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As per Handbook of Procedures 1st April 2002 - 31st March
2007 (Chapter - 4)
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Policy
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4.1
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The policy relating
to the Duty Exemption/Remission Scheme is |
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prescribed
in Chapter 4 of the Policy. |
General provision
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4.2
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An application for
grant of an Advance Licence/DFRC/ DEPB may |
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be
made by the Registered office or Head office
or a branch office or manufacturing unit of
the eligible exporter, to the licensing authority
concerned.
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4.3
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Where the
applicant is the branch office or manufacturing
unit(s) |
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of an exporter, it shall furnish (a) Self
certified copy of valid RCMC where the name
of the branch office or manufacturing unit is
given and (b) an authority letter from the Registered
Office of a Company or Head Office of a firm,
clearly indicating that Registered/Head Office
or its branches and manufacturing unit(s) have
not been declared defaulter or otherwise made
ineligible for import/ export under any of the
provisions of the Policy. However, this declaration
shall not be required for those filing applications
electronically.
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Advance Licence
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4.4
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Where
the SION have been published, an application in
Appendix- |
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10B,
along with documents prescribed therein, shall
be submitted to the licensing authority concerned.
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4.4.1
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In case of export of
gold/silver/platinum jewellery and articles |
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thereof, the quantity, wastage and the value
addition norms shall be as prescribed in Chapter-4
of the Policy and this chapter.
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4.4.2
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In case where norms
have not been published, an application in |
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Appendix-10B (with Annexure-I), alongwith prescribed
documents, shall be furnished to ALC for fixation
of Norms. In such cases, the original copy of
the application along with prescribed fee shall
be filed with the Regional Licensing Authority
concerned and a self attested copy of the same
shall be filed with ALC. The Licences in such
cases shall be issued by the RLA on the basis
of recommendation of ALC.
The Committee shall also function as a recommendatory
authority for SION. The Director General of
Foreign Trade may notify such norms as recommended
by the ALC.
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4.4.3
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Applications, where
Acetic Anhydride, Ephedrine and Pseudo- |
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ephedrine is required as an input for import,
either in such cases where norms are fixed or
in such cases where norms are not fixed, shall
be filed with the regional licensing authorities
concerned.
Copies of such applications shall also be
simultaneously endorsed to the Drug Controller
of India, Nirman Bhawan, New Delhi, Narcotics
Commissioner, Central Bureau of Narcotics, Gwalior.
and the respective Zonal Director of the Narcotics
Control Bureau, alongwith a declaration that
the applicant will maintain the prescribed records
and also submit the prescribed returns.
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4.4.4
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The licensing authority,
while issuing the advance licence for the |
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import of Acetic Anhydride,
Ephedrine and Pseudo- ephedrine, shall endorse
a condition that before effecting imports, NOC
shall be obtained from the Narcotics Commissioner
of India, Central Bureau of Narcotics, Gwalior
and shall also endorse a copy of the licence to
the Drug Controller, Nirman Bhawan, New Delhi
and the concerned Zonal Director of the Narcotics
Control Bureau. |
Advance Licence for free of cost and paid material
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4.5
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In
terms of paragraph 4.1.6 of the EXIM Policy, an
exporter may |
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apply for an Advance Licence for import of items
mentioned in paragraph 4.1.1 of the Policy some
of which may also include items that are supplied
free of cost.
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Newcomers
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4.6
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In
the case of newcomers, who have not exported in
each of the |
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preceding three licensing years, the Advance Licence
shall be issued subject to furnishing 100% BG
to Customs authority to cover exemption from Customs
duty together with 15% interest. Specific endorsement
to this effect shall be made in the licence by
the licensing authority. |
Self Declared Licences where SION do not exist
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4.7
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The
licensing authority may also issue Advance licences,
where |
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SION are not fixed, based on self declaration
and an undertaking by the applicant for a final
adjustment as per Adhoc/SION fixed by ALC. However,
no Advance Licence for import of horn, hoof and
other organ of animal, or for any item for which
DGFT may so notify, shall be issued under paragraph
4.7 by the licensing authority. |
Entitlement
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4.7.1
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The
CIF value of one or more such licences shall be
Rs.50 lakhs |
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or 100% of the FOB and/or F.O.R value of preceding
year exports/supply, whichever is more. However
Export House/ Trading House/Star Trading House/Super
Star Trading House can claim one or more such
licences upto 200% of the FOB value of preceding
year exports.
