Executive Summary:
This public notice amends Annexure IV of Appendix 2A, outlining the procedure for importing items under Tariff Rate Quotas (TRQ) under the India-UAE Comprehensive Economic Partnership Agreement (CEPA). It allows traders to import under TRQs for all tariff lines except 7108. TRQs issued for tariff head 7108 in FY2022-23 may be revalidated until March 31, 2023, and applications for TRQs under the India-UAE CEPA for FY2023-24 must be submitted by February 28, 2023.
Key Points / Main Content:
General Import Conditions:
* Imports are subject to Ministry of Finance Notification No. 22/2022-Customs, as amended.
* A Certificate of Origin from UAE authorities is required at the time of import clearance.
* The financial year (April 1 to March 31) is the relevant period for these imports.
* All TRQ applications must be submitted online via the DGFT website.
* TRQ limits are allocated annually.
TRQ Allocation:
* The deadline for annual TRQ applications for FY2023-24 onwards is February 28 of the preceding financial year.
Gold (Tariff Head 7108) Specific Conditions:
* Eligible applicants must be jewellery manufacturers engaged in the business of goods under ITCHS codes 7108, 7113, 7114, and 7118.
* Applicants must have an average annual turnover of Rs. 25 crores over the last 3 financial years.
* The turnover of such Jewellery manufacturer should either comprise of 90% of items manufactured/sold under HS code 7113, or comprise of a quantity of items manufactured/sold under HS code 7113 which is at least equal to the TRQ quantity bid.
* Applicants must possess a GST number and have filed GST returns up to the preceding filing period.
* Financial statements containing annual turnovers should be certified/audited by a Chartered Accountant, based on GST declarations.
* Import of Gold Dore under TRQ shall not be considered.
* For Gold TRQ imports under 7108, imports may be affected by the TRQ holder through Nominated Agencies as notified by RBI in case of banks, nominated agencies notified by DGFT or Qualified Jewellers as notified by International Financial Services Centres Authority IFSCA
TRQ Authorisation:
* The TRQ authorisation must contain the importer's name, address, IEC, Customs notification number, tariff item, quantity, and validity period.
* TRQ authorisations are issued electronically by the Directorate General of Foreign Trade and transmitted to Indian Customs EDI System (ICES).
* Imports are allowed only upon electronic debiting in the ICES system or debit as endorsed.
* For tariff head 7108, the TRQ authorization must also contain the IEC of nominated agencies.
* The TRQ importer must follow the procedure set out in the Customs Import of Goods at Concessional Rate of Duty or for specified end use Rules, 2022 read with Customs Circular No. 18/2022-Customs dated 10.09.2022.
* The IGCR procedure applies to the importer till supply of gold falling under 7108 to end-use recipient and filing of monthly statement. Restrictions on job work only relate to cases where it is undertaken on the goods belonging to the importer and does not apply to the end use recipient who receives the goods on supply.
TRQ Validity:
* TRQs already issued in FY2022-23 under tariff head 7108 may be revalidated until March 31, 2023.
* The validity of TRQs under tariff head 7108 issued for the 4th quarter of FY2022-23 will be until June 30, 2023.
* Allocation of TRQs under tariff head 7108 from FY2023-24 onwards will be on an annual basis.
Impact Analysis:
Traders/Importers:
* Impact: Revised procedures for importing items under TRQ under the India-UAE CEPA, with specific conditions for gold imports under tariff head 7108.
* Action Required: Adhere to the revised conditions under Annexure IV of Appendix 2A, apply for revalidation of TRQs (if applicable), and ensure compliance with customs regulations.
Jewellery Manufacturers (Specifically for Gold TRQ under 7108):
* Impact: Stricter eligibility criteria, including turnover requirements and GST compliance, for availing Gold TRQs.
* Action Required: Ensure they meet the eligibility criteria, provide necessary documentation (certified financial statements, GST returns), and comply with end-use regulations and relevant customs procedures.
