This means an industrial unit offering its entire production, excluding rejects and items otherwise specifically permitted to be supplied to the domestic tariff area(DTA), for exports. Such units may be set up under the EOU/EPZ scheme. While EOUs can be set up anywhere in India subject to certain locational conditions, units in EPZ/FTZ can be set up in specific areas separated from the DTA by physical barriers.
Diamond, Gem & Jewellery Export Promotion Scheme
Exporters of gem and jewellery are eligible to import their inputs by obtaining Rep. License and diamond imprest license from the licensing authority. Exporters of gold/silver/platinum jewellery and articles thereof may import their essential inputs e.g. precious metals and stones in accordance with the procedure specified in this regard.
Special Import License (SIL)
Issued to Export/Trading/Star Trading/Super Star Trading houses; Manufacturers/processors with the quality certification from ISO,HACCP,WHO-GMP or SSI CMM level 2 and above certification; EOUs/EPZs ; Deemed exporters; exporters of telecom and electronic equipments; small scale exporters(certified); service providers and other exporters. This provision has been withdrawn from 31.03.2000. No SIL licenses will be issued for exports made after 31.03.2000.
Duty Entitlement Pass Book scheme
It aims at neutralising the incidence of customs duty and surcharge thereon on the import content of the export product. This neutralisation is provided by way of grant of duty credit on the deemed import content in the export product as per Standard input output norms and considering the value addition achieved. This scheme is allowed to be operated on pre and post export basis by a manufacturer exporter and merchant exporter. The scheme allows exporter to claim credit of customs duty at a specified percentage of the f.o.b. value of the exports made in freely convertible currency. DGFT issues public notice featuring eligible products along with the credit rates under this scheme. Although items outside the restricted list can be exported without Customs duty, DEPB holder may pay additional customs duty in cash, if any. (vide MoF Customs Notification No. 34/97 - Cus. Dated 7.4.1997 and Circular No. 10/97-Cus. Dt.17.4.1997). Third party exports are also permissible for grant of credit under this scheme and DEPB is valid for 12 months from the date of issue
Back to back inland letter of credit
This is an alternative to ARO. For this the duty free license holder intending to avail such facility may approach a bank for opening an inland L/C in favour of an indigenous supplier. Before this the bank will ensure that necessary bank guarantee or Letter of Undertaking has been executed by the license holder and endorsement to this effect has been made on the License. The indigenous supplier may supply the goods on the strength of L.C. opened in his favour . For the purpose of claiming Deemed Export benefits, an indigenous supplier shall produce the copy of the L/C together with a photocopy of the Duty Free License, duly endorsed by the bank concerned and the said documents shall for all purposes be deemed to be an ARO
Advance Release Order
A duty free license holder except Advance Intermediate License Holder intending to source the inputs from indigenous sources/canalising agencies/EOUs/EPZ/EHTP/STP units in lieu of direct imports has the option to source them against Advance Release Order denominated in foreign exchange/Indian rupees. In such cases, the license is invalidated for direct import and permission in the form of ARO is issued which will entitle the supplier to the benefits of deemed exports.
Special Imprest License
This license is granted for the duty free import of inputs required in the manufacture of goods to be supplied to the ultimate exporter holding an Advance License/Special Imprest License. Such Special Imprest License is granted for the Duty Free import of inputs required in the manufacture of goods to be supplied to the EoUs/units in EPZs/STP/EHTP, holders of license under the EPCG scheme, projects financed by multilateral/bilateral agencies/funds as notified by the Dept. of Economic Affairs, MoF, Fertilizer Plants if the supply is made under the procedure of International Competitive Bidding, supply of goods to refineries and proejcts/purposes for which MpF permits import of such goods on zero customs duty.
Advance Intermediate License
This license is granted to a manufacturer exporter for the import of inputs required in the manufacture of goods to be supplied to the ultimate exporter holding an Advance License/Special Imprest License.
Annual Advance License
Manufacturer exporter with export performance of Rs. 1 crore in the preceding year and registered with excise authorities, except for products which are not excisable for which no such registration is required, shall be entitled for Annual Advance License.
Export House, Trading House, Star Trading Houses and Super Star Trading Houses Holding the certificate as merchant exporter where they agree to the endorsement of the name(s) of the supporting manufacturer on the relevant annual advance license shall also be entitled for the annual advance license.
