UNIT – III
Import Trade Control : License – Duty Entitlement Passbook Scheme –
Harmonized IEC code number adopted for classification of import trade
control items – Import of capital goods under EPCG scheme – Import of raw
materials and components under OGL actual user condition – Import for
stock and sale – Restricted and Banned items for imports – Canalization of
Imports and various canalizing agencies
Exports and Imports Act
Business Support » Legal Aspects » Exports and Imports Act
The exports and imports activities contribute significantly towards the healthy growth of
any economy. Imports imply bringing of goods into the country to fulfill the domestic
need and when the country supplies surplus goods to foreign countries, it is termed as
exports. When a wide gap between the exports and imports rate arises then serious
economic problems like inflation and BoP (Balance of Payments) weakens the integrity
of the existing economy. Thus to maintaining appropriate balances between exports and
imports the state authority has forged various types of legal frameworks in terms of
different Acts and policies.
In India, there are several Acts and policies enacted to have a uniform practice in export
& import trade practices. Among those Acts, Imports and Exports (Control) Act, 1947,
Foreign Trade (Development and Regulation) Act, 1992 and Import-Export (EXIM)
Policy 1997-2002 are few significant Acts and policies. The Imports and Exports
(Control) Act, 1947 has been replaced by Foreign Trade (Development and Regulation)
Act, 1992 to empower the central government to have more control on exports and
imports activities.
The Foreign Trade (Development and Regulation) Act, 1992 has empowered the
Government to:
• Enact provisions related to development and regulation of trades for domestic as well as
international market.
• Restrict and regulate all forms of exports and imports in case of requirements and
declare tariff exemption by accessing special needs.
• Announce an EXIM policy and its episodic amendment by notification.
• Authorize the concerned officials to issue 'Importer Exporter Code Number' (IEC) to
the exporters and importers.
The Import-Export (EXIM) Policy 1997-2002 underlines on the following points for the
smooth functioning of import and export activities in India.
FOREIGN TRADE (EXEMPTION FROM APPLICATION OF RULES IN CERTAIN CASES)
ORDER, 1993
Minitry of Commerce
Notification S.O. No. 1056 (E), dated 31-12-1993
In exercise of the powers conferred by section 3, read with section 4, of the Foreign Trade
(Development and Regulation) Act, 1992 (22 of 1992) and in supersession of the Imports
(Control) Order, 1955 and the Exports (Control) Order, 1988, except as respects things done or
omitted to be done before such supersession, the Central Government hereby makes the
following Order, namely :1. Short title and commencement. — (1) This Order may be called the Foreign Trade
(Exemption from application of Rules in certain cases) Order, 1993.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. Definitions. — In this Order, unless the context otherwise requires, —
(a) "Act" means the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992);
(b) "Import Trade Regulations" means the Act and the rules and order made thereunder and the
export and import policy;
(c) "Rules" means the Foreign Trade (Regulation) Rules, 1993;
(d) Words and expressions used in this Order and not defined but defined in the Act shall have
the meanings respectively assigned to them in the Act.
3. Exemption from the application of rules. — (1) Nothing contained in the Rules shall apply to
the import of any goods. —
(a) by the Central Government or agencies, undertakings owned and controlled by the Central
Government for Defence purposes;
(b) by the Central Government or any State Government, statutory corporation, public body or
Government undertaking run as a Joint Stock Company through the agency of the Purchase
Organisations of the Ministry of Supply, that is India Supply Mission, London and India Supply
Mission, Washington;
(c) by the Central Government, any State Government or any statutory corporation or public body
or Government undertaking run as a Joint Stock Company, orders in respect of which are placed
through the Directorate General, Supplies and Disposals, New Delhi;
(d) by transhipment or imported and bonded on arrival for re-export as ships stores to any country
outside India except Nepal and Bhutan or imported and bonded on arrival for re-export as
aforesaid but subsequently released for use of Diplomatic personnel, Consular Officers in India
and the officials of the United Nations Organisation and its specialised agencies who are exempt
from payment of duty under the notification of the Government of India in the Ministry of Finance
(Department of Revenue) No. 3, dated 8th January, 1957 and the United Nations (Privileges and
Immunities) Act, 1947 (46 of 1947) respectively;
(e) imported and bonded on arrival for sale at approved duty-free shops, whether to outgoing or
incoming passengers, against payments in free foreign exchange;
(f) which are in transit through India by post or otherwise, or are redirected by post or otherwise to
a destination outside India, except Nepal and Bhutan provided that such goods while in India are
always in the custody of the postal or customs authorities;
(g) for transmission across India by air to Afghanistan or by land, to any other country outside
India, except Nepal and Bhutan under claim for exemption from duty or for refund of duty either in
whole or in part :
Provided that such goods are imported by or on behalf of the Govern-ment or a country bordering
on India or that the importer undertakes to produce within a specified period evidence that such
goods have crossed the borders of India or in default to pay such penalty as the proper officer of
customs may deem fit to impose on such goods :
Provided further that nothing contained in this item will exempt any goods from the Import Trade
Regulations;
(h) by the person as passenger baggage to the extent admissible under the Baggage Rules for
the time being in force except quinine exceeding five hundred tablets or 1/3 Ib powder or one
hundred ampoules :
Provided that in the case of imports by a tourist, articles of high value whose re-export is
obligatory under rule 7 of the Tourist Baggage Rules,1978 shall be re-exported on his leaving
India, failing which such goods shall be deemed to be goods of which the import has been
prohibited under the Customs Act, 1962 (52 of 1962):
Provided further that the import of gold in any form including ornaments (but excluding ornaments
studded with stones or pearls) will be allowed as part of baggage by passengers of Indian origin
or a passenger holding a valid passport issued under the Passports Act, 1967 (15 of 1967)
subject to the following conditions, namely :(a) that the passenger importing the gold is coming to India after a period of not less than six
months of stay abroad;
(b) the quantity of gold imported shall not exceed 5 Kilograms per passenger;
(c) import duty on gold shall be paid in convertible foreign currency; and
(d) there will be no restriction on sale of such imported gold;
(i) by any person through the post or otherwise for his personal use, or by any institution or
hospital for its use except —
(a) vegetable seeds exceeding one Ib. in weight;
(b) beer;
(c) tea;
(d) books, magazines, journals and literature which are not allowed to be imported under
the Policy for the time being in
force;
(e) goods, the import of which is canalised under the Policy;
(f) alcoholic beverages;
(g) fire arms and ammunition;
(h) consumer electronic items (except hearing aids and life-saving equipments, apparatus
and appliances and parts thereof):
Provided that the c.i.f. value of goods imported as aforesaid at any one time shall
not exceed rupees two thousand.
