Import licence

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2013 Hello sir,
I would like to import quality sanitary wares from other country like China. How I get import Licence? Whats it eligibility and procedures?

Regards,
Fayyaz

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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09 January 2013 DUTY FREE IMPORT AUTHORISATION SCHEME
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A Duty Free Import Authorisation is issued to allow duty free import of inputs which are used in the manufacture of the export product (making normal allowance for wastage), and fuel, energy, catalyst etc. which are consumed or utilised in the course of their use to obtain the export product. However, the Director General of Foreign Trade, by means of Public Notice, may in public interest, exclude any product(s) from the purview of this scheme.

Prohibited items of imports mentioned in ITC(HS) shall not be imported under the Authorisation issued under the Scheme.

Duty Free procurement from domestic market will be available as in case of advance Authorisation scheme against ARO/invalidation letter/back to back inland letter of credit etc.
Entitlement

The Authorisation shall be issued on the basis of inputs and export items given under Standard Input and Output Norms (SION). The import entitlement shall be limited to the quantity mentioned in SION.

Duty Free import of mandatory spares upto 10% of the CIF value of Authorisation which are required to be exported/supplied with the resultant product may also be allowed under the scheme.

Such Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s) -

i) - for Physical exports (including exports to SEZ); and/or;

ii) - for Intermediate supplies; and /or;

iii) to the main contractor for supply of goods to the categories mentioned in sub-paragraph 8.2 (b), (c), (d), (e), (f), (g), (i) and (j) of paragraph “Categories of Supply” of Section “Deemed Exports” of this site for import of inputs required in the manufacture of goods. In addition, in respect of supply of goods to specified projects mentioned sub-in paragraph (d), (e), (f), (g) and (j) of paragraph “Categories of Supply” of Section “Deemed Exports” of this site. A DFIA can also be availed by the sub-contractor of the main contractor to such project provided the name of the sub contractor(s) appears in the main contract.

Such Authorisation can also be issued for supplies made to United Nations Organisations or under the Aid Programme of the United Nations or other multilateral agencies and paid for in free foreign exchange.

A manufacturer exporter or a merchant exporter tied up with the supporting manufacturer can apply for the Authorisation under the Scheme. Before affecting exports under scheme, an applicant is required to file an application to the Regional Authority.

Such Authorisation shall be initially issued with actual user condition and shall be exempted from payment of basic custom duty, additional customs duty, education cess, anti-dumping duty and safeguard duty, if any.

Import items

Prohibited items of imports mentioned in ITC(HS) shall not be imported under the Authorisation issued under the Scheme.

Duty Free procurement from domestic market will be available as in case of advance Authorisation scheme against ARO/invalidation letter/back to back inland letter of credit etc.

Value Addition

A minimum 20% value addition shall be required for issuance of such Authorisation except for items in gems and jewellery sector for which value addition as given in paragraph 4A.2.1 of the Handbook of Procedures (Vol.1) and items for which higher value addition is prescribed under Advance Authorisation Scheme shall be applicable.

Transferability

Once export obligation has been fulfilled, request for transferability of the Authorisation or the inputs imported against it may be made before the Regional Authority. Once, transferability is endorsed, the Authorisation holder will be at liberty to transfer the duty free inputs, other than fuel and any other item(s) notified by DGFT for this purpose.

However, in respect of Standard Input Output Norms, which are subject to “actual user” condition or for import of fuel under the general norms or where Standard Input Output Norms allow import of Acetic Anhydride, Ephedrine and Pseudo Ephedrine, DFIA shall be issued with actual user condition for these inputs and no transferability shall be allowed for these inputs even after fulfillment of the export obligation. Transfer of items that are restricted for imports or the DFIA for such items shall be allowed under the DFIA scheme only against a specific import licence for that item.

However, for fuel, the import entitlement may be transferred only to the companies which have been granted Authorisation to market fuel by the Ministry of Petroleum & Natural Gas.

CENVAT Facility

No CENVAT credit facility shall be available for inputs either imported or procured indigenously against the Authorisation.

Drawback Facility

The drawback shall be available in respect of any of the duty paid material, whether imported or indigenous, used in the goods exported, as per the drawback rate fixed by Ministry of Finance. The drawback shall, however, be restricted to the duty paid materials mentioned in the application.

Application

An application in ‘Aayaat Niryaat Form’ with the import entitlement as per SION, along with documents prescribed in the application form, shall be submitted to the Regional Authority concerned.

In case of export of gold /silver / platinum jewellery and articles thereof, the quantity, wastage and the value addition norms shall be as prescribed in paragraph 4A of the Policy and Handbook of Procedure(vol.1).

Applications, where Acetic Anhydride, Ephedrine and Pseudo-ephedrine is required as an input for import and prescribed in SION, shall be filed with the Regional Authorities concerned.

Copies of such applications shall also be simultaneously endorsed to the Drug Controller of India, Nirman Bhawan, New Delhi, Narcotics Commissioner, Central Bureau of Narcotics, Gwalior and the respective Zonal Director of the Narcotics Control Bureau, alongwith a declaration that the applicant will maintain the prescribed records and also submit the prescribed returns.