Directorate General of Foreign Trade (DGFT):
* Impact: Responsible for implementing the amended procedures, issuing electronic TRQ authorisations, and transmitting them to the ICES.
* Action Required: Update the online portal to reflect the changes, process TRQ applications and revalidations, and ensure seamless integration with the ICES.
Indian Customs EDI System (ICES):
* Impact: Responsible for electronically debiting imports made against TRQs.
* Action Required: Update the system to reflect the changes in TRQ procedures and ensure proper debiting of imports.
Nominated Agencies (RBI in case of banks or DGFT for other agencies)/Qualified Jewellers as notified by International Financial Services Centres Authority IFSCA:
* Impact: Responsible for the imports affected by the TRQ holder for Gold TRQ imports under 7108.
* Action Required: Ensure compliance with customs regulations.
Key Entities Referenced
India UAE CEPA: Comprehensive Economic Partnership Agreement between India and the United Arab Emirates.
Directorate General of Foreign Trade: The agency of the Ministry of Commerce and Industry responsible for implementing the Foreign Trade Policy.
Foreign Trade Policy 2015-2020: The policy governing import and export of goods in India for the period 2015-2020.
Tariff Rate Quota: A two-tiered tariff system that applies a lower tariff rate to imports within a specified quantity (the quota) and a higher tariff rate to imports exceeding the quota.
Ministry of Finance, Department of Revenue: The Indian government ministry and department responsible for fiscal policy, taxation, and customs.
Reserve Bank of India: India's central bank responsible for regulating the banking system and managing the country's currency.
International Financial Services Centres Authority: The regulatory body for the development and regulation of financial services in International Financial Services Centres (IFSCs) in India.
New Delhi: The location of Vanijya Bhawan, Ministry of Commerce and Industry, Department of Commerce
To be published in the Gazette of India Extraordinary Part-|, Section -1
Government of India
Ministry of Commerce & Industry
Department of Commerce
Vanijya Bhawan, New Delhi
Public Notice No. 47/2015-2020
Dated: 29 December 2022
Subject: Amendments in Annexure-IlV under Appendix-2A (Imports of Items under
TRQ under India- UAE CEPA)
In exercise of powers conferred under paragraph 1.03 and 2.04 of the Foreign
Trade Policy 2015-20, and in continuation to Public Notice No. 06/2015-20 dated
01.05.2022, 23/2015-20 dated 29.08.2022, 28/2015-20 dated 06.10.2022 and 32/2015-
20 dated 22.10.2022, the Directorate General of Foreign Trade hereby amends
Annexure-IV of Appendix-2A laying down the procedure for import of items under TRQ
under India - UAE CEPA.
2. Revised Conditions under Annexure-IV of Appendix-2A has been annexed
herewith.
3. Further, TRQs issued for import under tariff head 7108 for 15*, 2"¢ and 3 Quarter
of FY2022-23 may be revalidated up to 31.03.2023. TRQ allottees may apply for
revalidation on the DGFT Website (https://dgft.gov.in) by navigating to --> Services -->
Import Management System -->Tariff Rate Quota (TRQ) --> Apply for revalidation.
4. The validity for TRQs under tariff head 7108 to be issued for 4" quarter of FY2022-
23 shall be 30.06.2023.
Effect of this Public Notice: Reference the implementation of TRQs under India-UAE
CEPA, Annexure-lV of Appendix-2A has been revised wherein traders have been allowed
to import under TRQs for all tariff lines except 7108. TRQs already issued in FY 2022-23
under tariff head 7108 may be revalidated till 31.03.2023. Validity of TRQs under tariff
head 7108 to be issued for 4' quarter of FY2022-23 shall be 30.06.2023. Allocation of
TRQs under tariff head 7108 from FY2023-24 onwards, shall be on annual basis. The last
date for application for TRQs under India-UAE CEPA for FY2023-24 shall be 28.02.2023.
