FOREIGN TRADE POLICY ANALYSIS: Chapter 2: General Provisions Regarding Exports & Imports:

Transcription

1 FOREIGN TRADE POLICY ANALYSIS: Chapter 2: General Provisions Regarding Exports & Imports: Sr. No. FTP / 1 FTP 2.05 (I) An IEC is a 10-digit number allotted to a person that is mandatory for undertaking any export/import activities. Now the An IEC is a 10-character alphanumeric number allotted to a person that is mandatory for undertaking any export/import facility for IEC in electronic form activities. With a view to or e-iec has also been maintain the unique identity of operationalized. an entity (firm/company/llp etc.), consequent upon introduction / implementation of GST, IEC will be equal to PAN and will be separately issued by DGFT based on an application. 2 FTP 2.05(III) Only one IEC against one Permanent Account Number (PAN) Only one IEC is permitted against on Permanent Account Number (PAN). If any PAN card holder has more than one IEC, the extra IECs shall be disabled. 1 Now in view of GST provisions IEC number will be issued a 10-character alpha-numeric number which will be equal to PAN to maintain the unique identity of an entity. Also IEC application fees earlier prescribed to Rs.500/- whereas the same is now not stated in provisions. Now IEC should apply online by using DSC (Class II & III) and there will not be any manual application procedures. Para omitted

2 3 FTP 2.07 DGFT may, through a Notification, impose restrictions on export and import, Entry pertaining to restrictions on export and import relating to gold and silver has been added. necessary for: - i) Relating to the importation or exportation of gold or silver. 4 FTP 2.12 Application for IEC/ Authorisation / License / Scrips must be accompanied by application fees as indicated in the Appendix 2K of Appendices and Aayat Niryat Forms. Application for IEC/ authorisation / License / Scrips must be accompanied by application fees as indicated in the Appendix 2K of Appendices and Aayat Niryat Forms. Fees must be paid online through electronic fund transfer (EFT) Mechanism or through Credit/Debit Cards, unless Provisions pertaining to payment of fees has been prescribed to pay mandatorily online through electronic fund transfer (EFT) Mechanism or through Credit/Debit Cards. 5 FTP 2.13 Clearance of Goods from Customs against Authorization Goods already imported / shipped / arrived, in advance, but not cleared from Customs may also be cleared against an Authorisation issued subsequently. This facility will however be not available to restricted items or items traded provided otherwise. Clearance of Goods from Customs against Authorisation Goods already imported / shipped / arrived, in advance, but not cleared from Customs may also be cleared against an Authorisation issued subsequently. However, such goods already imported/shipped/arrived, in 2 The condition for clearance of goods from customs against authorization has specified that such goods already imported/shipped/arrived, in advance are first warehoused against Bill of Entry for Warehousing and then cleared for home consumption against an Authorisation issued subsequently.

3 through STEs. 6 FTP 2.17 List of prohibited items for direct and indirect import and export from/to Democratic People s Republic of Korea 7 FTP Prohibition on Direct or Indirect Import and Export from/ to Iran (a) Direct or indirect export and import of all items, materials, equipment, goods and technology which could contribute to Iran s enrichmentrelated, reprocessing or heavy water related activities, or to development of nuclear weapon advance are first warehoused against Bill of Entry for Warehousing and then cleared for home consumption against an Authorisation issued subsequently. This facility will however be not available to restricted items or items traded Through STEs. List of prohibited items for direct and indirect import and export from/to Democratic People s Republic of Korea 2.18 Direct or Indirect Export/Import to/from Iran (a) Direct or indirect export to Iran or import from Iran of any item, material, equipment, goods and technology mentioned in the following documents would be permitted subject to the provisions contained in 3 List of prohibited items for direct and indirect import and export from/to Democratic People s Republic of Korea stated in Appendix-I of FTP. Earlier there is no separate appendix provided. Restrictions for direct/ indirect export/import to /from Iran of the specified items are now removed.