(j) by or on behalf of Diplomatic personnel, consular officers and Trade Commissioners in
India who are exempted from payment of Customs duty under Notification No. 3 dated
the 8th January, 1957 of the Government of India in the Ministry of Finance (Department
of Revenue);
(k) from any country, which are exempted from Customs duty on re-importation under section 20
of the Customs Act, 1962 (52 of 1962) or under Customs Notification Nos. 113 dated 16th May
1957, 103 dated 25th March, 1958, 260 and 261 dated llth October, 1958, 269, 271, 273, 274,
275 and 276 dated 25th October, 1958 and 204 dated 2nd August, 1976, of the Government of
India, Ministry of Finance (Department of Revenue) or Notification No. 174, dated the 24th
September, 1966 or Notification No. 103, dated the 16th May, 1978, of the Government of India,
Ministry of Finance (Department of Revenue and Insurance) or Notification No. 80, dated 29th
August, 1970;
(1) of Indian manufacture and foreign-made parts of such goods, exported and received back by
the manufacturer from the consignee for repair and re-export:
Provided that —
(i) the customs authorities are satisfied that the goods received back by the said manufacturers
are the same which were so exported; and
(ii) in the case of goods other than those exempted from customs duty on reimportation under
Customs Notification No. 132, dated 9th December, 1961, a bond is executed by the importer
with the customs authority at the port concerned to the effect that the goods thus imported will be
re-exported after repair within six months;
(m) by officials of the United Nations Organisation and its specialised agencies who are
exempted from payment of Customs duty under the United Nations (Privileges and Immunities)
Act, 1947 (46 of 1947);
(n) by the Ford Foundation who are exempt from payment of Customs duty under an Agreement
entered into between the Government of India and the Ford Foundation;
(o) being vehicles as defined in Article I of the Customs Convention on the Temporary Importation
of Private Road Vehicles or the component parts thereof referred to in Article 4 of the said
Convention and which are exempted from payment of customs duty under the notification of the
Government of India in the Ministry of Finance (Department of Revenue) No. 296, dated the 2nd
August, 1976 :
Provided that —
(i) such vehicles or component parts are re-exported within the period specified in the said
notification or within such further period as the customs authorities may allow;
(ii) the provisions of the said notification or of the "triptyque or Camel-De-Passage" permit are not
contravened in relation to such vehicle or component parts :
Provided further that nothing contained in this item shall prejudice the application to the said
vehicles or component parts of any other prohibition or regulation affecting the import of goods
that may be in force at the time of import of such goods;
(p) being goods imported temporarily for display or use in fairs, exhibitions or similar events
specified in Schedule I to the notification of the Government of India in the Ministry of Finance
(Department of Revenue) No. 157/90-CUSTOMS, dated the 28th March, 1990 against ATA
Carnets under the Customs Convention on the ATA Carnets for temporary admission of goods
(ATA Convention) done at Brussels on the 30th July, 1963:
Provided that —
(i) such goods are exported within a period of six months from the date of clearance or such
extended period as the Central Government may allow in each case; and
(ii) the provisions of the said notification or of the ATA convention are not contravened:
Provided further that nothing contained in this item shall prejudice the application to the said
goods of any other prohibition or regulation affecting the import of goods that may be in force at
the time of import of such goods;
(q) covered by an import licence issued by His Majesty's Government of Nepal and the importer
furnishes a bond to the proper officer of customs in the form prescribed by such officer with a
Scheduled Bank as surety to the effect that he shall pay the duty and pay penalty imposed for
contravening Import Trade Regulations in respect of the whole or any portion of the goods which
is not proved to have entered the territory of Nepal;
(r) of Indian manufacture or by the Central Government or any State Government for repair and
re-export to Indian Embassies abroad or to any other office of the Central Government or State
Government in a foreign country;
(s) being foodgrains, by Food Corporation of India:
Provided that at the time of clearance, a declaration to the effect that the import in question has
been approved by the Central Government, is furnished by the importer to the Customs
authorities;
(t) being articles of food and edible material, which are supplied as free gift by the agencies
approved by the United Nations Organisation and which are exempted from payment of customs
duty under the Notification of Government of India in the Ministry of Finance (Department of
Revenue) No. GSR 766, dated 21st June, 1975.
