DUTY EXEMPTION / REMISSION SCHEME
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Policy relating to Duty Exemption / Remission Scheme is
prescribed in Chapter 4 of FTP.
An application for grant of an Advance Authorisation / AdvanceAuthorisation for Annual Requirement / DEPB / DFIA may be made by Registered office or Head office or a branch office or manufacturing unit of eligible exporter, to RA concerned.
Where applicant is branch office or manufacturing unit(s) of an exporter, it shall furnish self certified copy of valid RCMC where name of branch office or manufacturing unit is given.
|4.4||Where SION have been published, an application in ANF 4A, along with documents prescribed therein, shall be submitted to RA concerned.|
|4.4.1||In case of export of gold /silver / platinum
jewellery and articles
thereof, quantity, wastage and value addition norms shall be
as prescribed in paragraph 4A of FTP and HBP v1.
|4.4.2||In case where norms have not been published, an
in ANF 4B, along with prescribed documents, shall be
furnished to concerned Norms Committee (NC) at DGFT
Headquarters for fixation of Norms.
In such cases, original copy of
application along with prescribed
Where import of Acetic Anhydride, Ephedrine and Pseudoephedrine is required as an input, applications shall be filed with RA concerned.
Copies of such applications shall also be simultaneously endorsed to the Drug Controller of India, Nirman Bhawan, New Delhi, Narcotics Commissioner, Central Bureau ofNarcotics, Gwalior and respective Zonal Director of Narcotics Control Bureau, alongwith a declaration that applicant will maintain prescribed records and also submit prescribed returns.
|4.4.4||RA, while issuing Advance Authorisation for
import of Acetic
Anhydride, Ephedrine and Pseudo- ephedrine, shall endorse
a condition that before effecting imports, NOC shall be
obtained from Narcotics Commissioner of India, Central
Bureau of Narcotics, Gwalior and shall also endorse a copy
of Authorisation to Drug Controller, Nirman Bhawan, New
Delhi and concerned Zonal Director of Narcotics Control
Advance Authorisation for
Transfer of any duty free material imported or procured against Advance Authorisation from one unit of company to anotherfor manufacturing purpose shall be done with prior intimation to jurisdictional Excise Authorities with a clear understanding that no benefit of CENVAT shall be claimed on such transferred inputs. However, such transfers shall not be allowed to units located in areas covered by Central Excise Notification No. 39/2003 and 50/2003 (i.e. Himachal Pradesh / Uttaranchal).In case of non-excisable company / products, units should maintain a proper record. However to avail facility, all such units should be available in IEC certificate and follow rules and regulation of Central Excise for job work. Large Taxpayer Units (LTUs) having multiple units, may not follow above job work procedure, after fulfillment of EO. Duty Free material imported or procured against advance authorization can be taken from the port directly to the project site of the project authority as per provision stated in ANF 4A and DOR guide lines.
Advance Authorisation for Free of Cost and Paid Material
|4.6||For policy in paragraph 4.1.8, a specific
endorsement shall be
Authorisation for made on exchange control copy of advance authorisation disallowing remittances for material being supplied free of cost.All inputs imported shall be utilised in manufacturing of product except wastage.
|Self Declared Authorisation where SION does not exist||4.7||
RA may also issue Advance Authorisations, where SION are not fixed, based on self declaration and an undertaking by applicant for a final adjustment as per Adhoc / SION fixed by NC.
|However, no Advance Authorisation shall be
issued under this
paragraph for import of following products:-
i. All vegetable / edible oils classified under Chapter - 15 and all types of oilseeds classified under Chapter -12 of ITC (HS) book;
ii. All types of cereals classified under Chapter – 10 of ITC (HS) book;
iii. All spices other than light black pepper (light berries) having a duty of more than 30%, classified under Chapter-9 and 12 of ITC (HS) book;
iv. All types of fruits/vegetables having a duty of more than 30%, classified under Chapter 7 and 8 of ITC (HS) book; and
v. Horn, hoof and any other organ of animal.
|For export of perfumes, perfumery compounds and
feed ingredients containing vitamins, no Authorisation shall be
issued by RA and applicants may apply under Para 4.4.2
above. Where export and/or import of biotechnology items
are involved, Authorisation under this paragraph shall be issued
by RA only on submission of a “No Objection Certificate”
from Department of Biotechnology.
|4.7.1||CIF value of one or more such authorisations
maximum 500% of FOB and / or FOR value of preceding
year’s exports and / or supplies in case of status holders and
Rs. 5 crore or 500% of the FOB and / or FOR value of
preceding year exports and / or supply, whichever is more, for
|However, in cases where NC has already ratified
same export and import products in respect of an authorization
obtained under paragraph 4.7, such norms shall be valid for a
period of one year reckoned from the date of ratification.
In such cases Authorisations shall be issued by RA concerned
under “Adhoc Norms Fixed” category and application copies
need not be forwarded to NC for fixation / ratification of norms.
Authorisation holder in such cases shall be entitled for further
authorisation (s) as per norms ratified by NC without need for
subsequent ratification by NC. In such cases, applicant would
file application under Adhoc Norms Fixed category.
However, NC should ensure that such adhoc norm(s), if not notified already, are notified within six months of the ratification of such adhoc norm(s)
|4.7.2||Once norms are fixed by NC, value limits
mentioned in above
paragraph would not be applicable to advance authorisations
issued under this paragraph. Such authorisations, subsequent
to fixation of norms by NC, may be enhanced.
|It is mandatory for industry to provide
production data etc. as
may be required by DGFT / EPC for fixation of SION.
Otherwise, applicant shall not be allowed to take benefit of
Advance Authorization scheme for taking repeat advance
authorizations on self-declared basis.
Authorisation in Excess of Entitlement
An applicant shall be entitled for authorisation in excess of entitlement mentioned in paragraph 4.7.1 subject to furnishingof 100% Bank Guarantee to Customs authority to cover
exemption from customs duties. A specific endorsement to this
effect shall be made on authorisation.
Original application with prescribed documents shall be submitted to concerned RA. RA shall forward a copy of application within 7 days from Authorisation issue date to NC for fixation of norms within prescribed time.
||4.7.5||Applicant shall give an undertaking that he
shall abide by norms
fixed by NC and accordingly pay duty, together with interest,
on unutilised inputs as per norms fixed by NC. However,
Authorisation holder has option to undertake additional EO in
proportion to excess unutilized inputs. In case application is
rejected by NC, authorization holder shall pay customs duty
saved along with interest on imported inputs, as notified.
However in such cases where the NC decides adhoc norms
based on information available to it and the exporter represents
against the decision of the NC, time limit for filing
representation, if any, before the Norms Committee shall be
four months from the date of communication of decision of the
fixation of adhoc norms by NC.
