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.