Government
of India
Department
of Commerce
Directorate
General of Foreign Trade
Udyog
Bhavan, New Delhi-110011
Policy
Circular No. 18 (RE-07)/2004-2009 Dated: 30th October, 2007
To
All Regional Authorities;
All Commissioners of Customs;
Exporting Community.
Subject: Clarification
regarding procedure to be followed for destruction of drugs imported from
un-registered sources under the Advance Authorisation Scheme
Attention
is invited to DGFT Policy Circular No.41 (RE-2005)/2004-09
dated 12th
December, 2005 related to import of drugs from
un-registered sources under Advance Authorisation scheme. As per Paragraph 2 of
the said Circular, in the event of failure to export the resultant product,
such material shall be re-exported or can be used to manufacture and export any
other finished product utilizing such inputs irrespective of the foreign
buyers. It also stated that unregistered raw material under any
circumstances shall not be allowed to be diverted for domestic consumption
within India
and the advance licence cannot be regularized even on payment of applicable
customs duty.
2. Representations have now been received on
the difficulties in operation of this provision and accordingly the trade
bodies /Associations have requested to provide more flexibility to the
exporters so as to enable them to destroy such imported material after payment
of applicable customs duty and interest in the event of non-fulfilment of
export obligation.
3. The matter has been considered and it has
been decided that the clause ‘3’ given in Paragraph 2 of the Policy Circular
No.41 dt.12th December, 2005 may be substituted as under:
“3 ) It is reiterated
that unregistered raw material under any circumstances shall not allowed to be
diverted for domestic consumption within India. However, the authorisation holder has the
option either to use the imported raw material for production of other export
products for export or to re-export the imported raw material and the export
obligation against advance authorisation shall be deemed to have been
discharged to that extent. The Customs Authorities shall ensure that the raw
material so exported should be the same raw material, which was imported
earlier against the particular licence / authorisation. In addition, the
aforesaid facility would be available irrespective of the foreign buyer
and can be exported to any other foreign buyer.
If the export obligation period is not valid at the time of export of
other finished product/re-export of raw material, then the authorisation holder
shall be required to pay necessary composition fee for extension in export
obligation period as per provisions of Policy and the Procedure laid there
under. The authorisation holder shall
also have the option to destroy such inputs or the finished product made out of
it, in the
presence of Jurisdictional Excise Authority subject to payment of applicable
customs duty with interest. Documentary
evidence to that effect would be required to be submitted to the concerned
Regional Authority.”
4. This issues with the approval of
Competent Authority.
Sd/-
(Tapan
Mazumder)
Joint
Director General of Foreign Trade
(Issued
from F. No. 01/94/180/PC- POM/AM 08/PC I )