In addition, an amount as per Para 4.28(i)(b) below has to be
|4.7.6||In such cases, where norms are not finalised by
four months from Authorisation issue date, norms as applied
for shall be treated as final and no adjustment will be made.
However, where application for fixation of adhoc / SION is rejected on account of non-furnishing of required documents/
information, Authorisation holder shall be liable for penalty as
stated in above paragraph. In case SION for the said product
is notified, SION would be made applicable for deciding
wastage norm and EO. In such cases where export obligation
is completed pending fixation of norms by NC, entitlement for
authorisation as given in paragraph 4.7.1 may be re-credited
upon production of documentary evidence (copies of Shipping
bill / bill of export / Central Excise certified copies of invoices)
showing fulfillment of export obligation in respect of previous
authorisations. However, bond waiver / redemption shall not
be allowed pending fixation of norms in such cases.
Standardisation of Adhoc Norms
For standardization of norms, an application may be made by
manufacturer exporter or merchant exporter tied to supporting
|Modification of SION||4.9||An application for modification of existing SION
may be filed
before the NC by manufacturer exporter or merchant-exporter,
tied to supporting manufacturer, in form given in ANF 4B.
Amendment ofExport Item and Input
An application for amendment of an export item or inputs under SION or under Adhoc Norms may be filed by any manufacturer or merchant exporter as per ANF 4B.
Applicant would give justification for seeking amendment and
same would be considered by Regional Authority with specific approval of
Head of office. In case of any major change in
Revision of SION
|4.10.1||NC may identify SIONs which in its opinion are
be reviewed. Exporters are required to submit revised data in
ANF 4B for such revision. It is mandatory for industry /
exporter(s) to provide production and consumption data etc.
as may be required by DGFT / EPC for revision of SION.
Otherwise, applicant shall not be allowed to take benefit of
Advance Authorization scheme.
Description of an Advance Authorisation
An Advance Authorisation shall specify:
(a) names and description of items to be imported and exported /
Export in Anticipation of Authorisation
|4.12||Exports / supplies made from the date of EDI
number for an Advance Authorisation, may be accepted
towards discharge of EO. Shipping / Supply document(s)
should be endorsed with File Number or Authorisation Number
to establish co-relation of exports / supplies with Authorisation
issued. The requirement of endorsement of file number or
authorisation number on the shipping bill would be dispensed
with once the EDI Data Transmission System for the shipments
If application is approved, authorisation shall be issued based
on input / output norms in force on the date of receipt of
application by RA in proportion to provisional exports /
supplies already made till any amendment in norms is notified.
For remaining exports, Policy / Procedures in force on
authorisation issue date shall be applicable.
Exports / supplies made in anticipation of grant of an Advance Authorisation shall be entirely on risk and responsibility of exporter.
|4.12.2||Conversion of duty free shipping bills to
bills may also be permitted by customs authorities in case
application for an Advance Authorisation is rejected or modified
|Advance Authorisation or DFIA for Intermediate Supplies||4.13||
Application for grant of Advance Authorisation or DFIA for Intermediate supply may be made on the basis of a tie-upagreement with exporter (physical / deemed) holding an Advance Authorisation or DFIA. RA concerned shall consider such requests.
Advance Authorisation or DFIA for Intermediate supply shall
Facility of Advance Authorisation shall be available even in
Advance Release Order (ARO)
An application may be made to RA concerned for grant of ARO to procure inputs from indigenous sources / STEs.
Application shall specify:
(i) name, description and quantity of items and
(ii) individual value of items to be procured. An ARO may be issued along with Advance Authorisation / DFIA or subsequently, and its validity shall be co-terminus with validity of Advance Authorisation / DFIA.
An ARO issued for procurement of an individual item shall be
|Back to Back Inland Letter of Credit (L/C)||4.15||Exporter may alternatively avail facility of a
back to back inland
letter of credit from banks. An Advance Authorisation / DFIA
holder may approach a bank for opening an inland letter of
credit (L/C) in favour of an indigenous supplier.
|4.15.1||Before opening the L/C, bank will ensure that
necessary BG /
LUT has been executed by Advance Authorisation / Non
Transferable DFIA holder and an endorsement to that effect
has been made on the Authorisation.
However, execution of BG / LUT shall not be required against
transferable DFIA. After opening inland L/C, bank shall make
following endorsement on Exchange Control and Customs copy
of Advance Authorisation / DFIA:
Value of this Advance Authorisation / DFIA stands reduced
by a sum of Rs. __________ , being value of inland L/C
No.________ opened today by authorisation holder in favour
of M/s ______________________ (name and address of
|4.15.2||Authorisation shall be invalidated by bank for
only in respect of full quantity and value of item being sourced
|4.15.3||Original Letter of credit (L/C) may be retained
by bank for
negotiation and only non-negotiable copy of L/C may be given
to indigenous supplier.
|4.15.4||Responsibility of bank shall be confined to
endorsement. Bank shall not be liable for any misrepresentation
or false statement made by authorisation holder while requesting
bank to make endorsement. Inland L/C opened by bank in
favour of indigenous supplier shall not be cancelled for any
|4.15.5||Non negotiable copy of inland L/C together with
of Advance Authorisation / DFIA duly carrying endorsements
made by bank shall be sufficient for indigenous supplier to
claim deemed export benefits. L/C issued shall be entitled to
benefits given in paragraph 8.3 (b) and (c) of FTP, as
|4.15.6||Where import is permitted as an input under this
silver can be sourced through nominated agencies as given in FTP (Chapter 4) for supply against the Advance Authorisations/
DFIA issued. Before supply of material, nominated agencies
should follow same procedure as given in paragraph 4.15.1
|Facility of Supporting Manufacturer(s)/ Jobber/co-licensee||4.16||
Imported material may be used in any unit of holder of Advance Authorisation or Non Transferable DFIA (subject to condition of paragraph 4.5 of this Handbook) or jobber / supporting manufacturer provided same is endorsed on authorisation by RA. If applicant desires to have name of any manufacturer or jobber added to authorisation, he may apply. Such endorsement shall be mandatory where prior import before export is a condition for availing Advance Authorisation / DFIA scheme and authorisation holder desires to have material processed through any other manufacturer or jobber.
Upon such endorsement made by RA, authorisation holder
In case BG / LUT has been redeemed, advance authorization holder can get duty free inputs processed from any manufacturer under Actual User condition as per job work regulations prescribed under Central Excise Rules. However such restriction shall not be applicable in case of transferable DFIA holder.
|4.18||At the time of issue of authorisation,
acceptance of undertaking
given by applicant to RA concerned in relevant ANF will be
endorsed on the reverse of Advance Authorisation.