The new comers shall also be entitled for licences
in this category upto their entitlement or for
a CIF value not exceeding Rs.50 lakhs, whichever
is more, subject to furnishing of 100% Bank
Guarantee to Customs authority to cover the
exemption from Customs duties together with
15% interest. A specific endorsement to this
effect shall be made on the licence.
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4.7.2
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Once the
norms are fixed by ALC, the value limits mentioned
in |
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sub paragraph 4.7.1, above would not be applicable
to advance licences issued under this paragraph.
Such licences, subsequent to fixation of norms
by ALC, may be enhanced to a value originally
applied for or as decided by the competent authority.
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Licence in excess of entitlement
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4.7.3
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An
applicant including a newcomer shall be entitled
for licence |
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under this paragraph in excess of entitlement
mentioned in paragraph 4.7.1 subject to furnishing
of 100% Bank Guarantee to Customs authority
to cover the exemption from Customs duties.
A specific endorsement to this effect shall
be made on the licence.
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4.7.4
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The original application
with prescribed documents shall be |
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submitted to the concerned Regional Licensing
Authority. The licensing authority shall forward
a copy of the application within 7 days from
the date of issue of such licences to ALC for
fixation of norms within the prescribed time.
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4.7.5
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The applicant shall
give an undertaking that he shall abide by the
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norms fixed by ALC and accordingly pay duty,
together with 15% interest, on the unutilised
inputs as per norms fixed by ALC.
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4.7.6
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In such cases, where
the norms are not finalised by ALC within six
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months
from the date of issuance of licence, the norms
as applied for shall be treated as final and no
adjustment will be made. However, where the application
for fixation of adhoc/SION is rejected on account
of non-furnishing of required documents/ information,
the licence holder shall be liable for penalty
as stated in the above paragraph. In such cases
where the export obligation is completed pending
fixation of norms by ALC, the entitlement for
the licence as given in paragraph 4.7.1 may be
re-credited upon production of documentary evidence
showing fulfillment of export obligation and realisation
of foreign exchange in respect of the previous
licences. However, bond waiver/ redemption shall
not be allowed pending fixation of norms in such
cases. |
Financial Powers
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4.8
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The financial powers
of the licensing authorities and ALC are given |
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in the table below:
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Category of Application
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On
published norms and under paragraph- 4.7 of
this Handbook
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CIF
Value upto Rs. 50 Crore
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CIF
value above Rs.50 crore
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Issuing
Authority for Advance Licence
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Regional
Licensing Authority
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Regional
Licensing Authorities on the recommendation
of ALC.
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Standardisation of Adhoc Norms
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4.9
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For
standardisation of norms, an application may be
made by the |
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manufacturer exporter or merchant-exporter,
tied to supporting manufacturer, duly filled
in with complete data. Such applications shall
be made to the Advance Licensing Committee (ALC)
in the form given in Appendix-10.
Import
of fuel may also be allowed under SION by ALC
subject to the following -
(a)
The facility of import of fuel under SION shall
be allowed only to the manufacturer having captive
power plant.
(b) Fuel should be allowed only under SION and
in no case should it be allowed either under
paragraph 4.7 or under ad-hoc norms.
(c)
Fuel should be allowed only against an actual
user licence and therefore, fuel shall not be
allowed for imports against DFRC, which is transferable
in nature.
(d)
Even where fuel is included as an input under
SION, it shall not be taken into account while
fixing the DEPB rate for such products against
which fuel has been allowed as an input.
