Home India Ministry of Commerce and Industry In exercise of powers conferred under Paragraph 1 03 of the ...
Date: 2017-03-24 Category: Extra Ordinary State: Union Government Country: India

In exercise of powers conferred under Paragraph 1 03 of the Foreign Trade Policy 2015 2020

Issued by Ministry of Commerce and Industry · Department of Commerce

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Executive Summary & Key Takeaways

Executive Summary: This Public Notice 62/2015-2020, dated March 24, 2017, amends Appendix 4J of the Handbook of Procedures 2015-2020 and General Notes for Chemicals and Allied Products of Standard Input Output Norms (SION). The amendments clarify the export obligation period under Advance Authorizations, specifically concerning pre-import conditions for certain inputs and import items. The changes aim to bring clarity regarding the applicability of pre-import conditions and align the SION book with Appendix 4J. Key Points / Main Content: Amendments to Appendix 4J: Export Obligation Period * **Spices:** * For pepper, cardamom, and chilies used for value addition, the export obligation period (EOP) is 120 days from the date of clearance by customs. Imports completed up to 31.12.2008, the EOP is 150 days. * For spices (other than pepper, cardamom, and chilies) used in the manufacture of spice oils, the EOP is 12 months. * For other spices, the EOP is 90 days. * **Drugs:** Drugs imported from unregistered sources with a specific export order and pre-import condition have an EOP of 12 months. * **Penicillin and Salts:** Penicillin and its salts (ITC HS Code No. 29411010) and 6APA (ITC HS Code No. 29411050) imported from unregistered sources have an EOP of 12 months. * **Other Items:** * Tea: 6 months EOP * Coconut Oil: 90 days EOP * Silk: 9 months EOP * Precious Metals: 120 days EOP * Raw Sugar: 6 months EOP * Natural Rubber: 6 months EOP * **Items under ITCHS Schedule 2 (Chapters 7 & 15):** 90 days EOP as per Para 4.05 of HBP. * **Fabrics:** Fabrics, including interlining, under the Special Advance Authorization Scheme have an 18-month EOP from the authorization date. Amendment to General Note No. 15 for Chemicals and Allied Products of SION: * **Penicillin and 6APA:** When Penicillin and its salts (ITC HS Code No. 29411010) or 6APA (ITC HS Code No. 29411050) are imported under the Advance Authorization Scheme from unregistered sources, the export obligation period is restricted to 12 months from the date of clearance of each import consignment, with a pre-import condition. * No further extension of the EOP is allowed. * The licensing authority must endorse the Advance Authorization accordingly. * If imports are from a registered source per the Drugs and Cosmetics Act, the normal EOP applies, as allowed in Para 4.22i of FTP. Impact Analysis: **Exporters:** * *Impact:* Need to adhere to the revised export obligation periods for specific imported inputs to comply with Advance Authorization scheme requirements. * *Action Required:* Review import and export schedules to ensure compliance with the updated EOPs and source Penicillin/6APA from registered sources, if applicable, to avail normal EOP. **Licensing Authorities:** * *Impact:* Must enforce the revised export obligation periods and endorse Advance Authorizations accordingly, especially for imports of Penicillin and its salts/6APA from unregistered sources. * *Action Required:* Update processes to reflect the changes in Appendix 4J and General Note 15, and ensure endorsements are made on Advance Authorizations. **Customs Authorities:** * *Impact:* Responsible for tracking the clearance dates of import consignments to determine the start date of the export obligation period. * *Action Required:* Implement procedures to accurately track import dates and facilitate compliance with the revised export obligation periods.

Key Entities Referenced

Foreign Trade Policy 2015-2020: A policy governing import and export regulations. Director General of Foreign Trade: The authority responsible for making amendments to the Hand Book of Procedures. Hand Book of Procedures 2015-2020: A document containing procedures related to foreign trade, specifically Appendix 4J which is being amended. Standard Input Output Norms SION: Norms related to input and output for specific industries, particularly chemicals and allied products. Advance Authorizations: Authorizations related to import of inputs for export production with specific conditions. New Delhi: Location of publication of the public notice. Drugs and Cosmetics Act: Indian Act governing import from registered source as per provisions of Drugs and Cosmetics Act. Appendix 4J: Appendix in Hand Book of Procedures 2015-2020, being amended regarding Export Obligation Period for Specified Inputs
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F. No. 01/94/180/115/AM 17/PC-4.—In exercise of powers conferred under Paragraph 1.03 of the Foreign Trade Policy 2015-2020, as amended from time to time, the Director General of Foreign Trade makes the following amendment in Appendix 4J of Hand Book of Procedures 2015-2020: APPENDIX –4J (Please see paragraph 4.42 of HBP) Export Obligation Period for Specified Inputs with Pre-import Condition under Advance Authorizations. (Inputs/import items sourced under the Authorisation have to be processed and exported) Serial Import Item(s) Export Obligation Period with pre-import condition from No. the date of clearance of each import consignment by Customs Authority 1 Spice 120 days (a) Pepper; cardamom and chilies for Value However, for imports completed up to 31.12.2008, Export Addition purpose like crushing/grinding/ Obligation Period (EOP) shall be 150 days. sterlisation or for manufacture of oils and oleoresins and not for simple cleaning, grading, repacking etc. (b) Spices other than pepper, cardamom and 12 months. chilies for manufacture of Spice oils. Oleoresin (c) Other than (a) & (b) above. 90 days 2 Drugs imported from unregistered source 12 months (with a specific export order and pre-import condition) 3 Penicillin and its salts [ITC(HS) Code 12 months No. 29411010] and 6-APA (ITC HS Code No. 29411050), if imported from unregistered Source 4 Tea 6 months 5 Coconut Oil 90 days 6 Silk in any form 9 months 7 Precious Metal 120 days Gold/Silver/Platinum 8 Raw Sugar 6 months 9 Natural Rubber 6 months 10 Import items as allowed under notified 90 days SION/prior fixation of norms by NC for export of items covered under Chapter 7 and Chapter 15 of ITC(HS) Schedule 2, in terms of Para 4.05 of HBP 11 Fabrics including interlining under Special 18 months as allowed in Para 4.22(i) of FTP from the date Advance Authorization Scheme for export of of issue of Authorisation (not from the date of import) and Articles of Apparel and Clothing Accessories further extension as allowed in Para 4.42(a), (b), (c) and (e) (Para 4.04A of FTP 2015-20) of HBP. 1694 GI/2017 (1)4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1] 2. The General Note No. 15 for Chemical and Allied Products of Standard Input Output Norms (SION) is amended to read as under: 15. Wherever, import of Penicillin and its salts (ITC HS Code No. 29411010) or import of 6-APA (ITC HS Code No. 29411050) is allowed as an input item under Advance Authorization Scheme, the export obligation period for such Authorisations shall be restricted to 12 months from the date of clearance of each import consignment with pre-import condition if imports are made from unregistered source. No further extension in export obligation period shall be allowed in these Authorisations. The licensing authority shall make an endorsement in the Advance Authorization to this effect. If imports made from registered source as per provisions of Drugs and Cosmetics Act, then the export obligation period shall be normal period as allowed in Para 4.22(i) of FTP. Effect of this Public Notice: With this Public Notice, clarity is brought about applicability of Pre-import condition for inputs/import items specified in Appendix 4J. Amendment is also carried out in General Note No. 15 of Chemical and Allied Products (SION Book) to align with Appendix 4J. A. K. BHALLA, Director General of Foreign Trade 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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