DIRECTORATE GENERAL OF FOREIGN TRADE
UDYOG BHAVAN,
POLICY CIRCULAR NO 20 DATED
5.12.2007
Subject: Norms
Committee -
Work distribution in existing 7 Norms Committees
(NC) is as per Indian Trade Classification
(Harmonized System) – ITC (HS) of export products (Annexure A).
2 Time
schedule is notified for fixation of norms, after issue of Advance Authorisation
(AA) as under:
(i) 4
months for adhoc norms fixation (Handbook of
Procedures, Volume1 (HBPv1):
(ii) 12 months validity of such fixed adhoc
norms (Public Notice 37 dt
23.8.07),
and
(iii)
Efforts to be made to convert adhoc norms to Standard Input Output Norms (SION)
within 6 months, and positively within 12 months from date of ratification of
adhoc norms.
3.1 Major
causes for delay in ratification of adhoc norms are
as under:
(i) Receipt
of application from RA and subsequent taking up in NC;
(ii) Availability
of technical opinion from competent authority; and
(iii) Adequacy / Completeness of information supplied by AA
applicant.
3.2 For
expeditious disposal and adherence to above time schedule, action must be initiated by Regional Authorities (RAs) and NCs in a time bound manner as per Action Calendar annexed
herewith (Annexure B).
NCs meet
on a weekly basis and action points for RAs / NCs are
given starting with ‘Week 0’,
when AA is issued.
3.3 Presently,
technical departments in Government are referred to for advice on admissibility of import / export requirements
for fixation of adhoc norms. NCs
decide such
Chairperson(s) of NC may also associate
other competent technical authorities (like CSIR
institutions, IIT departments etc) for advice, keeping in view delay in
deciding such applications, wherever
necessary.
3.4 Most
exporters / industrial manufacturers prepare a project report, which include details
- establishing profitability, based
on output sale proceeds and input cost forecasts, and
- outlining basic manufacturing
process, giving quantitative details of inputs
Such project reports can also be submitted
by exporters along with the adhoc norm applications. This will expedite
decision making for fixation of adhoc norms. In specific cases, RAs may also seek
such reports to facilitate early fixation of adhoc norms.
3.5 Norms
Committees need to mention export / import item details in generic terms, with
detailed technical nomenclature and specifications (rather than brand names); to the extent possible. This would enable
its application to other cases also.
3.6 Adhoc norms, once fixed,
would be put on DGFT website. These adhoc norms may form the basis of further AAs, to any other applicant, (without reference to DGFT / NCs) while these await changes / confirmation and
conversion to SION.
Necessary changes are being made in
DGFT website and EDI database for this. Adhoc norms, fixed henceforth,
would be uploaded on DGFT website on a monthly basis
by the respective NCs.
3.7 In cases,
where AAs are issued for components on net to net
basis, they need not be
forwarded to NC for finalization / ratification.
3.8 Quite often,
adhoc norms cannot be finalised
for want of information from concerned applicant
/ firm.
For example: Application for paints
/ surface coatings / printing inks must contain
details (amongst others)
(a) solid resin
content (in %),
(b) pigment content
(in %), and
(c) volatile
content in the export product (in %).
If such details (as outlined for
different products in Appendix 33) are not given by applicant, licence / AA should not be issued by RAs to start with. Suitable
amendments may also be made from time to time by Policy Division in Appendix 33, specifying additional information
required to be submitted by
At times, Technical Authorities seek
additional information directly from AA applicant.
In all such cases, NC must issue a deficiency letter also. Wherever additional information requested by Technical Authority / NC is not furnished
within a reasonable period by
3.9.1 Wherever, a SION
exists and an application under
3.9.2 In
cases, where a SION exists and an application is made for additional inputs,
other than those specified in SION,
AA may be issued under Para 4.7.
4.1 After fixation of adhoc norms, the same needs to be converted into SION with changes, if necessary. Following steps
need to be taken in this respect :
(i) All suggestions received from different
stakeholders consequent to uploading on
DGFT website (as in
(ii) All
adhoc norms fixed after 1.4.2004 (when the then
existing SIONs were last made available
as a published document) would be
uploaded on DGFT website
during the current financial year 2007-08, and accordingly, the case should be finalised
and notified into SION positively by July, 2008.
4.2 An exercise
to review all SIONs (as to quantities fixed) which
have been notified before 1.4.2004 (and where further AAs
have been issued) may be initiated on an sustained / regular basis. This is necessary
in view of ongoing technological advancements
and industrial process developments.
4.3 Exporters, aggrieved
with decisions of NC, can represent again to concerned
NC within
4 months from date of decision on adhoc norm fixation. All such representations must be
made directly to NC (with a copy to jurisdictional RA) and NC shall decide such representations within 4 months thereafter.
5 For
trade facilitation, information regarding status of
(R.S. Gujral)
Director General of
Foreign Trade
ANNEXURE A
|
NORMS
COMMITTEE NO & CHAIRPERSON |
PRODUCT
GROUP HANDLED |
COMMODITY
COVERAGE OF NORMS COMMITTEE RELATING TO ITC(HS) CHAPTER (CHAP) NO OF EXPORT PRODUCT |
DES
DIVISION |
|
NC 1 ADG(MDK) |
ENGINEERING
PRODUCTS GR ‘B’ |
CHAP
72-75, 84-85 (OTHER THAN ITEMS COVERED BY NC 2) and CHAP 86-93 |
DES I |
|
NC 2 JDG(OPH) |
ENGINEERING
PRODUCTS GR ‘A’ |
ITEMS
{ALUMINIUM SEMIS and MANUFACTURED THEREOF, BICYCLE and BICYCLE PARTS, POWER
EQUIPMENTS- (TRANSFORMERS ETC), TELECOM EQUIPMENTS (CABLES ETC), ELECTRONICS}
RELATING TO CHAP 76, 84 AND 85 |
DES II |
|
NC 3 EC(SR) |
PHARMACEUTICAL
PRODUCTS |
CHAP 30 and
PHARMACEUTICAL ITEMS INCLUDING BULK DRUGS AND DRUG INTERMEDIATES COVERED
UNDER CHAP 29 |
DES III |
|
NC 4 ADG(SKP) |
CHEMICAL
PRODUCTS |
CHAP 28,
29 (OTHER THAN PHARMACEUTICAL ITEMS INCLUDING BULK DRUGS and DRUG
INTERMEDIATES), CHAP 31-38, 44-49 and 68-71 |
DES IV |
|
NC 5 JDG(AKS) |
TEXTILE
& LEATHER |
CHAP
41-43 and 50-67 |
DES V |
|
NC 6 JDG(AA) |
MARINE,
FOOD, SPORTS AND MISC PRODUCTS |
CHAP
1-27, and 94-98 |
DES VI |
|
NC 7 ADG(SA) |
PLASTIC
& RUBBER |
CHAP 39 and
40 |
DES VII (ERSTWHILE
DES VIII) |