Import of Fuel as Basic Raw Material - DGFT clarifies
IMPORT of Fuel is governed by the General Note for Fuel specified in HBP v2 as amended by PN No. 66/2009-14 dated 19.5.2010. The amendment allowed import of fuel even for Adhoc Norms cases under Paragraph 4.7 of Handbook of Procedures, v1.
DGFT has noticed that this provision is also applied to cases where ‘Fuel' is being used as a main raw material for manufacturing export product and in such cases the import entitlement is determined as per the ‘General Note for Fuel'.
In this regard, DGFT clarifies as follows:
(i) The General Note for Fuel has been incorporated in view of provisions at para 4.1.3 of FTP which allows fuel as an additional input to obtain export product.
(ii) In cases where fuel is used as a single input or basic raw material and not as an additional input to the export product, the entitlement shall not be as per the General Note for Fuel. Rather the import entitlement will be either as per SION, if it exists or in non-SION cases, an applicant can seek the inputs in terms of para 4.7 of the HBP v1 and the final adjustment will be made as per adhoc / SION fixed by Norms Committee.
DGFT CIRCULAR NO. 33/(RE-2010)/2009-14, Dated: July 1, 2011