GENERAL NOTES FOR ALL EXPORT
PRODUCTS GROUPS
1.
The
norms have been published in this book with a view to facilitate determination
of the proportion of various inputs which can be used or are required in the
manufacture of different resultant products.
In many cases, the resultant products and the inputs required have been
described in generic terms. The
applicants shall, therefore, ensure that the goods sought for import and
actually imported are those, which are used/ required in the export
product. The items allowed for import
in the licence shall be co-related with the description of the export product
in the Shipping bill by the exporter to be authenticated by Customs. For example, if the input allowed in the norms
is 'relevant fabrics', only the specific types of fabric i.e. polyester or
nylon etc. used in the export product shall be allowed. Similarly, if the norms provide for import
of BOPP film against export of self adhesive tape, only BOPP film required for
manufacture of Self Adhesive Tape will be allowed and not those, which are
required as packing material.
2.
Wherever
a specific norm has been provided, the same will prevail over the generic norm
laid down, if any. If the application
is based on the generic norm, specific reason for applying under the generic
norm should be clearly stated.
3.
In
some norms, two or more alternative inputs have been permitted for import for
the manufacture of a specific resultant product. In such cases, the applicant shall be required to opt for only
one alternative and the advance licence/ duty free replenishment certificate
shall be issued accordingly. In case,
more than one alternative input is required, the same could be allowed based on
the specific declaration from the applicant about their requirement in the
resultant product, at the time of filing application and the licence will be
issued indicating the specific quantity of each input.
4.
All
the inputs allowed for import under advance licence/ duty free replenishment
certificate are required to be indicated in terms of quantity. Where an input has been permitted in the
norms or specifically allowed for import by the ALC in terms of value as a
limiting factor only, such items shall be indicated in the licence in terms of
value only. However, if quantity and value
of inputs is a limiting factor, the same shall be applicable.
5.
In
case of norms wherein the inputs have been allowed based on a percentage
content of inputs in the export product with some wastage or on net to net
basis or on net plus wastage basis, the exporter shall account for the
quantity(s) allowed for import minus the wastage permitted, if any, in the
product exported. In such cases, the
net quantity shall be reflected in the export product description by the
Licensing Authority and also in the Shipping Bill by the exporter duly endorsed
by the Customs Authorities.
6.
Unless
specified, otherwise, the import of components wherever allowed shall be
permitted on net to net basis, i.e., without any wastage, with accountability
clause and the type, technical specifications (including part No. if any),
etc., of the components sought for import should conform to those utilized in
the manufacture of the resultant product, which should be reflected in export
documents (Shipping Bills) also. A
condition to this effect shall be imposed on the licence.
7.
An
applicant need not apply for all the inputs indicated in the norms for the
grant of advance licence/ duty free replenishment certificate provided all
other conditions for grant of licence in the Exim Policy and the Handbook of
Procedure are fulfilled. For advance
licence, the applicant shall indicate the source of procurement of the
remaining inputs, that is, whether they are indigenous or imported, in the
application.
8.
In
respect of the following inputs, advance licence/ duty free replenishment
certificate requiring any of these items will be issued subject to the imports
being restricted upto a maximum value limit indicated against each input. However, where quantity is also indicated
for these inputs in the norms, the imports shall be restricted both in terms of
quantity and value as limiting factor:
1. |
Perfumery compounds/ chemicals/ Natural essential
oils/ Resinods/ Aromatic chemicals |
|
Item wise value limits as indicated in the
relevant norms. |
|
|
|
|
2. |
Rubber Chemicals |
|
Upto 7% of FOB value of exports. However, in case of Break Diaphragms for
Automobiles - upto 5% of FOB value of export. |
|
|
|
|
3. |
Misc. Chemicals |
|
Upto 5% of FOB value of exports, except for the
following: - Break Diaphragms for Automobiles, Bicycle Tyres,
Transmission Rubber Belting, Rubber pads, Rubber Polished Brakes and
Synthetic Rubber Sheets - upto 2% of FOB value of exports. |
|
|
|
|
4. |
Spin Finish Oil (Including Surface Active Agent
which are used as a finish oil in the manufacture of Polyester) |
|
Upto 5% of FOB value of exports. |
|
|
|
|
5. |
Dyes |
|
Item wise limit as indicated in the relevant
norms. |
9.
In
respect of certain norms, the validity of the same is for a limited
period. For regularization/ re-fixation
of the same, the exporters shall file application in the prescribed format with
all the requisite details, including production and consumption data at least
sixty days in advance of expiry of such validity. Unless the validity period is extended, no licence will be issued
based on these norms. However, the
applicant shall be entitled for licences on self-declaration basis.
10.