(2) Nothing contained in the Rules shall apply to —
(a) any goods exported by or under the authority of the Central Government;
(b) any goods other than foodstuffs constituting the stores or equipment of any outgoing vessel or
conveyance;
(c) any goods constituting the bona fide personal baggage of any person, including a passenger
or member of a crew in any vessel or conveyance, going out of India:
Provided that the Wild Life (dead, alive or part thereof or produce therefrom) shall not be treated
as part of such personal baggage;
(d) any goods exported by post or by air under the conditions specified in postal notice issued by
the Postal Authorities;
(e) any goods transhipped at a port in India after having been manifested for such transhipment
at the time of despatch from a port outside India;
(f) any goods imported and bonded on arrival in India for re-export to any country outside India,
except Nepal and Bhutan;
(g) any goods in transit through India by post or any goods re-directed by post to a destination
outside India except Nepal and Bhutan:
Provided that such goods while in India are always in the custody of the postal authorities;
(h) any goods imported without a valid import licence and exported in accordance with an order
for the export of such goods made by the proper officer of Customs;
(i) products approved for manufacture in and export from the respective Free trade Zones/Export
Processing Zones and 100 per cent Export Oriented Units except textile item covered by bilateral
agreements, exports to Rupee Payment Countries under the Annual Trade Protocol and Exports
against payment in Indian Rupees to former Rupee Payment Countries:
Provided that conditions imposed by the Board of Approval on an Export Oriented Unit of Export
Processing Zone unit will be binding on such a unit;
(j) export of Blood group Oh (Bombay Phono type) meant for scientific research or emergency
medical treatment, as life saving measure on humanitarian grounds by the Director, National
Blood Group Reference Laboratory, Bombay on the basis of a certificate issued by him to this
effect in each case;
(k) export of samples of lubricating oil additives. Lube Oil, crude oil and other related petroleum
products and raw materials used to manufacture Lube Additives by Lubrizols India Limited,
Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited, from their
installation in India to Lubrizol's Laboratories in the United States of America and the United
Kingdom for evaluation and testing purposes.
Definition of IEC Code
IEC Code is unique 10 digit code issued by DGFT – Director General of Foreign Trade ,
Ministry of Commerce, Government of India to Indian Companies.
Full form of IEC Code
Full From of IEC Code is “Importer Exporter Code ”. To import or export in India,
IEC Code is mandatory. No person or entity shall make any Import or Export without
IEC Code Number.
IEC Code No Notification
Directorate General of Foreign Trade(DGFT) issued a Policy Circular No.15 (RE2006)/2004-2009 Date: 27th July, 2006) for New System for issuance of ImporterExporter Code Number.
Eligibility, Legal Provisions and Conditions for IEC Code
Number
Eligibility condition and Legal Provisions are given for IEC Code Number Application in
Foreign Trade (Regulation) Rules, 1993 Ministry of Commerce, Notification No. GSR
791 (E), dated 30-12-1993.
Application for Grant of IEC Number
An application for grant of IEC number shall be made by the Registered/Head Office of
the applicant and apply to the nearest Regional Authority of Directorate General Foreign
Trade, the Registered office in case of company and Head office in case of others, falls in
the ‘Aayaat Niryaat Form - ANF2A’ and shall be accompanied by documents prescribed
therein. In case of STPI/ EHTP/ BTP units, the Regional Offices of the DGFT having
jurisdiction over the district in which the Registered/ Head Office of the STPI unit is
located shall issue or amend the IECs.
Only one IEC would be issued against a single PAN number. Any proprietor can have
only one IEC number and in case there are more than one IECs allotted to a proprietor,
the same may be surrendered to the Regional Office for cancellation.
IEC Code Online Application Form
The application can be download Form in PDF or Word. This is called "Aayaat Niryaat
Form - ANF2A". Along with IEC Code Number Application Form it is necessary to
submit Appendix-18B Attested by Applicant's Banker in his letter head with two passport
size photo).
List Of Regional Authorities Of DGFT And The Corresponding
Office of Reserve Bank Of India, Exchange Control Department
You can find the list of Foreign Exchange Control Department of the RBI as given in
Appendix-18D.
Validity of IEC Code No
An IEC number allotted to an applicant shall be valid for all its
branches/divisions/units/factories as indicated in the format of IEC given in Appendix18B.
Duplicate Copy of IEC Number
Where an IEC Number is lost or misplaced, the issuing authority may consider requests
for grant of a duplicate copy of IEC number, if accompanied by an affidavit.
Surrender of IEC Number
If an IEC holder does not wish to operate the allotted IEC number, he may surrender the
same by informing the issuing authority. On receipt of such intimation, the issuing
authority shall immediately cancel the same and electronically transmit it to DGFT for
onward transmission to the Customs and Regional Authorities.
Application Fee For IEC Code Number
Application Fee : Rs 250.00
Mode of Payment : In Demand Draft/ Pay Order from any designated bank in favour of
Zonal Joint Director General of Foreign Trade or Payment through EFT ( Electronic
Fund Transfer by Nominated Bank by DGFT Like HDFC Bank, ICICI Bank, State Bank
of India, UTI Bank, Punjab National Bank, Central Bank etc) or Application fee can
deposited by TR6 Challan with Duplicate Copy in any branch of Central Bank of India
and TR6 Challan need to be submit along with IEC Code Application.
Specified fee shall be paid for making an application under any provision of the Policy
and Handbook of Procedure Volume-I.. The scale of fee, mode of payment, procedure for
refund of fee and the categories of persons exempted from the payment of fee are
contained in Appendix-21B.
Territorial Jurisdiction of Regional Authorities
Every application, unless otherwise specified, shall be submitted to the Regional
Authority of Directorate General Foreign Trade, as per the territorial jurisdiction of the
Regional authorities indicated in Policy and Handbook of Procedure Volume-I.
Filing of Application
Application can be filed online in DGFT website, details of online links are given below.