This license and/or material imported thereunder shall not be transferable even after completion of export obligation. Such annual advance license shall be issued with positive value addition without stipulation of minimum value addition. The entitlement under this scheme shall be up to 125% of the average FOB value of export in the preceding licensing year. Imports against this is exempted from payment of Additional customs duty, Special Additional Duty, Anti Dumping Duty, Safeguard duty, if any, in addition to Basic customs duty and surcharge thereon.
Export House, Trading House, Star Trading Houses and Super Star Trading Houses Holding the certificate as merchant exporter where they agree to the endorsement of the name(s) of the supporting manufacturer on the relevant annual advance license shall also be entitled for the annual advance license.
This license and/or material imported thereunder shall not be transferable even after completion of export obligation. Such annual advance license shall be issued with positive value addition without stipulation of minimum value addition. The entitlement under this scheme shall be up to 125% of the average FOB value of export in the preceding licensing year. Imports against this is exempted from payment of Additional customs duty, Special Additional Duty, Anti Dumping Duty, Safeguard duty, if any, in addition to Basic customs duty and surcharge thereon.
Advance Export License
Granted to merchant exporter or manufacturer exporter for the import of inputs required for the manufacture of goods without payment of basic customs duty. However, such inputs shall be subject to the payment of additional customs duty equal to the excise duty at the time of import.
Export Promotion Capital Goods Scheme
Capital goods including jigs, fixtures, dies and moulds may be imported at a concessional rate of customs duty as per table given below. Subject to an export obligation to be fulfilled over a period of time. In addition spares up to 20 per cent of the cost insurance and freight (CIF) value of the capital goods may also be imported under the scheme.
Under this scheme Customs duty is 5% if the export obligation is 5 times the CIF value of the capital goods or 4 times the CIF value of capital goods on NEF basis. The period of fulfillment of the export obligation is 8 years reckoned from the date of issuance of licence.
Period from the date of issue of licence Proportion of total export obligation
Block of 1st and 2nd year nil
Block of 3rd and 4th year 15%
Block of 5th and 6th year 35%
Block of 7th and 8th year 50%
The licence holder under EPCG scheme shall fulfill the export obligation over the specified period in the following proportions:
An application for grant of license under this scheme should be made to the licensing authority .Before clearance of goods through customs, the importer has to execute a bond supported by a bank guarantee with the Customs Authority in the prescribed manner. The license holder will also have to submit progress report of the export/supplies made and services provided, duly certified by a Charted Accountant/Cost and Works Accountant to the Licensing Authority. For Customs duty exemption exemption in respect of imports under EPCG scheme, the Ministry of Finance has issued Notification No. 28/97-Cus. & 29/97-Cus., both dated 1st April, 1997.
Under this scheme Customs duty is 5% if the export obligation is 5 times the CIF value of the capital goods or 4 times the CIF value of capital goods on NEF basis. The period of fulfillment of the export obligation is 8 years reckoned from the date of issuance of licence.
Period from the date of issue of licence Proportion of total export obligation
Block of 1st and 2nd year nil
Block of 3rd and 4th year 15%
Block of 5th and 6th year 35%
Block of 7th and 8th year 50%
The licence holder under EPCG scheme shall fulfill the export obligation over the specified period in the following proportions:
An application for grant of license under this scheme should be made to the licensing authority .Before clearance of goods through customs, the importer has to execute a bond supported by a bank guarantee with the Customs Authority in the prescribed manner. The license holder will also have to submit progress report of the export/supplies made and services provided, duly certified by a Charted Accountant/Cost and Works Accountant to the Licensing Authority. For Customs duty exemption exemption in respect of imports under EPCG scheme, the Ministry of Finance has issued Notification No. 28/97-Cus. & 29/97-Cus., both dated 1st April, 1997.
Import License Requirements
Import Licensing Requirements: The License for Import is taken into Consideration Provided:
- The goods covered by the import license shall not be disposed of except in accordance with the provisions of the EXIM Policy, 1997-2002 or in the manner specified by the licensing authority in the license
- The applicant for a import license shall execute a bond for complying with the terms and conditions of the license.
It Shall be Deemed to be a Condition of every License for Import that -
- No person shall transfer or acquire by transfer any import license issued by the import licensing authority except in accordance with the provisions of the Policy.
- The goods for the import of which a license is granted shall be the property of the licensee at the time of import of which a license is granted shall be the property of the licensee at the time of import and up to the time of clearance through the Customs.