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Modification of SION
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4.10
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An
application for modification of existing SION
may be filed by |
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manufacturer exporter or merchant-exporter, tied
to supporting manufacturer, in the form given
in Appendix-10 to the ALC. |
Description of an Advance Licence
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4.11
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An
Advance Licence shall specify: |
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(a)
the names and description of items to be imported
and exported/supplied;
(b)
the quantity of each item to be imported or
wherever the quantity cannot be indicated, the
value of the item shall be indicated. However,
if in Standard input output norms, the quantity
and value of individual inputs is a limiting
factor, the same shall be applicable.
(c)
the aggregate CIF value of imports; and
(d)
the FOB/ FOR value and quantity of exports/
supplies
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Exports in Anticipation of Licence
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4.12
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Exports/supplies
made from the date of receipt of an application |
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for an Advance Licence by the licensing authority,
may be accepted towards discharge of export
obligation. If the application is approved,
the licence shall be issued based on the input/output
norms in force on the date of receipt of the
application by the licensing authority in proportion
to the provisional exports/ supplies already
made till any amendment in the norms is notified.
For the remaining exports, the Policy/ Procedures
in force on the date of issue of the licence
shall be applicable.
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4.12.1
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The exports/supplies
made in anticipation of the grant of an |
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Advance Licence shall be entirely on the risk
and responsibility of the exporter.
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4.12.2
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The conversion of duty
free shipping bills to drawback shipping |
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bills may also be permitted by the customs
authorities in case the application for an Advance
Licence is rejected or modified by the licensing
authority.
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Note:
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Advance Licence, unless
otherwise stated, means Advance Licence |
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for Physical Exports/
Intermediate Supply/ Deemed Exports. |
Advance Licence for Intermediate Supplies
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4.13
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The application
for grant of Advance Licence for Intermediate |
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supply may be made on the basis of a tie-up
agreement with the exporter holding an Advance
licence for physical exports/deemed exports.
Such requests shall be considered by the licensing
authority concerned. The Advance Licence for
Intermediate supply shall be issued after making
the licence invalid for direct import of items
to be supplied by the intermediate manufacturer.
In such cases, a copy of the invalidation letter
will be given to the licence holder and copy
thereof will be sent to the intermediate supplier
as well as the licensing authority of the intermediate
supplier. The licensee in such case has an option
either to supply the intermediate product to
holder of Advance Licence for physical exports/deemed
exports or to export directly. The facility
of advance licence for intermediate supply shall
be available even in cases where the intermediate
supplier has supplied or intend to supply the
material subsequent to fulfilment of export
obligation by the ultimate exporter holding
the Advance Licence.
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Advance Release Order
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4.14
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The application
for grant of Advance Licence for Intermediate |
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An application may be made to the Regional
Licensing Authority concerned for grant of Advance
Release Order (ARO) to procure the inputs from
indigenous sources/State Trading Enterprise/EOUs/EPZ/SEZ/EHTP/
STP units.
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4.14.1
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The application shall
specify (i) the name, description and quantity |
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of the items and (ii)
the individual value of items to be procured.
An ARO may be issued along with the Advance Licence
for Physical Exports/Deemed Exports/DFRC or subsequently,
and its validity shall be co-terminus with the
validity of the Advance Licence for Physical Exports/
Deemed Exports. An ARO issued for the procurement
of an individual item shall be automatically valid
for procurement from one or more indigenous sources.
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Back to Back Inland Letter of Credit (LC)
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4.15
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The exporter may
alternatively avail the facility of a back to
back |
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inland letter of credit from the banks. An
Advance Licence holder, except for an intermediate
supply and DFRC holder, may approach a bank
for opening an inland letter of credit (LC)
in favour of an indigenous supplier.
