries/entities of high risk, as assessed by the IMWG, from time to time;

(g) The application is accompanied with the following additional documents (depending on whichever is applicable):

(i) Proof of event (Exhibition/Display/ Tenders/RFP/RFQ/NIT]

Invitation letter / Advertisement/Notice for RFP/RFQ/NIT or any other document to authenticate (i) the event or purpose of participation (ii) schedule (in case dates not decided, probable time period) (iii) specific location of event [venue, city, country etc.];

(ii) Proof of participation :

Documents confirming participation of applicant in the event (exhibition/ display/tender/RFP/RFQ/NIT);

(iii) An undertaking from the applicant firm:

An Undertaking on the letter head of the firm duly signed and stamped by the authorized signatory stating:

a. that the exported items will be in the custody of the exporter during the entire period of export;

b. that the exported items shall be brought back to India within 90 days after the event gets over or within the extended time, as allowed by DGFT;

c. that the Bill of Entry confirming the return back of the exported items to India shall be submitted to DGFT;

(h) Applications for grant of authorizations shall be approved by Chairman, IMWG after verifying the credentials of the event/organizer;

(i) All such authorizations shall be brought before IMWG in its subsequent meeting for confirmation of approval, on ex-post facto basis."

Note:-

• RFP refers to Request for Proposal
• RFQ refers to Request for Quotation
• NIT refers to Notice Inviting Tender]]

²³[2.79E Issue of export authorizations for re-export/return of imported SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items to the same foreign entity or to its OEM (including agencies authorized by OEM)

Application for grant of authorization for re-export/return of imported SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items to the foreign entity from which it has been originally imported or to its OEM (including agency authorized by OEM), for reasons such as obsolescence of technology of imported items; cancellation of order by the Indian buyer /end user; dead on arrival etc., shall be considered by Chairman IMWG, on the following conditions:
(a) The export should only be to the entity from which the item(s) has/have been imported or to the OEM (including agency/ies authorized by OEM);
(b) No details on 'End Use' and 'End Use Certificate' would be required;
(c) No export authorisation would be granted for UNSC sanctioned destinations or countries/entities of high risk, as assessed by the IMWG, from time to time;
(d) The application is accompanied with the following additional documents (depending on whichever is applicable/appropriate):

i. Proof of import of the item(s):

    a. Documentary proof that the item(s) originally imported, match with intended item(s) of re-export/return;
    b. Bill of entry containing details of the items to be returned;
    c. Export License (if applicable) or any other documents showing that export regulation of the country of export does not have any restriction on re- export/return from India;
    d. In case of any such restriction, the exporter will provide a letter of explanation detailing the list of countries/entities, to which re-export/return is restricted / regulated;

ii. Proof of obsolescence/cancellation of order for intended items:
Any of the applicable document(s):
    a. Proof of obsolescence of technology of imported items;
    b. Cancellation of order by Indian importer;   
    c. Inspection report in case of dead on arrival etc;
    d. Any other document in support of the claim for return

iii. Proof of obligation for re-export/return for intended items:
Any of the applicable document(s):
    a. Contract agreement between exporter and the supplier/OEM (including agency authorized by OEM) for re-export/return;
    b. Purchase order containing terms of import with specific mention of re-export/return due to any of the reasons explained above;
    c. Warranty policy/conditions on replacement of damaged /dead on arrival items;

iv. An Undertaking from the applicant firm;

An Undertaking on the letter head of the firm duly signed and stamped by the authorized signatory stating:

a. Details of imported items to be re-exported/returned alongwith their SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Category /Sub-category number(s);
b. That item (s) are being exported to the same foreign entity from which it was originally imported or to the OEM [including agency(ies) authorized by OEM]
(whichever is applicable);
c. That there has been no change in the specifications of the item(s) after import in India;
d. That the re-export/return of items due to reasons such as obsolescene of technology of imported items; cancellation of order by Indian buyer/end user; dead on arrival etc. (whichever is applicable) is allowed under the conditions of import or contractual agreement.
(e) Applications for grant of authorizations for export to the entity from which it was originally imported or to the OEM (including agency authorized by OEM) shall be approved by Chairman IMWG, without any consultation with IMWG members. However, in cases of re-export/return to an entity other than the OEM (including agencies authorized by OEM), approval will be granted by Chairman, IMWG after verification of the credentials of the foreign entity to which the item(s) are to be exported.
(f) All such authorizations shall be brought before IMWG in its subsequent meeting for confirmation of approval, on ex-post facto basis.]