Every application for an Import/Export licence/ certificate/ Authorisation/ permission or
any other purpose should be complete in all respects as required under the relevant
provisions of the Policy/Procedures and shall be signed by the applicant as defined in
paragraph 9.9 of the Policy. An incomplete application is liable to be rejected giving
specific reason for rejection. However in case of manual applications, the applicant
would furnish a soft copy of the application in MS word format.
Profile of Importer/ Exporter
Each Importer/Exporter shall be required to file importer/ exporter profile once with the
Regional Authority in Part 1 of ‘Aayaat Niryaat Form - ANF2A’. Regional Authority
shall enter the information furnished in Part 1 of ‘Aayaat Niryaat Form ANF-2A’ in their
database so as to dispense with the need for asking the repetitive information. In case of
any change in the information given in Part 1 of ‘Aayaat Niryaat Form ANF-2A’,
importer/exporter shall intimate the same to the Regional Authority.
Self Addressed Stamped Envelope
The applicant shall furnish a self addressed envelope of 40 x 15 cm with postal stamp
affixed on the envelope as follows for all documents required to be sent by Speed Post:
a
b
c
d
Within local area
Up to 200 Kms.
Between 200 to 1000 Kms
Beyond 1000 Kms.
Rs. 25.00
Rs. 25.00
Rs. 30.00
Rs. 50.00
IEC No: Exempted Categories
The following categories of importers or exporters are exempted from obtaining Importer
- Exporter Code (IEC) number:
1. Importers covered by clause 3 (1) [except sub-clauses (e) and (l)] and exporters
covered by clause 3(2) [except sub-clauses (i) and (k)] of the Foreign Trade
(Exemption from application of Rules in certain cases) Order, 1993.
2. Ministries/Departments of the Central or State Government.
3. Persons importing or exporting goods for personal use not connected with trade or
manufacture or agriculture.
4. Persons importing/exporting goods from/to Nepal provided the CIF value of a
single consignment does not exceed Indian Rs.25,000.
5. Persons importing/exporting goods from/to Myanmar through Indo-Myanmar
border areas provided the CIF value of a single consignment does not exceed
Indian Rs.25,000.
However, the exemption from obtaining Importer-Exporter Code (IEC) number
shall not be applicable for the export of Special Chemicals, Organisms, Materials,
Equipments and Technologies (SCOMET) as listed in Appendix- 3, Schedule 2 of
the ITC(HS) except in the case of exports by category(ii) above.
6. The following permanent IEC numbers shall be used by the categories of
importers/ exporters mentioned against them for import/ export purposes..
S.No Code Number
1
0100000011
2
0100000029
Categories of Importers / Exporters
All Ministries / Departments of Central Government and
agencies wholly or partially owned by them.
All Ministries / Departments of any State Government and
agencies wholly or partially owned by them.
3
0100000037
4
0100000045
5
0100000053
6
0100000061
7
0100000070
8
0100000088
9
0100000096
10
0100000100
11
0100000126
Diplomatic personnel, Counselor officers in India and
officials of UNO and its specialised agencies.
Indians returning from / going abroad and claiming benefit
under Baggage Rules.
Persons / Institutions / Hospitals importing or exporting
goods for personnel use, not connected with trade or
manufacture or agriculture.
Persons importing / exporting goods from /to Nepal
Persons importing / exporting goods from /to Myanmar
through Indo-Myanmar border areas
Ford Foundation
Importers importing goods for display or use in fairs /
exhibitions or similar
events under provisions of ATA carnet This IEC number can
also be used by
importers importing for exhibitions/fairs as per Para 2.29 of
HBPv1.
Director, National Blood Group Reference Laboratory,
Bombay or their authorized offices.
Individuals / Charitable Institution /Registered NGOs
importing goods,
which have been exempted from Customs duty under
Notification issued by Ministry of Finance for bonafide use
by victims affected by natural calamity.
12
0100000134
Persons importing / exporting permissible goods as notified
from time to time, from / to China through Gunji, Namgaya
Shipkila and Nathula ports,
subject to value ceilings of single consignment as given in
Para 2.8(iv) above.
13
0100000169
Non-commercial imports and exports by entities who have
been authorized by Reserve Bank of India.
Note: Commercial Public Sector Undertaking (PSU) who have obtained PAN will
however be required to obtain Importer Exporter Code number. The permanent IEC
number as mentioned above, shall be used by non-commercial PSUs.
Guidelines for Application of IEC Code Number.
Mandatory Requirements to apply for IEC Code Number
1. Covering letter
2. Fill Part A, B & D of the application form.
3. Application must be accompanied by documents as per details given below:
1 Bank Certificate from the bank on Bank letter head as per proforma (Part B)
given in the application.
a. In case of Proprietorship firms, please furnish
i) Date of Birth of individual
ii) Number of IECs held along with their details
b. In case of Companies, please furnish
i) Extract of Board of Resolution.
ii) MOA with Form 32 and ROC in case of change in Directors.
c. In case of others
i) Notorised Partnership Deed showing date of formation.
ii) No Objection Certificate from other partners/HUF.
3.2 Self certified copy of Permanent Account Number (PAN) issued by income
Tax Authorities.
3.3 Two copies of passport size photographs of the applicant. The photograph
pasted on the banker’s certificate must be attested by the banker with Seal and
Signature of the applicant.
4. The application must be submitted in Duplicate.
5. Each individual page of the application must be signed by the applicant.
6. Self addressed envelope stamped with Rs. 25 (Local Address) & for others
Rs.30/-. These documents may be kept secured in a file cover.
Check List of Documents to apply for IEC Code
1. Covering Letter on your company's letter head for issue of new IEC Code
Number.
2. Two copies of the application in prescribed format ( Aayaat Niryaat Form ANF
2A ) must be submitted to your regional Jt.DGFT Office.
