Home India Ministry of Commerce and Industry In exercise of the powers conferred under Paragraph 1 03 of ...
Date: 2018-12-12 Category: Extra Ordinary State: Union Government Country: India

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

Issued by Ministry of Commerce and Industry · Department of Commerce

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Executive Summary & Key Takeaways

**Executive Summary:** Public Notice 59/2015-2020, dated December 12, 2018, amends the Handbook of Procedures (HBP) of the Foreign Trade Policy (FTP) 2015-2020 by including Paragraph 2.79E. This inclusion establishes the procedure for the re-export/return of imported SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) items due to reasons such as obsolescence, order cancellation, or damage upon arrival. The amendment is effective immediately. **Key Points / Main Content:** * **Amendment:** Inserts Paragraph 2.79E into the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-2020. * **Scope:** Defines the procedure for re-export/return of imported SCOMET items. * **Conditions for Re-export/Return Authorization:** * Re-export must be to the original foreign entity or its OEM (Original Equipment Manufacturer), including authorized agencies. * Chairman IMWG (Inter-Ministerial Working Group) will consider applications for authorization based on specific conditions. * No details on End Use and End Use Certificate are required. * No export authorization for UNSC-sanctioned destinations or high-risk countries/entities. * **Required Documentation:** Applications must include: * Proof of import. * Documentary proof that the items originally imported, match with intended items of re-export/return. * Bill of entry containing details of the items to be returned. * Export License if applicable or any other documents showing that export regulation of the country of export does not have any restriction on re-export/return from India * Letter of explanation detailing the list of countries/entities, to which re-export/return is restricted/regulated * Proof of obsolescence or order cancellation. * Inspection report (if applicable, for dead on arrival). * Proof of obligation for re-export/return (contract, purchase order, warranty policy). * Undertaking from the applicant firm with specific details. * **Approval Process:** * Chairman IMWG approves exports to the original entity or its OEM without consulting IMWG members. * Re-exports to entities other than the OEM require Chairman IMWG approval after verification of credentials. * All authorizations will be presented to the IMWG for confirmation. **Impact Analysis:** **Stakeholder: Importers/Exporters of SCOMET Items** * **Impact:** Must adhere to the new procedures for re-exporting/returning SCOMET items, including providing necessary documentation. * **Action Required:** Familiarize themselves with Paragraph 2.79E of the HBP, prepare required documentation for re-export/return applications, and ensure compliance with the specified conditions. **Stakeholder: Directorate General of Foreign Trade (DGFT)** * **Impact:** Responsible for implementing and overseeing the amended policy. * **Action Required:** Ensure the amendment is properly integrated into the HBP and communicate the changes to relevant stakeholders. **Stakeholder: Inter-Ministerial Working Group (IMWG)** * **Impact:** Chairman IMWG responsible for approving re-export/return authorizations. The full IMWG will review these authorizations for confirmation. * **Action Required:** Chairman IMWG must process applications in accordance with the new guidelines. The full IMWG must review authorizations on an ex-post facto basis. **Stakeholder: Foreign Entities (Original Suppliers/OEMs)** * **Impact:** Are the recipients of re-exported/returned SCOMET items under the specified conditions. * **Action Required:** Ensure that re-exports/returns are in accordance with the Indian regulations and provide any necessary documentation to the Indian exporter.

