Policy Circular No.1(RE-01)/2001-2002 dated the 3rd May, 2001

Branded Products-– New Guidelines issued;– Previous Approvals Expired on 31/3/01;– Fresh Appln. under New Guidelines;– Threshold Limit of Rs. 10 crores, for SSI units, Rs. 2 crores

Sub:

Guidelines for recognition of branded products

Attention is invited to paragraphs 14.4 and 14.7 of the Exim Policy that elucidates on the identification of branded products by an Inter-Ministerial Committee for granting approval/recognition for waiver of the value cap for exports under DEPB.

In supersession of Policy Circular No. 12/(RE:00) dated 19.06.2000, the following broad guidelines are framed for granting approval under this scheme:

1. The approval of brands under the Scheme should be only limited to Consumer Goods as defined under paragraph 3.14 of the Exim Policy 1997-2002.
   
   
2. Brand approval would be given only for specific description even though the description of export product under DEPB rate list as given in Appendix 28A of the Handbook is generic.
   
   
3. Bar coding of the export product and quality certificates from any of the agencies identified for granting ISO-9000 (series) Certification under Appendix 32B would be mandatory for recognition under this scheme.
   
   
4. The threshold limit for the exports under this Scheme would as far as possible be Rs 10 crores (FOB value) per annum in the preceding three licencing years. However this limit would be Rs. 2 crores in the case of SSI units.
   
   
5. The export product must be embossed with the "Brand Name" and the "Made in India" logo for brand approval. These must remain on the product till the point of retail sale.
   
   In addition to this the exporters are required to submit all the mandatory documents as given in Appendix 11-I of the Handbook of Procedures (Vol.1). This would include the registration of the brand name under Trade and Merchandise Marks Act, 1958 or proof of application filed under the above Act for registration of brand.

The exporting firm shall declare the name of the brand along with the export product on each of the S/Bills at the time of exports.

Approval relating to exemption from value cap shall be specific to a manufacturing unit for a particular branded product. For this purpose, the firm, while applying for brand approval, shall also indicate the name of the manufacturing unit producing such brand products. If the manufacturer wishes to export through a specific merchant exporter, he shall declare the same and in such cases brand approval letter shall be issued allowing manufacturer exporter to export through the specific merchant exporter.

The Committee shall consider granting exemption from value cap to such products which are being exported under well recognized foreign brand names provided it carries the legend "Made in India" and the firm produces proof of registration of such brands abroad. This is to establish the reputation of the country as a reliable producer of quality goods.

All past approvals granted by the Inter Ministerial Committee have lapsed on 31.3.2001; renewal of the same shall be considered by the Committee in the light of these guidelines, upon fresh application. If upon consideration, the same is approved for renewal, the renewal shall be effective from 1.4.2001 in these case.

All past applications where final decision has not been communicated to the application till date will also be considered by the Inter Ministerial Committee in the light of these guidelines.

This issues with the approval of the DGFT.

Sd/-
Bipin Menon
Dy. Director General of Foreign Trade

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