FTP - Inputs actually used in export product should only be imported and those actually imported must be used in export product - Applies to SEZs also
THE Central Government had inserted a new para 4.1.15 in the FTP 2009-2014 by Notification No.31 dated 1.8.2013, which read as,
"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."
Now two sentences are added at the end:
These provisions will also be applicable for supplies to SEZs and supplies made under Deemed exports. Details as given above will have to be indicated in the relevant export documents/import documents/ documents for domestic procurement."
DGFT Notification No.48/(RE-2013)/2009-2014, Dated: October 30, 2013