²⁹[2.79F Global Authorisation for Intra-Company Transfers (GAICT) of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology  Items/Software/Technology 

⁶²[A. Scope and Eligibility:Pre-export authorization will not be required, for export and/or re-export of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items including software and technology under SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Category 8 (except items listed in Annexure-I), subject to the following conditions:

i. where the export is an Intra-company transfer from the Indian parent company (applicant exporter) to its foreign subsidiary company or from the Indian subsidiary of foreign company (applicant exporter) to its foreign parent/another subsidiary of foreign parent company and;

Note: In case of third party involvement in the supply chain, the end user has to be a foreign parent / another subsidiary of foreign parent company or a subsidiary company of Indian company.

ii. where the transfer fulfils the conditions mentioned at (a) to (f) below:

a. The items/software/technology to be exported/re-exported is based on a Master Service Agreement I Contract between the Indian parent company/Indian subsidiary of foreign company and foreign subsidiary of Indian company/foreign parent company of Indian subsidiary for carrying out certain services but not limited to design, encryption, research, development, delivery, validation, calibration, testing, related services, etc.;

Note 1: As a result of the service carried out by the Indian exporter in case of re-export, the items/software/technology should not undergo change in classification.

Note 2: The list of services mentioned above is illustrative, not exhaustive. However, the final decision to approve a GAICT authorization lies with the relevant authority.

b. These items including software and technology are to be exported/re-exported to the countries listed in Table 1 below (entire supply chain including any third party should be in the countries listed in Table 1 to this Public Notice);

Table 1

Note: However, IMWG on a case to case basis may allow countries other than those listed in Table 1 considering description/end use/end user of the item.

c. The applicant exporter declares that the exported items would be used for the purposes for which it is intended by the foreign subsidiary of Indian company / foreign parent company / another subsidiary of foreign parent company, as the case may be;

d. The applicant exporter furnishes either a certified/approved Internal Compliance Programme (ICP) or demonstrates compliance to the ICP of the foreign parent company or ICP certified by the Compliance Manager of the company or certified by any Government agency such as Authorized Economic Operator (AEO) scheme etc.

e. The exporter agrees to allow on-site inspection, if required by the DGFT or authorized representatives of Government of India;

f. No export authorization would be granted for UNSC sanctioned destinations or countries;

g. No export authorization shall be granted to an exporter specified at (i) above if they have come to adverse notice previously;

h. The exporter is granted a Global Authorisation for Intra-Company Transfers (GAICT) as per procedure mentioned in para 2.B below.

B. Procedure for grant of Global Authorization for Intra-Company Transfers (GAICT)

Filing and Assessment of Application

a. In respect of export/re-export of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items including software and technology ,the applicant exporter shall submit an application for GAICT through online SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology portal and attach information in proforma -ANF 2O(b);

b. The application would be assessed for the issue of GAICT by Inter-Ministerial Working Group (IMWG) based on the submission of the application and other supporting documents by the applicant exporter in the prescribed proforma;

i. Documentary proof of the corporate relationship between the Indian parent company (applicant exporter) and its foreign subsidiary company or between the Indian subsidiary of foreign company (applicant exporter) and its foreign parent / another subsidiary of foreign parent company ;

ii. Classification of item including software and technology in SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology (indicating SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology category and sub-category);

iii. Documentary proof of License Exception /Temporary license from the country of the parent company abroad or from subsidiaries of the parent company abroad, if available (optional)

iv. Detailed description of the item intended to be exported with relevant technical details with specifications such as model, part number, etc. and in case of software/technology, relevant details like encryption algorithm, key length, encryption functionality, eligibility under cryptography note etc. to be provided (if applicable);

v. In case of third party involvement in the supply chain, a clear contract /service agreement/ Purchase order has to be furnished specifying SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology item description.

vi. Certified/approved ICP of the Indian parent company or self-certified copy of the ICP of the foreign parent company being adopted by Indian subsidiary of foreign company along with an undertaking thereon;

vii. Undertaking on the letterhead of the firm duly signed and stamped by the authorised signatory:

a. To allow on-site inspection, if required by the DGFT or authorized representatives of Government of India;

b. The applicant exporter declares that the exported items would be used for the purposes for which it is intended by the foreign subsidiary of Indian company / foreign parent company I another subsidiary of foreign parent company, as the case may be;

c. The applicant exporter declares that subsequent to issue of export authorisation, if the licensee has been notified in writing by DGFT or if they know or has reason to believe that an item may be intended for military end use, the exporter would not be eligible for GAICT for export of that/those item(s) and would apply separately to DGFT for a fresh authorisation in terms of regular policy. [DGFT’s PN No. 27 dated 21.09.2017 for catch-all policy may also be referred],

viii. The Company must ensure that:

a. They shall submit original End User Certificate in the prescribed format within 30 days of filing application and in case of subsequent exports, within 30 days of delivery at destination point, after issue of export authorisation;

b. They have Agreement/purchase order, excerpt of contract from entity (consignee) receiving the items which states the export is for a permitted use ;

c. The documents include the name & contact number and email id of the authority signing the EUC.