Duty free import of spices (covered by Chapter 9 of the ITC(HS) Classifications of Export & Import items, 2004-09) for export under DFIA scheme shall be permitted only for value addition purposes like crushing/grounding/sterilization or for manufacture of oils and oleoresins and not for simple cleaning, grading, re-packing etc.

The Regional Authority, while issuing the DFIA for the import of Acetic Anhydride, Ephedrine and Pseudo- ephedrine, shall endorse a condition that before effecting imports, NOC shall be obtained from the Narcotics Commissioner of India, Central Bureau of Narcotics, Gwalior and shall also endorse a copy of the Authorisation to the Drug Controller, Nirman Bhawan, New Delhi and the concerned Zonal Director of the Narcotics Control Bureau.

However in respect of the following items, the exporter shall be required to give declaration with regard to technical characteristics, quality and specification in the shipping bill.

The Regional Authority while issuing DFIA shall mention the technical characteristics, quality and specification in respect of such inputs:

Alloy steel including Stainless Steel, Copper Alloy, Synthetic Rubber, Bearings, Solvent, Perfumes/ Essential Oil/ Aromatic Chemicals, Surfactants, Relevant Fabrics, Marble, Articles made of polypropylene, Articles made of Paper and Paper Board, Insecticides, Lead Ingots, Zinc Ingots, Citric Acid, Relevant Glass fibre reinforcement (Glass fibre, Chopped / Stranded Mat, Roving Woven Surfacing Mat), Relevant Synthetic Resin (unsaturated polyester resin, Epoxy Resin, Vinyl Ester Resin, Hydroxy Ethyl Cellulose), Lining Material.

Exports made against the Government of India/EXIM Bank Line of Credit would be entitled for benefits under the DFIA Scheme. Further, exports made under Deferred Payment/Suppliers Line of Credit Contract backed by ECGC Cover would also be entitled for the benefit under the Scheme.

DFIA for applicants with multi units

Transfer of any duty free material imported or procured against non-transferable DFIA from one unit of the company to another unit of the same company for manufacturing purpose shall be done with the prior intimation to the jurisdictional Excise Authorities with a clear understanding that no benefit of CENVAT shall be claimed on such transferred inputs. In case of non-excisable company/products, the units should maintain a proper record of the same. However to avail the facility, all such units should be available in the IEC certificate and follow the rules and regulations of Central Excise for jobwork.

DFIA for Free of Cost and Paid Material

An exporter may apply for a DFIA for import of items as per SION, some or all of which may also include items that are supplied free of cost.

In such cases, for calculation of value addition, the notional value of free of cost inputs along with value of other duty-free inputs shall be taken into consideration. However, if all the inputs are supplied free of cost, the exporter shall also have the option to follow the provision prescribed in paragraph 4.2.7 of the Policy.

In such cases, a specific endorsement shall be made on the exchange control copy of the DFIA disallowing remittances for the material being supplied free of cost. All inputs imported shall be utilised in the manufacturing of the product except the wastage.

The value addition in the case of such DFIAs would be computed by adding the notional value of the free of cost material to both the CIF value of imports and FOB value of exports.

Financial Powers

The financial powers under DFIA scheme shall be as per paragraph “Financial Powers” given in Handbook.

Description of a DFIA

A DFIA shall specify:

(a) the names and description of items to be imported and exported / supplied;

(b) the quantity of each item to be imported or wherever the quantity cannot be indicated, the value of the item shall be indicated. However, if in Standard input output norms, the quantity and value of individual inputs is a limiting factor, the same shall be applicable.

(c) the aggregate CIF value of imports; and

(d) the FOB/FOR value and quantity of exports/ supplies.

Exports in Anticipation of DFIA

Exports/supplies made from the date of EDI generated file number for a DFIA, may be accepted towards discharge of export obligation. Shipping/Supply document(s) should be endorsed with the File Number or the Authorisation Number to establish co-relation of the exports/supplies with the authorisation issued. If the application is approved, the authorisation shall be issued based on the input-output norms in force on the date of receipt of the application by the Regional Authority in proportion to the provisional exports/ supplies already made till any amendment in the norms is notified. For the remaining exports, the Policy/ Procedures in force on the date of issue of the authorisation shall be applicable.

The exports/supplies made in anticipation of the grant of a DFIA shall be entirely on the risk and responsibility of the exporter.

The conversion of duty free shipping bills to drawback shipping bills may also be permitted by the Customs Authorities in case the application for a DFIA is rejected or modified by the Regional Authority.

Port of Registration

The DFIA shall be issued for the purpose of import and export through port(s) as specified in the Handbook.

Acceptance of BG/LUT

At the time of issue of the non transferable DFIA, the acceptance of the undertaking given by the applicant to the Regional Authority concerned in the form given in ‘Aayaat Niryaat Form’ will be endorsed on the reverse of the DFIA.

Note: - No BG/LUT will be required where the specified export obligation has been fulfilled before making any import. In case of partial fulfillment of export obligation before effecting any imports, the BG/ LUT may be reduced proportionately.

IN VIEW OF ABOVE IF YOU ARE AN EXPORTER THIS APPLICATION WILL BE SUBMIT IN CONCERNED RJDGFT OFFICE.

ANY QUERY,