Duty Free Import Authorisation – Customs notification to give effect to FTP
The Foreign Trade Policy had announced a new scheme Duty Free Import Authorisation. But the policy remains a policy and can be given effect to only when the Customs translates the aspirations of the Commerce Ministry into executable notifications. Now the Revenue Ministry has notified the scheme subject to the conditions that:-
the description, value and quantity of materials imported are covered by the authorisation and the authorisation is produced before the proper officer of customs at the time of clearance.
where import takes place after fulfilment of export obligation, the shipping bill number(s) and date(s) and quantity and Free on Board (FOB) value of the resultant product are endorsed on the authorisation:
where import takes place before fulfilment of export obligation, the quantity and FOB value of the resultant product to be exported are endorsed on the said authorisation;
a bond is executed in case of imports before fulfilment of export obligation.
Imports and exports are to be allowed only through certain ports.
Input stage rebate or duty free inputs or Cenvat credit should not be availed
Proof of export obligation to be produced
Goods cannot be disposed of before export obligation has been discharged in full.
Transfer of authorisation as well as goods is allowed after discharge of export obligation.
Defective material can be re exported within three years.
NOTIFICATION NO. , Dated: May 1, 2006