ix. A precise and clear contract /service agreement/ Purchase order has to be furnished indicating item description in case of third party involvement in the supply chain (if applicable)

x. Additional details, if any, sought by DGFT

C. Post reporting for re-export of items/software/technology under GAICT

a. The Indian exporter shall submit post-shipment details of each transfer/consignment of exports of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items/software/technology under GAICT to the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Division of DGFT (Hqrs), New Delhi, via E-mail (scomet-dgft-pr@nic.in) or a procedure as prescribed by DGFT, on quarterly basis (March / June / September / December), by the end of subsequent month of each quarter, in respect of the exports made in the previous quarter;

b. The post-shipment details shall be submitted in proforma ANF 2O (c) along with a copy of EUC in Appendix 2S (iv) within the timelines mentioned above, from the foreign subsidiary company or foreign parent company I another subsidiary of foreign parent company;

c. Failure to do so may entail imposition of penalty and / or suspension/revocation of GAICT.

Note: Revised ANF (Aryat Niryat Form) - ANF 2O(b), ANF 2O(c) and End Use Certificate proforma Appendix 2S (iv) enclosed with this Public Notice.

D. Record Keeping

The exporter will be required to keep records of all the export documents, in manual or electronic form, in terms of Para 2.73 (c) of HBP, for a period of 5 years from the date of GAICT issued by DGFT.

E. General conditions

a. GAICT would not be issued in case of items including software and technology to be used to design, develop, acquire, manufacture, possess, transport, transfer and / or used for chemical, biological, nuclear weapons or for missiles capable of delivering weapons of mass destruction and their delivery system;

b. GAICT would not be issued for countries or entities covered under UNSC embargo or sanctions list or to the countries or entities assessed for risk of proliferation concern, based on national security and foreign policy considerations;

c. In case of inclusion or amendment of items (including software and technology) or inclusion of new companies or amendment in existing companies in the supply chain, the applicant exporter will obtain prior permission of DGFT with relevant details;

d. IMWG shall reserve the right to deny issuance of authorization GAICT for any reason and also relax any provision of the policy, if so required in exceptional cases.

F. Re-exports / re-transfer of the items including software and technology (processed or incorporated)

Further re-exports / re-transfers of the items including software and technology (processed or incorporated) from the foreign subsidiary company or foreign parent company / another subsidiary of foreign parent company to end users in other countries would be subject to the export control regulations of the country of the foreign subsidiary of Indian company or foreign parent company / another subsidiary of foreign parent company.

G. Validity

a) GAICT issued for intra-company transfers of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items including software and technology shall be valid for a period of three years from the date of issue of GAICT;

b) GAICT cannot be revalidated in terms of Paragraph 2.80 of HBP of FTP 2015-20.

H. Suspension / Revocation

GAICT issued shall be liable to be suspended by the DGFT on receipt of intimation about initiation of any inquiry from the country concerned or from any domestic agency. GAICT shall be revoked on receipt of an adverse report on proliferation concern or for non-submission of mandatory reports/documents within the prescribed timelines or for non- compliance of any of the condition of this Public Notice.]

^old[A. Scope and Eligibility
Pre-export authorization will not be required for re-export of imported SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items, software and technology [excluding items under SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Categories 0, IB, 1C , 3A401, 5 and 6] under following conditions:

i. where the re-export is an Intra-company transfer from an Indian subsidiary (applicant exporter) to its foreign parent company and/or to subsidiaries of the foreign parent company for re-export of imported SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items (covered under para 2.A above) from India and;

ii. where the transfer fulfils the conditions mentioned at (a) to (g) below:

a) The items/software/technology to be re-exported, by Indian subsidiary, have been imported under a License Exception available in the country of the parent company abroad or from subsidiaries of the parent company abroad;
Note: The license exception should clarify the control list classification, equivalent to the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology item number and whether the licence exception is available for the subsidiaries of the parent company abroad;

b) The items/software/technology to be re-exported is based on a Master Service Agreement / Contract between the parent company and the Indian subsidiary for carrying out certain services including design/encryption/research/  development/delivery/validation/testing;
Note: As a result of the service carried out by the Indian exporter, the items/software/technology should not undergo change in functionality and classification.

c) These items/software/technology is/are to be re-exported to the foreign parent company and / or subsidiaries of foreign parent company;

d) The applicant exporter declares that the re-exported items would be used for the purposes for which it is intended by the parent company and/ or its subsidiaries;

e) The exporter furnishes either a certified/approved Internal Compliance Programme (ICP) or demonstrates compliance to the ICP of the parent company;

f) The exporter agrees to allow on-site inspection, if required by the DGFT or authorised representatives of Government of India;

g) The exporter is granted a Global Authorisation for Intra-Company Transfers (GAICT) as per procedure mentioned in para 2.B below.

