Duty Free Replenishment Certificate

4.31

The Policy of Duty Free Replenishment Certificate (DFRC) is given in Chapter 4 of the Policy. The exporter exporting under DFRC shall be required to give a declaration in the EP copy of the Shipping Bill indicating the serial number and product group of SION of the export product.

In case of export of gold/silver/platinum jewellery and articles thereof, the wastage norms as per paragraph 4.56 of the Handbook of Procedures (Vol.1) may be indicated on the EP copy of the shipping bill.

However in respect of the following items, the exporter shall be required to give declaration with regard to technical characteristics, quality and specification in the shipping bill. The licencing authority while issuing Duty Free replenishment Certificate shall mention the technical characteristics, quality and specification in respect of such inputs:

Alloy Steel including Stainless Steel, Copper Alloy, Synthetic Rubber, Bearings, Brass Scrap, Additives, Paper/ Paper Board, Dyestuffs, Solvent, Perfumes/ Essential Oil/ Aromatic Chemicals, Surfactants, Relevant Fabrics, Marble.

The DFRC and the specific inputs procured against it are subject to actual user condition under the following circumstances:

(i) the export proceeds have not been realised and the exports have not been made under an irrevocable letter of credit or the bill of exchange is not avalised/co-accepted/ guaranteed, or

(ii) the DFRC is issued against a SION with actual user condition , or

(iii) specific inputs under a SION are subject to actual user condition.

Under all other circumstances, the inputs procured against DFRC are freely transferable . However, in case of fuel , the same can only be transferred to agencies granted marketing rights by the Ministry of Petroleum and Natural Gas.

(Above Actual user condition - has been added vide PUBLIC NOTICE NO. 02/2004-09, DT. 13/09/2004)

Items reserved for imports by State Trading Enterprises cannot be imported against advance licence. However those items can be procured from State Trading Enterprises against ARO issued to advance licence holder.

(Above last sub-paragraph has been added vide PN NO. 45/2004, DT. 14/01/2005)