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4.15.1
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Before opening the
LC, the bank will ensure that the necessary |
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BG/LUT has been executed by the Advance Licence
holder and an endorsement to that effect has
been made on the licence. However, execution
of BG/LUT shall not be required against DFRC.
After opening the inland LC, the bank shall
make the following endorsement on the Exchange
Control and Customs copy of the Advance Licence
for Physical Exports/Deemed Exports/DFRC;
RThe value of this Advance Licence for Physical
Exports/ Deemed Exports/ DFRC stands reduced
by a sum of Rs. ________ , being the value of
the inland LC No.________ opened today by the
licensee in favour of M/s ____________________
(name and address of the indigenous supplier).
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4.15.2
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The licence shall be
invalidated by the bank for direct import only
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in respect of the full quantity and value of
the item being sourced indigenously.
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4.15.3
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The original Letter
of credit (LC) may be retained by the bank for |
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negotiation and only the non-negotiable copy
of the LC may be given to the indigenous supplier.
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4.15.4
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The responsibility
of the bank shall be confined to making the |
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endorsement. The bank shall not be liable for
any misrepresentation or false statement made
by the licensee while requesting the bank to
make the endorsement. The inland LC opened by
the bank in favour of the indigenous supplier
shall not be canceled for any reason whatsoever.
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4.15.5
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The non negotiable
copy of inland LC together with the photocopy |
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of the Advance Licence duly carrying endorsements
made by the bank shall be sufficient for the
indigenous supplier to claim deemed export benefits.
LC issued against DFRC shall, however, be entitled
only to benefit given in paragraph 8.3(b) of
Policy, whereas LC for other categories shall
be entitled to benefits given in paragraph 8.3
(b) and (c) of the Policy.
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4.15.6
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Where the import of
gold/silver is permitted as an input under this |
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scheme, such gold/silver
can be sourced through the nominated agencies
as given in Chapter-4 of the Policy for supply
against the Advance Licences issued in this behalf.
Before supply of the material, the nominated agencies
should follow the same procedure as given in paragraph
4.13 above. |
Facility Of Supporting Manufactures
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4.16
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The licence holder
has the option to have the material processed
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through any other manufacturer including a
jobber. However, the licence holder shall be
solely responsible for the imported items and
fulfillment of export obligation.
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Facility Of Co-Licensee
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4.17
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If the applicant
desires to have the name of any manufacturer or
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jobber added to the licence, he may apply
for such endorsement. Such endorsement shall
be mandatory where prior import before export
is a condition for Advance Licence for physical
exports and the licence holder desires to have
the material processed through any other manufacturer
or jobber.
Upon such endorsement made by the licensing
authority, the licence holder and co-licensees
shall jointly and severally be liable for completion
of export obligation. Any one of the co-licensees
may import the goods in his name or in the joint
names. The BG/LUT shall also be furnished in
their joint names.
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Acceptance of BG / LUT
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4.18
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At the time of issue of
the licence, the acceptance of the |
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undertaking given by the applicant to the licensing
authority concerned in the form given in Appendix-10B
will be endorsed on the reverse of the Advance Licence.
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Note :
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(a) No BG/LUT
will be required where the specified export obligation |
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has been fulfilled before making any import. In case
of partial fulfillment of export obligation before
effecting any imports, the BG/ LUT may be reduced
proportionately. The licence holder shall also produce
EP copy of the shipping bills and Bank Certificate
of Export and Realisation, and a statement of exports
giving details of shipping bill wise exports indicating
the shipping bill number, date, FOB value as per shipping
bill and description of export product substantiating
the completion or the partial fulfillment of the export
obligation to the licensing authority concerned.
(b) In respect of an advance licence on which "No
BG/LUT" facility has been provided, the licensing
authority shall forward a copy of the “No Bond Certificate”
indicating the shipping bill number, date, FOB value
as per shipping bill and description of export product,
in respect of shipment which were taken into account
for calculating fulfilment of export obligation to
the customs authorities with whom the licence is/required
to be registered. Before allowing the imports against
Advance Licence, the Customs shall verify that the
details of the exports as given in the “No Bond Certificate”
are as per their records.