Authorisation holder shall execute Bank Guarantee / Legal
Undertaking, as the case may be, in terms of para 2.20 of
Port of Registration
Advance Authorisation shall be issued for purpose of import and export through one of sea ports or airports or ICDs or LCS specified below. Authorisation holder shall registerm authorisation at the port specified in authorisation and thereafter all imports against said authorisation shall be made only through that port, unless the authorisation holder obtains permission from customs authority concerned to import through any other specified port. However, exports may be made through any of the specified ports
Commissioner of Customs may permit imports and exports from
any other seaport / airport / ICD or LCS .
For imports from Airport / Seaport / ICD / LCS other than port of registration, a TRA shall be issued by the customs authority at the port of registration to customs authority at port of import.
|Facility of Clubbing||4.20||Facility of clubbing shall be available only for
regularisation of cases and no further import or export shall be
allowed. For this facility, authorisations are required to have
been issued under similar Customs notification even pertaining
to different financial years. However in case of Authorisations
issued in 2004-09 period or thereafter, Advance Authorisations
with different customs notification can be clubbed.
|4.20.1||RA, under whose jurisdiction authorisation is
issued or DGFT
(HQ) in other cases, shall consider a request in ANF 4D for
clubbing all imports and exports of more than one Advance
Authorisation provided imported inputs are properly accounted
for as per norms. Value addition of the authorisations so
clubbed shall be average of minimum value addition prescribed
in FTP and Procedure laid thereunder, imposed on individual
authorisations. Upon clubbing, authorisations shall, for all
purposes, be deemed to be one Authorisation and thereafter
shortfall, if any, shall be regularized in terms of para 4.28 of
Accountability of imports and exports shall be restricted in relation to individual categories of Advance Authorisations including Advance Authorisation for annual requirements
|4.20.3||Facility is available only for Advance
there is shortfall in fulfillment of EO, and which is sought to be
clubbed with an advance Authorisation(s) which is valid for
imports. For expired Authorisation(s) with EO shortfall and
which is sought to be clubbed with an advance Authorisation(s)
which is valid for imports, applicant shall pay composition fee
for EO period extension as per paragraph 4.22 below.
|4.20.4||Wherever exports are effected beyond EO
(allowed vide paragraph 4.22 below) of earlier authorisation,
no clubbing shall be permitted.
|4.20.5||Notwithstanding provisions of para 4.20.3 and
Clubbing of all expired Authorisations may also be permitted
provided all expired Authorisations have been issued during Exim Policy period 1992-1997 & 1997-2002 i.e., 1st April
1992 to 31st March, 2002. However clubbing of erstwhile
Value Based Advance licences shall not be allowed.
Reduction in the value
In respect of an Advance Authorisation, RA concerned (as per their financial powers) may consider a request for:
(a) enhancement / reduction in CIF value of advance
|4.21.1||Request for prorata enhancement in value and
be made either before or after exports. In such cases where
there is a change in SION prior to export of said product,
pro-rata enhancement shall be given after calculating entitlement
on revised SION.
The application for the enhancement/ reduction in the value of Authorisation shall be made in ANF 4E.
Application fee for enhancement
|4.21.3||Application fee leviable for enhancement would
be on the
difference in CIF values of original and final Authorisation.
However, no application fee would be charged if value of
Authorisation is being reduced or applicant has paid maximum
fee of Rs 100,000 (for manual applications) and Rs 50,000
(for digitally signed applications) respectively in original
application for Advance Authorisation/DFIA.
|Export Obligation (EO) Period and its Extension||4.22||Fulfillment Period of EO under an Advance
commence from Authorisation issue date, unless otherwise
specified. EO shall be fulfilled within 36 months except in case
of supplies to projects / turnkey projects in India / abroad
under deemed exports category, where EO must be fulfilled
during contracted duration.
EO period for Advance Authorizations issued with input (s) as
mentioned in Appendix 30A shall be as per the period
stipulated against each entry therein. Facility of extension of
EOP shall not be allowed in case of Advance Authorisation
issued for these inputs. RA shall make an endorsement in
Advance Authorisation to this effect.
|4.22.1||Whenever a ban / restriction is imposed on
export of any
product, export obligation period in respect of Advance
Authorisation already issued prior to imposition of ban, would
stand automatically extended for a period equivalent to the
duration of ban, without any composition fee.
For the Advance Authorisation (erstwhile licences) where raw
sugar has been imported between 21.09.04 and 15.4.08, but
the export obligation is yet to be fulfilled, the export obligation
period stands automatically extended upto 31.12.2009 without
payment of composition fee. Against these Advance
Authorisations / licences, no further EO extension shall be
allowed beyond 31.12.2009.
|4.22.2||Customs may allow provisional clearance of
consignment as and when Authorisation holder produces
documentary evidence of having applied for EO extension to
Revalidation of Authorisation
||4.23||RA may consider a request of original
and grant one revalidation for six months from expiry date.
Request(s) for revalidation of Authorisation shall be made in
|Monitoring of Obligation||4.24||RA, with whom undertaking is executed by Advance
Authorisation holder, shall maintain a proper record in a master
register indicating starting and closing dates of obligation period
and other particulars to monitor EO.
|Within two months from date of expiry of period
Authorisation holder shall submit requisite evidence in discharge
of export obligation in accordance with paragraph 4.25 below.
However, in respect of shipments where six months period
(one year in case of status certificate holder and others as per
RBI guidelines) for realisation of foreign exchange has not
become due, RA shall not take action for non submission of
bank certificate of exports and realisation, provided other
document substantiating fulfillment of EO have been furnished.
|4.24.1||In case Authorisation holder fails to complete
EO or fails to
submit relevant information / documents, RA shall take action
by refusing further Authorisations, enforce condition of
Authorisation and Undertaking and also initiate penal action
as per law.
Exporters eligible for such Authorisations shall file an application in ANF 4A to RA concerned. All provisions as to Advance Authorisation given above would apply except the following:
|(i)||RA while issuing Authorisation shall mention
characteristics quality and specifications in respect of
following inputs:-Alloy steel including stainless steel,
copper alloy, synthetic rubber, bearings, solvents,
perfumes/ essential oils/aromatics chemicals, surfactants,
relevant fabrics and marble.
|(ii)||Authorisation holder shall have flexibility to
product falling under export product group using duty
|(iii)||Within eligible entitlement, an exporter may
one or more than one authorisations in a licensing year,
subject to condition that against one port of registration
only one authorisation can be issued for same product
group. One time enhancement / reduction of the
authorisation shall be available in terms of paragraph
|(iv)||On completion of EO against one or more
authorisations, all issued in same licensing year,
entitlement of an exporter for that licensing year shall
be deemed to be revived by an amount equivalent to
EO completed against authorisation(s).
|(v)||In respect of export product for which Standard
Output Norms (SION) does not exist, the authorization
holder shall submit an application in “Aayaat-Niryaat
Form” along with prescribed documents to NC before
making the shipment. The applicant shall also furnish
Advance Authorisation for Annual Requirement No.
and date along with the File No. from which the same
was issued in the covering letter to the application.