- The goods for the import of which a licensee is granted shall be new goods, unless otherwise stated in the import license; the goods covered by the license for import shall not be exported without the written permission of the DGFT
Disposal Period for Import Application:
Provided the application is complete in all respects along with prescribed documents, the applicant-importer can expect the disposal in:- IEC No. - 3 working days
- Duty free import license where input-output norms are notified - 5 working days
- Duty free import license where input-output norms are notified but cases are to be placed before ALC -15 working days
- Duty free import license where input-output norms are not notified, EPCG licenses / export licenses / export
- licenses / specific import licenses - 15 working days
- Revalidation of license and extension of export obligation period by RLA - 5 working days
- Acceptance of Bank Guarantee / Legal undertaking - 3 working days
- Redemption of Bank Guarantee/Legal undertaking/Endorsement of Transferability - 10 working days
- Issuance/renewal of Export House/Trading House/Star Trading House/Super Star Trading House - 15 working days
- Amendment of any category of Import license - 5 working days
- SIL - 7 working days
- Fixation of Standard input-output norms - 45 working days
- DEPB - 5 working days
- Fixation of deemed exports drawback rate - 45 working days
Counter Assistance may also be availed of, for amendments of minor nature / enquiries. Applications in such cases will be received in the licensing offices at the counter.
Importers Own Identity Card:
An application for issuance of an Identity Card may be made in the prescribed form. In case of loss of an Identity Card, a duplicate card is issued.Validity of Import License
Besides import licence for import of restricted items there are other variety of licences and such licences have different period of validity.
Export Promotion Capital Goods Licence validity 24 months
Customs Clearance Permit " 12 months
DEPB " 12 months
Advance License/Special Imprest Licence
For Project/Turnkey Project "18 months or co-terminus with the contracted duration of the Project
For the cases where the license expires before the last day of the month, the license shall be deemed to be valid until the last day of that month.
Export Promotion Capital Goods Licence validity 24 months
Customs Clearance Permit " 12 months
DEPB " 12 months
Advance License/Special Imprest Licence
For Project/Turnkey Project "18 months or co-terminus with the contracted duration of the Project
For the cases where the license expires before the last day of the month, the license shall be deemed to be valid until the last day of that month.
Revalidation of License
License revalidation can be done on merits but not beyond 12 months by the concerned licensing authority for a period of six months at a time reckoned from the date of expiry of the validity period.Last Date for Filling Applications
The last date for receipt of applications for grant of licenses is 28th February of the licensing year unless otherwise specified.How to Obtain an Import License
An application for grant of an import licence or CCP for import of the items mentioned as restricted for import in ITC(HS) Classification of Export and Import items may be made to the regional licensing authority concerned.
Rs. 200 where the value of goods specified does not exceed Rs. 50,000.
Rs. 2 per thousand or part thereof subject to a minimum of Rs. 200 and a maximum of Rs.1 lakh 50 thousand, where the value of goods exceeds Rs. 50,000.
Rs. 200 where Application is filed be SSI units where the CIF value of goods specified in the application does exceed Rs. 2 lakh.
Rs. 200 where application is for grant of duplicate licence.
Or
Crossed DD on a scheduled bank for the requisite amount should be made in favour of the concerned licensing authority.
Application for Import License
Every application for import licence or CCP should be accompanied by 2 copies of a bank receipt from the Central Bank of India or a Bank Draft from any Bank indicating the deposit in accordance with the prescribed scale of fees.Rs. 200 where the value of goods specified does not exceed Rs. 50,000.
Rs. 2 per thousand or part thereof subject to a minimum of Rs. 200 and a maximum of Rs.1 lakh 50 thousand, where the value of goods exceeds Rs. 50,000.
Rs. 200 where Application is filed be SSI units where the CIF value of goods specified in the application does exceed Rs. 2 lakh.
Rs. 200 where application is for grant of duplicate licence.
The Application Fee shall be Deposited Either:
By way of deposit in an authorized branch of Central Bank of India indicating the Head of Accounts 1453 Foreign Trade and Export Promotion - Minor Head 102, Import Licence Application Fee. The Bank receipt must show the name of the department viz. "Director General of Foreign Trade". The bank receipt should be drawn in favour of Pay & Accounts Officer concerned. Such fees can also be deposited with Indian Missions abroad.Or
Crossed DD on a scheduled bank for the requisite amount should be made in favour of the concerned licensing authority.
