4.07A

Self - Ratification Scheme

(i) Policy related to Self ratification Scheme is provided at Para 4.07A of Foreign Trade Policy (2015-20). Applications shall be filed online along with complete details as per Appendix-4E along with a certificate from Chartered Engineer in Appendix-4K. For issuance of such a certificate, the Chartered Engineer shall act only in the domain of his/her competence.

(ii) General Notes given in the book titled Standard Input Output Norms including policy for packing material and fuel shall also be applicable to this scheme in so far as they are not inconsistent with this scheme.

(iii) The applicant shall apply for inputs with specific descriptions along with 8 digit ITC (HS) Classification. Where ever the export product and/or inputs are given in brand names, the correct chemical/technical name shall also be given in the application.

(iv) RA may issue Advance authorisation as applied for subject to the conditions specified in FTP and Handbook of Procedures (2015-20). Input Output Norms as applied and wastage claimed by the applicant shall be treated as final. Ratification of the same by NC is not required.

(v) Applicant or his supporting manufacturer/co-licensee shall maintain a proper account of consumption and utilization of duty free imported / domestically procured inputs against each authorisation, as prescribed in Appendix-4H. Application for EODC shall be submitted in prescribed format along with Appendix-4H to the Regional Authority concerned. Regional Authority shall compare the details of Appendix-4H, with that of the inputs allowed in the Authorisation. Such records shall be preserved by the authorisation holder/manufacturer for a period as specified in Para 4.51 of HBP.

(vi) Production and consumption records of the export item under this scheme shall be audited by DGFT or any Authorised/nominated agency(ies) or team of officers as may be nominated from time to time. Such audit may be conducted within three years from the date of issue of Authorisation based on Risk Based Management System (RBMS). Exporters shall be required to provide necessary facility to verify Books of Accounts or other documents and assistance as may be required for timely completion of the audit. DGFT shall constitute the audit teams and specify the manner of audit from time to time through administrative orders.

(vii) Non providing of prescribed documents/information to the Audit team by the applicant shall make him liable for penal action under the provisions of FT(D&R) Act, 1992, as amended and Rules and order made there under. In case items imported/procured duty free are found to be in excess or not consumed fully, the applicant shall suo moto pay immediately duty with applicable interest to the Customs Authority. However, if Audit team found that duty free items were imported in excess and not consumed fully in the resultant products and duty and interest have not been paid suo moto, the applicant shall be placed under Denied Entity List (DEL) under Rule 7 of FT(Regulation) Rules, 1993, as amended, in addition to other penal action under FT(DR)Act/Customs Act. The Chartered Engineer shall also be liable for penal action for abetment under the provisions of Section 11(2) of the FT (DR) Act.

(viii) All the provisions of Advance Authorisation scheme shall also be applicable to this scheme in so far they are not inconsistent with the specific provisions of this scheme.
 

(Above para 4.07A has been added vide PUBLIC NOTICE NO.68/2017, DT. 22/03/2018)