Authorisation holder shall furnish prescribed documents in ANF 4F in support of fulfillment of EO.
|Discharge of export obligation against advance licences issued prior to 1.4.2002||4.25.A||
Quantity Based Advance licences issued prior to 1.4.2002 shall be disposed off as per Public Notice No. 79 dated 2.1.2006, PN 151 dated 26.2.09, as amended from time to time.
Redemption / No Bond Certificate
In case EO has been fulfilled, RA shall redeem the case.
After redemption, RA shall forward a copy of redemption letter
indicating shipping bill number(s), date(s), FOB value in Indian rupees as
per shipping bill(s) and description of export product
Cancellation/ redemption of BG / LUT would be undertaken
Advance Licences including Advance Licences for Annual Requirement issued upto 26.08.2009 shall be governed by provisions contained in Chapter-7 of HBP v1 (RE-2001), Chapter 4 of HBP v1 (2002-2007) as Notified on 31.3.2002 and Chapter 4 of HBP v1 (2004-2009) as notified on 31.8.2004 respectively as amended from time to time, excepting provisions relating to clubbing and extension in E.O. period, which shall be governed by provisions of paragraphs 4.20 and 4.22.1 respectively above and any other provision, as notified by DGFT.
However, wherever Customs duty is to be paid on unutilised
Regularisation ofBonafide Default.
|4.28||Cases of bonafide default in fulfillment of EO
may be regularised
by RA as under:
(i) If EO is fulfilled in terms of value, but there is a shortfall
in terms of quantity, the Authorisation holder shall, for regularization, pay:-
|(a)||to customs authorities, customs duty on
value of imported/ indigenously procured material
along with interest as notified; however, for the
customs duty component, the authorisation
holder has the option to furnish valid duty credit
scrips issued under Chapter 3 of FTP and
|(b)||an amount equivalent to 3% of the CIF value of
unutilised imported material through a TR in
authorised branch of Central Bank of India
indicating the “Head Account: 1453, Foreign
Trade and Export Promotion and Minor Head
102”. Authorisation holder shall also be required
to obtain a separate authorisation for
regularisation of excess imported input.
However, provisions of this sub paragraph shall
not be applicable if unutilised imported material
was freely importable on the date of import.
|(ii)||If the EO is fulfilled in quantity but there is
value, no penalty shall be imposed if Authorisation
holder has achieved minimum value addition prescribed.
However, if value addition falls below the minimum value
addition prescribed Authorisation holder shall be
required to deposit an amount equal to 1% of shortfall
in FOB value in Indian Rupee through TR in authorised
branch of Central Bank of India as above or through
Value wise shortfall shall be calculated with reference
to actual quantity of exports and FOB value of realisation
with reference to prorata quantity of imports and CIF
value. For example, if export performance is only 50%
quantitywise but import has been for complete CIF
value permitted, then value addition would be calculated
on a prorata basis, i.e with reference to 50% of CIF
value of imports. This would accordingly imply that
where Authorisation holder is unable to export, no
penalty on valuewise shortfall shall be imposed.
|(iii)||If EO is not fulfilled both in terms of quantity
the Authorisation holder shall, for the regularisation, pay
as per (i) and (ii) above.
|(iv)||In case an exporter is unable to complete EO
undertaken in full and he has not made any import under
|Authorisation, Authorisation holder will also
option to get the Authorisation cancelled and apply for
drawback after obtaining permission from Customs
authorities for conversion of shipping bills to Drawback
|(v)||RA shall compare relevant portion of Appendix-23
duly verified and certified by Chartered Accountant
with that of norms allowed in Authorisation(s) and actual
quantity imported against Authorisation(s) in the
beginning of licensing year for all such Authorisations
redeemed in preceding licensing year. In this verification
process, in case it is found that Authorisation holder
has consumed lesser quantity of inputs than imported,
Authorisation holder shall be liable to pay customs duty
on unutilized value of imported material, alongwith
interest thereon as notified, or effect additional export
within the EO period. However, for the customs duty
component, the authorisation holder has the option to
furnish valid duty credit scrips issued under Chapter 3
of FTP and DEPB.
|4.29||Customs duty with interest to be recovered from
holder on account of regularisation or enforcement of BG / LUT, shall be deposited by Authorisation holder in relevant Head of Account of Customs Revenue i.e., “Major Head 0037
- Customs and minor head 001- Import Duties” in prescribed
T.R. Challan within 30 days of demand raised by regional /
customs authority and documentary evidence shall be produced
to this effect to RA / customs authority immediately. However,
for the customs duty component, the authorisation holder has
the option to furnish valid duty credit scrips issued under
Chapter 3 of FTP and DEPB.
On receipt of such documentary evidence from Authorisation
Maintenance of Proper Accounts
Every Advance Authorisation holder shall maintain a true and
proper account of consumption and utilisation of duty free imported /
domestically procured goods against each authorisation as prescribed in
Appendix-23. These records
Consideration of cases against lost EP copy of the Shipping Billsand / or Bank Realisation Certificate
In case where Original EP copy of Shipping Bill / original BRC has been lost, request for EODC, "No BG / LUT condition"under Advance Authorisation / DFIA scheme or endorsementof transferability under DFIA scheme can be considered,subject to submission of following documents in lieu of those original documents:
|a) A duplicate / Customs Certified /
Self-attested copy of
the shipping Bill in lieu of the original; Duplicate / Bank
certified copy of BRC in lieu of original;
b) An application fee equivalent to 1% of duty saved
amount. However, no fee shall be charged when such
document is lost by Government agencies and a
documentary proof to this effect is submitted;
c) An affidavit by exporter about loss of document and
an undertaking to surrender it immediately to concerned
RA, if found subsequently;
d) An indemnity bond by exporter to the effect that he
would indemnify Government for financial loss, if any,
on account of duty free import entitlement availed /
allowed against lost Shipping Bills / BRC. Customs
Authority, before allowing redemption of BG / LUT or
clearance after endorsement of “No BG / LUT
condition” or endorsement of transferability, shall verify
the genuineness of such shipping bill (s) and ensure that
no double benefit against such shipping bill has been
availed. This specific condition shall be endorsed by
RA concerned on the EODC.
DUTY FREE IMPORT AUTHORISATION (DFIA) SCHEME
Duty Free Import Authorisation (DFIA)
Policy relating to the Duty Free Import Authorisation (DFIA) Scheme is prescribed in Chapter 4 of FTP.
4.32 An application in ANF 4H along with documents therein,
shall be submitted to RA concerned.
|Facility for Split DFIA||4.32.4 Split Authorisations of DFIA subject to a
minimum of CIF
value of Rs. 10 lakhs each and multiples thereof may also be
issued, on request at the time of seeking transferability. A fee
of Rs. 1000/- each shall be paid for each split authorization.
