FTP - Export of a prohibited item under Advance Authorization - CBEC Clarifies
THE Department of Revenue has issued notification no. 01/2014-Customs dated 17.01.2014 to implement changes in the Foreign Trade Policy (2009-14). The changes in the FTP provide for permitting the export of items which are otherwise prohibited for export, namely, items falling under Chapter 7 and 15 of ITC (HS) Schedule 2, under the Advance Authorization Scheme with specific conditions that are stricter than under a normal Advance Authorization. In such cases, the Advance Authorization will contain specific mention of the Public Notice No. (RE-2013) dated 14.11.2013.
At the time of export an undertaking from the authorization holder has been prescribed to the effect that the resultant products, being exported against the authorization, which is otherwise prohibited for export, has been manufactured from the material already imported under the authorization. This undertaking is to also contain details of imports and exports made under the authorization. This condition has been prescribed to enable the customs officer to form a reasonable satisfaction that the goods under export are not the prohibited goods. The officer is to record suitable comments in this regard in the EDI field for departmental comments.
CBEC wants the Chief Commissioners and Commissioners to educate the field and the trade on these aspects.
Circular No., Dated: February 10, 2014