CONTENTS. PAGE â Chapter-heads I-5 â Unveiling of Foreign Trade Policy I-15 â Highlights of Foreign Trade Policy I-17

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1 CONTENTS Chapter-heads I-5 Unveiling of Foreign Trade Policy I-15 Highlights of Foreign Trade Policy I-17 DIVISION ONE A COMPREHENSIVE COMMENTARY ON FOREIGN TRADE POLICY 1 OVERVIEW OF FOREIGN TRADE POLICY 1.1 Background FT(D&R) Act Interpretation of DGFT final and binding Foreign Trade Policy Foreign Trade Policy FT (D&R) ACT AND RULES 2.1 Scheme of FT(D&R) Act Director General of Foreign Trade (DGFT) Penalty and Adjudication under FT(D&R) 26 3 PROCEDURES UNDER FOREIGN TRADE POLICY 3.1 Issue of authorisation by DGFT Procedures for application, fees etc Import/Export Authorisation 37 I-9

2 CONTENTS I Bond with guarantee for import under authorisation Personal hearing if aggrieved by decision Export Promotion Councils as Registering Authorities 45 4 IMPORT AND EXPORT OF GOODS 4.1 Policy for import of goods Broad Policy for import of goods Import/export governed as per policy at the time of import/export Restrictions on exports 60 5 EXPORT PROMOTIONAL MEASURES 5.1 Schemes for encouraging Exports Promotional measures through Duty Credit Schemes Export from India Schemes Other promotional measures Status Holders 79 6 DUTY EXEMPTION/REMISSION SCHEMES 6.1 Duty free import of inputs for export Procedures after advance authorisation Other provisions relating to advance authorisation Income Tax Aspects of Advance Authorisation Duty Free Import Authorisation (DFIA) Gem and Jewellery units EPCG AUTHORISATION AND PROJECT IMPORTS 7.1 Capital goods at concessional rate for export Export Obligation (EO) under EPCG Indigenous Sourcing of Capital Goods and benefits to Domestic Supplier Post Export EPCG Duty Credit Scrip(s) Procedures under EPCG Project Imports 122

3 I-11 CONTENTS 8 DUTY DRAWBACK 8.1 Drawback of duty on inputs Type of Drawback Rates Drawback Rate Fixation Drawback claim procedure Drawback - Other provisions Duty drawback on Re-export EOU/STP/EHTP/BTU 9.1 An overview of EOU scheme Obtaining approval for setting up EOU/STP/EHTP/BTP Inputs and capital goods without payment of duty Rebate of excise duty and service tax paid on inputs and input services EOU is a bonded warehouse Procedures by EOU Other provisions relating to EOU Exit of EOU Recovery of duty and penal action on EOU TAX PROVISIONS RELATING TO EOU 10.1 EOU and tax laws Central Excise and EOU Nature of Duty paid by EOU Excise Procedures by EOU units OTHER SCHEMES SIMILAR TO EOU 11.1 Software Technology Park (STP) Electronics Hardware Technology Parks Other schemes 250

4 CONTENTS I DEEMED EXPORTS 12.1 Supplies within India qualifying for export benefits Benefits to Indian supplier under FTP Procedure for claiming benefit of deemed export SPECIAL ECONOMIC ZONES 13.1 SEZ to encourage exports Policy to set up SEZ Setting up unit in SEZ Routine operations of SEZ unit Supply by DTA unit to SEZ Sale to DTA from SEZ Miscellaneous provisions States Policies towards SEZ No CST on supplies from DTA Exemption from cesses, customs duties and excise duties 312 DIVISION TWO FOREIGN TRADE POLICY STATEMENT FOREIGN TRADE POLICY STATEMENT 317 DIVISION THREE FOREIGN TRADE POLICY FOREIGN TRADE POLICY 373 DIVISION FOUR HANDBOOK OF PROCEDURES HANDBOOK OF PROCEDURES 441

5 I-13 CONTENTS DIVISION FIVE AAYAT NIRYAT FORMS & APPENDICES (RELEVANT EXTRACTS) LIST OF APPENDICES 543 LIST OF ANFs 547 APPENDIX-1A : DGFT, ITS REGIONAL AUTHORITIES AND THEIR JURISDICTION 549 APPENDIX-1B : LIST OF TOWNS OF EXPORT EXCELLENCE 558 APPENDIX-2J : LIST OF STATE TRADING ENTERPRISES (STEs) FOR FTP PURPOSE 560 APPENDIX-2K : SCALE OF APPLICATION FEE AND PROCEDURE FOR DEPOSIT/REFUND OF APPLICATION FEE/PENALTY, ETC. 561 APPENDIX-2L : CERTIFICATE FOR OFFSETTING OF EXPORT PROCEEDS 566 APPENDIX-2M : FORM OF SELF DECLARATION FOR OBTAINING DUPLICATE COPY OF FREELY TRANSFERABLE LICENCES/ AUTHORISATIONS WHICH ARE LOST OR MISPLACED (AS PER PARAS 2.23 AND 2.24 OF HBP) 569 APPENDIX-2N : BANK GUARANTEE FORMAT 571 APPENDIX-2-O : LEGAL AGREEMENT/UNDERTAKING FORMAT 574 APPENDIX-2U : ELECTRONIC BANK REALISATION CERTIFICATE STATEMENT OF BANK REALISATION 578 APPENDIX-4H : REGISTER FOR ACCOUNTING THE CONSUMPTION AND STOCKS OF DUTY FREE IMPORTED OR DOMESTICALLY PROCURED RAW MATERIALS, COMPONENTS ETC. ALLOWED UNDER ADVANCE AUTHORISATION/DFIA 579 DIVISION SIX ITC (HS) CLASSIFICATION OF EXPORT & IMPORT ITEMS ITC (HS) CLASSIFICATION OF GOODS 583 RESTRICTED ITEMS FOR IMPORTS TOTAL ITC (HS) CODES : LIST OF PROHIBITED ITEMS FOR IMPORT TOTAL NUMBER OF EXIM CODES : LIST OF ITEMS UNDER STE FOR IMPORTS TOTAL NUMBER OF ITC (HS) CODES :

6 CONTENTS I-14 DIVISION SEVEN EXPORT FROM INDIA SCHEMES PUBLIC NOTICE NO. 2/ , DATED PUBLIC NOTICE NO. 3/ , DATED APPENDIX 3B - MEIS SCHEDULE 633 DIVISION EIGHT ALLIED ACTS/RULES FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT, NOTIFICATION UNDER SECTION 9A OF THE FOREIGN TRADE (DEVELOPMENT & REGULATION) ACT, FOREIGN TRADE (REGULATION) RULES, FOREIGN TRADE (EXEMPTION FROM APPLICATION OF RULES IN CERTAIN CASES) ORDER, SAFEGUARD MEASURES (QUANTITATIVE RESTRICTIONS) RULES, SPECIAL ECONOMIC ZONES ACT, CUSTOMS, CENTRAL EXCISE DUTIES AND SERVICE TAX DRAWBACK RULES,