The Directorate General of Foreign Trade (DGFT) issued Policy Circular No. 08/2024-25 on October 11, 2024, clarifying the applicability of Paragraph 4.08 (ii) of the Hand Book of Procedures (HBP) regarding the procurement of Acetic Anhydride by Advance Authorization holders from Special Economic Zone (SEZ) units. The circular responds to queries concerning the necessity of obtaining a No Objection Certificate (NOC) for such transactions. It specifies that the requirement for an NOC from the Drug Controller and Narcotics Commissioner of India is not applicable if Acetic Anhydride is procured from an SEZ unit, provided it is manufactured by a unit operating within the SEZ and against a Certificate of Supplies. This policy update aims to streamline procurement processes for exporters while ensuring compliance with relevant regulations.
Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, Akbar Road, New Delhi
Policy – 4 Division
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Policy Circular No. 08 /2024-25 Dated: 11th October 2024
To
All Regional Authorities of DGFT
All Exporters/Members of Trade
All Custom Authorities
Subject: Applicability of Para 4.08 (ii) of HBP in case of inputs being procured by Advance Authorisation Holders from Units located in SEZ-reg.
This Directorate has received a reference, on the requirement of NOC by Advance Authorization holders, in case of procurement of Acetic Anhydride from unit located in SEZ, by an Advance Authorisation holder.
2. In this regard, the Paragraph 4.08 (ii) of the HBP 2023 is reproduced below:
(ii) Regional Authority shall endorse a copy of such Advance Authorisation to the above three agencies. Regional Authority shall also endorse a condition that before effecting imports, ‘No Objection Certificate’ shall be obtained from Drug Controller and Narcotics Commissioner of India.”
3. The issue has been examined with inputs obtained from the relevant authority. Consequently, it is clarified that the provisions under the said Para 4.08(ii) will not be applicable in the case of procurement of Acetic Anhydride by an Advance Authorisation holder from an SEZ Unit, against Certificate of Supplies, provided the same is manufactured by an unit operating inside SEZ.
4. This Policy Circular is issued with the approval of DGFT.
(K M Harilal)
Joint. Director General of Foreign Trade
Email: [email protected]
(Issued from file no. 1/94/180/026/AM25/PC-4)