3. Each individual page of the application has to be signed by the applicant.
4. Part 1 & Part 4 has to be filled in by all applicants. In case of applications
submitted electronically.
5. No hard copies of Part 1 may be submitted. However in cases where applications
are submitted otherwise, hard copy of Part 1has to be submitted.
6. Only relevant portions of Part 2 need to be filled in.
7. Rs 250.00 Bank Receipt (in duplicate)/Demand Draft/EFT details evidencing
payment of application fee in terms of Appendix 21B.
8. Certificate from the Banker of the applicant firm in the format given in Appendix
18A.
9. Self certified copy of PAN issuing letter or PAN (Permanent Account Number)
Card issued by Income Tax Authority.
10. Two copies of passport size photographs of the applicant duly attested by the
Banker of the applicant.
11. Self addresses envelope with Rs.25/- postal stamp for delivery of IEC certificate
by registered post or challan/DD of Rs.100/- for speed post.
How to submit IEC Code application
Application can be submitted in person/by Authorised Employee of the Company at the
R & I counters in the office Or It can be sent by post/courier.
Processing of IEC Code Application
The application can be submitted at the counter in person at the office or it can be sent
through Post/Courier. An acknowledgement in form of a receipt having File Number is
generated on receipt of application. The file number is used for any
correspondence/query regarding the IEC application submitted to the office. The
application is then sent to IEC section where it is processed. If the application is found
complete in all aspects (as per requirements prescribed) an IEC is generated, or else a
deficiency letter stating the nature of deficiency is prepared and sent to the applicant.
Replies are awaited in cases where deficiency letter is issued and after due compliance by
the applicant the IEC is allotted.
Issue and Despatch of IEC Code
IEC allotment letter is sent through post at the registered office mentioned by the
applicant in the application. Similarly deficiency letters are sent to applicant by post.
About IEC Application Status
File No for IEC application
A new option to know the file number has been introduced for all exporter who are
sending their application through Post/Courier. The applicant has to input PAN number
to get the file number.
Status of IEC Application
The applicant can know the status of the IEC application using option “Status of IEC
Application” on the website of CLA.
IEC issued day wise
IEC’s issued daily can be viewed on the website using option “IEC issued day wise”
File No for IEC application
Applicant’s who have sent their application through post/courier can know their file
number using option “File No for IEC application”
Q.1
Who are eligible to avail of the EPCG Scheme?
A.
The manufacturers, Exporters and Merchant Exporters are eligible to avail of this
Scheme.
Q.2
How to obtain an Import Licence under the EPCG Scheme?
A.
The eligible persons who desire to operate under the EPCG Scheme should make
an application in the form given in Appendix 10 A of the Hand Book alongwith
documents prescribed therein too the Director General of foreign Trade (DGFT)
or to the regional Licensing authorities along with necessary
information/documents to obtain an Import licence. Licences are issued, under
this scheme by the director general of foreign trade or his regional officers
depending upon the value of the licence subject to execution of legal undertaking
and bank guarantee by them undertaking among other things to fulfill their export
obligation within the specified period. The import licences issued under this
scheme shall be deemed to be valid for the goods already shipped/ arrived
provided, the customs duty has not been paid for the goods have not been cleared
from the customs.
Q.3
What are the duty concessions available and Export obligation to be fulfilled
under the EPCG scheme?
Customs Duty
Export Obligation
FOB Basis
NFE Basis
Period
10%
4 times cif value of Not applicable
5 years
CG
il duty (in case CIF value is
5 times cif value of 8 years
Rs.20 crore or more)
6 times cif value of CG
CG
(a) Nil duty in case CIF
Value is Rs.1 crore or
6 years
more for electronics,
6 times cif value of
food
processing, 6 times cif value of CG
textiles,
plastics, CG
leather, sports goods,
gem
&
jewellery
sectors and produce
and
products
of
agriculture,
aquaculture,
animal
husbandry,
floriculture,
horticulture,
piscculture, viticulture,
poultry and sericulture,
bio-technology sector,
the following subsectors of Engineering
sectors: Machine tools,
parts and accessories;
thereof
automotive
components
and
accessories,
bicycle
parts and accessories,
handtools, cutting and
small tools; castings
and forgings (ferrous
and non-ferrous) all
sorts; pumps, electric
motors
and parts
thereof; fasteners all
types (ferrous and nonferrous) bright bars
and shafting; scientific
and
surgical
instruments and the
following sub-sectors
of chemicals; organic
chemicals;
Hotels,
Travel agents tour
operators or tourist
transport
operators
who are recognized as
Export House, Trading
House, Star Trading
House and Super Star
Trading House or
Service Export House,
International Service
Export
House,
International
Star
Service Export House,
International
Super
Star Services Export
House.
(b)
Nil duty incase CIF
value is Rs.10 lakh or
more for software
sector
6 years
5 times cif value of
CG
6 times cif value of
CG
Q.4
What are the conditions for import of capital goods under EPCG scheme? Can
second hand goods be imported under this scheme?
A.
Import of capital goods under this scheme shall be subject to actual used condition
till the export obligation is completed. Both new an second hand capital good may be
imported. Second hand capital goods at permitted subject to the condition that such
goods have a minimum of residual life of 5 years and the importer furnishing to the
customs at the time of clearance of goods a self declaration to the effect that the second
hand capital goods being imported have a minimum residual life of five years in the
prescribed form. In case the value of the second hand capital goods imported is rupees
one crore or more the importers shall also furnish to the customs at the time of clearance
of goods a certificate from the Inspection and certification agency to the effect that the
purchase price is reasonable. In case of imports at zero duty the minimum residual life
of the second hand goods shall be ten years. The concessional assessment is extended
only to the goods covered by an licence issued under the EPCG Scheme.