exvw
qort
(Santosh Kumar Sarangi)
Director General of Foreign Trade &
Ex- officio Addl. Secretary to the Govt. of India
Email: dgft@nic.in
[Issued from File No. 01/89/180/01/AM-22/PC-2[B]/E- 31419]Annexure
Conditions for Imports of Items under the TRQ under India- UAE CEPA as under
Annexure-IV to Appendix-2A is amended to read as follows -
These imports of Items will be permitted subject to the following arrangements/
procedure: -
a. Import would be subject to Ministry of Finance (Department of Revenue) Notification
No. 22/2022-Customs dated 30th April 2022 (as amended from time to time) relating
to India-UAE CEPA.
b. At the time of clearance of the import consignment, the importer in India must produce
a Certificate of Origin issued by concerned authorities in UAE.
c. The year in respect of these imports will be the period from 1% April to 31S March, i.e.,
financial year in India.
d. All applications for grant of TRQ authorizations shall be submitted online through the
DGFT website (https://dgft.gov.in) --> Import Management System -->Tariff Rate
Quota (TRQ)
e. TRQ limits to be proportioned annually. The application along with the requisite fee is
required to be filed online. The last date for applications for annual allocation for FY
2023-24 and onwards shall be 28" February of the previous financial year.
f. [deleted]
g. For Gold TRQ under 7108, the following conditions shall be considered additionally:
i. Eligible Applicant must be a jewellery manufacturer.
ii. Eligible Applicant must be engaged in the business of goods falling under
ITC(HS) codes 7108, 7113, 7114 and 7118 in Chapter 71 of ITC(HS).
iii. Such Jewellery manufacturer should have an average annual turnover of Rs. 25
crores over the last 3 financial years.
iv. The turnover of such Jewellery manufacturer should either:
e comprise of 90% of items manufactured/sold under HS code 7113, or
e comprise of a quantity of items manufactured/sold under HS code 7113 which
is at least equal to the TRQ quantity bid by the respective jewellery
manufacturer (capped to the maximum TRQ allocation permissible per
annum) under HS code 7113.
v. Such Jewellery manufacturer should have a GST number and should have filed
GST returns up to the applicable preceding GST return filing period.vi. Financial statements containing annual turnovers of the eligible applicant should
be duly certified/audited by a Chartered Accountant, on the basis of the jewellers
GST declarations.
vii. Import of Gold Dore under TRQ shall not be considered.
. Reference Notification No. 22/2022-Customs dated 30th April 2022, for Gold TRQ
imports under 7108, may be affected by the TRQ holder through Nominated Agencies
as notified by RBI (in case of banks), nominated agencies notified by DGFT or
Qualified Jewellers as notified by International Financial Services Centres Authority
(IFSCA).
[deleted]
[deleted]
. [deleted]
The TRQ authorisation shall contain the name and address of the importer, Importer
-Exporter Code (IEC), Customs notification number, tariff item as applicable, quantity
and validity period of the certificate.
. The TRQ authorisation shall be issued electronically by the Directorate General of
Foreign Trade and transmitted to Indian Customs EDI System (ICES).
. Imports made against the TRQ shall be allowed only upon debiting electronically in
the ICES system or on debit as endorsed.
. In addition to the requirements as above, the TRQ authorization for items under Tariff
head 7108 shall also contain Importer-Exporter Code (IEC) of nominated agencies as
notified by RBI (in case of banks) or DGFT for other agencies, or qualified jewellers
as notified by International Financial Services Centres Authority (IFSCA). The said
TRQ importer shall follow the procedure set out in the Customs Import of Goods at
Concessional Rate of Duty or for specified end use) Rules, 2022 read with Customs
Circular No. 18/2022-Customs dated 10.09.2022.
. The IGCR procedure applies to the importer till supply of gold (falling under 7108) to
end-use recipient and filing of monthly statement. The restrictions on job work are only
relating to the case where it is undertaken on the goods belonging to importer and
does not apply to the end use recipient who receives the goods on supply. Therefore,
on receipt of goods under 7108, the TRQ holder may utilize the same for manufacture
with or without job work.
keKKK