4 delivery systems, as 39 mentioned below, whether or not originating in Iran, to/from Iran is Prohibited : (i) Items listed in INFCIRC/254/Rev.9/Part 1 and INFCIRC/254/Rev.7/Part 2 (IAEA Documents). (ii) Items listed in S/2006/263 (UN Security Council document) Annex-B to the United Nations Security Council Resolution 2231 (2015): (i) Items listed in INFCIRC/254/Rev.9/Part 1 and INFCIRC /254/Rev.7 /Part 2 (IAEA Documents) as updated by the IAEA from time to time. (ii) Items listed in S/2006/263 (UN Security Council document) as updated by the Security Council from time to time. 8 FTP 2.30 Import through courier service Import through courier service/post 9 FTP 2.36 (a) Private/Public Bonded Private/Public Warehouses for Imports (a) Private/ Public bonded warehouses may be set up in DTA as per terms and conditions of notification issued by DoR. Any person may import goods except prohibited items, arms and ammunition, hazardous waste and chemicals and warehouse them in such bonded warehouses. Bonded Warehouses for Imports (a) Private/ Public bonded warehouses may be set up in DTA as per rules, Regulations and notifications issued under the Customs Act, Any person may import goods except prohibited items, arms and ammunition, hazardous waste and chemicals and warehouse them in such 4 Import through post is also introduced along with courier. Private / Public Bonded Warehouses for imports will be processed as per notifications and regulations issued by Customs Act, 1962 instead of earlier DoR.

5 bonded warehouses. 10 FTP 2.36 (c) If such goods are not cleared for home consumption within a period of one year or such extended period as the customs authorities may permit, importer of such goods shall re-export the goods. 11 FTP 2.37 Special provision for Hides Skins and semi-finished goods: Hides, Skins and semi-finished leather may be imported in the Public Bonded warehouse for the purpose of DTA sale and the unsold items thereof can be reexported from such bonded warehouses at 50% of the applicable export duty. However, this facility shall not be allowed for import under Private Bonded warehouse. 12 FTP Exemption / Remission of Service Tax in DTA on goods & services exported : For all goods and services which are exported from units in DTA The clearance of the warehoused goods shall be as per the provisions of the Customs Act, Special provision for Hides Skins and semi-finished goods: Hides, Skins and semi-finished leather may be imported in the Public/ Private Bonded warehouse for the purpose of DTA sale and the unsold items thereof can be reexported from such bonded warehouses on payment of the applicable rate of export duty. 5 Omitted Clearance of warehoused goods will be strictly as per provisions of Customs Act, No specific provisions stated in FTP now. Restriction of import of Hides Skins and semi-finished leather in private bonded warehouse has been removed. In view of subsumed of Service Tax in CGST, this Para has been omitted.

6 and units in EOU / EHTP / STP / BTP, exemption / remission of service tax levied and related to exports, shall be allowed, as per prescribed procedure in Chapter 4 of Handbook of Procedures. 13 FTP 2.45 Export of Passenger Baggage Export of Passenger Baggage Provisions of this Para shall be governed subject to Baggage Rules 14 FTP 2.46 I ( e) & 2.46 II (d) (e) Notwithstanding the above, goods which are freely importable may be re-exported except items as in the Prohibited or SCOMET List of exports, in same or substantially same form even though such goods are under restricted list for export, subject to the following conditions: (i) Goods are not of Indian Origin; (ii) Goods imported shall be kept in bonded warehouse under supervision of Customs; (iii) Goods to be exported have never been cleared for home consumption; 6 issued under Customs Act, 1962 Provisions for re-export of items Prohibited or SCOMET List of exports, even though such goods are under restricted list are provided subject to specified conditions. However such re-export of items will not be eligible for any of the export incentives.

