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Core Purpose

Notification No. 71/2023 amending the Foreign Trade Policy, 2023 to enable import of inputs under the Advance Authorisation, EOU and SEZ schemes without compliance with mandatory Quality Control Orders, subject to conditions.

Detailed Summary

S.O. 1251(E), Notification No. 71/2023 dated 11 March 2024, issued by the Directorate General of Foreign Trade, Department of Commerce, Ministry of Commerce and Industry, under Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), read with Paragraphs 1.02 and 2.03 of the Foreign Trade Policy (FTP), 2023, amends the FTP, 2023 with immediate effect, superseding Notification No. 69/2023 dated 7 March 2024. It inserts a new Paragraph 2.03A, "Importability of items under Advance Authorisation/EOU/SEZ without compliance to the mandatory Quality Control Orders (QCOs)," permitting import of inputs under Advance Authorisation, Export Oriented Units (EOU) and Special Economic Zones (SEZ) without compliance with mandatory QCOs, subject to conditions including a pre-import requirement, utilisation in export production, specific endorsement of the exemption in the Advance Authorisation, a bar on DTA clearance of unutilised imports even after regularisation of export obligation default, destruction or re-export of unutilised material in the presence of jurisdictional GST/Customs authorities, payment of effective duty on a Most Favoured Nation basis with interest plus a composition fee of 10% of the CIF value of unutilised imported inputs to DGFT, restriction of the exemption to physical exports only (not deemed exports), unavailability of the clubbing facility under Paragraph 4.36 of the Handbook of Procedures (HBP) 2023, an Export Obligation period per Paragraph 4.40 of the HBP restricted to 180 days from clearance for QCO-exempt textile products, exclusion of the exemption under the DFIA scheme, and exemption from QCOs issued under the BIS Act, 2016 for EOU and SEZ units on inputs required for export production, subject to submission of an undertaking to the concerned Development Commissioner. It also adds sub-paragraph (c) to Paragraph 2.03 of FTP 2023, listing in Appendix-2Y the Ministries/Departments -- Ministry of Steel, Department for Promotion of Industry and Internal Trade (DPIIT), and Ministry of Textiles -- whose mandatory QCO notifications are exempted by DGFT for goods to be utilised or consumed in manufacture of export products. The notification was issued with the approval of the Minister of Commerce & Industry. Signed by Santosh Kumar Sarangi, Director General of Foreign Trade, Ex-Officio Additional Secretary; File No. 01/89/180/13/AM-15/PC-2[A]/E-5910.

Full Text

1785 GI/202 4 (1) EXTRAORDINARY PART II —Section 3 —Sub-section ( ii) PUBLISHED BY AUTHORITY ( ) ( ) का.आ. 1251(अ).—fons’k O;kikj uhfr ¼,QVhih½] 2023 ds iSjk 1 -02 vkSj 2 -03 ds lkFk ifBr] ;Fkk la’kksf/kr fons’k O;kikj ¼fodkl ,oa fofu;eu½ vf/kfu;e] 1992 ¼1992 dh la - 22½ dh /kkjk 5 ds lkFk ifBr /kkjk 3 ds rgr iznÙk ’kfDr;ksa dk iz;ksx djrs gq,] dsUnz ljdkj ,rn~}kjk fnukad 07 -03-2024 dh vf/klwpuk la - 69@2023 ds vf/kØe.k esa rRdky izHkko ls fons’k O;kikj uhfr] 2023 esa fuEufyf[kr la’kks/ku djrh gSA 2. ,QVhih 2023 ds iSjk 2 -03 ds uhps ,d u;k iSjk 2 -03 ¼d½ fuEukuqlkj 'kkfey fd;k tkrk gS% ^^2-03d vfuok;Z xq.koÙkk fu;a=.k vkns’kksa ¼D;wlhvks½ gsrq vuqikyu ds fcuk vfxze izkf/kdkj i=@bZvks;w@,lbZtsM ds rgr enksa dk vk;kr dju s dh ;ksX;rk vfuok;Z xq.koÙkk fu;a=.k vkns’kksa ¼D;wlhvks½ ds vuqikyu ds fcuk vfxze izkf/kdkj i=@bZvks;w@,lbZtsM ds rgr fufof"V;ksa dk vk;kr fuEufyf[kr 'krksZa ds v/;/khu gksxk% सं. 