GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT OF COMMERCE
DIRECTORATE GENERAL OF FOREIGN TRADE
Policy Circular No. 26 (RE-2007)/2004-2009
Subject: Export of restricted / prohibited items, clarification regarding eligibility under Schemes under Chapter 3 of FTP 2004-09.
Attention is invited to provisions contained in Chapter 3 of the Foreign Trade Policy 2004-09, RE2004 to RE2007, with respect to export of restricted / prohibited items.
2. It has been brought to the notice of DGFT that exporters of items that are presently restricted / prohibited as per the itemized policy given in ITC HS book, file claims under VKGUY Scheme if the said export product is appearing in Appendix 37A. In the recent past, for many items, the itemized policy has been modified from ‘free’ to ‘restricted’ or ‘prohibited’.Online GST Certification Course by TaxGuru & MSME- Click here to Join
3. Attention is invited to Para 22.214.171.124 and sub paragraph (d) therein of FTP (RE2007). It may be noted that this clause existed in Para 126.96.36.199 of FTP RE2004 (that applies to exports during 2004-05), FTP RE2005 (that applies to exports during 2005-06) and FTP RE2006 (that applies to exports during 2006-07). For schemes under Chapter 3 of FTP2004-09, the date of exports is to be determined in terms of Para 9.12 of HBP v1.
4. In terms of this clause, if the itemized policy of an export product is changed from ‘free’ to ‘restricted’/’prohibited’, then for grant of VKGUY benefits, this clause is invoked. Accordingly, even when the exports may have been permitted on account of EO of Advance Authorisation, or on account of transitional arrangements or may have been otherwise permitted by DGFT; grant of benefits under VKGUY scheme (erstwhile VKUY scheme) for exports of items which are currently restricted or prohibited in terms of ITC HS itemized Policy shall not be allowed, as the same is clearly ineligible.
5. Similarly, under Focus Market Scheme, vide Para 188.8.131.52 (k) of FTP RE2007 (that applies to exports during 2007-08) and Para 184.108.40.206 of FTP RE2006 (that applies to exports during 2006-07), exports of restricted / prohibited items is ineligible. Accordingly the decision as per Para 4 above shall apply mutatis mutandis.
6. With respect to Focus Product Scheme/High-Tech Products Export Promotion Scheme, it is clarified that Para 4 above shall again apply, as the item which has been restricted / prohibited for exports is obviously ineligible, as the same would no longer remain a Focus Product/High-Tech Product for the purpose of boosting export through grant of benefits (even if the export product is appearing under Appendix 37D/37E of HBP v1).
This issues with the approval of the DGFT.
(A. K. Singh)
Joint Director General of Foreign Trade
(Issued from File No: 01/94/180/895/AM08/PC-I)
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