Q.5
Is the Import of components and goods in SKD/CKD condition allowed under this
Scheme?
A.
An eligible person may apply for a licence under the EPCG scheme t import the
capital goods in SKD/CKD condition or components of the capital goods in
SKD/CKD condition or components of such capital goods and may assemble or
manufacture, as the case may be the capital goods. This facility shall not be
available for replacement of parts.
Q.6
What are the conditions and obligations under EPCG Scheme?
A.
The following are the conditions and obligations;
(i)
The export obligation shall be fulfilled by the export of goods
manufactured or produced by the use of the capital goods imported under
the scheme;
(ii)
The exports shall be direct exports in the name of the importer.
However, the importer may export through a third party provided the
name of the importer/licence holder is also indicated in the Shipping Bill.
If a merchant exporter is the importer the name of the manufacturer shall
be indicated in the Shipping Bill;
(iii)
Export proceeds shall be realized in freely convertible Currency;
(iv)
Exports shall be physical exports. Deemed exports shall also be taken
into consideration for fulfillment of export obligation but the licencee shall
not be entitled to claim any benefit of Deemed Exports;
(v)
The export obligation shall be in addition to any other export
obligation undertaken by the importer and shall be over and above the
average level of exports of the same product achieved by him in the
preceding three licensing years. If the exporter achieves an export of 75
per cent of the annual value of the production of the relevant export
product, the export obligation under this scheme shall be subsumed under
that export provided, however, that the aggravate value of such exports
during the specified period shall not be less than the aggregate value of the
export obligation fixed.
(vi)
Where the manufacturer exporter has obtained licences for the
manufacture of the same export product both under this scheme and the
Duty Exemption Scheme,, the physical exports made under the Duty
exemption Scheme shall also be counted towards the discharge of th4e
export obligation under this scheme; and
(vii)
In the case of export of computer software, the export obligation shall
be determined in accordance with policy but the conditions that exports
hall be over and above the average level of exports in the preceding three
licensing years shall not apply.
EXPORT PROMOTION CAPITAL GOODS SCHEME
EPCG Scheme
5.1
The scheme allows import of capital goods for pre
production, production and post production (including
CKD/SKD thereof as well as computer software systems) at
5% Customs duty subject to an export obligation equivalent
to 8 times of duty saved on capital goods imported under
EPCG scheme to be fulfilled over a period of 8 years
reckoned from the date of issuance of licence. Capital goods
would be allowed at 0% duty for exports of agricultural
products and their value added variants.
However, in respect of EPCG licences with a duty saved of
Rs.100 crore or more, the same export obligation shall be
required to be fulfilled over a period of 12 years.
In case CVD is paid in cash on imports under EPCG, the
incidence of CVD would not be taken for computation of
net duty saved provided the same is not Cenvated .
The capital goods shall include spares (including
refurbished/ reconditioned spares) , tools, jigs, fixtures, dies
and moulds. EPCG licence may also be issued for import of
components of such capital goods required for assembly or
manufacturer of capital goods by the licence holder.
Second hand capital goods without any restriction on age
may also be imported under the EPCG scheme.
Spares (including refurbished/ reconditioned spares), tools,
refractories, catalyst and consumable for the existing and
new plant and machinery may also be imported under the
EPCG scheme .
However, import of motor cars, sports utility vehicles/ all
purpose vehicles shall be allowed only to hotels, travel
agents, tour operators or tour transport operators whose total
foreign exchange earning in current and preceding three
licencing years is Rs 1.5 crores. However, the parts of
motor cars, sports utility vehicles/ all purpose vehicles such
as chassis etc cannot be imported under the EPCG Scheme.
EPCG for Projects
5.1A
Spares (including refurbished/ reconditioned spares), tools,
spare refractories, catalyst & consumable for the existing
plant and machinery may also be imported under the EPCG
Scheme subject to an export obligation equivalent to 8 times
of duty saved to be fulfilled over a period of 8 years
reckoned from the date of issuance of licence.
5.1B
An EPCG licence can also be issued for import of capital
goods for supply to projects notified by the Central Board of
Excise and Customs under S.No 441 of Customs Exemption
Notification No 21/2002 dated 01.03.2002 wherein the
basic customs duty on imports is 10% with a CVD of 16%.
The export obligation for such EPCG licences would be
eight times the duty saved. The duty saved would be the
difference between the effective duty under the aforesaid
Customs Notification and the concessional duty under the
EPCG Scheme.
Eligibility
5.2
The scheme covers manufacturer exporters with or
without supporting manufacturer(s)/ vendor(s), merchant
exporters tied to supporting manufacturer(s) and service
providers.
Conditions for import
of Capital Goods
5.3
Import of capital goods shall be subject to Actual User
condition till the export obligation is completed.
Export obligation
5.4
The following conditions shall apply to the fulfillment of
the export obligation:(i)
The export obligation shall be fulfilled by the
export of goods capable of being manufactured or
produced by the use of the capital goods imported
under the scheme.
The export obligation may also be fulfilled by the
export of same goods, for which EPCG licence has
been obtained, manufactured or produced in
different manufacturing units of the licence
holder/specified supporting manufacturer (s).
When Capital Goods are imported for pre/ postproduction or license is taken for import of spares,
the license holder shall fulfill the export obligation
by export of products manufactured from the plant /
project to which the pre/ post- production capital
goods/ spares are related.
The import of capital goods for creating storage
and distribution facilities for products
manufactured or services rendered by the EPCG
licence holder would be permitted under the EPCG
Scheme.
The export obligation under the scheme shall be,
over and above, the average level of exports
achieved by him in the preceding three licensing
years for same and similar products except for
categories mentioned in Handbook (Vol.1).
