Inputs actually used in export product should only be imported and those actually imported must be used in export product
THE Central Government has inserted a new para 4.1.15 in the FTP 2009-2014 and consequently Para 4.2.3 of FTP is also amended.
The new paragraph reads -
"4.1.15 Wherever SION permits use of either (a) a generic input or (b) alternative inputs, unless the name of the specific input(s) [which has (have) been used in manufacturing the export product] gets indicated / endorsed in the relevant shipping bill and these inputs, so endorsed, match the description in the relevant bill of entry, the concerned Authorisation will not be redeemed. In other words, the name/description of the input used (or to be used) in the Authorisation must match exactly the name/description endorsed in the shipping bill. At the time of discharge of export obligation (EODC) or at the time of redemption, RA shall allow only those inputs which have been specifically indicated in the shipping bill."
The long and short of this insertion is that Inputs actually used in manufacture of the export product should only be imported under the authorisation. Similarly inputs actually imported must be used in the export product and this has to be established in respect of every Advance Authorisation / DFIA.
Excellent fodder for the agencies to run riot.
Notification 31/(RE-2013)/2009-2014, Dated: August 01, 2013