Exim Policy 2000 :
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.