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Port Of Registration
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4.19
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The licence and the Advance
Licence shall be issued for the purpose |
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of import and export through one of the sea ports
or airports or ICDs or LCS specified below. The licence
holder shall register the licence, the port specified
in the licence and thereafter all imports against
the said licence shall be made only through that port,
unless he obtains permission from the customs authority
concerned to import through any other specified port.
However, exports may be made through any of the specified
ports.
Sea Ports :-
Mumbai, Kolkata, Cochin, Kakinada, Kandla, Mangalore,
Marmagoa, Chennai, Nhavasheva, Paradeep, Pipavav,
Sikka, Tuticorin Vishakhapatnam, Dahej, Nagapattinam,
Okha, Mundhra and Surat (Magdalla),
Air-ports :-
Ahmedabad, Bangalore, Bhubaneshwar Mumbai, Kolkata
Coimbatore Air Cargo Complex, Cochin, Delhi, Hyderabad,
Jaipur, Srinagar, Trivandrum, Varanasi, Nagpur and
Chennai. ICDs:- Agra, Bangalore, Coimbatore, Delhi,
Faridabad, Gauhati (Amingaon), Guntur, Hyderabad,
Jaipur, Jallandhar, Kanpur, Ludhiana, Moradabad, Nagpur,
Pimpri (Pune), Pitampur (Indore), Surat, Tirupur,
Varanasi, Nasik, Rudrapur(Nainital), Dighi (Pune),
Vadodara, Daulatabad, (Wanjarwadi and Maliwada), Waluj
(Aurangabad), Anaparthy, Salem Mallanpur, Singanalur,
Jodhpur, Kota, Udaipur, Ahmedabad, Bhiwadi, Madurai,
Bhilwara, Pondicherry and Garhi Harsaru.
LCS :-
Ranaghat and Singhabad
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4.19.1
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The Commissioner of Customs
may, either by a public notice or on |
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the written request of the licence holder, by a
special order and subject to such conditions as may
be specified by him, also permit imports and exports
from any seaport/airport/ICD or land custom station
other than those mentioned above.
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| 4.19.2 |
In such cases, where the
licence has not been registered at the |
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port specified in the licence and no import has taken
place, the request for change in the Port of Registration
may be considered by the licensing authority concerned
provided the licence has not been redeemed.
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| 4.19.3 |
For imports from the Airport/Seaport/ICD
other than the port of |
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registration, a Telegraphic
Release Advice(TRA) shall also be issued by the customs
authority at the port of registration to the customs
authority at the port of import. |
Facility of Clubbing
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4.20
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The accountability of
imports and exports shall be restricted in |
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relation to the individual categories of advance
licences issued under this scheme.
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4.20.1
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The regional licensing authority,
under whose jurisdiction the |
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licence is issued or ALC in other cases, may also
consider a request for clubbing all imports and exports
of more than one Advance Licence (clubbing of all
Advance Licence for physical exports or clubbing of
all Advance Licence for Intermediate supplies or clubbing
of all Advance Licence for deemed exports) provided
the imported inputs are properly accounted for as
per norms. The value addition of the licences so clubbed
shall be the average of the value addition imposed
on individual licences. Upon clubbing, the licences
shall, for all purposes, be deemed to be one licence.
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4.20.2
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The facility of clubbing
shall be available only for |
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redemption/regularisation of the cases and no further
import or export shall be allowed. For this facility,
licences are required to have been issued under similar
Customs notification.
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4.20.3
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In case an Advance Licence(s),
where export obligation has already |
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expired, is to be clubbed with an Advance Licence(s)
where export obligation period is valid, the applicant
shall pay the composition fee of 1% or 5%, as the
case may be, prescribed for extension of export obligation
in respect of Advance Licence(s) where export obligation
period has expired.