B. Procedure for grant of Global Authorization for Intra-Company Transfers (GAICT)

Filing and Assessment of Application
a. In respect of re-export of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items/software/technology against Licence Exception which has been granted by the export control licensing authority of the country of parent company, the Indian exporter shall submit application for GAICT through online SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology portal and attach information in proforma -ANF 2O(b)

b. The application would be assessed for the issue of GAICT by Inter-Ministerial Working Group (IMWG) based on the submission of the application and other supporting documents by the Indian exporter in the prescribed proforma:

i. Documentary proof of the corporate relationship between the foreign parent company and /or its subsidiaries abroad with the Indian subsidiary (applicant exporter);

ii. Copy of Master Service Agreement (MSA) / Contract and other related documents (if any), as may be relevant, between the foreign parent company and the  Indian subsidiary;

iii. Classification of item/software/technology in SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology (indicating SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology category and sub-category);

iv. Detailed description of the item intended to be re-exported with relevant technical details, such as model, part number, etc. and in case of software/technology,details of encryption algorithm, key length, encryption functionality, eligibility under cryptography note etc. to be provided;

v. Documentary proof of licence exception granted by the export control licensing authority of country of the foreign parent company and the subsidiaries of the parent company in different countries where it is valid;

vi. Certified/approved ICP of the exporter or self-certified copy of the ICP of the parent company being adopted by Indian subsidiary/exporter along with an undertaking thereon;

vii. Additional details, if any sought by DGFT

C. Post reporting for re-export of items/software/technologv under GAICT

a. The Indian exporter shall submit post-shipment details of each transfer/consignment of exports of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items/software/technology under GAICT to the SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Division of DGFT (Hqrs), New Delhi, via E-mail (scomet-dfift-pr@nic.in) on quarterly basis (March / June / September / December), by the end of subsequent month of each quarter, in respect of the exports made in the previous quarter;

b. The post-shipment details shall be submitted in proforma ANF 2O(c) alongwith a copy of EUC in Appendix 2S (iv), from the parent company abroad;

c. Failure to do so may entail imposition of penalty and / or suspension/revocation of GAICT.

Note: ANF (Aryat Niryat Form) - ANF 2O(b), ANF 2O(c) and End Use Certificate proforma Appendix 2S (iv) would be notified separately.

D. Record Keeping

The exporter will be required to keep records of all the export documents, in manual or electronic form, in terms of Para 2.73 (c) of HBP, for a period of 5 years from the date of GAICT issued by DGFT.

E. General conditions

a. GAICT would not be issued in case of item/software and / or technology to be used to design, develop, acquire, manufacture, possess, transport, transfer and / or used for chemical, biological, nuclear weapons or for missiles capable of delivering weapons of mass destruction and their delivery system;

b. GAICT would not be issued for countries or entities covered under UNSC embargo or sanctions list or to the countries or entities assessed for risk of proliferation concern, based on national security and foreign policy considerations;

c. IMWG shall reserve the right to deny issue of GAICT without assigning any reason(s).

F. Subsequent re-exports / re-transfer of the item/software/technoloev from the foreign parent company or its subsidiary to end users in other countries

Further re-export / re-transfer of the item/software/technology from the foreign parent company or its subsidiary to end users in other countries would be subject to the export control regulations of the country of the foreign parent company or its subsidiary.

G. Validity

a) GAICT issued for intra-company transfers of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items/software/technology shall be valid for a period of three years from the date of issue of GAICT by DGFT and shall be further subject to the following validity time line, whichever is earlier:

i. Till the validity of license exception of foreign parent company for that product (Items/Software/Technology); or
ii. Till the validity of license exception of foreign parent company for subsidiaries of the parent company abroad; or
iii. Till the validity of Master Service Agreement (MSA) / Contract with the foreign parent company and the Indian subsidiary.

b) GAICT cannot be revalidated in terms of Paragraph 2.80 of HBP of FTP 2015-20.

H. Suspension / Revocation
GAICT issued shall be liable to be suspended / revoked by the DGFT on receipt of an adverse report on proliferation concern or for non-submission of mandatory reports within the prescribed time lines or for non-compliance with the conditions of this Public Notice.]]

A. Procedure for grant of General Authorization for Export of Chemicals and related equipment (GAEC)

I. In respect of export/re-export of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items under the Categories / Sub Categories of 1C, 1D,1E, 3D001 and 3D004 (excluding software and technology), the applicant exporter shall submit an application for GAEC through online SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology portal and attach information in proforma -ANF 2O;

II. The application would be reviewed/examined for the issuance of GAEC by Inter-Ministerial Working Group (IMWG) based on the submitted application and other supporting documents submitted by the applicant exporter in the prescribed proforma including;

a. Detailed description of the items that are intended to be exported under this authorization with relevant technical details / specifications, such as model, part number, etc. to be provided (as applicable); In case of first intended export of items under the above Categories / Sub Categories, details of the entire supply chain (buyer, consignee, end user, etc.) of an intended export is to be provided. In case of previous exports of items under the above Categories / Sub Categories having been carried out, details of past exports including the EUC is to be provided.