Split-up DFIAs shall be permitted with same Port of Registration
as appearing on the original DFIA.
4.33 Provisions of paragraphs 4.6, 4.11, 4.12, 4.12.1, 4.18, 4.19, 4.21, 4.22, 4.23, 4.24, 4.26 and 4.28 of this Handbook shall also be applicable for DFIA Scheme.
DFIA for applicants with multiple units
4.34 Transfer of any duty free material imported or procured against actual user DFIA shall be governed by provisions of paragraph 4.5 above.
Re-export of goods imported under DFIA Scheme
4.35 Goods imported against transferable DFIA, which are
found defective or unfit for use, may be re-exported, as per DoR
guidelines. In such cases 95% of CIF value debited againstDFIA for
export of such goods, shall be generated by
Fulfillment of Export Obligation and maintenance of proper accounts of imports
4.36 Provision of paragraph 4.25 above shall apply. Original DFIA holder shall maintain a true and proper account of consumption and utilisation of duty free imported / domestically procured goods against each authorisation as as prescribed in Appendix-23. These records are required to be sent to concerned RA along with request for bond waiver / redemption / discharge of export obligation/ transferability. Such records should be preserved for a period of at least three years from date of redemption.as prescribed in Appendix-23. These records are required to be sent to concerned RA along with request for bond waiver / redemption / discharge of export obligation/ transferability. Such records should be preserved for a period of at least three years from date of redemption.
Transferability of DFIA
|4.36A Once export obligation is fulfilled and
required documents as stipulated in Paragraph 4.36 above have been
furnished, RA shall make authorisation transferable subject to conditions
stipulated for this scheme including an endorsement on the
authorisation itself as to liability of additional customs duty /
excise duty in respect of imported / indigenously procured
inputs, as the case may be, which have already been imported
under Actual User DFIA and are sought to be transferred after
fulfillment of E.O. DFIA holder shall deposit additional customs
duty / excise duty alongwith applicable interest as per Customs
Notification in relevant Head of Account of Customs Revenue
i.e., “Major Head 0037 – Customs and Minor Head 001 –
Import Duties” in prescribed T.R. Challan and furnish a
documentary evidence to RA alongwith the application for
endorsement of transferability.
DUTY ENTITLEMENT PASSBOOK (DEPB) SCHEME
|DEPB Scheme||4.37 Policy relating to Duty Entitlement
Passbook (DEPB) Scheme is given in Chapter-4 of FTP. Duty credit under the
scheme shall be calculated by taking into account deemed import
content of said export product as per SION. Value addition
achieved by export of such product shall also be taken into
account while determining the rate of duty credit under the
|Fixation of DEPB Rate||4.38 ANF 4C prescribes form regarding
fixation of DEPB rates.
All applications for fixation of DEPB rates shall be routed
through concerned EPCs which shall verify the FOB value of
exports as well as international price of inputs covered under
|Provisional DEPB Rate||4.38A To encourage diversification and to
promote export of new
products, DEPB Committee would be empowered to notify
provisional DEPB rates. However, such DEPB rates would
be valid for a limited period of time during which exporter
would furnish data on export and import for regular fixation of
Exports in anticipationof DEPB Rate
4.39 No exports shall be allowed under DEPB scheme unless DEPB rate of concerned export product is notified.
Port of Registration
Maintenance of Record
|4.40 Exports/imports made from specified Sea
Ports, Airports, ICD & LCSs given in paragraph 4.19 above and made to any
Special Economic Zone (SEZ), notified by Central
Government, are entitled to DEPB.
4.40.A DEPB shall be issued with single port of registration, which will be the port from where exports have been effected.
4.40.2 Each Custom House at ports shall maintain a separate record of details of exports made under DEPB.
Credit under DEPB and Present Market Value
|In respect of products where rate of credit
DEPB Scheme comes to 10% or more, amount of credit
against each such export product shall not exceed 50% of
Present Market Value (PMV) of export product. During
export, exporter shall declare on shipping bill that benefit under
DEPB Scheme would not exceed 50% of PMV of export
product. However PMV declaration shall not be applicable
for products for which value cap exists irrespective of DEPB
rate of product.
Utilisation of DEPB Credit
4.42 As notified in FTP.
|Application for DEPB||4.43 An application for grant of credit under
DEPB may be made
to RA concerned in ANF 4G alongwith prescribed documents.
Agency commission shall be allowed for DEPB entitlement
upto 12.5% of FOB value only. FOB value in free foreign
exchange shall be converted into Indian rupees as per
exchange rate for exports, notified by Ministry of Finance, as
applicable on the date of order of “Let Export” by Customs.
|4.43A In respect of consignment exports wherein
declared FOB value on a provisional basis, exporter shall be
eligible for final assessment of such shipping bill based on actual
FOB realised upon sale of such goods in freely convertible
|4.43B An application for grant of credit for
supplies from DTA to
SEZ can be made by DTA unit or SEZ unit. DTA unit may
claim benefits either from RA or Development Commissioner
concerned. In case claims have been filed with RA, RA while
allowing benefits to the DTA unit will simultaneously endorse a
copy of communication to concerned Development
Commissioner alongwith details of export documents . In case
DTA supplier prefers claim with Development Commissioner,
the Development Commissioner will verify Denied Entity List
(DEL) status of supplier from DGFT website before allowing
DEPB benefits. SEZ unit will file application with Development
Commissioner concerned in ANF 4G along with prescribed
4.44 DEPB shall be issued with transferable endorsement.
Monitoring of Realisation
|4.45 RA shall monitor all such cases wherein the
Scrip(s) has been
issued without Bank Realisation Certificate(BRC) and ensure
that the BRC is submitted within 12 months from the date of
issuance of the Scrip. In case no RBI extension is produced,
RA shall initiate action for recovery of the same. In such cases,
DEPB holder (the original applicant) shall deposit in cash or
through debit of the valid DEPB / adjustment of pending DEPB
claim for an amount equivalent to the Duty Free Credit allowed.
If amount realized in Free Foreign Exchange is less, then
payable amount would be reduced proportionately. However,
if the DEPB holder does not pay the amount within 60 days of
the expiry of the 12 months time period from the date of issue
of the Scrip, he shall be required to pay the said amount along
with 15% interest per annum from the date of issuance of
Scrip(s) for the Duty Credit for which BRC or Documentary
evidence (evidencing realisation of export proceeds as required
under FTP or the Procedure laid thereunder) could not be
produced by the DEPB holder. In case he surrenders the
unutilized / partially unutilized Duty Credit Scrip, then unutilized/
partially unutilized Credit shall be deducted from the payable
In case of Cash Payment, the same shall be deposited in the
Head of Account of Customs as stated in paragraph 4.29
||4.46 Application for obtaining credit shall be
filed within a period of twelve months from the date of exports or the date
of up linking
of EDI shipping bill details in the DGFT website, or withinthree months from the date of printing / release of shipping bill,
whichever is later, in respect of shipments for which claim has
In case the FOB realisation in free foreign exchange is higher
as per BRC than the FOB value in the shipping bill(s) on which
original DEPB was issued, supplementary claim shall be filed
within a period of six months from the date of realisation, in
respect of shipments for which claim has been filed.