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4.20.4
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In such cases, the exports
effected 30 months after the issuance of |
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the expired licence shall
not be considered for clubbing. |
Enhancement / Reduction In the Value of Licence
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4.21
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In respect of an Advance
Licence, the licensing authority concerned |
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(as per their financial powers) may consider a request
for enhancement/ reduction in the CIF value of the
licence, provided the value addition after such enhancement
does not fall below the stipulated minimum value addition
and provided there is no change in the input-output
norms and the Policy under which the licence was issued.
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4.21.1
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The licensing authority concerned
(as per their financial powers) |
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may also consider the request for enhancement/ reduction
in CIF value, quantity of inputs, FOB value of export
obligation and quantity of exports of an advance licence
provided there is no change in the input output norms
and value addition after such enhancement does not
fall below the stipulated minimum value addition.
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4.21.2
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The request for prorata enhancement
in value and quantity may be |
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made either before or after
exports. In such cases where there is a change in the
SION prior to the export of the said product, the prorata
enhancement shall be given after calculating the entitlement
on the revised SION. |
Export Obligation Period and its Extension
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4.22
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The period
of fulfillment export obligation under an Advance Licence |
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shall commence from the date of issuance of licence.
The export obligation shall be fulfilled within a
period of 18 months except in the case of supplies
under Advance Licence for Deemed Exports/Advance Licence
to the projects/turnkey projects in India/ abroad
where the export obligation must be fulfilled during
the contracted duration of execution of the project/
turnkey project.
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4.22.1
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The request for extension
in export obligation period may be made |
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in the form given in Appendix-10G. The regional licensing
authority shall grant one extension for a period of
six months from the date of expiry of the original
export obligation period to the licensee subject to
payment of composition fee of 1% of the unfulfilled
FOB value of export obligation with reference to CIF
value of imports made for which extension is being
sought. Request for further extension may be considered
by the regional licensing authorities subject to payment
of composition fee of 5% of the unfulfilled FOB value
of export obligation with reference to the CIF value
of imports made for which extension is being sought.
Such extension shall however not exceed a period of
six months from the date of expiry of earlier extension.
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4.22.2
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The Customs may allow provisional
clearance of export |
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consignment as and when
the licence holder produces documentary evidence of
having applied for EO extension to the concerned RLA
provided the shipments are effected within 30 months
from the date of issuance of licence. |
Revalidation Of Licence
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4.23
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The regional
licensing authority may consider a request of the |
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original licence holder and grant one revalidation
for a period of six months from the date of expiry
of the original licence. Request for further revalidation
may be considered by the regional licensing authorities.
However, such revalidation shall not exceed a period
of six months from the date of expiry of earlier period
of revalidation. The request(s) for revalidation of
licence shall be made in the form given in Appendix-10G
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Monitoring Of Obligation
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4.24
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The licensing
authority, with whom the Undertaking is executed by
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the Advance Licence holder, shall maintain a proper
record in a master register indicating the starting
and closing dates of obligation period and other particulars
to monitor the export obligation. Within two months
from the date of expiry of the period of obligation,
the licence holder shall submit requisite evidence
in discharge of the export obligation in accordance
with paragraph 4.25 of the Handbook. However, in respect
of shipments where six months period for realisation
of foreign exchange has not become due, the licensing
authority shall not take action for non submission
of bank certificate of exports and realisation provided
the other document substantiating fulfillment of EO
have been furnished.
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4.24.1
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In case the licence holder
fails to complete the export obligation or |
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fails to submit the relevant information/ documents,
the licensing authority shall take action by refusing
further licences, shall enforce the condition of the
licence and Undertaking and shall also initiate penal
action as per law.
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Fulfillment Of Export Obligation
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4.25
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The licence
holder shall furnish the following documents in support
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of having fulfilled the export obligation:-
For physical exports:-
(i) Bank Certificate of Exports and Realisation in
the form given at Appendix-22
However, realisation of export proceeds shall not
be insisted if the shipments are made against confirmed
irrevocable letter of credit and the same is certified
by the bank in column 14/15 of Appendix- 22.
