Summary: The Directorate General of Foreign Trade (DGFT), through Public Notice No. 17 (RE-03)/2002-07 dated 16 July 2003, introduced amendments to the Handbook of Procedures (Volume I) under paragraph 2.4 of the Export and Import Policy, 2002-07. The amendments covered Registration-cum-Membership Certificates (RCMC), Export Oriented Units (EOUs), Electronic Hardware Technology Parks (EHTPs), Software Technology Parks (STPs), Special Economic Zones (SEZs), Agri Export Zones, export promotion councils, duty-free import declarations and Advance Licences. Appendix 4A was amended to require separate disclosure of registered or head office addresses, branch offices and factory locations in the RCMC format. Under Appendix 14-I, the DGFT permitted the Board of Approval to consider, on a case-by-case basis, extensions of Letters of Permission (LOPs) beyond six years for proposals approved before 1 April 2002. It also clarified that EOU, EHTP and STP units could sell products and services in the Domestic Tariff Area (DTA) within their overall DTA sale entitlement, calculated collectively rather than item-wise. Certain DTA supplies were recognised for determining positive Net Foreign Exchange (NFE) earnings. The notice further revised procedures concerning Replenishment Licences, sales through international airport outlets and disposal or transfer of unutilised goods and services. Subject to approval of the Development Commissioner and applicable duties and licensing requirements, such goods could be transferred to other eligible units, disposed of in the DTA or exported. Amendments to Appendix 14-IA required disclosure of directors’ or partners’ names and addresses and the Indian and foreign sources of investment finance. Appendix 14-IF required specified changes in management and contact particulars to be intimated within a fortnight and introduced additional production reporting requirements. For SEZ units, Appendix 14-II clarified import permissions, cumulative positive NFE requirements for DTA sales, disposal of production scrap and eligibility for Duty Drawback or DEPB benefits against suitable supplier disclaimers. Export proceeds were required to be realised and repatriated in accordance with RBI instructions. The notice also revised Agri Export Zone coverage for lychee, vegetables and honey in Bihar, value-added onions in Gujarat and pomegranates in Maharashtra. It updated the listing of the Export Promotion Council for EOUs and SEZs, modified declarations relating to duty-free credit entitlements and amended paragraph 4.21 governing enhancement or reduction of the CIF value of Advance Licences. Such modifications remained subject to prescribed value-addition requirements, with enhancement of licences issued under paragraph 4.7 restricted to 100% of their original value. These amendments were intended to clarify administrative procedures, improve regulatory reporting and facilitate operations under the export promotion schemes prevailing in 2003. The Public Notice concerns the historical Export and Import Policy, 2002-07, and should not be treated as a statement of current Foreign Trade Policy requirements.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
PUBLIC NOTICE No 17 (RE-03)/2002-07
NEW DELHI: the 16th July , 2003
In exercise of powers conferred under paragraph 2.4 of the Export and Import Policy, 2002-07, the Director General of Foreign Trade hereby makes the following amendment in the Handbook of Procedures (Vol.1):-
1. The following rows are added in S.No (3) of Appendix 4 A pertaining to the “Format of Registration Cum Membership Certificate .
(3) i. Address of Registered/ Head office:
ii Address of Branch office(s) :
iii. Address of Factory (s) :
2. The following amendments are made in Appendix 14 I pertaining to the “Export Oriented Units, Electronic Hardware Technology Parks and Software Technology Parks Scheme”:
a. The last sentence of para 4.6 is amended as under:
However, proposals approved prior to 01.04.2002 shall be considered on a case to case basis by BOA for extension of validity of LOP beyond six years.
b. The words and expression “8.9” shall be corrected to read as “4.9” in para 4.11.
c.The following as added at the end of sub para (b) of para 12.1 as under:
Within the entitlement of DTA sale, the unit may sell in DTA its products and services. Entitlement will be determined in totality and not with reference to specific items.
d. The first sentence of para 13.1 of Appendix 14 I is amended as under:
The following supplies effected in DTA by EOU/ EHTP/ STP units will be counted for the purpose of fulfilment of positive NFE:
e. The second sentence of para 14.3 is amended as under:
The procedure for submission of application for grant of Replenishment Licence as contained in the relevant chapter of the Handbook of Procedures ( Vol 1) shall be applicable.
f. A heading is added to para 20.2 as under:
Sale through showrooms/ retail outlets at International Airports
g. The words and expression “units” is deleted in para 21.1
h. Para 25.1 is amended as under:
In case an EOU/EHTP/STP unit is unable, for valid reasons, to utilize the goods and services, imported or procured from DTA, it may be transferred to other EOU/SEZ/EHTP/STP units or disposed off in the DTA with the approval of the Development Commissioner on payment of applicable duties and submission of import licence by DTA unit, wherever applicable or exported. Such transfer of imported goods and services from EOU/EHTP/STP unit to another such unit would be treated as import for the receiving unit.
