Executive Summary:
This public notice, issued by the Directorate General of Foreign Trade on July 6, 2016, amends the Handbook of Procedures Vol. II regarding the Standard Input Output Norms (SION) for the product group "Chemical and Allied Products." Specifically, it revises SION A1875 concerning the import and export of Ilmenite and related products. The changes include revised descriptions for export and import items and updated calculations for determining raw material entitlement.
Key Points / Main Content:
Amendment to SION A1875:
* The existing entry in SION A1875 for Chemical and Allied Products is amended.
Revised Export and Import Items:
* The description of export and import items under SION A1875 has been changed.
* Specific quantities of "Upgraded Beneficiated Ilmenite" for export and "Synthetic Furnace Oil Rutile containing Titanium Dioxide" and "Coal" for import are defined.
* Ilmenite Ore containing Titanium Dioxide and Coke is also included as import items.
Titanium Dioxide Concentration:
* The specific percentage of Titanium Dioxide in the export product must be mentioned in export documents.
* The specific percentage of Titanium Dioxide in import item 2 (Ilmenite Ore) must be mentioned in import documentation.
Entitlement Calculation for Imported Raw Material:
* The percentage concentration of Titanium Dioxide in both the export item and import item 2 should be considered for entitlement calculation.
* Entitlement should be calculated considering 13.6% wastage on the actual net content of Titanium Dioxide in both export and import products.
* A formula is provided to calculate the entitlement of import product per kg of export product, considering the Titanium Dioxide content in both.
Impact Analysis:
Exporters and Importers of Ilmenite and Related Products:
* Impact: Changes in item descriptions and requirements for specifying Titanium Dioxide concentrations in documentation affect compliance. The revised formula for calculating raw material entitlement impacts import quantities.
* Action Required: Adhere to new documentation requirements, including specifying Titanium Dioxide percentages. Recalculate import entitlements based on the provided formula and updated guidelines.
Key Entities Referenced
Foreign Trade Policy 2015-2020: A policy document issued by the Ministry of Commerce and Industry regarding foreign trade.
Handbook of Procedure Vol 1: A document providing guidelines and procedures related to the Foreign Trade Policy.
Directorate General of Foreign Trade: The organization responsible for implementing the Foreign Trade Policy.
New Delhi: The city in India where the Public Notice was issued.
SION A1875: A Standard Input Output Norms entry related to Chemical and Allied Products.
Chemical and Allied Products: A product group to which SION A1875 belongs.
Titanium Dioxide: A chemical compound whose concentration is specified in the context of export and import items.
Anup Wadhawan: Director General of Foreign Trade