b. Undertaking on the letterhead of the firm duly signed and stamped by the authorized signatory stating the following:

i. Any on-site inspection will be allowed by the applicant exporter, if required by the DGFT or authorized representatives of Government of India;

ii. The applicant exporter declares that the items that are intended to be exported shall not be used for any purpose other than the purpose(s) stated in the EUC and that such use shall not be changed nor the items modified or replicated without the prior consent of the Government of India.;

iii. The applicant exporter declares that subsequent to issue of export authorisation, if the licensee has been notified in writing by DGFT or if they know or has reason to believe that an item may be intended for military end use or has a potential risk of use in or diversion to weapons of mass destruction (WMD) or in their missile system, the exporter would not be eligible for GAEC for export of that/those item(s) and would apply separately to DGFT for a fresh authorization in terms of regular policy.

iv. Action will be taken against the exporter under FT (D & R) Act, 1992 for any misdeclaration.

c. After issuance of GAEC authorization and before actual export, the applicant exporter must ensure the following:

i. They shall notify the relevant government authorities in the online portal of DGFT, within 30 days of such export in the prescribed format [Aayat Niryat Form (ANF) - 2O], along with the End-Use Certificate (EUC) in the prescribed proforma [Appendix 2S(ii)] and a copy of the bill of entry into the destination country within 30 days of delivery at destination point.

ii. They have an agreement or a purchase order, excerpt of contract from entity (consignee / end user) receiving the items which states that the export is for a permitted use / an end use as declared in the EUC before actual export;

iii. They possess documents include the name, contact number and email id of the authority signing the EUC before actual export.

iv. Additional details, if any sought by DGFT

B. Post reporting for export / re-export of items under GAEC

a. The Indian exporter shall submit post-shipment details of each export/ re-export of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items under the above Categories/ sub-categories under GAEC, as mentioned above at II.c. (i) and within the timelines specified therein;
b. Failure to do so may entail imposition of penalty and / or suspension/revocation of GAEC

C. Record Keeping

The exporter will be required to keep records of all the export documents, in manual or electronic form, in terms of Para 2.73 (c) of HBP, for a period of 5 years from the date of GAEC issued by DGFT

D. General Conditions & Exclusions

a. GAEC would not be issued in case of items to be used to design, develop, acquire, manufacture, possess, transport, transfer and / or used for chemical, biological, nuclear weapons or for missiles capable of delivering weapons of mass destruction and their delivery system;
b. GAEC would not be issued for countries or entities covered under UNSC embargo or sanctions list or on assessment of proliferation concerns, or national security and foreign policy considerations, etc.;
c. IMWG shall reserve the right to deny issue of GAEC without assigning any reason(s).

E. Validity

a. GAEC issued for export/re-export of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items under the above Categories/Sub Categories (excluding software and technology) shall be valid for a period of five years from the date of issue of GAEC subject to subsequent post reporting(s) on quarterly basis to be reported within 30 days from the last quarter;
b. GAEC cannot be revalidated in terms of Paragraph 2.80 of HBP of FTP 2015-20.

F. Suspension / Revocation

GAEC issued shall be liable to be suspended/revoked by the DGFT on receipt of an adverse report on proliferation concern or for non-submission of mandatory post-shipment details/reports / documents within the prescribed timelines or for non-compliance with the conditions of the proposed policy.]

Export license for SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology items may be revalidated by RA concerned as per para 2.20 (b) of HBP.

Notwithstanding anything contained in Paragraphs 2.73 to 2.80, Export of SCOMET Special Chemicals, Organisms, Materials, Equipment and Technology Category 6 items will be permitted against an authorisation issued by Department of Defence Production. The grant of authorisation will be governed by the Standard Operating Procedure (SOP) issued for the purpose by Department of Defence Production.

The members of IMWG will endeavour to furnish their written comments/views/No Objection to DGFT within 30 days from the date of forwarding of applications by DGFT (Hqrs.). If no comments/views/No Objection is received within the stipulated period. The cases will be placed before IMWG for taking a decision as deemed appropriate.

Export through State Trading Enterprises (STE):

An application under ANF 2N for export of items mentioned in ITC (HS) , 2012 under STE State Trading Enterprise regime may be made to DGFT as per paragraph 2.20 of FTP.

Provisions for exporters/other provisions for doing trade and business

Status holders shall be entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of Rs.10 lakh or 2% of average annual export realisation during preceding three licensing years whichever is lower. For Pharma exports, the annual limit would be 2% of the annual export realisation during preceding three licensing years. In case of government supplies and supplies of vaccines and lifesaving drugs to health programmes of international agencies such as UN and WHO-PAHO, the annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years. Such free of cost supplies shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme.