1189] नई दिल्ली , सोमवार , मार्च 11, 2024/फाल् गुन 21, 1945 No. 1189] NEW DELHI, MONDAY , MARCH 11, 2024 /PHALGUNA 21, 1945 CG-DL-E-13032024-252927 i½ vfxze izkf/kdkj i= gsrq : d½ vfuok;Z xq.koÙkk fu;a=.k vkns’kksa ¼D;wlh vks½ ds vuqikyu ds fcuk vfxze izkf/kdkj i= ds rgr fufof"V;ksa dk vk;kr] iwoZ&vk;kr 'krZ ds lkFk gksxkA ,slh fufof"V;ksa dk mi;ksx fu;kZr mRikn ds fofuekZ.k eas fd;k tk,xk ¼viO;; ds fy, lkekU; NwV nsrs gq,½ vkSj leku izkf/kdkj i= ds rgr fu;kZr fd;k tk,xkA [k½ izkf/kdkj i= /kkjd ds vuqjks/k ij vfxze izkf/kdkj i= esa vfuok;Z xq.koÙkk fu;a=.k vkns’kksa ls NwV dks fo’ks"k #i ls i`"Bkafdr fd;k tk,xkA NwV ds fof’k"V i`"Bkadu ds fcuk izkf/kdkj i=+ ds rgr vk;kr vfuok;Z xq.koÙkk fu;a=.k vkns’kksa ds vuqlkj fd;k tk,xk A x½ vfuok;Z xq.koÙkk fu;a=.k vkns’kksa ds vuqikyu ds fcuk ,sls fdlh Hkh viz;qDr vk;krksa ;k vk;kfrr fufof"V;ksa ds lkFk fufeZr mRiknksa dks fu;kZr nkf;Ro dh iwfrZ esa pwd ds fu;fer gksus ds ckn Hkh MhVh, esa LFkkukarfjr ugha fd;k tk,xkA bl iSjk ds iz;kst u ds fy, viz;qDr vk;kr dk vFkZ vk;kfrr fufof"V gS ¼vfuok;Z xq.koÙkk fu;a=.k vkns’kksa ds vuqikyu ds fcuk½ ftls leku izkf/kdkj i= ds rgr fu;kZr fd, x, mRikn esa flvksu@rnFkZ ekunaMksa ds vuqlkj 'kkfey ugha fd;k x;k gSA ?k½ viz;qDr vk;kr dks fuEukuqlkj fofu ;fer fd;k tk,xk % i. viz;qDr lkexzh dks {ks=kf/kdkj izkIr th,lVh@lhek’kqYd izkf/kdkfj;ksa dh mifLFkfr esa u"V dj fn;k tk,xk tks eky dks u"V fd, tkus dks izekf.kr djsaxs ;k bldk iqu% fu;kZr fd;k tk ldrk gS( ii. blds vfrfjDr] oLrqvksa ds mn~xe ds ckotwn ,sls v iz;qDr vk;kr lhek@’kqYd izkf/kdkfj;ksa dks NwV izkIr lkexzh ij C;kt ds lkFk eksLV QsoMZ us’ku ds vk/kkj ij izHkkfor 'kqYd dk Hkqxrku djus gsrq ik= gksxk vkSj blds lkFk gh Mhth,QVh dks viz;qDr vk;kfrr fufof"V ds lhvkbZ,Q ewY; ds 10 izfr’kr lerqY; jkf’k dk l a;kstu ’kqYd Hkh nsxkA ¼³½ xq.koÙkk fu;a=.k vkns’kksa ls NwV dsoy okLrfod fu;kZrksa ds fy, miyC/k gS vkSj ,slh NwV vfxze izkf/kdkj i= /kkjdksa ds fy, ekU; fu;kZrksa gsrq vuqer ugh gksxhA ¼p½ izfØ;k iqLrd ¼,pchih½] 2023 ds iSjk 4 -36 ds rgr Dyfcax dh lqfo/kk miyC/k ugha gksxhA ¼N½ ,sls izkf/kdkj i=ksa ds fy, bZvks vof/k izfØ;k iqLrd ds iSjk 4 -40 ds vuqlkj gksxhA rFkkfi fu;kZr nkf;Ro vof/k oL= mRiknksa gsrq D;wlhvks NwV ds laca/k esa vk;kr [ksi dh fudklh dh frfFk ls 180 fnukas ds fy, izfrcaf/kr gSA ¼t½ Mh,Qvk bZ, Ldhe ds rgr vfuok;Z D;wlhvks gsrq vuqikyu ds f cuk fufof"V;ksa dk vk;kr vuqer ugha gSA ¼>½ ;g NwV vkxs fons’k O;kikj uhfr ds iSjk 2 -03 ¼x½ ds v/khu gS% ii : ¼i½ fufof"V ds vk;kr ij bZvks;w bdkb;ksa dks chvkbZ,l vf/kfu;e] 2016 ds rgr tkj h vfuok;Z xq.koÙkk fu;a=.k vkns’k ¼D;wlhvks½ dh Ikz;ksT;rk ls NwV iznku dh tk,xh tks fu;kZr mRiknu ds fy, visf{kr gSA ,slh fufof"V ;k ,slh fufof"V;ksa ls fufeZr oLrqvksa dh fdlh MhVh, fDy;jsUl dh vuqefr ugha gSA vk;kr ds le; bZvks;w bdkb;ksa }kjk lhek’kqYd izkf/kdkfj;ksa dks bl vk’k; dk ,d 'kiFk i= izLrqr fd;k tk,xk vkSj bldh ,d izfr lacaf/kr fodkl vk;qDr dks Hkh lkSaih tk,xhA xq.koRrk fu;a=.k vkns’kksa ls NwV dsoy okLrfod fu;kZrksa ds fy, miyC/k gS vkSj ,slh NwV vfxze izkf/kdkj i= /kkjdksa ds fy, ekU; fu;k Zrksa gsrq vuqer ugh gksxhA ;g NwV vkxs fons’k O;kikj uhfr ds iSjk 2 -03 ¼x½ ds v/khu gSA iii½ ,lbZtsM ds fy, : ¼i½ fufof"V ds vk;kr ij ,lbZtsM dks chvkbZ,l vf/kfu;e] 2016 ds rgr tkjh vfuok;Z xq.koÙkk fu;a=.k vkns’k ¼D;wlhvks½ dh Ikz;ksT;rk ls NwV iznku dh tk,xh