Alternatively, export obligation may also be
fulfilled by exports of other good(s) manufactured
or service(s) provided by the same firm/company
or group company/ managed hotel which has the
EPCG licence.
However, in such cases, the additional export
obligation imposed under EPCG scheme shall be
over and above the average exports achieved by the
unit/company/group company/ managed hotel in
preceding three years for both the original and the
substitute product(s) /service (s) even in cases
where the average is exempt for the substitute
product (s)/ service (s) as given in para 5.7.6 of the
Handbook (Vol 1).
The incremental exports to be fulfilled by the
licence holder for fulfilling the remaining export
obligation can include any combination of exports
of the original product/ service and the substitute
product (s)/ service (s). The exporter of goods can
opt to get the export obligation refixed for the
export of services and vice versa.
The licencee can also opt for the re-fixation of the
balance export obligation based on 8 times of the
duty saved amount for the CIF value in proportion
to the balance Export obligation under the scheme.
The guidelines for the re-fixation of export
obligation is given in para 5.19 of the Handbook
(Vol 1).
The aforesaid facilities shall only be available to
manufacturer exporters/ service provider on all the
licences where export obligation period including
extended export obligation period is valid on the
date of application . In this regard, exports made
only on or after submission of application for
alternate item and/ or re-fixation of the export
obligation based on duty saved amount will be
taken into account for fulfillment of export
obligation.
(ii)
The export obligation under the scheme shall be, in
addition to any other export obligation undertaken by
the importer, except the export obligation for the
same product under Advance Licence, DFRC, DEPB
or Drawback scheme.
(iii) The export obligation can also be fulfilled by the
supply of ITA-1 items to the DTA provided the
realization is in free foreign exchange.
(iv) Exports shall be physical exports. However, deemed
exports as specified in paragraph 8.2 (a), (b), (d), (f),
(g) & (j) of Policy shall also be counted towards
fulfilment of export obligation alongwith the usual
benefits available under paragraph 8.3 of the Policy.
Royalty payments received in freely convertible
currency and foreign exchange received for R& D
services shall also be counted for discharge under the
EPCG scheme. Payment received in rupee terms for
the port handling services, in terms of Chapter 9 of
the Foreign Trade Policy shall also be counted for
export obligation discharge under the Scheme.
Provision for BIFR
units
5.5.1
Any firm/company registered with BIFR or any firm/
company acquiring a unit, which is under BIFR shall be
allowed EO extension as per the rehabilitation package
prepared by the operating agency subject to subsequent
approval of BIFR.
However, in cases where the rehabilitation package does
not specify the EO extension period, a time period upto 12
years reckoned from the date of issue of licence would be
permitted on merits of the case for fulfillment of export
obligation.
Similarly, small-scale SSI units shall also be entitled for
similar facility as per the rehabilitation scheme of the
concerned State government. However, in cases where the
State rehabilitation scheme does not specify the export
obligation extension period, a time period upto 12 years
reckoned from the date of issue of licence would be
permitted on merits of the case for fulfillment of export
obligation
EPCG for agro units
5.5.2
In the case of EPCG licences issued to agro units in the
agri export zones, a period of 12 years reckoned from the
date of issue of the licence would be permitted for the
fulfillment of export obligation.
The agro units in the agri export zones would also have the
facility of moving the capital good (s) imported under the
EPCG within the agri export zone.
An LUT/ Bond in lieu of BG may be given for EPCG
licence granted to units in the Agri Export Zones provided
the EPCG licence is taken for export of the primary
agricultural product (s) notified in Appendix 15 or their
value added variants.
Indigenous Sourcing of 5.6
Capital Goods and
benefits to Domestic
Supplier
Benefits to Domestic
Supplier
5.7
A person holding an EPCG licence may source the capital
goods from a domestic manufacturer instead of importing
them. The domestic manufacturer supplying capital goods
to EPCG licence holders shall be eligible for deemed
export benefit under paragraph 8.3 of the Policy.
In the event of a firm contract between the EPCG licence
holder and domestic manufacturer for such sourcing, the
domestic manufacturer may apply for the issuance of
Advance Licence for deemed exports for the import of
inputs including components required for the manufacturer
of said capital goods.
The domestic manufacturer may also replenish the inputs
including components after supply of capital goods to the
EPCG licence holders.
5.7A
In case of direct imports, the export obligation relating to
the EPCG licence shall be reckoned with reference to the
duty saved value on the CIF value of capital goods
(including spares, jigs, fixtures, dies and moulds) actually
imported. In case of domestic sourcing, the export
obligation relating to EPCG shall be reckoned with
reference to the notional Customs duties saved on the FOR
of capital goods (including spares, jigs, fixtures, dies and
moulds).
5.8
Service provider in Agri export zone shall have the facility
to move or shift the capital goods within the zone provided
he maintains accurate record of such movements.
However, such equipments shall not be sold or leased by
the licence holder.
5.9
Maintenance of
Average exports under
EPCG
As per the provisions of para 5.4(i) , the EPCG licence
holder would have to maintain the average level of exports
equivalent to the average of the exports in the preceding
three licencing years for the same and similar products
except for exempted categories given in Handbook (Vol 1)
during the entire period of export obligation.
Fixation of Export
Obligation
Notwithstanding the above, the licence holder shall
maintain at least 75% of the average exports in any
particular year (s) provided the same is offset by excess
exports to fulfil the average in other year (s).
5.10
Technological
Upgradation of existing
EPCG licence holders can opt for Technological
Upgradation of the existing capital good imported under
EPCG machinery
the EPCG licence.