(b) If the proof of payment issued by the Insurance Agency mentions claim value both in foreign exchange and INR,RA will use the foreign exchange value for processing. If the claim value is mentioned only in equivalent INR, RA will convert this INR value in equivalent US$ using the exchange rate (published by CBEC) applicable on the date of settlement of insurance claim”.

In case where applicant applies for duty credit scrip / discharge of EO Export Obligation against confirmed irrevocable letter of credit (or bill of exchange which is unconditionally Avalised / Co-Accepted / Guaranteed by a bank) and this is confirmed and certified by exporter’s bank in relevant Bank Certificate of Export and Realization, payment of export proceeds shall be deemed to have been realized. For Status Holders, irrevocable letter of credit would suffice.]

Realization of export proceeds shall not be insisted under Foreign Trade Policy, if the Reserve Bank of India (RBI) or any “Authorised Bank” (authorised by RBI for this purpose) writes off the requirement of realization of export proceeds on merits and the exporter produces a certificate from the concerned Foreign Mission of India about the fact of non-recovery of export proceeds from the buyer. However, this would not be applicable in self – write off cases.

If Customs Authorities, after recording reasons in writing, permit conversion of an E.P. copy of any scheme-shipping bill on which benefit of that scheme has not been availed, exporter would be entitled to benefit under scheme in which shipment is subsequently converted.

(a) Appendix-2L in lieu of Bank Realisation Certificate.
(b) Specific permission of RBI.

Provisions related to Quality Certification:

(d) Any agency desirous of enlistment in Appendix 2I may submit their application as per Annexure I to Appendix 2I  to the DGFT.

(c) It will be the responsibility of the drug manufactures/exporters as the case may be, to satisfy the customs authorities that the export consignment satisfies the conditions of the Notification. .

Export Promotion Council (EPC)/ Commodity Boards

(a) Registering Authority is a body notified by DGFT in this regard to register importers/ exporters as its members by issuing RCMC Registration-cum-Membership Certificate.
(b) The list of notified Registering Authorities is at Appendix-2T.
(c) EPCs acting as the Registering Authorities for RCMC Registration-cum-Membership Certificate at present will continue to act as Registering Authorities and issue RCMC Registration-cum-Membership Certificate to their members till 31st March, 2016. EPCs wishing to continue as Registering Authority for their product group thereafter shall have to comply and fulfil the conditions as specified in Paragraph 2.92 below before 31st March, 2016.

(c) Directions of the Central Government: EPCs acting as the Registering Authorities shall abide by all directions of the Central Government in respect of promotion and development of international trade.

(a) An exporter may, on application given in ANF 2C register and become a member of EPC. On being admitted to membership, applicant shall be granted forthwith Registration-cum-Membership Certificate (RCMC) of EPC concerned, in format given in Appendix 2R. In case an exporter desires to get registration as a manufacturer exporter, he shall furnish evidence to that effect.

(b) Prospective / potential exporters may also, on application, register and become an associate member of an EPC.

(d) In respect of exporters of handicrafts and handloom products from the State of Jammu & Kashmir, Director, Handicrafts, Government of Jammu & Kashmir is authorised to issue Registration Cum Membership Certificate (RCMC).

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

^Deleted[(b) Exporter shall furnish quarterly return /details of his exports of different commodities to concerned registering authority. However, status holders shall also send quarterly returns to FIEO Federation of Indian Export Organisation in format specified by FIEO Federation of Indian Export Organisation. ]

Registering authority may de-register an RCMC Registration-cum-Membership Certificate holder for a specified period for violation of conditions of registration. Before such deregistration, RCMC Registration-cum-Membership Certificate holder shall be given a show cause notice by registering authority, and an adequate and reasonable opportunity to make a representation against the proposed de-registration. Upon de– registration, concerned EPC shall intimate the same to all RAs.

A person aggrieved by a decision of registering authority in respect of any matter connected with issue of RCMC Registration-cum-Membership Certificate may prefer an appeal to DGFT or an officer designated in this behalf within 45 days against said decision and decision of appellate authority  shall be final.

DGFT may direct any registering authority to register or deregister an exporter or otherwise issue such other directions to them consistent with and in order to implement provisions of FT (D&R) Act, Rules and Orders  made there under, FTP or this Handbook.

Other General Provisions:

(c) In case of limited companies, RA may approve allotment of more than three identity cards per company. In case of loss of an identity card, a duplicate card may be issued on the basis of an self-declaration . RA may issue multiple identity cards, after recording reasons in writing, in cases of Directors/Partners of companies.

2.101 Interview with authorised Officers

Officers may grant interview at their discretion to authorised representative of importer / exporter. Interviews /clarifications may also be sought through E-mails.

2.102 Authorised signatory

Any communication from the Exporter/Importer to DGFT’s office including the RA’s must have the name, signature, email id of the person duly authorised by the firm/company to send such communications.