7 (iv) Export of goods shall be subjected to Section 69 of Customs Act, (d) Exports under this dispensation, as at I (e) and II (a), (b) and (c) above shall not be eligible for any export incentives. 15 FTP 2.47 Export through courier service Export through courier service/post Export through post is also introduced. 16 FTP 2.48 Export of Replacement Goods: Goods or parts thereof on being exported and found defective/damaged or otherwise unfit for use may be replaced free of charge by the exporter and such goods shall be allowed clearance by Customs authorities, provided that replacement goods are not mentioned as restricted items for exports in ITC (HS) Export of Replacement Goods: Goods or parts thereof on being exported and found defective/damaged or otherwise unfit for use may be replaced free of charge by the exporter and such goods shall be allowed for export by Customs authorities, provided that replacement goods are not mentioned as restricted/scomet items for exports in ITC (HS). If the export item is restricted / under SCOMET, the 7 Condition inserted for replacement of exported goods as if export item is restricted / under SCOMET, the Exporter shall require export license for replacement.

8 17 FTP Export of Repaired Goods: (i) Goods or parts thereof, except restricted under ITC (HS), on being exported and found defective, damaged or otherwise unfit for use may be imported for repair and subsequent re-export. Such goods shall be allowed clearance without an Authorisation and in accordance with customs notification. exporter shall require a export license for replacement Export of Repaired Goods Goods or parts thereof, except restricted under ITC (HS), on being exported and found defective, damaged or otherwise unfit for use may be imported for repair and subsequent re-export. Such goods shall be allowed clearance without an Authorisation and in accordance with customs notification. To that extent the exporter shall return the benefits /incentive availed on the returned goods. If the item is restricted for import, the exporter shall require an import license. 18 FTP 2.50A 2.50 A Re-export of imported Goods found defective and unsuitable for use: Imported goods found defective after Customs clearance, or not found as per specifications or 8 Condition inserted for export of repaired goods as the exporter shall return the benefits /incentive availed on the returned goods. Also if the item is restricted for import, the exporter shall require an import license. Newly inserted provision for reexport of imported goods found defective as per Customs Act, 1962.

9 (c ) Denomination of Export Contracts: (c) Contracts (for which payments are received through Asian Clearing Union (ACU) shall be denominated in ACU Dollar. Central Government may relax provisions of this paragraph in appropriate cases. Export contracts and invoices can be denominated in Indian rupees against EXIM Bank/Government of India line of credit. requirements may be reexported back as per Customs Act, Denomination of Export Contracts: Contracts (for which payments are received through Asian Clearing Union (ACU) shall be denominated in ACU Dollar. However, participants in the ACU may settle their transactions in ACU Dollar or in ACU Euro as per RBI Notifications. Central Government may relax provisions of this paragraph in appropriate cases. Export contracts and invoices can be denominated in Indian rupees against EXIM Bank/Government of India line of credit A 2.54A Export Credit Agencies (ECAs) (i) Export Credit Agencies (ECAs) are policy instrument for Government to support exports. ECAs support exports by 9 Provision inserted stating participants in the ACU may settle their transactions in ACU Dollar or in ACU Euro as per RBI Notifications. Earlier there was no such provision. Para Newly inserted w.r.t. Export credit agencies.

10 insurance, guarantee and also direct lending. Export Credit Agencies (ECAs) like Export Credit Guarantee Corporation of India Ltd. (ECGC) provides credit Insurance support to exports and export credit lending. Covers issued by ECGC to exporters, protect against losses arising out of payment failures due to insolvency or default of the buyers or due to political risks. Exporters can diversify their markets in addition to protecting existing markets through such covers. ECGC also supports Medium and Long term (MLT) exports including project exports. Exim Bank is the other ECA in the business of lending for MLT exports and fronting the government s line of credit. (ii) ECGC indemnifies losses of exporters in export trade due to insolvency or default of the buyer. Additionally losses due to 10

11 political risk like war, sudden import restriction, promulgation of law or decree after the shipment has been effected are also covered. Some of the antidumping measures or non-tariff barriers introduced after a shipment has been made will come under the purview of the political risk. In such cases exporter s interest are protected by ECGC Certification of Origin of Goods EU-GSP Exporters can selfcertify the Statement on Origin of their goods, as per the selfcertification scheme, Certification of Origin of Goods for European Union Generalised System of Preferences (EU-GSP), of the European Union (EU) under the Registered Exporter System (REX) as in Para (c) of the Handbook of Procedures. Newly inserted provisions w.r.t. certification of origin of goods EU- GSP exporters. 11