4.47 Wherever provisional shipment has been allowed by customs
authorities, DEPB against such exports shall be issued only
after release of shipping bill by Customs. In such cases,
application for DEPB shall be filed within six months from date
of release of such shipping bill.
|Frequency of Application||4.48 All shipping bills in any one application
must relate to exports
made from one Custom House only. There is no limit on number
of shipping bills which can be filed through EDI mode in a
|Verification by Custom||4.49 In case of EDI shipping bills before
1.10.2005 and non-EDI
shipping bills, RA shall ensure that while issuing DEPB, Shipping
Bill No(s) and date(s), FOB value in Indian Rupees as per
Shipping Bill(s) and description of export product are endorsed
on DEPB. Before allowing imports against such DEPB,
Customs shall verify that details of exports, as given on DEPB,
are as per their records. However, in case of EDI shipping
bills issued on or after 1-10-2005 from EDI ports which are
being transmitted electronically by Customs to DGFT, DEPBs
issued shall be sent to Customs at port of registration through
an electronic message exchange system and DEPB shall be
registered at port of registration electronically. No verification
of shipping bills against which such DEPBs have been issued,
will be required before allowing imports against these DEPBs.
|Revalidation||4.50 No revalidation shall be granted beyond
original period of
validity of DEPB unless it expires in custody of Regional /
Customs Authorities as per paragraph 2.13 of HBP v1.
Re-export of goods imported under DEPBScheme
4.51 Goods imported under DEPB scheme, which are found defective or unfit for use, may be re-exported, as per guidelines given in paragraph 3.11.6 of HBP v1.
Issuance of DEPBand other duty credit certificates against lost EP copy of the Shipping Bills
In case where EP copy of Shipping Bill has been lost,DEPB and other duty credit certificates, claim can beconsidered subject to submission of following documents:-
a) A duplicate / certified copy of Shipping Bill issued by
|4.52.1 Claim against lost Shipping Bill shall be
preferred within a period of six months from date of release of duplicate
copy of shipping bill and any application received thereafter will be
This is subject to the condition that the request for duplicate
copy of Shipping Bill to Customs Authority was filed within
the time period similar to that mentioned in paragraph 4.46
above. However, if a provisionally assessed DEPB shipping
bill is lost, time period for filing an application for DEPB would
be six months from the date of release of the finally assessed
Loss Of Original Bank Certificate
|4.53 In such cases where original Bank
Realisation Certificate (BRC) been lost, the DEPB claim can be considered
submission of following documents:
a) A duplicate copy of BRC issued by bank authority in
lieu of original loss;
b) An application fee equivalent to 2% of the DEPB
entitlement in respect of lost BRC;
c) An affidavit by exporter about loss of BRC and an
undertaking to surrender it immediately to RA, if found
d) An indemnity bond by exporter to the effect that he
would indemnify Government for financial loss, if any,
on account of DEPB issued against lost BRC.
Claim against lost BRC shall be preferred within a period of
six months from date of realisation and application received
thereafter will be rejected.
In such cases, where both documents have been lost, exporter
shall follow procedure laid down in paragraph 4.52 and 4.53.
Time period for such application shall be as per paragraph
4.52 and 4.53, whichever is later.Late cut provision stated in
paragraph 9.3 shall be applicable
|Export Obligation period (EOP) and its extension||4.54 Export obligation fulfillment period and its extension shall be governed as per paragraph 4.22 above. However, any extension in EOP beyond 36 months from the date of issue of the authorisation shall not be allowed.|
GEMS AND JEWELLERY
|4A Policy relating to Gem Replenishment
scheme for gold/ silver/platinum jewellery is given in paragraph
4A of FTP.
4A.1 An application for REP Authorisation may be made in ANF 4I alongwith documents prescribed therein to RA concernedas in Appendix-1A.
|4A.1.1 Application shall be filed within six
months following the month during which the export proceeds are realised.
proceeds realised during the month, consolidated application
for entire month shall be filed.
4A.1.2 In case where payment is received in advance and exports
take place subsequently, application for REP Authorisation shall
be filed within six months following the month during which
exports are made.
4A.1.3 For purpose of clarity, it is again reiterated that the month in which the export has been made in case of advance payment
and the month in which export proceeds have been realised in
part or full after making of exports, shall be excluded while
calculating period of six months for filing of application for
Wastage or manufacturing loss on gold/silver/ platinum jewellery and articles thereof is as follows:
Sl. No. Item of exports
Percentage of wastage
|Gold/ Platinum Silver|
|a) Plain jewellery and articles and ornaments
like 3.5% 4.5%
Mangalsutra containing gold and black beads/
imitation stones, cubic zirconia diamonds,
precious, semi-precious stones.
b) Studded jewellery and articles thereof 9.0% 10%
c) Mountings and findings manufactured
d) Any jewellery/articles manufactured by a fully
|Value Addition||4A.2.1 Under scheme for export of jewellery,
value addition shall be calculated as per paragraph 4A.6 of FTP. Minimum
addition shall be:
S.No. Item of Export Minimum Value Addition
a) Plain gold / platinum / silver jewellery and Articles
b) All types of Studded gold / platinum / silver
c) Any jewellery / articles manufactured by fully
d) Gold / silver / platinum medallions & coins
e) Gold / silver / platinum findings / mountings
|4A.2.2 Entitlement of quantity of gold / silver
/ platinum against the
export shall be quantity of gold / silver / platinum in item of
export plus admissible wastage / manufacturing loss.
Loss of Gemand Jewellery
|4A.3 Consignments of gem and jewellery items
exported out of
country and lost in transit after exports, where foreign exchange
against such exports has been realised or insurance claims
settled, will also be eligible for REP Authorisation.
Gem & Jewellery
|4.A.4 Gem REP Authorisations shall be
valid for import of precious stones, semi-precious and synthetic stones and
addition, Authorisation shall also be valid for import of empty
jewellery boxes upto 5% of value of Authorisation within its
overall CIF value. Gem REP Authorisations issued against
export of studded gold / silver / platinum jewellery articles,
shall also be valid for import of cut and polished precious /
semi-precious stones other than emerald upto 10% of CIF
value of Authorisation within its overall CIF value.
|4A.4.1 Gem REP Authorisation are available as
per scale given in
Filing of Application
|4A.4.2 (i) An application for Gem Rep
Authorisation may be given to RA concerned as given in Appendix-1A in the
given in Appendix-22-F alongwith prescribed
|(ii) In case E.P Copy of Shipping Bill and
invoice is submitted to nominated agencies, exporter
shall furnish a self certified photo copy of same along
with a certificate from nominated agencies certifying
carat/value of studdings in case of studded jewellery
and excess value addition achieved in case of plain
jewellery and articles.