tks fu;kZr mRiknu ds fy, visf{kr gSA ,slh fufof"V ;k ,slh fufof"V;ksa ls fufeZr oLrqvksa dh fdlh MhVh, fDy;jsUl dh vuqefr ugha gSA vk;kr ds le; ,lbZtsM bdkb;ksa }kjk ,lbZtsM ds lacaf/kr fodkl vk;qDr dks ,d 'kiFk i= izLrqr fd;k tk,xkA xq.koÙkk fu;a=.k vkns’kksa ls NwV dsoy okLrfod fu;kZrksa ds fy, miyC/k gSA ;g NwV vkxs fons’k O;kikj uhfr ds iSjk 2 -03¼x½ ds v/khu gS^^A 3- fuEufyf[kr mi iSjk ¼x½ fons’k O;kikj uhfr 2023 ds ekStwnk iSjk 2 -03 esa tksM+k x;k gS% ^^¼x½ ea=ky;ksa@foHkkxksa dh lwph ftudh vf/klwpu k vfuok;Z xq.koÙkk fu;a=.k vkns’kksa ij gS] ftUgsa fu;kZr mRiknksa ds fofuekZ.k esa mi;ksx@miHkksx dh tkus okyh oLrqvksa ds fy, Mhth,QVh n~okjk NwV nh xbZ gS] fons’k O;kikj uhfr] 2023 ds ifjf’k"V 2e esa nh xbZ gS^^A bl vf/klwpuk dk izHkko% vfxze izkf/kdkj i= /kkjdksa] bZvks;w bdkb;ksa vkSj ,lbZtsM }kjk vk;kfrr fufof"V;ksa dks vfuok;Z xq.koÙkk fu;a=.k vkns’kksa ls NwV nsus ds fy, leFkZdkjh izko/kku fd, x, gSaA rnuqlkj] ea=ky;ksa@foHkkxksa [vFkkZr bLikr ea=ky;] m|ksx lao/kZu vkSj vkarfjd O;kikj foHkkx ¼Mhihvk bZvkbZVh½ vkSj oL= ea=ky; ] dh lwph dks fons’k O;kikj uhfr] 2023 ds ifjf’k"V 2e esa vf/klwfpr fd;k x;k gSA [फा. सं. 01@89@180@13@,,e&15@ihlh&2 [d]@bZ&5910 ] larks"k dqekj lkjaxh] egkfuns'kd fons'k O;kikj vkSj insu vij lfpo MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce ) (DIRECTORATE GENERAL OF FOREIGN TRADE ) NOTIFICATION New Delhi, the 11th March , 2024 No. 71/2023 Subject: - Enabling provisions for import of inputs that are subjected to mandatory Quality Control Orders (QCOs) by Advance Authorisation holders, EOU and SEZ. S.O. 1 251(E).—In exercise of powers conferred by Section 3 read with Section 5 of t he Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.03 of the Foreign Trade Policy (FTP), 2023, the Central Government hereby makes the following amendments to FTP, 2023 with immediate effect, in su persession of Notification No. 69/2023 dated 07.03.2024. 2. A new para 2.03 (A) is inserted below para 2.03 of FTP 2023, as follows: “2.03A Importability of items under Advance Authorisation/EOU/SEZ without compliance to the mandatory Quality Cont rol Orders (QCOs) Import of Inputs under Advance Authorisation/EOU/SEZ without compliance to the mandatory QCOs, shall be subjected to the following conditions: i) For Advance Authorisation : a) Import of inputs under the Advance authorisation without complian ce to the mandatory QCOs shall be with pre -import condition. Such inputs shall be utilised in the manufacturing of the export product (making normal allowance for wastage) and shall be exported under the same authorisation. b) Exemption from mandatory QCOs s hall be specifically endorsed in the Advance authorisation, upon the request of the authorisation holder. Imports under Authorisation without specific endorsement of exemption shall be made in accordance with mandatory QCOs. c) Any unutilised imports or the p roducts manufactured with inputs imported without compliance to the mandatory QCOs, shall not be transferred to DTA, even after regularisation of default in fulfilment of export obligation. For the purpose of this para, unutilised imports means imported inputs (without compliance of mandatory QCOs) which have not been accounted for, as per SION/Ad -hoc Norms, in the product exported under the same authorisation. d) The unutilised imports shall be regularised as follows: (i) The unutilised material shall be destro yed in the presence of jurisdictional GST/Customs authorities