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The norms have been published in this book with a view to facilitate determination of the proportion of various inputs which can be used or are required in the manufacture of different resultant products. In many cases, the resultant products and the inputs required have been described in generic terms. The applicants shall, therefore, ensure that the goods sought for import arid actually imported are those which are used/required in the export product. The items allowed for import in the licence shall be co-related with the description of the export product, both in the DEEC book by the licensing authority and in the Shipping Bill by the exporter to be authenticated by Customs. For example, if the input allowed in the norms is "relevant fabrics", only the specific types of fabric i.e. polyester or nylon etc. used in the export product shall be allowed. Similarly, if the norms provide for import of BOPP film against export of self adhesive tape, only BOPP film required for manufacture of Self Adhesive Tape will be allowed and not those which are required as packing material.
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Wherever a specific norm has been provided, the same will prevail over the generic norm laid down, if any. If the application is based on the generic norm, specific reason for applying under the generic norm should be clearly stated.
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In some norms, two or more alternative inputs have been permitted for import for the manufacture of a specific resultant product. In such cases, the applicant shall be required to opt for only one alternative and the advance licence/ duty free replenishment certificate shall be issued accordingly. In case, more than one alternative input is required, the same could be allowed based on the specific declaration from the applicant about their requirement in the resultant product, at the time of filing application and the licence will be issued indicating the specific quantity of each input.
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All the inputs allowed for import under advance licence/ duty free replenishment certificate are required to be indicated both in terms of quantity and value in the DEEC Book. However, where an input has been permitted in the norms or specifically allowed for import by the ALC in terms of value as a limiting factor only, such items shall be indicated in the DEEC in terms of value only.]
(Note No. 4 has been deleted vide Public Notice No. 12/(RE-2001) Dt. 1/6/2000)
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In case of norms wherein the inputs have been allowed based on a percentage content of inputs in the export product with some wastage or on net to net basis or on net plus wastage basis, the exporter shall account for the quantity(s) allowed for import minus the wastage permitted, if any, in the product exported. In such cases, the net quantity shall be reflected in the export product description by the Licensing Authority and also in the Shipping Bill by the exporter duly endorsed by the Customs Authorities.
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Unless specified, otherwise, the import of components wherever allowed shall be permitted on net to net basis with accountability clause and the type, technical specifications (including part No., if any), etc., of the components sought for import should conform to those utilised in the manufacture of the resultant product, which should be reflected in export documents (shipping bills) also.
(Above Note No. 6 has been amended vide P.N.No. 4/(RE-2001) Dt. 31/03/2001.)
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"Wherever "Furnace Oil" has been permitted as an input in the norms, the same would include both "LSHS" and "HFO". This item will be allowed only when the item is specifically permitted for import in the standard input output norms and shall not be allowed against Ad-hoc norms or against DFRC or under paragraph 7.5 of Handbook of procedures (Vol 1). However,it may be allowed by Advance Licensing committee in cases where cost of fuel constitutes not less than 15% of the total cost of manufacture of the export product and only against actual user licences. The cost of manufacturing has to be determined taking into account the ex-factory value production of the resultant product as well as the international price of fuel used in the manufacture of such product."
(Above paragraph has been amended vide Public Notice No.43(RE-2000)/1997-2002 dated the 1st December,2000)
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An applicant need not apply for all the inputs indicated in the norms for the grant of advance licence/ duty free replenishment certificate provided all other conditions for grant of licence in the Exim Policy and the Handbook of procedure are fulfilled. For this purpose, the applicant shall indicate the source of procurement of the remaining inputs, that is, whether they are indigenous or imported, in the application.
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In respect of the following inputs, advance licence/ duty free replenishment certificate requiring any of these items will be issued subject to the imports being restricted upto a maximum value limit indicated against each input. However, where quantity is also indicated for these inputs in the norms, the imports shall be restricted both in terms of quantity and value as limiting factors:
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1. |
Perfumery compounds/chemicals/Natural essential oils/ Resinods / Aromatic chemicals |
Item wise value limits as indicated in the relevant norms. |
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2. |
Rubber Chemicals |
Upto 7% of FOB value of exports |
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3. |
Misc. Chemicals |
As indicated against individual norms. |
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4. |
Spin Finish Oil (including Surface Active Agent which are used as a finish oil in the manufacture of Polyester) |
Upto 5% of FOB value of exports |
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5. |
Dyes |
Item wise limits as indicated in the relevant norms. |
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In respect of certain norms, the validity of the same is for a limited period . For regularisation/ refixation of the same, the exporters shall file application in the prescribed format with all the requisite details, including production and consumption data atleast sixty days in advance of expiry of such validity. Unless the validity period is extended, no licence will be issued based on these norms.
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In case where the input(s) required for the manufacture of the resultant product prescribes alternative items, licence can be issued for export of the said inputs(s) allowing the alternative items as inputs i.e. import items in the same ratio as prescribed in the said input(s).