In
case where the input(s) required for the manufacture of the resultant product
prescribes alternative items, licence can be issued for export of the said input(s)
allowing the alternative items as inputs i.e. import items in the same ratio as
prescribed in the said input(s).
11. For distinguishing tile from slab in the SIONs for export products of Marble/Granite/
Serpentine, wherever applicable, the following parameters for classifying the
product as “Tile” or “Slab” may be
adopted :-
Product in regular Thickness
Geometrical shape
----------------------------- -----------------------
i)
Tile - Upto 12 mm
ii)
Slab - More than 12 mm
GENERAL POLICY FOR PACKING
MATERIAL
In respect of export
products for which standardised norms do not provide packing material as an
import input or in cases where additional packing material as an import input
other than those given in Standard Input-Output Norms are required, or in cases
where norms have not been standardised as yet and the licences are granted on
ad-hoc/ individual basis by competent authority, the import of packing material
as an input may be allowed in the following manner:
(1) a. Packing material in finished form On 'Net + 1% wastage'
b. Raw materials to be used
for the On 'Net
+ 5% wastage'
manufacture of packing material.
However, GP/ CRCA in the
shape of Sheets/ Strips and Coils may be allowed on 'Net plus 10% wastage'.
(2)
The
exporter shall account for the net content of the packing material minus the
wastage allowed in the exports made.
(3)
The
packing material with wastage indicated above will be allowed within the
overall CIF value of the licence.
(4)
Wherever
packing materials allowed for import is in the nature of Polymer, only the
relevant grade required for the export product, i.e., moulded grade or film
grade or blowing grade, tape grade as per the declaration of the applicant,
will be permitted.
In cases where only packing
material has been asked for in the application for issue of advance licence as
per the general note above, where there is no specific Standard Input Output
Norm (SION), falling under any product group, advance licence in such cases
shall be issued under the General Product Group vide "9999".
GENERAL NOTE FOR FUEL
Duty free
import of fuel shall be allowed as per the quantity indicated in the relevant
Standard Input Output Norms (SION).
However, in cases where fuel has not been specifically included in the
SION, duty free imports of fuel shall also be allowed under Actual User Advance
Licence subject to the condition given in the EXIM Policy/ Handbook of Procedures
as per the percentage rate indicated against each product as under:
Sl. No. |
Product Group |
Value of fuel to be
permitted as percentage FOB value of exports. |
|
|
|
1. |
Bulk Drug and Drug
Intermediates |
5% |
|
|
|
2. |
Dye and Dye Intermediates |
4% |
|
|
|
3. |
Glass |
5% |
|
|
|
4. |
Ceramic Products |
5% |
|
|
|
5. |
Paper made from wood pulp/
waste paper |
5% |
|
|
|
6. |
Pesticides (Technical)/
Pesticides formulation from Basic Stage |
5% |
|
|
|
7. |
Refractory items of the following types:- |
|
|
a.
Shaped and Fired b.
Shaped and Tempered c.
Others |
7% 3% 2% |
8. |
Ferrous engineering
products manufactured through forging/castings process |
7% |
9. |
Non ferrous basic metal including down stream
products of aluminium. |
4% |
|
|
|
10. |
Plastic and plastic products from Basic/ Monomer
Stage |
5% |
|
|
|
11. |
Fibre to yarn |
4% |
|
|
|
12. |
Yarn to fabric/ Made-ups/ Garments |
3% |
|
|
|
13. |
Fibre to fabric/made-ups/ Garments |
7% |
|
|
|
14. |
Organic Chemicals |
4% |
|
|
|
15. |
Inorganic Chemicals |
3% |
|
|
|
16. |
Glass Artwares |
3% |
|
|
|
17. |
Leather Footwears and its Leather components |
3% |
|
|
|
18. |
Graphite Electrodes against SION at C-485 |
6% |
|
|
|
19. |
Brass Art Wares |
2% |
|
|
|
For the purpose of import of
fuel under Actual User Advance Licence, the applicant shall indicate the name
of the specific fuel sought for import in their application. Import of fuel however shall not be
permitted against DFRC or under para 7.5 of Handbook of Procedures or against
Ad hoc Norms. Also, for the calculation
of DEPB rates, the cost of the fuel shall not be taken into account.
“Note:- In
any case, as per above General Note, the fuel shall not be allowed more than 7%
of FOB value of exports.”
GENERAL NOTE FOR CHEMICALS
& ALLIED PRODUCTS
1.
In
case of formulation products, where norms are fixed based on a specific
strength, assay/ percentage composition/ pack size/ concentration/ active
material etc., of the resultant product, the requirements of inputs for
different strength/ pack size/ assay/ formulation such as EC/ WDP/ WP etc. can
be worked out on pro-rata basis.
2.