(ii) EP copy of the shipping bill(s) containing details
of shipment effected.
(iii) A statement of exports giving details of shipping
bill wise exports indicating the shipping bill number,
date, FOB value as per shipping bill and description
of export product
(iv) A statement of imports indicating bill of entry
wise item of imports, quantity of imports and its
CIF value.
For deemed exports
(i) A copy of the invoice duly signed by the unit
receiving the material and their jurisdictional excise
authorities certifying the item of supply, its quantity,
value and date of such supply.
(ii) Payment certificate from the project authority
in the form given in Appendix-12A. In the case of
Advance Licence for Intermediate Supplies/ deemed
exports, supplies to the EPZs/EOUs/SEZs/EHTPs/STPs,
documentary evidence from the bank substantiating
the realisation of proceeds from the Licence holder
or EOUs/ SEZs/ EPZs/ EHTPs/STPs, as the case may be,
through the normal banking channel, shall be furnished
in the form given at Appendix- 22A.
|
Redemption
|
4.26
|
In case the
export obligation has been fulfilled, the licensing
|
| |
authority shall redeem the case. After redemption,
the licensing authority shall forward a copy of the
redemption letter indicating the shipping bill number(s),
date(s), FOB value in Indian rupees as per shipping
bill(s) and description of export product to the Customs
authority at the port of registration. Before discharging
BG/LUT against the Advance Licence, the Customs shall
verify that the details of the exports as given in
the “Redemption Certificate” are as per their records.
Ordinarily, redemption of LUT shall not preclude
the customs authority from taking action against the
licence holder for any misrepresentation, mis-declaration
and default detected subsequently.
|
Transitional Arrangement for licences issued upto 31.3.2002
|
4.27
|
The Advance
Licence including Advance Licence for Annual |
| |
Requirement issued upto 31.3.2002 shall be governed
by the provisions contained in Chapter-7 of the Handbook
(Vol.1) (RE-2001).
|
Transitional Arrangement for licences issued upto 31.3.2002
|
4.28
|
The cases
of a bonafide default in fulfillment of export obligation
|
| |
may be regularised by the licensing authority in
the manner indicated below
|
| |
i) If the export obligation
is fulfilled in terms of value, but there is a shortfall
in terms of quantity, the licence holder shall, for
the regularisation, pay:- |
| |
|
(a) To the customs authority, customs duty on the
unutilised value of the imported material alongwith
interest at the rate of 15% per annum thereon; and
(b) An amount equivalent to 3% of the CIF value of
unutilised imported material through a TR in the authorised
branch of central bank of India indicating the “Head
Account: 1453, Foreign trade and export promotion
and minor head 102”. However, the provisions of this
sub paragraph shall not be applicable if the unutilised
imported material was freely importable on the date
of import.
|
| |
(ii) If the export obligation is fulfilled in terms
of quantity but there is shortfall in terms of value,
no penalty shall be imposed if the licence holder
has achieved the positive value addition. However,
if the value addition falls below positive, the licence
holder shall be required to deposit an equivalent
amount through TR in the authorised branch of Central
Bank of India indicating the “Head of Account-1453
Foreign Trade and Export Promotion- Minor Head –102”
so that the 100 times the deposited amount and the
FOB value realised in Indian rupees together account
for positive value addition over the CIF value.
(iii) If the export obligation is not fulfilled both
in terms of quantity and value, the licence holder
shall, for the regularisation, pay as per (i) and
(ii) above.
