Executive Summary:
This Public Notice, issued by the Directorate General of Foreign Trade, amends Appendix 4J of the Handbook of Procedures 2023, concerning the Export Obligation Period with pre-import condition for specified inputs under Advance Authorizations. The amendments are effective immediately from June 2024 and modify the timeframes for fulfilling export obligations for various import items.
Key Points / Main Content:
* **Amendments to Appendix 4J:**
* The export obligation periods for specified inputs with pre-import conditions are amended as per the attached tables.
* These amendments are applicable from the date of clearance of each import consignment by the Customs Authority.
* **Specific Item Amendments (First Table):**
* Spices: 12 months export obligation period.
* Drugs (from unregistered source): 12 months export obligation period.
* Tea: 6 months export obligation period.
* Coconut Oil: 6 months export obligation period.
* Silk: 12 months export obligation period.
* Raw Sugar: 6 months export obligation period.
* Precious Metals: 4 months export obligation period (Gem and Jewellery Sector).
* Penicillin and its salts: 12 months export obligation period (if imported from unregistered source).
* Natural Rubber: 12 months export obligation period.
* Other items: 6 months export obligation period.
* Fabrics and interlining: 18 months export obligation period from the date of Authorization issue.
* Maize: 6 months export obligation period.
* Walnut: 6 months export obligation period.
* Wheat: 6 months export obligation period.
* **Specific Item Amendments (Second Table):**
* Pepper, cardamom, and chilies: 120 days export obligation period.
* Spices (other than pepper, cardamom, and chilies): 12 months export obligation period.
* Spices (other): 90 days export obligation period.
* Drugs (from unregistered source): 12 months export obligation period.
* Tea: 6 months export obligation period.
* Coconut Oil: 90 days export obligation period.
* Silk: 9 months export obligation period.
* Raw Sugar: 6 months export obligation period.
* Precious Metals: 120 days export obligation period (Gem and Jewellery Sector).
* Penicillin and its salts: 12 months export obligation period (if imported from unregistered source).
* Natural Rubber: 6 months export obligation period.
* Other items: 90 days export obligation period.
* Fabrics and interlining: 18 months export obligation period from the date of Authorization issue.
* Maize: 3 months export obligation period.
* Walnut: 6 months export obligation period.
* Wheat: 180 days export obligation period.
Impact Analysis:
* **Exporters:**
* Impact: Exporters using Advance Authorizations will need to adhere to the revised export obligation periods for specified inputs to comply with Foreign Trade Policy.
* Action Required: Review existing and planned import/export activities to ensure compliance with the amended timelines in Appendix 4J.
* **Customs Authorities:**
* Impact: Customs authorities will need to enforce the new export obligation periods during the clearance of import consignments under Advance Authorization.
* Action Required: Update systems and procedures to reflect the amended export obligation periods for the specified items.
* **Directorate General of Foreign Trade (DGFT):**
* Impact: DGFT is responsible for implementing and monitoring the amended policy.
* Action Required: Ensure effective communication and implementation of the changes across relevant departments and stakeholders.
Key Entities Referenced
Directorate General of Foreign Trade: An agency of the Ministry of Commerce and Industry, Government of India, responsible for implementing the Foreign Trade Policy.
Foreign Trade Policy, 2023: A policy document outlining the guidelines and objectives for India's foreign trade.
Handbook of Procedures, 2023: A document providing detailed procedures and guidelines related to the Foreign Trade Policy, 2023.
Appendix 4J: A specific appendix within the Handbook of Procedures, 2023, that outlines export obligation periods for specified inputs with pre-import conditions under advance authorizations.
Vanijya Bhawan, New Delhi: The location of the Directorate General of Foreign Trade's office in New Delhi.
Advance Authorization Scheme: A scheme that allows duty-free import of inputs required for export production, subject to certain conditions and export obligations.
ITC HS Code: The Indian Trade Clarification based on Harmonized System of Coding, which is an internationally standardized system of names and numbers to classify traded products.
New Delhi: The city where the Public Notice was issued.
