General provisions regarding imports and exports |
Exports and Imports
Free Unless Regulated
4.1 Exports and Imports shall be free, except to the extent they are
regulated by the provisions of this Policy or any other law for the
time being in force. The itemwise export and import policy shall be,
as specified in ITC(HS) published and notified by Director General of
Foreign Trade, as amended from time to time.
4.2 Deleted
4.3 Deleted
4.4 Deleted Restricted Goods.
4.5 Any goods, the export or import of which is restricted under
ITC(HS) may be exported or imported only in accordance with a licence
issued in this behalf. Terms and Conditions of a Licence
4.6 Every licence shall be valid for the period of validity specified
in the licence and shall contain such terms and conditions as may be
specified by the licensing authority which may include:
(a) The quantity, description and value of the goods
(b) Actual User condition ;
(c) Export obligation ;
(d) The value addition to be achieved and
(e) The minimum export price.
Licence not a Right
4.7 No person may
claim a licence as a right and the Director General of Foreign Trade
or the licensing authority shall have the power to refuse to grant or
renew a licence in accordance with the provisions of the Act and the
Rules made thereunder. Canalised Goods
4.8 Any goods, the import or export of which is canalised, may be
imported or exported by the canalising agency specified in the
ITC(HS). The Director General of Foreign Trade may, however, grant a
licence to any other person to import or export
any canalised goods. Importer-Exporter Code Number
4.9 No export or import shall be made by any person without an
Importer-Exporter Code (IEC) number unless specifically exempted. An
Importer-Exporter Code (IEC) number shall be granted on application
by the competent authority in accordance with the procedure specified
in the Handbook (Vol.1) Registration-cum-Membership Certificate
4.10 Any person, applying for (i) a licence to import/ export,
(except items listed as restricted items in ITC(HS)) or (ii) any
other benefit or concession under this Policy shall be required to
furnish Registration-cum-Membership Certificate (RCMC) granted by the
competent authority in accordance with the procedure specified in the
Handbook (Vol.1) unless specifically exempted under the Policy.
4.11 The Director General of Foreign Trade may, in any case or class
of cases, specify the procedure to be followed by an exporter or
importer or by any licensing, competent or other authority for the
purpose of implementing the provisions of the Act, the Rules and the
Orders made thereunder and this Policy. Such procedures shall be
included in the Handbook (Vol.1), Handbook(Vol.2) and in ITC(HS) and
published by means of a Public Notice. Such procedures may, in like
manner, be amended from
time to time. Compliance with Laws
4.12 Every exporter or importer shall comply with the provisions of
the Foreign Trade (Development and Regulation) Act, 1992, the Rules
and Orders made thereunder, the provisions of this Policy and the
terms and conditions of any licence granted to him,
as well as provisions of any other law for the time being in force.
All imported goods shall also be subject to domestic Laws, Rules,
Orders, Regulations, technical specifications, environmental and
safety norms as applicable to domestically produced goods.
Interpretation of Policy
4.13 If any question or doubt arises in respect of the interpretation
of any provision contained in this Policy, or regarding the
classification of any item in the ITC(HS), Handbook (Vol.1), Handbook
(Vol.2), the said question or doubt shall be referred to the
Director General of Foreign Trade whose decision thereon shall be
final and binding. If any question or doubt arises whether a licence
has been issued in accordance with this Policy or if any question or
doubt arises touching upon the scope and content of a licence, the
same shall be referred to the Director General of Foreign Trade whose
decision thereon shall be final and binding. Exemption from Policy/
Procedure
4.14 Any request for relaxation of the provisions of this Policy or
of any procedure, on the ground that there is genuine hardship to the
applicant or that a strict application of the Policy or the procedure
is likely to have an adverse impact on trade, may be made
to the Director General of Foreign Trade for such relief as may be
necessary. The Director General of Foreign Trade may pass such orders
or grant such relaxation or relief as he may deem fit and proper. The
Director General of Foreign Trade may, in public interest, exempt any
person or class or category of persons from any provision of this
Policy or any procedure and may, while granting such exemption,
impose such conditions as he may deem fit. Such request may be
considered only after consulting ALC if the request is in respect of
a provision of chapter 7 of the Policy/Procedure. However, any such
request in respect of a provision other than chapter 7, may be
considered only after consulting Policy Relaxation Committee.
