GOVERNMENT
OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT
OF COMMERCE
DIRECTORATE
GENERAL OF FOREIGN TRADE
POLICY
CIRCULAR No. 41
(RE-2005)/2004-09
To,
1. All Licensing Authorities,
2. All Commissioner of
Customs,
3. Exporting Community
Sub:
Clarification regarding procedure to be followed for import of all types of
approved and un-approved drugs under the Advance Licensing Scheme.
Attention is invited to DGFT Policy Circular No.12 (RE 2005/2004-2009) dated
27.6.2005. Paragraph 3 of this Circular is related to re-export of the material
imported from an unregistered source in the event of failure to export the
resultant product. As per the said circular, the exporter is required to
re-export the imported material to the satisfaction of Customs Authorities.
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 consume the
imported material for the purpose of manufacturing and exporting any other
finished product irrespective of the foreign buyers.
2. The matter
has been considered and it has been decided that Paragraph 3 of the Policy
Circular No.12 dt.27.6.2005 may be substituted as under:-
“3 ) In any case
if the material is imported from unregistered sources and the licence holder has
failed to export the goods, then the advance licence cannot be regularized even
on payment of applicable customs duty etc.
It is reiterated that unregistered raw material under any circumstances
shall not allowed to be diverted for domestic consumption within
4. This issues
with the approval of DGFT.
Sd/-
(Kiran Sehgal)
Deputy
Director General of Foreign Trade
(Issued
from F.No. 01/94/180/Policy Circular/AM06/PCI)