Policy 4.1 The Policy relating to the general provisions regarding exports and imports is given in Chapter 4 of the Policy.
Countries of Imports/ Exports 4.2 Unless otherwise specifically provided, import/ export will be valid from/ to any country except Iraq. However, there shall be no ban on the export of items to Iraq in case where the prior approval of the concerned Sanctions Committee of the United Nation’s Security Council has been obtained. 
  4.3  Export of items as given in Appendix-37 to Libya is prohibited.
Application fee 4.4  The applicant making an application under any provision of the Policy and this Handbook shall pay the specified fee, unless otherwise exempted. The scale of fees, mode of payment and procedure for refund of fees and the categories of persons exempted from the payment of fees are contained in Appendix-34.
Territorial jurisdiction of Licensing Authorities 4.5  Every application shall be submitted to the licensing authority concerned, unless otherwise specified, as per the territorial jurisdiction of the licensing authorities as given in Appendix-27.
IEC No: Exempted Categories 4.6  The following categories of importers or exporters are exempted from obtaining the Importer - Exporter Code (IEC) number :
Importers covered by Clause 3(1) [except sub-clauses (e) and (l)] and exporters covered by Clause 3(2) [except sub-clauses (i) and (k)] of the Foreign Trade (Exemption from Application of Rules in certain cases) Order, 1993.
Ministries/ Departments of the Central or a State Government.
Persons importing or exporting goods for their personal use not connected with trade or manufacture or agriculture.
Persons importing/exporting goods from/to Nepal provided the CIF value of a single consignment does not exceed Indian Rs.25,000.
Persons importing/exporting goods from/to Myanmar through Indo-Myanmar border areas provided the CIF value of a single consignment does not exceed Indian Rs.25,000. 
Application for grant of IEC No. 4.7  An application for grant of IEC number shall be made by the Registered/ Head Office of the applicant to the licensing authority concerned, in the form given in Appendix-2A and shall be accompanied by documents prescribed therein.
IEC format and statements 4.8  The Licensing Authority concerned shall issue an IEC number in the format as given in Appendix-2B. A copy of such IEC number shall be endorsed to the concerned banker (as per the details given in the IEC application form). A consolidated statement of IEC numbers, issued by the licensing authority, shall be sent to the Exchange Control Department of the RBI in terms of Appendix 36, as per details given in Appendix-2C
Validity of IEC No. 4.9 An IEC number allotted to an applicant shall be valid for all its branches/ divisions/ units/factories as indicated on the IEC No. 
Duplicate copy of IEC No.  4.10 Where an IEC Number is lost or misplaced, the licensing authority who issued the original certificate may consider requests for grant of a duplicate copy of IEC number, if accompanied by an affidavit.
Surrender of IEC No. 4.11  If an IEC number holder does not wish to operate the allotted IEC number, he may surrender the same by informing the Licensing Authority which had granted the said IEC number. On receipt of such intimation, the Licensing Authority shall immediately inform all the RBI/Customs/ Licensing authorities that the said IEC number has become inoperative.
Application form for import and export of items in the Negative lists 4.12 An application for grant of a licence for import or export of items mentioned as restricted in ITC(HS) Classifications of Export and Imports items may be made in the form and to the licensing authorities specified under the relevant chapters of this Handbook.
Imports under Indo-US Memorandum of Understanding 4.13 Import of specified capital goods, raw materials, components, etc. from the United States of America is subject to US Export Control Regulations. US suppliers of such items are required to obtain an export licence based on the import certificate furnished by the Indian importer to the US supplier. The following are the designated Import Certificate Issuing Authorities (ICIA) :
  (i) The Department of Electronics, for import of computer and computer based systems;
  (ii) The Department of Industrial Policy and Promotion, Technical (TSW), for organised sector units registered under it, except for import of computers and computer based systems;
  (iii) The Ministry of Defence, for defence related items;
  (iv) The Director General of Foreign Trade for small scale industries and entities not covered above as well as on behalf of any of the above;
  (v) The Embassy of India, Washington, DC, on behalf of any of the above.
  4.14  A request for an import certificate shall be made in the form given in Appendix-7. The import certificate in the form given in Annexure to Appendix-7 may be issued by the ICIA directly to the importer with a copy to (i) Ministry of External Affairs (AMS Section), New Delhi, (ii) Department of Electronics, New Delhi and (iii) Directorate General of Foreign Trade, New Delhi. However, this import certificate will not be regarded as a substitute for an import licence in respect of the items mentioned as restricted in ITC(HS) Classifications of Export and Imports items and an import licence will have to be obtained wherever required for such items. 
Validity of import licences/ CCPs 4.15 (a) The validity of import licence shall be as follows:

Duty free licence as per chapter 7 and replenishment licence for Gem & Jewellery as per chapter 8 of the Policy
18 months
EPCG licence
24 months
Others including CCP and DEPB, unless otherwise specified
12 months
Advance licence/ Special Imprest Licence for project Turnkey project 18 months or 

Co-terminus with the contracted duration of execution of the project whichever is later.

    (b) Where the date of expiry of the licence falls before the last day of the month, the licence shall be deemed to be valid until the last day of the month.
    (c) The period of validity means the period for shipment/despatch of goods covered under the licence. The validity of an import licence is decided with reference to the date of shipment/ despatch of the goods from the supplying country as given in paragraph 15.15 of this Handbook and not the date of arrival of the goods at an Indian port.
Revalidation of Import/ export Licences 4.16 The licence may be revalidated on merits by the licensing authority concerned, which has issued the licence, for a period of six months at a time but not beyond a period of 12 months reckoned from the date of expiry of the validity period. However, revalidation of freely transferable licences and stock and sale licence shall not be permitted. 
    An application for revalidation may be made to the licensing authority concerned in the form given in Appendix-12. `However, in cases where revalidation of the licences is to be considered by DGFT, the original application alongwith TR/Demand Draft shall be submitted to the regional licensing authorities concerned and copy of the same shall be submitted to DGFT.
4.17 Delete 
Duplicate copies of Export-Import Licences/ CCPs 4.18 Where a licence is lost or misplaced, an application for grant of a duplicate copy thereof may be made alongwith an affidavit as given in Appendix-13 to the licensing authority which has issued the original licence. The licensing authority concerned may, on merits, issue a duplicate copy of the same after issuing an order for cancellation of the original licence and informing the customs authority where the original licence was registered. 
  4.19 Duplicate copy of freely transferable licences shall not be issued. However, duplicate copy of freely transferable Advance Licence and DEPB may be issued against an application accompanied by the following documents :- 
  1. An application with a fee equivalent to 10% of duty saved.
  2. A copy of FIR reporting the loss.
  3. A copy of the orginal affidavit on notorised stamp paper.
  4. Indemnity bond on a stamp paper undertaking to indemnify the revenue loss to the Government which may be caused on account of issue of duplicate licenses backed by appropriate Bank Guarantee.
The licensing authority, before issuing the licenses shall obtain the report regarding utilisation of the licences from the Custom authority at the port of registration mentioned in the original licence. The duplicate licence shall be issued only for the balance which remained unutilised as per the report furnished by the Customs authority at the port of registration .  

The validity of duplicate licence shall be coterminus with the original license and therefore no request shall be entertained if the validity of the original licence has expired. 

The 10% duty saved amount in DEPB will be equivalent to 10% of the available credit balance on the lost DEPB whereas for Advance licence the amount shall be calculated on the basis of duty saved amount for the balance quantity and proportionate cif value as per the information available in Column –22 of Appendix-11(B) of Hand Book of Procedures. 