3. The following amendments are made in Appendix 14 I A pertaining to “ Application for setting up EOUs or units in Special Economic Zones”
a. The following column is added at S.No I
The name and address of each of the Director/ Partner
b. The following sub serial no (d) is added to S.No IX pertaining to “INVESTMENT” as under:
(d): details of source(s) of finance, (both Indian as well as foreign) for the above investments
4. The following amendments are made in Appendix 14 I F pertaining to “Form of Legal Agreement for EOU/ SEZ units”
a. Para 12 of the agreement is amended as under:
Any changes in the Board of Directors/ Partners, telephone number., E-mail address, Web-Site, Passport No., Bank Address and Factory address shall be duly intimated by the unit within a fortnight
b. The following columns are added in S.No 3 of Annexure III and S.No 8 of Annexure IV to this appendix as under:
Details of production figures
Quantity ( MT/ pieces) Value ( Rs Lakhs)
5. The following amendments are made in Appendix 14 II pertaining to “Special Economic Zones Scheme”
a. The second sentence of para 10.1 is amended as under:
However, if any permission is required for import under any other law, the same shall be allowed with the approval of the BOA.
B. Para 15.2 is amended as under:
DTA sale by service/trading unit shall be subject to achievement of positive NFE cumulatively upto the last financial year. Similarly for units undertaking manufacturing and services/ trading activities against a single LOP, DTA sale shall be subject to achievement of NFE cumulatively upto the last financial year.
c. Para 15.3 is amended as under:
Scrap/ wastes/ remnants/ rejects arising out of production process or in connection herewith may be sold in the DTA on payment of applicable duty.
d. Para 17.2 is amended as under:
Notwithstanding the above, SEZ units/SEZ Developer shall, on production of a suitable disclaimer from the DTA supplier, be eligible for obtaining the entitlement of Drawback or DEPB in lieu of Drawback.
e. Para 20.8 is amended as under:
Export value of goods , software and services by SEZ units may be realised and repatriated to India as per the RBI instructions in the matter.
6. Amendments are made in Appendix 15 pertaining to the “Agri Export Zones” as under:
| Sr.No | Product | State | Districts covered |
|---|---|---|---|
| 20 | Lychee,Vegetables and Honey | Bihar | Muzaffarpur, Samastipur, Hajipur, Vaishali, East and West Champaran, Bhagalpur, Begu Sarai, Khagaria, Sitamarhi, Saran and Gopalganj |
| 46 | Value Added Onion | Gujarat | Bhavnagar, Surendranagar, Amreli, Rajkot, Junagadh and Jamnagar |
| 48 | Pomegranate | Maharashtra | Solapur, Sangli, Ahmednagar, Pune, Nasik, Osmanabad and Latur |
7. The following amendment is made in Appendix 27pertaining to the “List of Export Promotion Councils/ Commodity Board” as under:
| Sr. No | Name of Export Promotion Council | Address of the Regd. Office of the Council | Address of the Regional office (s) of the council |
| 1 | 2 | 3 | 4 |
| 31 | Export Promotion Council for Export Oriented Units and SEZ Units | 705, Bhikaji Cama Bhavan, Bhikaji Cama Place, New Delhi 110066
Tel: 011-26165508/ 7042/ 6185 Fax: 011- 26165538 Email: [email protected] |
8. S No. 4 in the declaration given in Appendix- 36B is amended to read as under:
“ The imports made under the Duty free Credit Entitlement number……….. are those of spares, office equipment and furniture, professional equipment and consumables which are freely importable and which are required in my/our line of business.”
9. Para 4.21 is amended to read as under:
“In respect of an Advance Licence, the licensing authority concerned (as per their financial powers) may consider a request for enhancement/ reduction in the CIF value of the licence, provided the value addition after such enhancement does not fall below the stipulated minimum value addition and provided there is no change in the input-output norms and the Policy under which the licence was issued. However Advance Licences issued under Para 4.7 shall be enhanced upto 100% of their original value only.”
This issues in public interest.
(L. Mansingh)
Director General of Foreign Trade