(iii) Provision of paragraph 4A.1.1 to 4A.1.4 will also be
applicable for Gem Rep Authorisations.
|Agency Commision||4A.5 Exporter availing scheme of gold / silver /
are allowed to pay agency commission. Value addition shall
be calculated after deducting agency commission.
|4A.6 During export of jewellery, shipping bill
and invoice presented to customs authorities shall contain description
of item, its purity, weight of gold/ silver/ platinum content, wastage
thereon, total weight of gold/ silver/ platinum content plus
wastage claimed and its equivalent quantity in terms of 0.995/
0.999 fineness for gold/ silver and in terms of 0.9999 fineness
for platinum and its value, fob value of exports and value
addition achieved. If purity of gold/silver/platinum used is same
in respect of all or some of items made out from each of these
metals for export, exporter may give total weight of gold/silver/
platinum and other details of such similar items which are of
same purity. In case of studded items, shipping bill shall also
contain description, weight and value of precious/ semiprecious
stones/diamonds/ pearls used in manufacture, and
weight / value of any other precious metal used for alloying
|Condition of Export||4A.7 Exports shall be allowed by customs
endorsement made on shipping bill and invoice are correct
and value addition achieved is not below minimum prescribed
|Proof of Export||4A.8 Exporter has to furnish the proof of
exports, wherever required for export of gold / silver / platinum jewellery
and articles thereof, by furnishing following documents:
(a) E.P copy of the shipping bill;
(b) Customs attested invoice;
(c) Bank certificate of realisation in Appendix 22A.
In case of Personal carriage of jewellery by foreign buyer,
following documents should be submitted by the exporter/selleras proof of exports for claiming export entitlements:
(a) Copy of shipping bill filed by Indian Seller;
(b) A copy of Currency Declaration Form filed by Foreign
Buyer with Customs at the time of his arrival; and
(c) Foreign Exchange Encashment Certificate from Bank.In
addition to this, Personal Carriage on Documents
Against Acceptance (DA)/ Cash On Delivery (COD)
basis is also allowed. Exporter will have to furnish
following documents as proof of exports for claiming
(i) Copy of Shipping Bill filed by Indian Seller; and
(ii) Bank Certificate of Export and Realisation
Instructions issued by Customs Department in this regard
should be followed mutatis mutandis.
4A.9 For conversion of quantity of gold/ silver/platinum in
terms ofequivalent quantity in terms of fineness, following formula shall
Release of Gold/Silver Platinum by Nominated Agencies
|4A.10 Gold / silver / platinum shall be released
to exporter of jewellery by nominated agencies/RBI authorised banks in
multiples of 10 gms or in Ten Tola Bars in respect of golds. However,
silver shall be released to exporters in multiples of 1 Kg only.
Any balance of gold/ silver/ platinum shall be available to
exporter along with his future entitlement. Gold/ silver shall be
released by the nominated agencies in terms of 0.995 fineness
or more and platinum in terms of 0.900 fineness or more.
|Term of Payment||4A.11 Export of gold / silver / platinum jewellery and articles thereof shall be against irrevocable letter of credit, payment of cash on delivery basis, Documents Against Acceptance (DA) basis or advance payment in foreign exchange.|
|Port of Export||4A.12 Exports under schemes of gold
/silver/platinum jewellery and articles thereof shall be allowed by
airfreight and Foreign Post
Office through the Customs House at Mumbai, Calcutta,
Chennai, Cochin, Delhi, Jaipur, Bangalore, Kochi, Coimbatore,
Ahmedabad, Dabolin Airport, Goa, Hyderabad and Surat
(Surat Hira Bourse). Export by courier shall also be allowed
through Custom Houses at Mumbai, Calcutta, Chennai,
Cochin, Coimbatore, Delhi, Jaipur, Bangalore, Ahmedabad
and Hyderabad upto FOB value of Rs.20 lakhs per
|Export by Post||4A.13 Policy for export of gems and jewellery
parcel by post is in
paragraph 4A.16 of FTP. At the time of exports, exporter
shall submit following documents:
(i) Shipping bills or invoice presented at foreign Post Office;
(ii) Certificate from nominated agencies indicating price at
which gold/ silver/platinum was booked or given on
outright sale basis or loan basis;
(iii) Three copies of invoice.
Import of Diamonds for Certification/ Grading & re-export
4A.14 This facility has been stated in Paragraph 4A.2 of
FTP. At the time of imports of diamonds, the bill of entry shall have the
detailed description, including the dimensions /specifications
Export against Supply by Foreign Buyer
4A.15 Before clearance of each consignment of import
supplied by foreign buyer, nominated agency shall execute a bond with
Customs, undertaking to export within stipulated period in
4A.15.4 Each shipping bill shall be valid for exports only through
|4A.16 Nominated agency shall maintain complete
consignment-wise, of the gold, silver, platinum, mountings,
findings/ plain semi-finished gold/silver/ platinum jewellery etc.
imported for execution of each export order, exports effected
and quantity of gold, silver, platinum mountings, findings etc.
released against such exports. For direct exports, similar
accounts shall also be maintained by Status Holder. Such
accounts shall be maintained for a minimum period of three
years from date of exports.
Export Through Exhibitions /Export Promotion Tours /Export of Branded Jewellery
Nominated agencies shall produce to Customs Authorities letter in original or its certified copy, containing Government’s approval for holding exhibition/export of branded jewellery. Any other person shall produce to Asst. Commissioner, customs letter in original or its certified copy containing GJEPC’s approval for holding exhibitions/ export promotion tour/export of branded jewellery.
In case of re-import, such items, on arrival, shall be verified alongwith export documents before clearance.
4A.18 (a) Exports under this scheme shall be subject to following
(ii) Personal Carriage of gems & jewellery or export
(b) Following documents shall be submitted for claiming such replenishment:
(i) Customs attested invoice;
(ii) Copy of the approval letter issued by Government/GJEPC;
(iii) Certificate from nominated agency/ GJEPC as in Appendix-22F.
(c) In case of exhibitions organised by nominated agencies, gold/silver/ platinum shall be imported as replenishment by nominated agencies within 60 days from close of exhibition.
4A.19 Nominated agencies shall maintain a complete account of exports made, goods sold abroad, goods re-imported, and metals purchased abroad and imported into India. Such account shall be maintained for a minimum period of three years from date of close of exhibition.
