Executive Summary:
This Public Notice amends paragraph 4.49(g) of Chapter 4 of the Handbook of Procedures, 2023, to reduce compliance burdens and enhance ease of doing business. Effective immediately, the amendment modifies the requirements for authorization holders regarding unutilized imported quantities under the Foreign Trade Policy, 2023. The key change involves accepting exports under any shipping bill in lieu of a destruction certificate under certain conditions.
Key Points / Main Content:
Revised Provision for Unutilized Imported Quantity:
* Authorization holders must submit documents showing consumption of the full imported quantity as per norms.
* If there is a shortfall in fulfilling the Export Obligation and unutilized imported quantity remains, the authorization holder must submit a self-declaration and a Chartered Accountant's certificate regarding the destruction of the unutilized duty-free imported material, accompanied by an affidavit-cum-indemnity bond.
* Alternatively, the authorization holder can provide proof of re-export of the unutilized quantity.
Acceptance of Exports in Lieu of Destruction Certificate:
* Exports made under any shipping bills under the same authorization after the expiry of the Export Obligation period, using unutilized quantity of drugs, will be accepted in lieu of a destruction certificate.
* The description and technical characteristics of the exported drug must match the export item described in the Advance Authorization.
* The authorization holder must pay customs duty with applicable interest to the Custom Authority on the unutilized quantity imported under Advance Authorization.
* Such exports are only considered for waiver of destruction certificate and not for waiver of liability of applicable duties and interest.
Simplified Re-export Provision:
* The amendment simplifies the provision for re-export of unutilized drugs, removing the need to re-export to the same supplier.
Impact Analysis:
Authorization Holders:
* Impact: Reduced compliance burden through the acceptance of exports under any shipping bill in lieu of destruction certificates and simplified re-export provisions.
* Action Required: Understand the revised provisions and ensure compliance with the updated requirements for handling unutilized imported quantities.
Customs Authorities:
* Impact: Need to administer and verify the new provisions related to acceptance of exports in lieu of destruction certificates and the payment of applicable duties and interest.
* Action Required: Update internal procedures to align with the amended regulations and ensure proper enforcement.
Directorate General of Foreign Trade (DGFT):
* Impact: Monitoring the effectiveness of the amendments in reducing compliance burden and enhancing ease of doing business.
* Action Required: Evaluate the impact of the amendments based on feedback from stakeholders and adjust policies as needed.
Key Entities Referenced
Handbook of Procedures, 2023: A document containing procedures related to foreign trade, amended by this public notice.
Foreign Trade Policy, 2023: A policy document governing foreign trade, under which the Director General of Foreign Trade exercises powers.
Directorate General of Foreign Trade: The organization responsible for foreign trade regulation, issuing the public notice.
Chapter 4 of the Handbook of Procedures, 2023: The specific chapter of the Handbook of Procedures being amended by this notice.
Advance Authorisation: A scheme related to duty-free import of materials for export production.
Customs Authority: The authority responsible for collecting customs duties.
Santosh Kumar Sarangi: Director General of Foreign Trade and Ex-officio Additional Secretary to the Government of India.
New Delhi, Delhi: Place of publication of the 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. 18/2024
New Delhi, Dated: 22"¢ August, 2024
Subject: Amendments of para 4.49(g) under Chapter 4 of the Handbook of
Procedures, 2023, to reduce Compliance Burden and enhance Ease of doing Business-
reg.
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 amendments in Chapter 4 of the Handbook of
Procedures, 2023 with immediate effect:
S. | Para Existing Provision Revised Provision
No. | No.
1 4.49 |The Authorisation holder shall|The Authorisation holder shall
g (i) submit documents showing submit documents showing
consumption of full imported consumption of full imported
quantity as per norms. In case, quantity as per norms. In case,
there is shortfall in fulfilment of there is shortfall in fulfilment of
Export Obligation and unutilized Export Obligation and unutilized
imported quantity remains with the imported quantity remains with
authorisation holder, the the authorisation holder, the
Authorisation holder shall submit a Authorisation holder shall submit
self declaration along with the a self declaration along with the
Charted Accountant’s certificate Charted Accountant’s certificate
regarding destruction of the regarding destruction of the
unutilized duty free imported unutilized duty free imported
material accompanied by an material accompanied by | an
affidavit-cum-indemnity bond affidavit-cum-indemnity bond
indemnifying the Government for indemnifying the Government for
any harm or loss occurring due to any harm or loss occurring due to
diversion of such imported diversion of such _ imported
material from unregistered sources material from unregistered sources
into domestic market that may be into domestic market that may be
detected in future by any authority, detected in future by any
or proof of re-export of the same authority, or proof of re-export of
eeeto the same supplier in terms of the same in terms of Para 4.42 of
4.49 P |Ea xr pa o r4 t. s4 2 m o af d H eB uP n. der free shipping H ExB pP o. rts made under any shipping
g (ii) | bills/ander same authorisation after | bills /ander the same
expiry of Export Obligation period | authorisation after expiry of
using unutilized quantity of drugs Export Obligation period using
shall also be accepted in-lieu of unutilized quantity of drugs shall
submission of destruction|also be accepted in-lieu of
certificate as stated in para (i)| submission of destruction
above, provided the exact certificate as stated in para (i)
description and technical|above, provided the exact
characteristics of the drug exported | description and technical
matches with that of export item | characteristics of the drug
described in the Advance exported matches with that of
Authorisation. | However, _ the export item described in the
Authorisation holder shall pay Advance Authorisation. However,
customs duty with applicable the Authorisation holder shall pay
interest to the Custom Authority customs duty with applicable
on unutilized quantity imported interest to the Custom Authority
under Advance Authorisation. The on unutilized quantity imported
exports made outside Export under Advance Authorisation.
Obligation period shall only be Such exports shall only be
considered for waiver of|considered _ for waiver of
destruction certificate and not for destruction certificate and not for
waiver of liability of applicable waiver of liability of applicable
duties and interest. duties and interest.
Effect of the Public Notice: Para 4.49 (g) (i) and Para 4.49 (g) (ii) of Chapter 4 of
the Handbook of Procedures 2023, have been amended by inclusion of all types of
Shipping Bills in lieu of Destruction Certificate and simplified provision for re-export
of un-utilized drugs removing the need to re-export to the same supplier, for ease of
doing business and reduction of compliance burden.
a 8
(Santosh Kumar Sarangi)
Director General of Foreign Trade
o
Ex-officio Addl. Secretary to the Government of India
e-mail: dgft@nic.in
(Issued from File No. 01/94/1 80/043/AM25/PC-4)