Indian Fiscal Budget 1997-98: EXIM POLICY 1997-2002
11.1 All goods may be exported without any restriction except to the extent such exports are regulated by the Negative List of Exports or any other provision of this Policy or any other law for the time being in force. The Director General of Foreign Trade may, however, specify through a Public Notice such terms and conditions according to which any goods, not included in the Negative List of Exports, may be exported without a licence. Such terms and conditions may include Minimum Export Price (MEP), registration with specified authorities, quantitative ceilings and compliance with other laws, rules, regulations.
Denomination of Export Contracts
11.2 All export contracts and invoices shall be denominated in freely convertible currency and export proceeds shall be realised in freely convertible currency. Contracts for which payments are received through the Asian Clearing Union (ACU) shall be denominated in ACU Dollar. The Central Government may relax the provisions of this paragraph in appropriate cases.
Realisation of Export proceeds
11.3 If an exporter fails to realise the export proceeds within the time specified by the Reserve Bank of India, he shall, without prejudice to any liability or penalty under any law for the time being in force, be liable to action in accordance with the provisions of the Act, the Rules and Orders made thereunder and the provisions of this Policy.
Export of Gifts
11.4 Goods, including edible items of value not exceeding Rs. 15,000/- in a licensing year, may be exported as a gift. However, items in the Negative List of Exports shall not be exported as a gift, without a licence, except in the case of edible items.
Export of Spares
11.5 Warranty spares, whether indigenous or imported, of plant, equipment, machinery, automobiles or any other goods may be exported upto 7.5% of the FOB value of the exports of such goods alongwith the main equipment or subsequently but within the contracted warranty period of such goods.
Export of Passenger Baggage
11.6 Bonafide personal baggage may be exported either along with the passenger or, if unaccompanied, within one year before or after the passenger's departure from India. However, items in the Negative List of Exports shall require a licence, except in the case of edible items.
Export of Imported goods
11.7 Goods imported, in accordance with this Policy, may be exported in the same or substantially the same form, without a licence provided that the item to be imported or exported is not in the Negative List of Imports or Negative List of Exports. Exports of such goods imported against payment in freely convertible currency would be permitted against payment in freely convertible currency. However, if such goods are exported against payment in Indian rupees, they shall be subject to a minimum value addition of 100%, provided the item to be exported is not in the Negative List of Imports or Negative list of Exports. 11.8 Goods including those in the Negative list of Imports or Negative List of Exports (except prohibited items in either list) may be imported for export in freely convertible currency without a licence subject to the following conditions:
(a) There is a minimum value addition of 10%;
(b) The goods shall be imported under Customs bond;
(c) Import and subsequent export of the goods shall be made from the same Customs bonded premises; and
(d) Such goods shall not be taken outside the Customs bonded premises.
Export of Replacement Goods
11.9 Goods or parts thereof on being exported and found defective/ damaged or otherwise unfit for use may be replaced free of charge by the exporter and such goods shall be allowed clearance by the customs authorities provided that
(a) The replacement goods are not in the Negative List of Exports;
(b) The replacement shall be approximately equal in quantity and value to the extent of the goods found defective/ damaged or otherwise unfit for use; and
(c) The shipment of replacement goods is effected within 18 months from the date of shipment of the previously exported goods or within the contracted guarantee period in the case of machines or parts thereof where such period is more than 18 months.
11.10 Cases not covered by the above provisions will be considered by the Director General of Foreign Trade on merits
Export of Repaired goods
11.11 Goods or parts thereof on being exported and found defective damaged or otherwise unfit for use may be imported for repair and subsequent re-export. Such goods shall be allowed clearance without a licence and in accordance with customs notification issued in this behalf.
Special Import Licence Benefits
11.12 The Director General of Foreign Trade may specify a class or category of export products or a class or category of exporters who shall be eligible for Special Import Licence subject to such conditions as may be specified. 11.13 The Special Import Licences shall be freely transferable and shall be valid for import of items as given in the book titled "ITC(HS) Classifications of Export and Import Items". The imports under Special Import Licence shall be subject to normal customs duties. Import of gold and silver, however, will be allowed at the concessional rate of customs duty as specified by the Customs, provided the importer is holding an EEFC account and the customs duty is paid in free foreign exchange, out of his EEFC account.
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