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Date: 19-Oct-2023 Category: Extra Ordinary State: Union Government Country: India

Amendment in Policy Condition no 4 of Chapter 84 of schedule 1 import policy of ITC HS 2022

Issued by Ministry of Commerce and Industry · Directorate General of Foreign Trade

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Executive Summary & Key Takeaways

What it means

  • The gazette notification No. 38/2023, dated October 19, 2023, issued by the Directorate General of Foreign Trade (DGFT), amends the import policy conditions for IT hardware under the Foreign Trade Policy 2023.
  • The notification provides exemptions from import authorization requirements for specific scenarios related to IT hardware import.

Key Changes

  • IT hardware manufactured in Special Economic Zones (SEZ) can be imported into the Domestic Tariff Area (DTA) without import authorization, subject to applicable duty payments.
  • Activities within SEZ such as re-packing, labeling, refurbishing, testing, and calibration are not considered manufacturing for availing import authorization exemption.
  • Private entities supplying IT hardware to the Central Government (or its agencies/undertakings) for defense or security purposes, or to State Governments for security purposes, are exempt from import authorization, provided they submit a valid End User Certificate issued by the relevant government entity to the Customs Authorities.
  • The exemption from import authorization for R&D, Testing, Benchmarking and Evaluation, repair and re-export, and Product Development purposes is extended to a limit of 20 items per consignment.
  • The notification also provides exemption for import for repair and/or return and/or replacement of IT Hardware sold earlier as well as re-import of such items repaired abroad on self-certification basis.

Impact Analysis

Businesses in SEZ

  • Action Item: SEZ units should ensure compliance with duty payment requirements and understand that basic activities like repackaging are not considered manufacturing for exemption purposes.

Private Entities Supplying to Government

  • Action Item: These entities must obtain and present valid End User Certificates from the relevant government entities to customs authorities at the time of import.

R&D and Product Development Companies

  • Action Item: Ensure proper documentation for customs, including self-certification for re-import of repaired items.

Customs Authorities

  • Action Item: Update internal procedures to reflect the changes in import policy conditions.