Key Entities Referenced

Foreign Trade Policy FTP 2015-2020: A policy governing import and export activities, referenced throughout the document. Directorate General of Foreign Trade (DGFT): The organization, headed by the Director General, responsible for foreign trade regulation and policy implementation. SCOMET: Acronym for Special Chemicals, Organisms, Materials, Equipment and Technologies. It refers to items whose export is regulated. IMWG: An inter-ministerial working group, likely involved in the authorization process for re-export/return of SCOMET items. OEM: Original Equipment Manufacturer; relevant in the context of re-export/return of items to the original manufacturer or authorized agencies. Handbook of Procedures: A document providing detailed procedures related to the Foreign Trade Policy (FTP). New Delhi: The location where the public notice was issued. Alok Vardhan Chaturvedi: Director General of Foreign Trade (DGFT) and Ex officio Additional Secretary.
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i=ks a dk lR;kiu djus ds i'pkr~ fd;k tk,xkA ¼p½ ,sls lHkh izkf/kdkj i=ksa dks v/;{k] vkbZ,eMCY;tw h ds le{k dk;kZRs rj vk/kkj ij vuqekns u dh iqf’V grs q bldh vkxkeh cSBd esa izLrqr fd;k tk,xkA 3- bl lkoZtfud lwpuk dk izHkko% vk;kfrr enksa dh izkS|kfsxdh iqjkuh gksu]s Hkkjrh; Øsrk@okLrfod iz;kDs rk }kjk vkMZj jn~n fd, tku]s igqpa us ij [kjkc gksus bR;kfn tSl s dkj.kksa dh otg ls vk;kfrr Ldkes Vs ¼enk½sa ds iqu% fu;kZr@okilh grs q izfØ;k fu/kkZfjr dju s ds fy, fon's k O;kikj uhfr 2015&20 dh izfØ;k iqLrd es a iSjk 2-79M- dks lfEefyr fd;k x;k gSA vkykds o/kZu prqosZnh] egkfun”s kd] fon”s k O;kikj ,oa insu vij lfpo MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (DIRECTORATE GENERAL OF FOREIGN TRADE) PUBLIC NOTICE New Delhi, the 12th December, 2018 No. 59/2015-2020 Subject:- Inclusion of Paragraph 2.79 E in the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20 to lay down the procedure for re-export/return of imported SCOMET items. F. No. 01/91/180/18/AM-17/EC.—In exercise of the powers conferred under Paragraph 1.03 of the Foreign Trade Policy (FTP) 2015-20, the Director General of Foreign Trade (DGFT) hereby makes amendment to the Handbook of Procedures (HBP) of FTP 2015-20 for inclusion of a new entry at Paragraph 2.79E, with immediate effect. 2. A new entry inserted under sub-para 2.79 D of HPB relating to re-export/return of imported SCOMET item(s) will read as under: “Para 2.79 E- Issue of export authorizations for re-export/return of imported SCOMET items to the same foreign entity or to its OEM (including agencies authorized by OEM) Application for grant of authorization for re-export/return of imported SCOMET items to the foreign entity from which it has been originally imported or to its OEM (including agency authorized by OEM), for reasons such as obsolescene of technology of imported items; cancellation of order by the Indian buyer /end user; dead on arrival etc., shall be considered by Chairman IMWG, on the following conditions: (a) The export should only be to the entity from which the item(s) has/have been imported or to the OEM (including agency/ies authorized by OEM); (b) No details on ‘End Use’ and ‘End Use Certificate’ would be required; (c) No export authorisation would be granted for UNSC sanctioned destinations or countries/entities of high risk, as assessed by the IMWG, from time to time; (d) The application is accompanied with the following additional documents (depending on whichever is applicable/appropriate): i. Proof of import of the item(s): a. Documentary proof that the item(s) originally imported, match with intended item(s) of re-export/return; b. Bill of entry containing details of the items to be returned; c. Export License (if applicable) or any other documents showing that export regulation of the country of export does not have any restriction on re-export/return from India; d. In case of any such restriction, the exporter will provide a letter of explanation detailing the list of countries/entities, to which re-export/return is restricted / regulated;4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1 ii. Proof of obsolescence/cancellation of order for intended items: Any of the applicable document(s): a. Proof of obsolescence of technology of imported items; b. Cancellation of order by Indian importer; c. Inspection report in case of dead on arrival etc.: d. Any other document in support of the claim for return iii. Proof of obligation for re-export/return for intended items: Any of the applicable document(s): a. Contract agreement between exporter and the supplier/OEM (including agency authorized by OEM) for re-export/return; b. Purchase order containing terms of import with specific mention of re-export/return due to any of the reasons explained above; c. Warranty policy/conditions on replacement of damaged /dead on arrival items; iv. An Undertaking from the applicant firm: An Undertaking on the letter head of the firm duly signed and stamped by the authorized signatory stating: a. Details of imported items to be re-exported/returned alongwith their SCOMET Category /Sub-category number(s); b. That item(s) are being exported to the same foreign entity from which it was originally imported or to the OEM [including agency(ies) authorized by OEM] (whichever is applicable); c. That there has been no change in the specifications of the item(s) after import in India; d. That the re-export/return of items due to reasons such as obsolescene of technology of imported items; cancellation of order by Indian buyer/end user; dead on arrival etc. (whichever is applicable) is allowed under the conditions of import or contractual agreement. (e) Applications for grant of authorizations for export to the entity from which it was originally imported or to the OEM (including agency authorized by OEM) shall be approved by Chairman IMWG, without any consultation with IMWG members. However, in cases of re-export/return to an entity other than the OEM (including agencies authorized by OEM), approval will be granted by Chairman, IMWG after verification of the credentials of the foreign entity to which the item(s) are to be exported. (f) All such authorizations shall be brought before IMWG in its subsequent meeting for confirmation of approval, on ex-post facto basis. 3. Effect of this Public Notice: Paragraph 2.79 E has been inserted in the Handbook of Procedures of FTP 2015-2020 to lay down the procedure for re-export/return of imported SCOMET item(s) due to reasons of obsolescence of technology of imported item(s); cancellation of order by the Indian buyer/end user; dead on arrival, etc. ALOK VARDHAN CHATURVEDI, Director General of Foreign Trade Ex- officio Addl. Secy. 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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