Notification No. 3/2002-07, issued on 1st May 2002, amends several provisions of the Export and Import Policy, 2002-07. Key amendments include the correction of Paragraph 2.21, allowing the import of capital goods, components, and accessories for export without a license, on the condition of a Legal Undertaking or Bank Guarantee. Paragraph 2.34 is updated to permit third-party exports. Paragraph 3.7.4 extends the validity of expired status certificates until 31st March 2004, with further renewals based on prescribed threshold limits. Paragraph 4.2.1 introduces a minimum value addition of 33% for DFRC, with exceptions for the gems and jewelry sector. Additionally, Paragraph 7.1(c) now includes the establishment of power generation/distribution units in Special Economic Zones (SEZs). Several other amendments address supplies in Domestic Tariff Areas (DTA), reimbursement of Central Excise duties on bulk tea, and the benefits of deemed exports for International Competitive Bidding (ICB) supplies. The definition of “status holder” is also revised to include exporters recognized by the Director General of Foreign Trade. These changes aim to provide clarity and improve the efficiency of India’s export and import framework.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
NOTIFICATION No. 3/2002-07
NEW DELHI: the 1st May , 2002,
In exercise of powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of 1992) read with paragraph 1.1 of the Export and Import Policy, 2002-07, the Central Government hereby amends/ corrects the Export and Import Policy, 2002-07 as under:
1) Paragraph 2.21 is corrected as under:
“New or second hand capital goods, equipments, components, parts and accessories, containers meant for packing of goods for exports, jigs, fixtures, dyes and moulds may be imported for export without a licence/ certificate/ permission on execution of Legal Undertaking/ Bank Guarantee with the Customs Authorities.
2) Paragraph 2.34 is corrected as under:
Third party exports, as defined in paragraph 9.55 shall be allowed under the Policy.
3) Paragraph 3.7.4 is corrected as under:
“ The status certificates expiring on 31st March, 2002 along with the erstwhile Golden status certificates shall be deemed to have been extended upto 31st March, 2004. However, further renewal shall be granted on achieving the threshold limit prescribed in the Policy.”
4) Paragraph 4.2.1 is corrected as under:
“ DFRC shall be issued on a minimum value addition of 33% except for the gems and jewellery sector for which value addition as given in paragraph 4.56.1 of the Handbook (Vol 1) shall be applicable.”
5) The following sentence is added at the end of para 7.1 (c) :
“Units for generation/ distribution of power may also be set up in the SEZ’s”
6) Paragraph 7.8 (c) (i) is corrected as under:
“ Supplies effected in DTA in terms of paragraph 8.2 of the Policy.”
7) Paragraph 7.9(a)(II) (iii) is corrected as under:
“ Reimbursement of Central Excise duty paid on bulk tea procured from the licenced auction centres by the Development Commissioner of concerned Zone so long as levy on bulk tea in this regard is in force.”
8) A sub para is added at the end of paragraph 8.2 as under:
The benefits of deemed exports shall be available under paragraph (d), (e), (f) and (g) only if the supply is made under the procedure of International Competitive Bidding (ICB).
9) The definition of status holder as given in paragraph 9.53 is corrected as under:
“ Status holder means an exporter recognized as Export House/ Trading House/ Star Trading House/ Super Star Trading House by the Director General of Foreign Trade .”
This issues in public interest.
Sd/
(N.L.Lakhanpal)
Director General of Foreign Trade
Secretary to the Government of India
(A.B.Menon)
Dy. Director General of Foreign Trade
(F.NO. 01/94/180/EXIM Policy/AM03/PC-IV)