Unless
otherwise specifically mentioned, the quantity of inputs allowed are based on
100% strength/ concentration. In case
the strength/ concentration/ purity of the item imported/ proposed to be
imported is different from what is mentioned alongwith the description of
import item/ 100% strength etc., quantity of the item may be reduced or
enhanced based on actual concentration of the imported inputs in the inverse
ratio, i.e., more the concentration, the lesser the requirement and vice-versa.
3.
In
case where the input(s) required for the manufacture of the resultant export
product have norms from further basic stages(s) for manufacture of one or more
of such inputs, the licence can be issued by using these norms (excluding
packing material, if any) in place of such inputs, for manufacture of the
resultant export product.
4.
In
respect of Drug items, export products have been described with/ without suffix
such as IP, BP, USP. While issuing
licences, suffix as such IP, BP, USP, depending upon the suffix used in the
export order, may be added alongwith the description of the export product.
5.
In
respect of injection/ syrup, in addition to items permitted in the norms, the
relevant glass vials with 5% wastage and stopper with 1% wastage, wherever
required, can be allowed. Against
export of capsules, relevant hard gelatine capsule may be allowed with 5%
wastage on the net number of capsules in the export product.
6.
In
case of Drug Formulations like Injection/ Syrups, the export product
description should be clearly defined to show the actual contents of bulk drugs
in the export product as per drug manufacturing licence.
7.
Wherever
import of MDPE is allowed, the same would mean Plastic Granules with density
ranging between 0.917 and 0.943.
8.
Unless
otherwise specifically mentioned, the input-output norms of Dye-stuffs are on
the basis of 100% Assay/ 100% Dye content.
In case the Assay/ Dye content is different or the resultant product to
be exported is different from the Assay/ Dye content based on which the norms
are fixed, the requirement of different raw materials may be calculated on
pro-rata basis excluding the dispersing agent.
The quantity of dispersing agent - Lignine Sulphonate or any other
dispersing agent - to be used as per the declaration of the applicant would be
100 minus Assay percentage/ Dye content percentage of dye in the export
product. In case of all finished dye,
the percentage of dye content (Assay) in the export product description must be
indicated.
9.
Wherever
import of "Caustic Soda" or "Caustic Soda Solid" or
"Caustic Soda Flake" is allowed, it is on the basis of 100%
strength. Wherever specific strength of
Caustic Soda in Caustic Soda Lye is not mentioned, the same may also be taken
as 100% strength, even though Caustic Soda is also commonly available in 50%
and 33% Strength in Lye form.
Interchangeability between the import of Caustic Soda Solid/ Flakes or
Caustic Soda Lye is permitted based on the percentage content of Caustic Soda
in the import material. Further,
wherever import of Caustic Soda or Caustic Soda Flakes is allowed, against
specific norms, the same would also cover Caustic Soda Prills/ Pearls.
10.
In
case of paper, a variation of ±10% in GSM of paper in import and export will be
allowed, except in case of SION at Sl.Nos.A-1569 and A-1579 where
flexibility for import of relevant paper within the range of GSM 50 to GSM 150
will be allowed.
11.
Where
"Synthetic Rubber" has been permitted as an input in generic terms,
the applicant will have to indicate the specific type of synthetic rubber to be
used in the export product and same will also be indicated alongwith the export
product.
12.
In
case of Plywood, wherever import of chemicals have been allowed, the value of
the same shall not exceed 20% of FOB value of export. In case of Veneer, the value of such chemicals shall be limited
to 5% of FOB value of exports.
13.
Import
of the following varieties of Wood or Veneer shall not be allowed against
export of Commercial Plywood:
1)Teak 2)Rosewood 3)Ash
4)Cherry 5)White Oak 6)Red Oak 7)Walnut 8)Birds Eye Maple 9)Maple 10)Burls of
different varieties 11)Reconstituted Veneers of different varieties 12)Beeck 13)Lace Wopod 14)Sapelli 15)Mahogany
16)Afromosia and 17)Other varieties of Peeled/ Sliced Decorative Veneers.
The thickness of permissible
Veneers other than those mentioned above should be maximum 6 mm.
14.
In
case of export of refrigerant gases in returnable ISO container, item of import
required for manufacture of such gases shall only be allowed. Import and export of ISO container on lease
basis shall be governed by rules and regulations laid down by Customs in this
behalf.
15.
Wherever, import of Penicillin and its salts
(ITC HS Code No. 29411010) or import of
6-APA (ITC HS Code No. 29411050) is allowed as an input item under Duty
Exemption Scheme, the export obligation period for such licences shall be
restricted to three months from the date of clearance of first import
consignment. The licensing authority
shall make an endorsement in the Advance Licence to this effect. No further extension in export obligation
period shall be allowed in these licences.