Filing of application  4.20 Every application for an import/ export licence or any other purpose should be complete in all respects as required under the relevant provisions of the Policy/ procedure and shall be signed by the applicant as defined in paragraph 3.8 of the Policy. An incomplete application is liable to be rejected.
Identity Cards 4.21 To facilitate collection of licences and other documents, identity cards may be issued to the proprietor/ partners/ directors and the authorised employees, not more than three, of the importers and exporters. An application for issuance of an Identity Card may be made in the form given in Appendix-4. The documents/ licences will be delivered to the identity card holder on the responsibility and risk of the importer/exporter where he is employed. In case of loss of an identity card, a duplicate card may be issued. The identity card shall be issued in the format as given in Appendix 4A and shall be valid for a period of three years from the date of issuance. 
Interviews with authorised officers. 4.21 A Importer/Exporter and their employees shall have free access to the offices of the licensing authorities, authorised to grant interviews. Such officers may also grant interview to any other authorised representative of the importer/exporter to make specific representation. 
Export of items reserved for SSI Sector 4.22 Units other than small scale units are permitted to expand or create new capacities in respect of items reserved for the small scale sector, subject to the condition that they obtain an Industrial licence under the Industries (Development and Regulation), Act, 1951. It is a condition of such licences that the manufacturer shall undertake export obligation as may be specified by the Ministry of Industry and the licensee is required to furnish a Legal Undertaking to the Directorate General of Foreign Trade in this behalf. The Export obligation shall be monitored by the Directorate General of Foreign Trade. 
Warehousing facility 4.23 Private Customs Bonded Warehouses may be set up in Domestic Tariff Area by following the procedure envisaged in chapter IX of the Customs Act, 1962. Such warehouses shall be permitted to import the items in terms of paragraph 4.15 of the Policy.
    On receipt of goods, such warehouses shall keep the goods for a period of one year without payment of applicable customs duties. Goods can be cleared against the Bill of Entry for home consumption, on payment of applicable custom duty and submission of licence wherever required, provided an order for clearance of such goods for home consumption has been made by the competent customs authorities. In case of clearance against Advance licence, Annual Advance Licence exemption from duty may be allowed. Likewise, in case of clearance against DEPB, credit may be adjusted while allowing duty free imports. 
    The goods can be re-exported without payment of customs duty provided (i) a shipping bill or a bill of export is presented in respect of such goods and (ii) order for export of such goods has been made by competent customs authorities.
    Import, storage, clearance or re-export is subject to the provisions of the Customs Act, 1962 and the rules, orders or notifications or instructions issued in respect of these provisions.
Execution of BG/Legal Undertaking . 4.24 Before clearance of goods through customs, the importer shall, execute a legal undertaking (LUT)/Bank Guarantee (BG) with the customs authorities in the manner as may be prescribed by them.
    In case of indigenous sourcing, the licence holder shall furnish BG/LUT to the licensing authority before sourcing the material from the nominated agencies or indigenous supplier.  

The Super Star Trading House/Star Trading House/Trading House/ Export House/Public Sector Undertaking and Manufacturer exporter registered with excise authority with export of Rs.1 crore and above in preceeding year and who has not been penalised under the Customs Act, Excise Act, Foreign Trade (Development and Regulation) Act, 1992 and FERA shall be required to furnish Legal Undertaking in the form given in Appendix-24B. Manufacturer exporters (other than EH/TH/STH/SSTH/Public Sector undertakings) shall be required to furnish bond supported by Bank Guarantee to the extent of 25% of Excise duty saved and merchant exporters (other than EH/TH/STH/ SSTH/Public sector undertakings), shall be required to furnish bond supported by Bank Guarantee to the extent of 100% of excise duty saved on the items which they intend to procure indigenously in lieu of direct imports.  

In case, the firm has already executed BG/LUT for full value of the licence covering the item indigenously procured as well to the Customs and furnishes proof of the same, no separate BG/LUT shall be required to be executed with the licensing authority.

Preferential trading arrangement 4.25 India is a participant to Global System of Trade Preferences (GSTP), Bangkok agreement (BA), SAARC Preferential Trading Arrangement (SAPTA), under which it grants and receives tariff concessions on imports and exports. To avail of the tariff preference, it is to be ensured that import or exports qualifies for the preference in accordance with the rules of origin requirement of the agreement concerned.  

The Government has notified the agencies authorised to issue Certificate Of Origin for each of the agreement. The list of authorised agencies and their addresses is provided in Appendix 51A. The authorised agencies shall provide all services relating to issuance of Certificates Of Origin including blank certificate, details regarding the rules of Origin, list of items covered by an Agreement. Extent of tariff preference, verification and certification of eligibility etc. They may charge a fee, as approved by Ministry of Commerce, for the services rendered. 

