The Government of India, through Notification No. 23 (RE-2001)/1997-2002, dated 1st August 2001, amends specific provisions of the Export and Import Policy, 1997-2002. Key changes include corrections to Paragraph 6.2, which outlines the import duty on capital goods, including jigs, fixtures, dies, molds, and spares, at 5% with export obligations. These obligations are tied to the value of the capital goods, with terms defined over 8 years. Additionally, Paragraph 8.37 is corrected to specify that REP licenses are valid for imports as per the Handbook (Vol 1). Amendments are also made to the Gem and Jewellery sector under Appendix 1, specifying the minimum export performance (EP) and Net Foreign Exchange Earnings (NFEP) for different categories of cut and polished diamonds. These updates aim to streamline export and import regulations and ensure compliance with trade policies.
Government of India
Ministry of Commerce and Industry
Department of Commerce
NOTIFICATION No: 23 (RE-2001) 1997-2002
NEW DELHI: the 1st August, 2001
In exercise of the powers conferred by section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of 1992) read with paragraph 1.3 of the Export and Import Policy, 1997-2002 (incorporating amendments made upto 31.03.2001), the Central Government hereby makes following amendments in the Export and Import Policy, 1997-2002 (incorporating amendments made upto 31.03.2001).
1. Paragraph 6.2 is corrected as under:
” Capital Goods (CG), including jigs, fixtures, dies, moulds and spares may be imported at 5% Customs duty subject to an Export Obligation equivalent to 5 times the CIF value of capital goods on FOB basis or 4 times the CIF value of capital goods on NFE basis to be fulfilled over a period of 8 years reckoned from the date of issuance of the licence. However imports of spares under this scheme would be restricted to 20% of the CIF value of the licence.
For calculation of NFE, the provision of paragraph 12.6 of the Policy shall apply.”
2. The last sentence of paragraph 8.37 is corrected as under:
” Such REP licences are valid for import of items as given in Handbook (Vol 1).”
3. S.No’s (x) and (xi) of the Gem and Jewellery sector under Appendix 1 is corrected as under:
|
Name of the Sector |
Minimum NFEP |
Minimum EP for five years |
|
Diamond (x) Cut and polished diamonds (with per carat realization of more than US $ 260 FOB and upto US $ 400 FOB) (xi) Cut and polished diamonds (with per carat realization upto US $ 260 FOB) |
20% 25% |
US $ 1 million or 3 times the CIF value of imported capital goods, whichever is higher. -do- |
This issues in public interest.
(N.L. Lakhanpal)
Director General of Foreign Trade and ex –officio
Additional Secretary to the Government of India
(A Bipin Menon)
Dy Director General of Foreign Trade
(File No: 01/94/180/68/AM02/ PC IV)