Preferential Trade Agreements:

2.103 Free Trade Agreements (FTAs) / Preferential Trade Agreements (PTAs)

²⁰[(e) Fees chargeable for issuance of preferential Certificate of Origin is as detailed in Appendix - 2K. The same would also be applicable as verification fee for Rules of Origin Certificate issued under any Free Trade Agreements, in case of verification as detailed in Appendix - 2K. However, the provision of Tatkal certificate of origin as being provided by some of the agencies would be discontinued. The Certificate of origin will be delivered within 24 hours/l (one) working day of the application made.]

2.104 Unilateral Tariff Preferences

(b) Subsequently in 2014, the Scheme was modified both with reference to increase in coverage as well as its simplification. This was in response to requests from several LDCs for additional product coverage on lines of of their export interest and simplification of the Rules of Origin procedures. Under the new expanded DFTP Scheme, India is granting duty free access on 96.4% of the total tariff lines, thereby retaining only about 3.6% of lines in the Exclusion and Positive Lists.For details Department of Commerce’s website: http://commerce.gov.in/ trade/international _tpp _DFTP.pdf. and Customs’ Notification No.8/2014 dated 1st April, 2014 may also be referred to in this regard.

2.105 Certificates of Origin (CoO)

(b) There are two categories of CoO viz.
      (i) Preferential and
      (ii) Non preferential

2.106 Rules of Origin (Preferential)

(d) Export Inspection Council (EIC) is the agency authorised to print blank certificates. The website of the EIC Export Inspection Council (www.eicindia.gov.in) provides procedural details (including fee) for issuance of the certificate of origin.

*2.107 TRQ Tariff Rate Quota under FTA Free Trade Agreement/CECA Comprehensive Economic Cooperation Agreement

Government, from time to time, undertakes commitments for import under Tariff Rate Quota (TRQ) in various FTA Free Trade Agreement/CECA Comprehensive Economic Cooperation Agreement. Accordingly, DGFT notifies the procedure for administration of TRQ Tariff Rate Quota from time to time. The Tariff Rate Quotas as existing is as under:

2.108 Rules of Origin (Non-Preferential)

(e) Non-preferential - Self Certification: Manufacturer exporters who are also Status Holders shall be eligible to self-certify their goods as originating from India, if goods qualify the criteria, as laid down in (a) above, as per Annexure –III to Appendix 2E.

Details of the Scheme are provided in Appendix 2F of AANF.

Policy Interpretation and Relaxations:

Application for seeking interpretation of any policy provision shall be made in ANF-2F to Policy Interpretation Committee (in the Hqrs.) under Para 2.57(b) of FTP.

(b) Director General  of Foreign Trade shall be the Chairman of PRC Policy Relaxation Committee with all Additional DGFTs, all Joint DGFTs in charge of Policy Divisions in Hqrs as members. The Joint DGFT (PRC) shall act as Member Secretary; and the Committee can Co-opt member/s with specific expertise/experience as and when required.