(iv) In case an exporter is unable to complete the
export obligation undertaken in full and he has not
made any import under the licence, the licence holder
will also have an option to get the licence cancelled
and apply for drawback after obtaining permission
from the Customs authorities for conversion of shipping
bills to Drawback Shipping Bills.
|
Time Period For Depositing Fines, Customs Duty, Etc.
|
4.29
|
The customs
duty with interest to be recovered from the licencee
on |
| |
account of regularisation or enforcement of BG/LUT,
as the case may be, shall be deposited by the licence
holder in relevant Head of Account of Customs Revenue
i.e. “Major Head 0037 - Customs and minor head 001-
Import Duties in prescribed T.R. Challan within 30
days of the demand raised by the licensing/customs
authority and documentary evidence shall be produced
to this effect to the licencing/customs authority
immediately. On receipt of such documentary evidence
from the licence holder, the licensing authority shall
intimate the details of the recovery/ deposits made
to the customs authority at the port of registration
under intimation to Joint Secretary (Drawback), Department
of Revenue, Ministry of Finance, Jeevan Deep Building,
New Delhi.
The payment of amount of duty, interest and any
dues for regularisation shall, however, be without
prejudice to any other action that may be taken by
the customs authorities at any stage under the Customs
Act, 1962.
|
Maintenance of Proper Account
|
4.30
|
Every licence
holder shall maintain a true and proper account of |
| |
licence-wise consumption and utilisation of imported
goods in Appendix-21. Such records should be preserved
for a period of at least three years from the date
of redemption.
|
Duty Free Replenishment Certificate
|
4.31
|
The Policy
of Duty Free Replenishment Certificate is given in |
| |
paragraph 4.2 of the Policy. The exporter exporting
under DFRC shall be required to give a declaration
in the EP copy of the Shipping Bill indicating the
serial number and product group of SION of the export
product.
|
Export / Imports under DFRC
|
4.32
|
Export shipments
under DFRC can be effected from any port |
| |
mentioned in paragraph 4.19 of the Handbook. The
DFRC shall be issued with single port of registration,
which will be the port from where the exports have
been effected. However for import from a port other
then the port of export, TRA shall be issued by the
Customs authority at the port of export to the Customs
authority to the port of import.
|
Filing of Application
|
4.33
|
An application
for grant of DFRC may be made to the licensing |
| |
authority concerned in the form given in Appendix-10-D
alongwith the documents prescribed therein. An application
for DFRC shall be filed only after realisation of
export proceeds. However, in case of exports against
irrevocable Letter of Credit, application may be filed
after exports. The CIF value of DFRC shall be arrived
at after discounting 25% from the FOB value of exports.
The FOB value shall be calculated on the basis of
the Bank Realisation Certificate.
|
Time Period
|
4.34
|
The application
for DFRC shall be filed within six months from the |
| |
date of realisation reckoned from the last date
of realisation in respect of shipments for which DFRC
is being claimed.
|
|
4.34.1
|
In case of exports
against irrevocable Letter of Credit, the DFRC |
|
|
shall be filed
within six months from the date of exports reckoned
from the last date of exports in respect of shipments
for which DFRC is being claimed. |
|
4.34.2
|
For exports against advance
payment, DFRC shall be filed within six |
|
|
months from the date of exports against advance payment.
|
|
4.34.3
|
Wherever provisional shipment
has been allowed by the customs |
|
|
authorities, DFRC against
such exports shall be issued only after the release
of the shipping bill by the Customs. The time limit
for filing of application in such cases shall be six
months from the date of release of shipping bill or
three months from date of realisation, whichever is
later. |
Frequency of Application
|
4.35
|
The applicant
shall file one application relating to one export |
| |
product group from one port of export. Where export
product falling under one product group have been
exported from different ports, the exporter shall
file more than one application for the same export
product group .
|
Verification by Customs
|
4.36
|
The licensing
authority shall ensure that while issuing the DFRC,
the |
| |
Shipping Bill no(s) and date(s), FOB value in Indian
rupees as per Shipping Bill(s) and description of
export product are endorsed on the reverse of DFRC.
Before allowing the imports against DFRC, the Customs
shall verify that the details of the exports as given
on the DFRC are as per their records.
|
|