Registration with Regional Import Licensing Authority and Obtaining IEC Code
Registration with Regional Licensing Authority
Registration with Regional Licensing Authority is a pre-requisite for import of goods. The Customs will not allow clearance of goods unless: The importer has obtained IE Code Number from Regional Licensing Authority. However, no such registration is necessary for persons importing goods from/ to Nepal provided Value of a single Consignment does not exceed Rs. 25000/=IEC Code
An application for grant of IEC Code should be made in the prescribed proforma . The application duly signed by the applicant should be supported by the following documents:Bank Receipt (in duplicate)/demand draft for payment of the fee of Rs.1000/- Certificate from the Banker of the applicant firm as per Annexure1 to the form. Two copies of passport size photographs of the applicant duly attested by the banker of the applicant.
A copy of Permanent Account Number issued by Income Tax Authorities, if PAN has not been allotted, a copy of the letter of legal authority may be furnished. If there is any non-resident interest in the firm and NRI investment is to be made with repatriable benefits, full particulars thereof along with a photocopy of RBI's approval. If there is NRI investment without repatriation benefit, a simple declaration indicating whether it is held with the general/specific permission of the RBI on the letter head of the firm should be furnished. In case of specific approval, a copy may also be furnished.
Declaration by the applicant that the proprietors/partners/directors of the applicant firm/company, as the case may be, are not associated as proprietor/partners/directors with any other firm/company the IEC No. is allotted with a condition that be can export only with the prior approval of the RBI.
Profile of the Exporter/Importer in a given Format
The Registered Office or HO or Branch Office (duly authorized by the HO in this behalf) should apply for allotment of IEC No. However, only one IEC no. is allotted to a company and the same is valid for all its branches/offices/units.The applilcation for grant of IEC No. should be made to the Regional Licensing Authority concerned.
The application fee shall be deposited by way of deposit in an authorized branch of Central Bank of India indicating the head of Account 1453 Foreign Trade and Export Promotion Minor Head 102. Import Licence Application Fee.
The IEC No. is likely to be granted within 3 days of the receipt of the complete application and requisite documents.
Products to Import
Be aware of the import potential and the commercial viability of the commodity/product.
Check whether the items of your interest fall in the Restricted list of ITC(HS) Classifications of Exports & Imports items.
Prohibited items are not permitted to be imported at all. List of Prohibited items of import are detailed below:
Tallow, Fat or Oils rendered, unrendered or otherwise of any animal origin, animal rennet and wild animals including their parts and products and ivory any part and products, including ivory.
For import of items appearing in Restricted list you need secure import licence. Third category of items comes under the Canalised list of items. Import of items included in Canalised list are permitted to be imported through Canalising Agencies. Thus items not appearing in Prohibited list, Restricted list and or in Canalised list can be imported Freely without any import licence. A large number of Consumer goods are freely importable without licence.
Check whether the items of your interest fall in the Restricted list of ITC(HS) Classifications of Exports & Imports items.
Prohibited items are not permitted to be imported at all. List of Prohibited items of import are detailed below:
Tallow, Fat or Oils rendered, unrendered or otherwise of any animal origin, animal rennet and wild animals including their parts and products and ivory any part and products, including ivory.
For import of items appearing in Restricted list you need secure import licence. Third category of items comes under the Canalised list of items. Import of items included in Canalised list are permitted to be imported through Canalising Agencies. Thus items not appearing in Prohibited list, Restricted list and or in Canalised list can be imported Freely without any import licence. A large number of Consumer goods are freely importable without licence.
Import Export Policy
The present import policy and procedures in respect of various commodities/category of importers, are, inter alia, contained in the following publications issued by the Ministry of Commerce and revised from time to time:
Import - Export Policy, 1997-2002 as modified upto 31.03.1999
Handbook of Import - Export Procedures(Volume 1), 1997-2002 as modified upto 31.03.2000.
Handbook of Import - Export Procedures: (Volume 2) Duty Exemption Scheme: Input - Output and Value Addition Norms, 1997-2002. ITC(HS) Classification of Import and Export Items.
Import - Export Policy, 1997-2002 as modified upto 31.03.1999
Handbook of Import - Export Procedures(Volume 1), 1997-2002 as modified upto 31.03.2000.
Handbook of Import - Export Procedures: (Volume 2) Duty Exemption Scheme: Input - Output and Value Addition Norms, 1997-2002. ITC(HS) Classification of Import and Export Items.
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