who shall certify the destruction of the goods or same may be re -exported; (ii) In addition, such unutilised imports, irrespective of origin of goods, shall be liable to payment of effective duty on MFN basis along with interest on the exempted material, to Customs Authorities plus composition fee of an amount equivalent to 10% of the CIF value of unutilized imported inputs to DGFT. Proof thereof shall be submitted to the RA concerned before grant of EODC. (e) The exemption from QCO will be available for physical exports only and such exemption will not be allowed for deemed exports for Advance Authorisation Holders. (f) The facility of clubbing under para 4.36 of Handbook of Procedures (HBP), 2023 shall not be available. (g) The Export Obligation period for such authorizations shall be as per para 4.40 of Handbook of Procedures. However, EO period is restricted to 180 days from the date of clearance of import consignment in respect of QCO exe mption for textile products. (h) Import of Inputs without compliance to the mandatory QCOs under DFIA scheme is not allowed. (i) This exemption is further subject to para 2.03 (c) of FTP. ii) For EOUs (i) Exemption from applicability of mandatory QC Os issued under the BIS Act, 2016, shall be provided to EOU on import of inputs which are required for export production. No DTA clearance of such inputs or goods manufactured made out of such inputs, are allowed. An undertaking to that effect will be sub mitted to the Customs authorities by the EOU at the time of importation and a copy of the same shall also be submitted to the Development Commissioner concerned. The exemption from QCO will be available for physical exports only and such exemption will no t be allowed for deemed exports. This exemption is further subject to para 2.03 (c) of FTP. iii) For SEZ (i) Exemption from applicability of mandatory QCOs issued under the BIS Act, 2016, shall be provided to SEZ on import of inputs which are required fo r export production. No DTA clearance of such inputs or goods manufactured made out of such inputs, are allowed. An undertaking to that effect will be submitted to the concerned Development Commissioner of the SEZ by the SEZ Unit at the time of importation . The exemption from QCO will be available for physical exports only. This exemption is further subject to para 2.03 (c) of FTP”. 3. The following sub -para (c) is appended to the existing para 2.03 of FTP 2023: “(c) The list of Ministries/Departments whose notifications on mandatory QCOs, that are exempted by the DGFT for goods to be utilised/consumed in manufacture of export products, are given in Appendix -2Y of FTP 2023”. Effect of this Notification : Enabling provisions are made for exempting input s imported by Advance Authorisation holders, EOUs and SEZ from mandatory Quality Control Orders (QCOs). Accordingly, list of Ministries / Departments [ i.e. Ministry of Steel, Department for Promotion of Industry and Internal Trade (DPIIT) and Ministry of Textiles] are notified in Appendix 2Y of FTP, 2023 . This issue with the approval of Minister of Commerce & Industry. [F. No. 01/89/180/13/AM -15/PC -2[A]/E -5910 ] SANTOSH KUMAR SARANGI , Director General of Foreign Trade Ex-Officio Addl . Secy . Uploaded by Dte. of Printing at Government of India Press, Ring R oad, Mayapuri, New Delhi -110064 and Published by the Controller of Publications, Delhi -110054.

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