MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
DIRECTORATE GENERAL OF FOREIGN TRADE
In exercise of powers conferred under
Paragraph 2.4 of the Foreign Trade Policy 2004-2009, the Director General of
Foreign Trade hereby makes the following amendments in the Handbook of
Procedures (Vol. I):
1.
Paragraph (2) of Appendix 14-I-C shall be
amended as under:-
“HIGH GRADE IRON
Proposals for
export of High Grade Iron
2.
After
Paragraph 8 in Appendix 14-I-C, the following shall be
added:
“
9 Segregation
Activities:
Segregation Activities are
not covered under the definition of “Manufacture” w.e.f. 1.4.2002.
This activity will, however be allowed to continue in respect of units
set up prior to 1.4.2002 for a period
of 5 years from the date of commencement of commercial production. The necessary inputs would also be
allowed with exemption benefits as per the existing policy. However, the facility of DTA sale under
para 6.8 or 6.9 of Foreign Trade Policy shall not be
allowed.”
3.
After
Sub- para 3 (ii) of Appendix 14-I-G , the following
shall be added :-
“ (iii) For failure to achieve positive NFE during
the course of 5 years after completion of one year from the date of commencement
of commercial production, a ‘cautionary letter’ may be
issued.”
4.
At the
end of Sub-paragraph I (e) of
Appendix 14-I-H , the following shall be added :-
“
DTA sale in terms of para 6.8(a) of Policy shall be allowed only after adjustment of Advance DTA
5.
Sub-paragraph I (g) of Appendix 14-I-H shall
be amended as under:-
“
(g) Advance DTA sales permission would also be
admissible in cases of capacity expansion/product diversification. In such cases, the unit would be
entitled to advance DTA sales linked to the exports envisaged from the expansion
or new production streams or through product diversification. However, no advance DTA sale would be
admissible to a DTA unit converted into an EOU except in respect of new
production stream as a result of change of technology or on account of its expanded capacity for
export.”
6.
Sub-paragraph I (h) of Appendix 14-I-H shall
be amended as under:-
“The DTA sale
entitlement would accrue only if the unit has achieved positive
NFE on cumulative basis. In case, a unit has not achieved
positive NFE in a
particular year and thus becomes ineligible
for DTA sale permission, the NFE and DTA entitlement in the subsequent year(s)
within a block of 5 years is to be seen with reference to cumulative value of
imports and exports of earlier year(s). This will however not alter the period
allowed for adjustment of Advance DTA
This issues in Public
interest.
(K.T.Chacko)
Director General of Foreign Trade
and
Ex Officio Additional Secretary to the Government
of