Annexure
DRAFT PUBLIC NOTICE
(TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY PART-I
SECTION-I)
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Public Notice No. /2023
New Delhi, Dated: June, 2024
Subject: Amendments in Appendix-4J of the Handbook of Procedures, 2023.
In exercise of powers conferred under Paragraph 1.03 and 2.04 of the Foreign Trade Policy,
2023, as amended from time to time, the Director General of Foreign Trade hereby makes the
following amendment in Appendix-4J of the Handbook of Procedures 2023:
1. In the Appendix 4J table, the existing entries are amended to be read as under:
Export Obligation Period
with pre-import condition
Serial
Import Item(s) from the date of clearance of
No.
each import consignment by
Customs Authority
1 Spices (Subject to Para 4.04 of FTP) 12 months
Drugs imported from unregistered source
2 (with a specific export order and pre- 12 months
import condition)
3 Tea 6 months
4 Coconut Oil 6 months
5 Silk in any form 12 months
6 Raw Sugar 6 months
Precious Metal Gold/Silver/Platinum
7 4 months
(Pertains to Gem and Jewellery Sector)
Penicillin and its salts [ITC (HS) Code No.
8 29411010, if imported from unregistered 12 months
source
9 Natural Rubber 12 monthsExport Obligation Period
with pre-import condition
Serial
Import Item(s) from the date of clearance of
No.
each import consignment by
Customs Authority
Import items (except Shea Nut or Shea
Butter) as allowed under notified
SION/prior fixation of norms by NC for
10 6 months
export of all items covered under Chapter
7 and Chapter 15 of ITC(HS)
Classification.
Fabrics including interlining under Special 18 months from the date of
Advance Authorization Scheme for export issue of Authorisation (not
of Articles of Apparel and Clothing from the date of import)
11
Accessories (Para 4.04A of FTP 2023) and further extension as
allowed in Para 4.40(a),
(b), (c) and (e) of HBP)
12. Maize (ITC HS Code 1005) 6 months
13. Walnut in any form 6 months
14. Wheat 6 months
Effect of the Public Notice: The Export Obligation Period with pre-import condition from
the date of clearance of each import consignment by Customs Authority in the existing entries
under Appendix-4J stands amended with immediate effect.APPENDIX –4J
(Please see paragraph 4.40 of HBP)
Export Obligation Period for Specified Inputs with Pre-import Condition under Advance Authorizations
Export Obligation Period with pre-
Serial import condition from the date of
Import Item(s)
No. clearance of each import consignment
by Customs Authority
Spice
(a) Pepper; cardamom and chilies for Value Addition 120 days
purpose like crushing / grinding / sterilisation or for
manufacture of oils and oleoresins and not for simple
cleaning, grading, repacking etc.
1.
(b) Spices other than pepper, cardamom and chilies for
12 months
manufacture of Spice oils, Oleoresin
(c) Other than (a) & (b) above. 90 days
Drugs imported from unregistered source (with a specific
2. 12 months
export order and pre-import condition)
Tea
3. 6 months
4. Coconut Oil 90 days
5. Silk in any form 9 months
6. Raw Sugar 6 months
Precious Metal Gold/Silver/Platinum
7. 120 days
(pertains to Gem and Jewellery Sector)
Pencillin and its salts [ITC (HS) Code No. 29411010, if
8. 12 months
imported from unregistered source]
9.
N atural Rubber
6 months
Import items (except Shea Nut or Shea butter) as allowed
under notified SION/prior fixation of norms by NC for
10. 90 days
export of all items covered under Chapter 7 and Chapter
15 of ITC(HS) Classification.
Fabrics including interlining under Special Advance
18 months from the date of issue of
Authorization Scheme for export of Articles of Apparel
Authorisation (not from the date of import)
11. and Clothing Accessories (Para 4.04A of FTP 2023)
and further extension as allowed in Para
4.40(a), (b), (c) and (e) of HBP)
12. Maize (ITC HS Code 1005) 3 months
13. Walnut in any form 6 months
14. Wheat 180 days