Key Entities Referenced

Directorate General of Foreign Trade (DGFT): The issuing authority for the notification, responsible for formulating and implementing foreign trade policy. Foreign Trade (Development & Regulation) Act, 1992: The Act that empowers the DGFT to make changes to import/export policies. Foreign Trade Policy, 2023: The overarching policy framework governing India's foreign trade. ITC (HS), 2022: Indian Trade Classification (Harmonized System) - the classification system for goods in India's foreign trade. Special Economic Zones (SEZ): Specifically delineated duty-free enclaves deemed to be foreign territory for trade operations. Domestic Tariff Area (DTA): The area of India not included in Special Economic Zones (SEZs). Notification 23/2023 dated 03.08.2023 & Notification 26/2023 dated 04.08.2023: Previous notifications referenced in this notification. Central Government: The Union Government of India. State Government: The government of an individual state within India.
Official Source Record View Original Source →
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-20102023-249573 CG-DxLx-xEG-I2D0H1x0x2x0 23-249573 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (ii) PART II—Section 3—Sub-section (ii) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 4404] नई दिल्ली, बृहस्ट्प जताार, अक्त बू र 19, 2023/आज‍ा न 27, 1945 No. 4404] NEW DELHI, THURSDAY, OCTOBER 19, 2023/ASVINA 27, 1945 नई दिल्ली, 19 अक् तूबर, 2023 I का.आ. 4578(अ).—le;≤ ij ;Fkk la'kksf/kr fon's k O;kikj uhfr] 2023 ds iSjk 1-02 vkSj 2-01 ds lkFk ifBr fons'k O;kikj ¼fodkl ,o a fofu;eu½ vf/kfu;e] 1992 dh /kkjk 3 vkSj /kkjk 5 ds rgr iznÙk 'kfDr;ks a dk Ikz;ksx djrs gq, vkSj fiNyh vf/klwpukvks a 23@2023 fnukad 03-08-2023 rFkk vf/klwpuk 26@2023 fnukda 04-08-2023 dk lanHkZ ysr s gq, vk;kr uhfrxr “krksZa es a ,rn}kjk fuEufyf[kr ifjorZUk vf/klwfpr fd, tkrs gSa% 1. vkbZVhlh ¼,p,l½] 2022 dh vuqlwph I ds v/;k; 84 dh uhfrxr “krZ 4 ds rgr vfrfjDr “krZsa yxkbZ tkrh gSa tks fuEukuqlkj gSa% vii. vf/klwpuk 23@2023 fnukda 03-08-2023 ds rgr vk;kr ds fy, izfrcaf/kr vkbZVh gkMZos;j tks fo'k"s k vkfFkZd {ks=ks a ¼,lbZtsM+½ esa fofufeZr gkrs s gSa] mudk ykxw “kqYdksa ¼;fn dksbZ gkas½ ds Hkqxrku ij vk;kr izkf/kdkj i= ds fcuk ?kjsyw iz'kqYd {ks= ¼MhVh,½ es a vk;kr fd;k tk ldrk gSA vk;kr 6660 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] izkf/kdkj i= ls bl NwV dk ykHk mBkus ds mís'; ls ,lbZtsM ds Hkhrj dsoy iqu% iSfdax] yscfyax] jhQfcZf'kax] VsfLVax vkSj dfyczs'ku tSls dk;Zdykiksa dk s fofuekZ.k ds #i es a ugha ekuk tkrk gSA viii. fuEufyf[kr dks vkiwfrZ djus ds fy, mijksDr vkbZVh gkMZo;s j dk vk;kr djus okyh futh laLFkkvksa dks vk;kr izkf/kdkj i= dh vko';drk ls NwV nh xbZ gS% d- j{kk ;k lqj{kk mís'; ds fy, dsUnz ljdkj ;k dsUnz ljdkj ds LokfeRo vkSj fu;a=.k ds rgr ,tsfal;k¡] miØe( [k- lqj{kk mís'; ds fy, jkT; ljdkjA rFkkfi] vk;kr djrs le; bu futh laLFkkvks a dks lhek'kqYd izkf/kdkfj;ksa dks lacaf/kr ljdkjh bdkbZ }kjk tkjh oS/k vafre mi;ksxdrkZ izek.ki= nus k gksxkA 2. vkbZVhlh ¼,p,l½ 2022 dh vuqlwph&I ds v/;k; 84 dh uhfrxr “krZ 4¼iv½ dks fuEukuqlkj la'kkfs/kr fd;k tkrk gS& vuqla/kku ,o a fodkl] ijh{k.k] caspekfdZax vkSj ewY;kadu] vuqla/kku ,oa fodkl] ijh{k.k] caspekfdZax vkSj ewY;kadu] ejEEkr vkSj iqu% fu;kZr] mRikn fodkl mís';ksa ds fy, mRikn fodkl mís’;kas ds fy, izfr [kis 20 oLrqvkas rd izfr [kis 20 ,ls h oLrqvkas ds fy, vk;kr ykblsal ls vk;kr izkf/kdkj i= ls NwV iznku dh tkrh gSA igys NwV iznku dh tkrh gSA mDr vk;kr dh vuqefr bl cps s x, vkbZVh gkMZos;j dh ejEEkr vkSj@;k okilh “krZ ds v/;/khu nh tk,xh fd vk;kfrr oLrq dk vkSj@;k izfrLFkkiu ds fy, vk;kr ds lkFk&lkFk mi;ksx dsoy crk, x, mís’;ksa ds fy, fd;k tk,xk Loizek.ku vk/kkj ij fons'kksa es a ejEEkr dh xbZ ,ls h vkSj cspk ugha tk,xkA blds vykok] bfPNr mís’; ds oLrqvkas ds iqu% vk;kr ij Hkh NwV iznku dh xbZ gSA ckn] mRiknks a dk s ;k rks mi;ksx ds ckn u’V dj fn;k tk,xk ;k fQj ls fu;kZr fd;k tk,xkA ,lbZtsM es a fufeZr vkbZVh gkMZos;j ds MhVh, es a vk;kr dks vk;kr izkf/kdj.k ls NwV izkIr gksxhA j{kk vkSj lqj{kk mís';kas ds fy, dsUnz vkSj jkT; ljdkj dh laLFkkvks a dh vksj ls futh laLFkkvks a }kjk vk;kr dks vk;kr izkf/kdkj i= ls NwV izkIr gksxhA bls okf.kT; ,o a m|ksx ea=h ds vuqeksnu ls tkjh fd;k tkrk gSA [Qk- l-a 01@89@180@39@,,e&13@ihlh&2¼,½@bZ&2261] lark"s k dqekj lkjaxh] egkfuns'kd] fons'k O;kikj ,oa insu vij lfpo[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3 MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (DIRECTORATE GENERAL OF FOREIGN TRADE) NOTIFICATION New Delhi, the 19th October, 2023 No. 38 /2023 Subject: Amendment in Policy Condition no. 4 of Chapter 84 of schedule 1 (import policy) of ITC (HS), 2022 -reg. S.O. 4578(E).— In exercise of powers conferred by Section 3 and Section 5 of Foreign Trade (Development & Regulation) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2023, as amended from time to time, and referring to previous Notifications 23/2023 dated 03.08.2023 & Notification 26/2023 dated 04.08.2023, the following changes in Import Policy Conditions are hereby notified: 1. Additional conditions are introduced under Policy condition 4 of Chapter 84 of Schedule I of ITC (HS), 2022 as follows: vii. IT hardware restricted for Import vide Notification 23/2023 dated 03.08.2023 which are manufactured in Special Economic Zones (SEZ) may be imported into Domestic Tariff Area (DTA) without an Import Authorization, on payment of applicable duties (if any). Activities such as re-packing, labelling, refurbishing, testing, and calibration alone within the SEZ are not considered as manufacturing for the purpose of availing this exemption from Import Authorization. viii. Private entities importing the said IT Hardware for supply to – a. Central Government or agencies, undertakings owned and controlled by the Central Government, for Defence or Security purposes; b. State Government for Security purposes; are exempt from requiring an import authorization. However, these private entities at the time of import, must provide to the Customs Authorities, a valid End User Certificate issued by the relevant government entity. 2. Policy Condition 4(iv) of Chapter 84 of Schedule-I of ITC(HS) 2022 is amended as follows – Existing Condition Revised Condition Exemption from import licence is provided for up to 20 Exemption from import authorisation is provided up such items per consignment for the purpose of R&D, to 20 items per consignment for R&D, Testing, Testing, Benchmarking and Evaluation, repair and re- Benchmarking and Evaluation, Product Development export, Product Development purposes. Given imports purposes. Exemption is further provided for shall be allowed subject to condition that the imported import for repair and/or return and/or goods shall be used for the stated purposes only and will replacement of IT Hardware sold earlier as well as not be sold. Further, after the intended purpose, the re-import of such items repaired abroad on self- products would either be destroyed beyond use or re- certification basis. exported. Effect of the Notification: Import of IT Hardware manufactured in SEZ into DTA shall be exempt from an Import Authorisation. Import by private entities on behalf of Central & State Government Entities, for Defence & Security purposes, shall be exempt from an Import Authorisation. This is issued with the approval of Minister of Commerce & Industry. [F. No. 01/89/180/39/AM-13/PC-2[A]/E-2261] SANTOSH KUMAR SARANGI, Director General of Foreign Trade & Ex- officio Addl. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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