GOVERNMENT OF INFDIA

MINISTRY OF COMMERCE

DIRECTORATE GENERAL OF FOREIGN TRADE

UDYOG BHAWAN, NEW DELHI

Dated : 27th April, 1998

POLICY CIRCULAR NO. 3 (RE-98)/98-99

1. All Customs Authorities.

2. All Licensing Authorities.

3. All other as usual.

Attention is invited to the entry at Sl. No. 33 of Schedule 2 Appendix 1 of the book titled “ITC(HS) Classifications of Export and Import Items 1997-2002”, as amended vide Notification No. 2(RE-98)/1997-2002 dated 13.4.98, prescribing the conditions for export of Sandalwood Oil.

2. In accordance with the conditions prescribed for export of Sandalwood Oil, as amended vide above referred Notification No. 2(RE-98)/1997-2002 dated 13.4.98, the Director General of Foreign Trade hereby specifies the conditions and procedures to be followed in respect of the export of Sandalwood Oil including the classes of Sandalwood permitted for the distillation of Sandalwood Oil to be exported.

3. The overall ceiling of Sandalwood Oil to be permitted against this Policy Circular for exports in the current licensing year of 1998-99 shall be 16500 Kgs (Sixteen thousand and five hundred kilograms) only.

4. Only the Sandalwood Oil distilled from two classes of Sandalwood viz. Sandalwood Root Class and Ainchilta Class procured directly from the State Forest Department shall be permitted for exports.

5. The Director General of Foreign Trade, New Delhi shall issue authorisation to the eligible exporters for export of Sandalwood Oil in terms of the procedures as mentioned below:-

i. Prospective exporters shall submit their application in the form given in Appendix 18A of the Hand Book of Procedures, 1997-2002 within 30 days from the date of issue of this Policy Circular to the DGFT (Headquarters Office), New Delhi.

ii. The application shall be accompanied by the following documents:

(a) A copy of the valid Export Order/Irrevocable Letter of Credit from the foreign buyer;

a. A copy of valid RCMC;

b. A copy of valid I.E. Code;

c. In cases where the procurement of Sandalwood Root/Ainchilta Class has been made after 1.6.96, exporters should submit copy of Certificate(s) of Origin/Legal Procurement Certificate(s) issued by the Principal Chief Conservator of Forests of the state concerned showing the procurement and availability of Sandalwood Root Class/Ainchilta Class with the exporter in the format as prescribed at Annexure I to this Policy Circular ;

d. In cases where the exporters desire to apply for the balance quantity which could not be allotted during the last ceiling, released vide Export Instruction No. 10/96-97 dated 17th July, 1996, exporters should submit in addition copies of transit passes issued by the concerned State Forest Department in support of quantity etc. of Sandalwood purchased; and

e. In cases of non-issuance of Certificate(s) of Origin because of non-lifting of the material from concerned State Forest Departments, the exporter may submit Legal Procurement Certificate(s) in the format as prescribed at Annexure I to this Policy Circular for determining the quantity of Sandalwood Oil to be allowed for export. However, the authorisation shall be issued only after the submission of Certificate(s) of Origin/Legal Procurement Certificate(s) in original by the exporter with all the nine columns duly filled in.

i. Applications received within the stipulated period would be considered by the DGFT on merits, in consultation with M/o Environment & Forests, for issue of authorisation for export of Sandalwood Oil and shall be subject to any other condition that may be stipulated. The export price indicated in the confirmed Export Order/Irrevocable Letter of Credit shall be one of the factors to be taken into consideration for issue of authorisation.

ii. The authorisation to the eligible exporters for export of Sandalwood Oil shall be issued by the Headquarters Office of DGFT only after the firm produces the Certificate of Physical Verification of stocks from the Regional Deputy Director (Wildlife) in case of Delhi/Mumbai/Calcutta/Chennai or from the Divisional/District Forest Officers or Deputy Conservator of Forests of the concerned Territorial Division. The M/o Environment & Forests shall issue suitable instructions in this regard.

iii. At the time of issue of authorisation, the exporter shall produce the original Certificate(s) of the Origin/Legal Procurement Certificate(s) with all the nine columns duly filled in of Sandalwood Root/Ainchilta class to DGFT, New delhi for an endorsement to the effect that against the said Legal Procurement certificate(s)/Certificate(s) of Origin, an authorisation for export of the quantity of Sandalwood Oil as specified on the said authorisation has been issued.

6. Export of Sandalwood Oil against the authorisation so issued shall be completed by 31.3.1999.

(Ashutosh Mishra)

Dy. Director General of Foreign Trade

For Director General of Foreign Trade

(Issued from F. No. 61/18/94-PC.III)

ANEXURE I TO POLICY CIRCULAR NO. 3 (RE-98)/1997-2002 DATED 27TH APRIL, 1998

FORMAT OF LEGAL PROCUREMENT CERTIFICATE/CERTIFICATE OF ORIGIN

No. Date:

The following quantities of Sandalwood were sold/delivered to

M/s.————————————————— in the auction sales held at different Government Sandalwood Depots of———————————–

Forest Department as detailed below:-

Date of auction/sale
Date of confir-mation
Name of success
ful bidder/
purchaser
Name of Depot
Amount realised in sale
Class of
Sandal
wood
Quantity of Sandal
Wood in tonnes
Transit
Permit
No. &
Date
Place of
Transport
1.
2.
3.
4.
5.
6.
7.
8.
9.

PRINCIPAL CHIEF CONSERVATOR OF FORESTS

(Ashutosh Mishra)

Dy. Director General of Foreign Trade

For Director General of Foreign Trade

(Issued from F. No. 61/18/94-PC.III)

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Category : DGFT (3499)
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