Refer Public Notice  01/2015-2020 Dt.04.03.2019

Refer Public Notice  12/2015-2020 Dt.25.06.2019

Refer Trade Notice No. 25/2019-20 Dt.09.07.2019

Refer Public Notice  36/2015-2020 Dt.27.09.2019

Refer Public Notice  65/2015-2020 Dt.17.03.2020

Refer Public Notice  02/2015-2020 Dt.15.04.2020

Refer Public Notice  23/2015-2020 Dt.01.10.2020

1 Substituted Vide Public Notice 58/2015-2020 Dt.05.02.2018

2 Substituted Vide Public Notice 70/2015-2020 Dt.28.03.2018

3 Inserted Vide Public Notice 38/2015-2020 Dt.09.11.2017

4.Substituted Vide Public Notice 38/2015-2020 Dt.09.11.2017

5 Refer Vide Trade Notice 03/2018-19 Dt 25.04.2018

6 Inserted Vide Public Notice  03/2015-2020 Dt.09.05.2018

7.Substituted Vide Public Notice  04/2015-2020 Dt.09.05.2018

8 Substituted Vide Public Notice  05/2015-2020 Dt.09.05.2018

9.Substituted Vide Public Notice  19/2015-2020 Dt.03.07.2018

10.Substituted Vide Public Notice  20/2015-2020 Dt.12.07.2018

11.Substituted Vide Public Notice  27/2015-2020 Dt.08.08.2018

12.Deleted Vide Public Notice  27/2015-2020 Dt.08.08.2018

13.Inserted Vide Public Notice  27/2015-2020 Dt.08.08.2018

14.Inserted Vide Public Notice  33/2015-2020 Dt.04.09.2018

15.Inserted Vide Public Notice  34/2015-2020 Dt.04.09.2018

16.Substituted Vide Public Notice  43/2015-2020 Dt.01.11.2018

17.Substituted Vide Public Notice  45/2015-2020 Dt.15.11.2018

18.Substituted Vide Public Notice  46/2015-2020 Dt.15.11.2018

19.Substituted Vide Public Notice  47/2015-2020 Dt.16.11.2018

20.Inserted Vide Public Notice  53/2015-2020 Dt.30.11.2018

21.Substituted Vide Public Notice  53/2015-2020 Dt.30.11.2018

22.Substituted Vide Public Notice  58/2015-2020 Dt.12.12.2018

23. Inserted Vide Public Notice  59/2015-2020 Dt.12.12.2018

24.Substituted Vide Public Notice  75/2015-2020 Dt.25.02.2019

25.Substituted Vide Public Notice  80/2015-2020 Dt.22.03.2019

26.Substituted Vide Public Notice  01/2015-2020 Dt.04.03.2019

27.Substituted Vide Public Notice  13/2015-2020 Dt.25.06.2019

28.Substituted Vide Public Notice  16/2015-2020 Dt.04.07.2019

29.Inserted Vide Public Notice  20/2015-2020 Dt.24.07.2019

30.Inserted Vide Public Notice  26/2015-2020 Dt.19.08.2019

31.Substituted Vide Public Notice  34/2015-2020 Dt.25.09.2019

32.Substituted Vide Public Notice  36/2015-2020 Dt.27.09.2019

33.Substituted Vide Public Notice  38/2015-2020 Dt.30.09.2019

34.Inserted Vide Public Notice  39/2015-2020 Dt.18.10.2019

35.Inserted Vide Public Notice  43/2015-2020 Dt.13.11.2019

36.Substituted Vide Public Notice  49/2015-2020 Dt.24.12.2019

37.Substituted Vide Public Notice  50/2015-2020 Dt.27.12.2019

38.Substituted Vide Public Notice  64/2015-2020 Dt.19.02.2020

39.Substituted Vide Public Notice  66/2015-2020 Dt.30.03.2020

40.Substituted Vide Public Notice  10/2015-2020 Dt.08.06.2020

41.Substituted Vide Public Notice  16/2015-2020 Dt.22.09.2020

42.Substituted Vide Public Notice  21/2015-2020 Dt.30.09.2020

43. Inserted Vide Public Notice  31/2015-2020 Dt.01.12.2020

44.Substituted Vide Public Notice  32/2015-2020 Dt.16.12.2020

45. Inserted Vide Public Notice  34/2015-2020 Dt.24.12.2020

46.Substituted Vide Public Notice  36/2015-2020 Dt.29.12.2020

47.Substituted Vide Public Notice  39/2015-2020 Dt.15.01.2020

48.Substituted Vide Public Notice  45/2015-2020 Dt. 25.03.2021

49.Substituted Vide Public Notice  46/2015-2020 Dt. 30.03.2021

50.Substituted Vide Public Notice  03/2015-2020 Dt. 30.04.2021

51.Substituted Vide Public Notice  05/2015-2020 Dt. 27.05.2021

52. Deleted Vide Public Notice  12/2015-2020 Dt. 13.07.2021

53. Inserted Vide Public Notice  15/2015-2020 Dt. 20.07.2021

54. Inserted Vide Public Notice  23/2015-2020 Dt. 07.09.2021

55.Substituted Vide Public Notice  26/2015-2020 Dt.29.09.2021

56.Substituted Vide Public Notice  32/2015-2020 Dt.29.10.2021

57. Inserted Vide Public Notice  45/2015-2020 Dt. 13.01.2022

58. Inserted Vide Public Notice  46/2015-2020 Dt. 14.01.2022

59. Substituted Vide Public Notice  51/2015-2020 Dt. 23.03.2022

60. Substituted Vide Public Notice  01/2015-2020 Dt. 04.04.2022

61. Inserted Vide Public Notice  10/2015-2020 Dt. 24.05.2022

62. Substituted Vide Public Notice  14/2015-2020 Dt. 13.06.2022

63. Substituted Vide Public Notice No. 15/2015-2020 Dated 14/06/2022

64. Inserted Vide Public Notice No. 15/2015-2020 Dated 14/06/2022

65. Inserted Vide Public Notice No. 31/2015-2020 Dated 14/10/2022

66. Substituted Vide Public Notice No. 41/2015-2020 Dated 08.12.2022

67. Inserted Vide Public Notice No. 48/2015-2020 Dated 05/01/2023

68. Substituted Vide Public Notice No. 48/2015-2020 Dated 05/01/2023

69 Substituted Vide Public Notice No. 50/2015-2020 Dated 11/01/2023 (w.e.f. 01.04.2023)

70 Substituted Vide Public Notice No. 51/2015-2020 Dated 17/01/2023

71 Substituted Vide Public Notice No. 60/2015-2020 Dated 01/03/2023

72 Substituted Vide Public Notice No. 03/2023 Dated 03/04/2023