The conditions governing the Technological Upgradation
of the existing capital good are as under:
(i)
The minimum time period for applying for
Technological Upgradation of the existing capital
good imported under EPCG is 5 years from the date
of issuance of the licence.
(ii) The minimum exports made under the old capital
good must be 40% of the total export obligation
imposed on the first EPCG licence
(iii) The export obligation would be refixed such that the
total export obligation mandated for both the capital
goods would be the sum total of 6 times the duty
saved on both the capital goods.
(iv) The procedure governing the replacement of capital
good is given in para 5.20 of the Handbook (Vol1).
Prohibited and Restricted Items - Overview
Before you list your item, you need to find out if your item is allowed on eBay and if the
type of item is subject to certain restrictions to avoid potential issues with your listing. As
an eBay seller, you are ultimately responsible for making sure that selling an item is legal
in the eyes of the law.
Violations of these policies may result in a range of actions, including:
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Listing cancellation
Limits on account privileges
Account suspension
Forfeit of eBay fees on cancelled listings
Loss of PowerSeller status.
When policy violations occur, eBay emails the seller, as well as bidders, that a listing has
been ended. You may contact eBay to report violations by using the “Report” or “Contact
Us” links found on most policy pages.
Understanding the rules about prohibited and restricted items

Policies about listing items are often based on country and state laws. However,
many restrictions may involve the sale of dangerous or sensitive items and are not
necessarily prohibited by law. The limitations are the result of input by numerous
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stakeholders, including the Community. For example, see Offensive Material
Policy.
When selling across borders, be aware of international trading and import
restrictions. Certain items may be legal in your country, but may be illegal
elsewhere.
Just because a particular type of item is listed below, it does not mean that it is
completely prohibited. For example, in the Used Medical Devices Policy, many
items are prohibited (for example, contact lenses), but many others are allowed –
under certain circumstances (for example some medical instruments).
Note: Examples are designed to help explain the policy and should not be viewed
as an exhaustive list.
It is also important to review the Rules for Listings and the Rules about
Intellectual Property to check if your type of item has additional restrictions that
would affect your listing.
Prohibited and Restricted Items List:
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Adult Material (see Mature Audiences)
Alcohol (see also Wine)
Animals and Wildlife Products - examples include live animals, mounted
specimens, and ivory
Artifacts
Beta Software
Bootleg/Pirated Recordings
Brand Name Misuse
Catalogue and URL Sales
Clothing, Used
Comparison Policy
Compilation and Informational Media
Contact Information
Contracts
Copyrights
Counterfeit Currency and Stamps
Downloadable Media
Drugs
Electronic Surveillance Equipment
Event Tickets
Firearms, Ammunition, Militaria, Weapons and Knives
Fireworks, Explosives and Explosive Substances
Food
Games Software: Sony, Sega, and Nintendo
Government IDs and Licenses
Hazardous, Restricted, and Perishable Items
Human Parts and Remains
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Importation of Goods - examples include CDs that were intended only for
distribution in a certain country
International Trading
Items Encouraging Illegal Activity – examples include an eBook describing how
to create methamphetamine
Mature Audiences
Medical Devices - examples include contact lenses, pacemakers, and surgical
instruments
Misleading Titles
Mod Chips
Movie Prints
OEM Software
Offensive Material - examples include ethnically or racially offensive material
Police, Army, Navy and Air force Related Items
Pre-Sale Listings
Prohibited Services
Promotional Items
Real Estate
Recordable Media
Replica and Counterfeit Items
Ringtones
Stocks and Other Securities
Stolen Property
Surveillance Equipment
Tobacco
Trademarks
Travel
Weapons & Knives
Wine (see also Alcohol)
Canalisation (genetics)
From Wikipedia, the free encyclopedia
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Norms of reaction for two genotypes. Genotype B shows a strongly bimodal distribution
indicating differentiation into distinct phenotypes. Each phenotype is buffered against
environmental variation - it is canalised.
Canalisation (canalization in American English) is a measure of the ability of a
population to produce the same phenotype regardless of variability of its environment or
genotype. The term canalisation was coined by C. H. Waddington, who also helped
explain its developmental mechanisms. He also introduced the epigenetic landscape, in
which a canalised trait is illustrated as a valley enclosed by high ridges, safely guiding the
phenotype to its "fate".
Canalisation is divided into genetic and environmental canalisation; genetic canalisation
refers to distinct genotypes producing the same phenotype, while environmental
canalisation refers to the same genotype producing the same phenotype in spite of
environmental variation.
Genetic canalization could allow evolutionary capacitance, where genetic diversity
accumulates in a population over time, but without changing the organisms' phenotype.
This hidden diversity could then be unleashed by extreme changes in the environment,
allowing a rapid burst of evolution.[1]
A recent molecular example was given by Rutherford & Lindquist.[2] Hsp90 is a
chaperone protein, monitoring the correct folding of some polypeptides into proteins.
Rutherford & Lindquist heat shocked Drosophila embryos, therefore presumably
recruiting a portion of cytoplasmic Hsp90 to respond to the stress. The decrease in the
normal monitoring activity of Hsp90 resulted in many morphological changes in the adult
flies. These changes would disappear at the next generation in the absence of the stress. A
genetic reduction in HSP90 function had similar effects. One possible conclusion is that
Hsp90 is buffering mutations: flies have accumulated many mutations, but their effect is
masked by Hsp90. To test this hypothesis, they crossed flies displaying morphological
changes, mimicking natural selection during big environmental changes. The resulting
flies displayed morphological changes even in the absence of heat shock or mutant
alleles : the amount of accumulated mutations in these flies had overcome the buffering
capacity of Hsp90 and these flies had changed their epigenetic valley. This, then, is an
example of genetic canalisation.