CONTENTS Chapter-heads I-5 Unveiling of Foreign Trade Policy 2015-2020 I-15 Highlights of Foreign Trade Policy 2015-2020 I-17 DIVISION ONE A COMPREHENSIVE COMMENTARY ON FOREIGN TRADE POLICY 1 OVERVIEW OF FOREIGN TRADE POLICY 1.1 Background 3 1.2 FT(D&R) Act 5 1.3 Interpretation of DGFT final and binding 10 1.4 Foreign Trade Policy 16 1.5 Foreign Trade Policy 2015-2020 18 2 FT (D&R) ACT AND RULES 2.1 Scheme of FT(D&R) Act 21 2.2 Director General of Foreign Trade (DGFT) 25 2.3 Penalty and Adjudication under FT(D&R) 26 3 PROCEDURES UNDER FOREIGN TRADE POLICY 3.1 Issue of authorisation by DGFT 31 3.2 Procedures for application, fees etc. 31 3.3 Import/Export Authorisation 37 I-9
CONTENTS I-10 3.4 Bond with guarantee for import under authorisation 42 3.5 Personal hearing if aggrieved by decision 45 3.6 Export Promotion Councils as Registering Authorities 45 4 IMPORT AND EXPORT OF GOODS 4.1 Policy for import of goods 47 4.2 Broad Policy for import of goods 49 4.3 Import/export governed as per policy at the time of import/export 58 4.4 Restrictions on exports 60 5 EXPORT PROMOTIONAL MEASURES 5.1 Schemes for encouraging Exports 69 5.2 Promotional measures through Duty Credit Schemes 72 5.3 Export from India Schemes 77 5.4 Other promotional measures 78 5.5 Status Holders 79 6 DUTY EXEMPTION/REMISSION SCHEMES 6.1 Duty free import of inputs for export 82 6.2 Procedures after advance authorisation 92 6.3 Other provisions relating to advance authorisation 96 6.4 Income Tax Aspects of Advance Authorisation 99 6.5 Duty Free Import Authorisation (DFIA) 100 6.6 Gem and Jewellery units 106 7 EPCG AUTHORISATION AND PROJECT IMPORTS 7.1 Capital goods at concessional rate for export 110 7.2 Export Obligation (EO) under EPCG 114 7.3 Indigenous Sourcing of Capital Goods and benefits to Domestic Supplier 117 7.4 Post Export EPCG Duty Credit Scrip(s) 118 7.5 Procedures under EPCG 118 7.6 Project Imports 122
I-11 CONTENTS 8 DUTY DRAWBACK 8.1 Drawback of duty on inputs 130 8.2 Type of Drawback Rates 135 8.3 Drawback Rate Fixation 142 8.4 Drawback claim procedure 146 8.5 Drawback - Other provisions 152 8.6 Duty drawback on Re-export 155 9 EOU/STP/EHTP/BTU 9.1 An overview of EOU scheme 160 9.2 Obtaining approval for setting up EOU/STP/EHTP/BTP 167 9.3 Inputs and capital goods without payment of duty 170 9.4 Rebate of excise duty and service tax paid on inputs and input services 183 9.5 EOU is a bonded warehouse 185 9.6 Procedures by EOU 191 9.7 Other provisions relating to EOU 201 9.8 Exit of EOU 205 9.9 Recovery of duty and penal action on EOU 212 10 TAX PROVISIONS RELATING TO EOU 10.1 EOU and tax laws 217 10.2 Central Excise and EOU 219 10.3 Nature of Duty paid by EOU 243 10.4 Excise Procedures by EOU units 244 11 OTHER SCHEMES SIMILAR TO EOU 11.1 Software Technology Park (STP) 247 11.2 Electronics Hardware Technology Parks 249 11.3 Other schemes 250
CONTENTS I-12 12 DEEMED EXPORTS 12.1 Supplies within India qualifying for export benefits 252 12.2 Benefits to Indian supplier under FTP 254 12.3 Procedure for claiming benefit of deemed export 257 13 SPECIAL ECONOMIC ZONES 13.1 SEZ to encourage exports 259 13.2 Policy to set up SEZ 265 13.3 Setting up unit in SEZ 282 13.4 Routine operations of SEZ unit 290 13.5 Supply by DTA unit to SEZ 299 13.6 Sale to DTA from SEZ 305 13.7 Miscellaneous provisions 307 13.8 States Policies towards SEZ 310 13.9 No CST on supplies from DTA 311 13.10 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
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 : 428 584 LIST OF PROHIBITED ITEMS FOR IMPORT TOTAL NUMBER OF EXIM CODES : 52 620 LIST OF ITEMS UNDER STE FOR IMPORTS TOTAL NUMBER OF ITC (HS) CODES : 22 623
CONTENTS I-14 DIVISION SEVEN EXPORT FROM INDIA SCHEMES PUBLIC NOTICE NO. 2/2015-20, DATED 1-4-2015 627 PUBLIC NOTICE NO. 3/2015-20, DATED 1-4-2015 628 APPENDIX 3B - MEIS SCHEDULE 633 DIVISION EIGHT ALLIED ACTS/RULES FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT, 1992 637 NOTIFICATION UNDER SECTION 9A OF THE FOREIGN TRADE (DEVELOPMENT & REGULATION) ACT, 1992 652 FOREIGN TRADE (REGULATION) RULES, 1993 654 FOREIGN TRADE (EXEMPTION FROM APPLICATION OF RULES IN CERTAIN CASES) ORDER, 1993 662 SAFEGUARD MEASURES (QUANTITATIVE RESTRICTIONS) RULES, 2012 667 SPECIAL ECONOMIC ZONES ACT, 2005 676 CUSTOMS, CENTRAL EXCISE DUTIES AND SERVICE TAX DRAWBACK RULES, 1995 710