Export Against Supply By Nominated Agencies
4A.20 Exporter may obtain gold/silver/ platinum on following basis:-
(i) Replenishment basis after completion of exports;
(ii) Outright purchase basis in advance;
(iii) Loan basis.
|4A.21 Exporter may apply to nominated agency for
precious metal gold/silver/platinum. Quantity of precious metal
booked with nominated agency shall be equivalent to precious
metal content in the export product and admissible wastage.
4A.21.1 Applicant shall at the time of booking deposit an earnest money for a minimum amount of 20% of notional price of precious
metal, which shall be adjusted at actual sale.
4A.21.2 Exporter may also export jewellery on a notional rate based on certificate provided by Bank. Exporter must fix price within credit terms allowed to buyer and realise proceeds within the due date of the credit terms or 180 days, whichever is earlier.
Exporter exporting on a notional basis under Replenishment
Scheme must book the same quantity of gold with Nominated
Agency on same rate that he may have booked with buyer.
Nominated agencies shall purchase precious metal on behalf
of exporter at the rate so fixed and thereafter issue a purchase
certificate bearing a serial number to exporter indicating quantity
of gold/ silver/platinum and CIF value, in dollars including the
Rupee equivalent. Price shall be actual price at which gold/
silver/platinum is purchased by nominated agencies plus
permitted service charges levied by nominated agencies shall
be included with the price of gold/ silver/ platinum for value addition. Duplicate and triplicate copies of exporter’s
application together with copies of purchase certificate for
exporter shall be sent by nominated agencies to concerned
Custom House as well as to the negotiating bank who will
confirm realization at which gold has been purchased. Exporter
exporting under notional rate will get replenishment only after
proceeds are realised.
4A.21.3 Exports shall be effected within a period of 120 days from date of booking and drawal of precious metal shall be
completed within a period of 150 days from date of booking
or within 30 days from date of export whichever is later.
Outright Purchase Basis in Advance
|4A.22 Exporter may obtain required quantity of
precious metal in
advance on outright purchase basis subject to furnishing of
BG / LUT to nominated agencies for an amount as may be
prescribed by nominated agency. On failure to effect exports
within period prescribed, the nominated agencies shall enforce
BG / LUT, as the case may be.
4A.22.1 Exports shall be effected within a maximum period of 90 days from date of outright purchase of precious metal.
|Loan Basis||4A.23 Exporter may obtain required quantity of
precious metal on
loan basis subject to furnishing of BG / LUT, for customs duty
to nominated agencies for an amount as may be prescribed by
nominated agencies. On failure to effect exports within the
period prescribed, the nominated agencies shall enforce the
BG / LUT.
4A.23.1 Exporter has to pay interest on gold taken on loan basis at the rate as may be specified.
4A.23.2 Export has to be completed within a maximum period of 90 days from date of release of gold on loan basis. No extension
for fulfillment of EO shall be allowed.
4A.23.3 Exporter shall be permitted to export jewellery on the basis of a notional rate certificate to be issued by nominated agency / GJEPC. This rate will be based on prevailing Gold/US$ rate and the US$/INR rate in notional rate certificate. Certificate
issued by nominated agency/GJEPC should not be older than
7 working days of date of shipment.
Value addition will have to be achieved on rate as may be got
fixed with buyer and Nominated Agency.Exporter shall have
flexibility to fix the price and repay Gold Loan within 180 days from date of export. This price shall be communicated to
nominated agencies who will issue a certificate showing final
confirmation of the rate to the bank negotiating documents, to
ensure export proceeds are realized at this rate.
4A.24 Nominated agencies may accept payment in dollars towards cost of import of precious metal from EEFC account of
|Export against Advance Authorisation||4A.25 Procedure applicable to Advance
Chapter-4 of HBP v1 shall generally apply to this scheme
except norms for value addition, EO period and regularization
of default. Value addition for Gems and Jewellery items shall
be as per paragraph 4A.2.1 of this Handbook.
4A.25.1 EO will be required to be fulfilled within 120 days from date of import of each consignment against Authorisation. However EO period shall be 180 days from date of import of findings, mountings made of gold, platinum and silver and export of
jewellery. No further extension in EO period will be allowed.
Advance Authorisation holder may also import gold as
replenishment after completion of exports.
4A.26 Advance Authorisation holder may obtain gold /silver / platinum from nominated agencies in lieu of direct imports. In such a case, nominated agency shall make, both exchange control
copy and customs purpose copy of Authorisation invalid for
Regularistion of Bonafide Default
4A.27 Cases of bonafide default in fulfillment of EO by
an exporter who has obtained precious metals from nominated agencies
may be regularised provided exporter has paid customs duty alongwith
interest thereon as notified by Customs. However,
Replenishment Authorisation for Import of Consumables etc.
4A.28 A replenishment authorization for duty free import of consumables and tools (as notified by Customs) for Jewellery made out of precious metals (other than Gold & Platinum) equal to 2% and for Cut and Polished Diamonds and Jewellery made out of Gold and Platinum equal to 1% of FOB value of exports of the preceding year, may be issued on production of
Chartered Accountant Certificate indicating the export
Personal Carriage of Gems & Jewellery Export Parcels
Personal Carriage of gems & jewellery parcels by Foreign
|Personal Carriage of Gems & Jewellery Import Parcels||4A.30 Personal carriage of gems & jewellery
import parcels by an
Indian importer/ Foreign National may be permitted into all
EOUs/SEZ units and all firms in DTA through airports in Delhi,
Mumbai, Kolkata, Chennai, Bangalore, Hyderabad Jaipur.
Procedure will be same as for import of goods by air-freight
except that parcels shall be brought to Customs by Importer /
Foreign National for examination and release. Clearance of
imports under this scheme shall be as per normal customs
Duty free import of samples
4A.31 Duty free import of gems and jewellery samples upto Rs 3 lakhs or 0.25% of the average of last three years export turnover of gems and jewellery items, whichever is lower, shall be allowed in a financial year as per Customs notification.
Re-import of rejected jewellery
|4A.32 An exporter of plain/ studded precious
metal jewellery shall
be allowed to re-import duty free jewellery rejected and
returned by buyer upto 2% of FOB value of exports in
preceding licencing year (based on CA certified copy of export
of preceding year) with refund of any duty exemption/refund/
replenishment benefit availed on inputs used as per customs
rules and regulations.
Diamond & Jewellery
Export of Diamond, Gemstone & Jewellery on consignment basis
4A.33 Policy for Diamond and Jewellery Dollar Accounts is given in paragraph 4A.17 of FTP. Detailed procedure for its operation will be notified separately.
4A.34 Policy for export of diamond, gemstone and jewellery
on consignment basis is given in paragraph 4A.20 of FTP.