    In addition to above, Government has nominated certain authorised agencies to issue non preferential certificate of origin in accordance with the article II of International Convention relating to simplification of Customs formalities,  1923. These certificates of origin evidence the origin of goods and do not besto any right to preferential Tariffs, the list of these agencies is provided in Appendix 51B.
Automatic licence for EH/TH/ STH/SST 4.26 The Export House/Trading House/Star Trading House/Super Star Trading House shall be issued licences automatically within the stipulated time period. Deficiency, if any, shall be informed in the covering letter which shall be required to be rectified by the status holders within 10 days from the date of communication of deficiency.
  4.27 Wherever the original documents have been submitted to a different licensing authority/nominated agencies or to a different division of the same licensing authority, the applicant can furnish photocopy of the documents duly certified by him in lieu of the original. 
Advance payment 4.28 In case when payment is received in advance and export take place subsequently, the application for a licence shall be filed within specific period following the month during which the exports are made. 
Export by post 4.29 In case of export by post, the exporter shall submit the following documents in lieu of documents prescribed for export by Sea/Air. 
  1. Bank Certificate of Export and Realisation as given in Appendix 25.
  2. Relevant postal receipt
  3. Invoice duly attested by the Customs. 
  4.30 In cases where application is to be considered by ALC/ SALC/Regional EPCG Committee/Zonal EPCG Committee/ Hqrs. EPCG Committee/Special Licensing Committee/ Export Licensing Committee/ High Powered Licensing Committee, the original copy of the application, alongwith prescribed fee, shall be filed with regional licensing authorities concerned and an attested copy of the same shall be filed with the related Committee mentioned above.  


Export of samples
4.32 Imports of bonafide technical and trade samples of items mentioned as restricted in ITC(HS) Classifications of Export and Imports items shall be allowed without a licences for a value not exceeding Rs.1 lakhs (CIF) in one consignment except vegetable seeds, bees and new drugs by any importer. However, samples of tea not exceeding Rs.2000(CIF) in one consignment shall be allowed without a licence by any person connected with Tea industry. 

Exports of bonafide trade and technical samples having indelible marking as "sample not for sale" shall be allowed freely without any limit. However, in such cases where indelible marking is not available, the samples may be allowed for a value not exceeding US$ 10,000/- per consignment.  

In addition, the exporter shall have the option to avail the facility of free samples upto US$ 5000/- or 1% of the preceeding years exports, whichever is higher. 

Import under Lease Financing 
Permission of the licensing authority is not required for import of capital goods under lease financing. However, the condition of actual user or licence wherever required under the Policy or this Handbook shall be applicable in case of import of capital goods under such lease financing. The facility shall also be available under EPCG Scheme, EOU/EPZ scheme. The domestic supplier of capital goods to eligible categories of deemed exports shall be eligible for the benefits of deemed exports as given in paragraph 10.3 even in cases where the supplies are under lease financing. 
Import/ Export 

through Courier Service

4.33 Imports/Exports through a registered courier service is permitted as per the Notification issued by the Department of Revenue. However, importability/exportability of such items shall be regulated in accordance with the Policy.
Exhibits required for National and International Exhibitions or Fairs and Demonstration 4.34 Import/export of exhibits, including construction and decorative materials required for the temporary stands of the foreign/indian exhibitors at the exhibitions, fair or similar show or display for a period of six months on re-export/re-import basis, shall be allowed without a licence on submission of a certificate from an officer of a rank not below that of an Under Secretary to the Government of India in the Ministry of Commerce or an officer of the Indian Trade Promotion Organization duly authorised by its Chairman in this behalf, to the effect that such exhibition, fair or similar show or display, as the case may be,
    (i) has been approved or sponsored by the Government of India in the Ministry of Commerce or the India Trade Promotion Organization and
    (ii) is being held in public interest.
    Extension beyond six months for re-export/re-import will be considered by the Customs authorities on merits. Consumables such as paints, printed material, pamphlets, literature etc pertaining to the exhibits need not be re-exported/re-imported.