Private/Public Bonded Warehouses for Imports
4.15 Private/Public bonded warehouses may be set up in the Domestic
Tariff Area as per the terms and conditions of notification issued by
Department of Revenue. Any person may import goods except prohibited
items, arms and ammunition and hazardous waste and chemicals and
warehouse them in such private/public bonded warehouses. Such goods
may be cleared for home consumption in accordance with the provisions
of this Policy and against Licence, wherever required. Customs duty
as applicable shall be paid at the time of clearance of such goods.
If such goods are not cleared for home consumption within a period of
one year or such extended period as the custom authorities may
permit, the importer of such goods shall re-export the goods. Trade
with Neighboring Countries
4.16 The Director General of Foreign Trade may issue, from time to
time, such instructions or frame such schemes as may be required to
promote trade and strengthen economic ties with neighboring
countries. Trade with Russia under Debt-Repayment Agreement
4.17 In the case of trade with Russia under the Debt Repayment
Agreement, the Director General of Foreign Trade may issue, from time
to time, such instructions or frame such schemes as may be required,
and anything contained in this Policy, in so far as it is
inconsistent with such instructions or schemes, shall not apply.
Transit Facility
4.18 Transit of goods through India from or to countries adjacent to
India shall be regulated in accordance with the treaty between India
and those countries. Execution of BG/LUT
4.19 Wherever any duty free import is allowed or where otherwise
specifically stated, the importer shall execute a Legal Undertaking
(LUT )/ Bank Guarantee (BG ) with the Customs Authority before
clearance of goods through the Customs, in the manner as may be
prescribed. In case of indigenous sourcing, the licence holder shall
furnish BG/LUT to the licensing authority before sourcing the
material from the indigenous supplier/nominated agencies. Penalty
4.20 If a licence holder violates any condition of the licence or
fails to fulfil the export obligation, he shall be liable to action
in accordance with the Act, the Rules and Orders made there under,
the Policy and any other law for the time being in force. Free
movement of Export Goods
4.21 Consignments of items allowed for exports shall not be
withheld/delayed for any reason by any agency of the Central/State
Government. In case of any doubt, the authorities concerned may ask
for an undertaking from the exporter. Import/Export of Samples
4.22 Import and export of samples shall be governed by the provisions
given in Handbook (Vol.1) Third Party Exports
4.23 A licence holder may export directly or through third parties
and discharge the export obligation. Clearance of Goods from
Customs
4.24 The goods already imported/ shipped/ arrived, in advance, but
not cleared from Customs may also be cleared against the licence
issued subsequently. Green Card
4.25 All status holders and manufacturer exporter exporting more than
50% of their production, subject to a minimum turnover of Rs.1 crore
in preceding year and service providers rendering services in free
foreign exchange for more than 50% of their services turnover,
subject to a minimum value of Rs.35 lakhs in free foreign exchange in
the preceding year, shall be issued a green card by Directorate
General of Foreign Trade. This card will entitle the holder to the
following facilities: a.Automatic licensing as mentioned in paragraph
4.26 of Handbook (Vol.1).
b.Automatic Customs clearance for Exports.
c.Automatic Customs clearance for Imports related to exports.
d.LUT facility for duty free imports and any such facility as may be
specified from time
to time. Electronic Data Interchange
4.26 In an attempt to speed up the transactions and to bring about
transparency in various activities related to exports, electronic
data interchange would be encouraged. Applications received
electronically shall be cleared within 24 hours.