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Imports
IMPORTS
5.1 Policy
The Policy relating to the general provisions regarding import of capital goods, raw materials, intermediates, components, consumables, spares, parts, accessories, instruments and other goods is given in chapter 5 of the Policy.
5.2 General Procedure for Licensing of Restricted Goods
Wherever an import licence, including customs clearance permit (CCP), is required under the Policy, the procedure contained hereunder shall apply.
5.3 Import of Second hand Goods/Waste
The following items may be imported without a licence:
- Any form of metallic waste, scrap, seconds and defectives, other than those which are of a value below the value specified for any such items by a notification issued in this behalf, and excluding hazardous, toxic waste, radio active contaminated waste/scrap containing radio active material;
- Waste paper;
- Deleted
- Woollen rags/ synthetic rags/ shoddy wool in completely mutilated form subject to the condition that mutilation must conform to the requirements as specified by the customs authorities.
- PET bottle waste/scrap;
- Import of all types of ships may be made without a licence on the basis of guidelines issued by Ministry of Shipping and as per the age/residual life norms prescribed by the Ministry of Shipping.
- Pre-shipment inspection certificate from any of the Inspection &
Certification agencies given in Appendix-32A to the effect that the
consignment does not contain any type of arms, ammunition, mines,
shells, cartridges, radio active contaminated or any other explosive
material in any form either used or otherwise.
Simultaneously these agencies will also certify that the imported item(s) is actually a metallic waste/scrap/ seconds/defective as per the internationally accepted parameters for such a classification.
- A copy of the contract between the importer and the exporter stipulating that the consignment does not contain any type of arms, ammunition, mines or shells, cartridges, radio active contaminated, or any other explosive material in any form either used or otherwise.
Import of second hand capital goods, which are not more than 10 years old, shall be allowed freely. However, the same shall not be transferred, sold or otherwise disposed off within a period of two years from the date of import, except with the prior permission of the Director General of Foreign Trade.
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5.9 Import of Ammunition by Licensed Arms Dealers
Import of following types of ammunition are allowed against a licence by licensed arms dealers subject to the conditions as may be specified:
- Shotgun Cartridges 28;
- Revolver Cartridges of .450, .455 and .45 bores; Pistol Cartridges of .25, .30 Mauser, .450 and .45 bores;
- Rifle Cartridges of 6.5 mm, .22 savage, .22 Hornet, 300 Sherwood, 32/40, .256, .275, .280, 7m/m Mauser, 7 m/m Man Schoener, 9m/m Mauser, 9 m/m Man Schoener, 8x57, 8x57S, 9.3 m/m, 9.5 m/m, .375 Magnum, .405, .30.06, .270, .30/30 Winch, .318, .33 Winch,.275 Mag., .350 Mag., 400/350, .369 Purdey, .450/400, .470, .32 Win, .458 Win, .380 Rook, .220 Swift and .44 Win. bores.
An application for grant of a licence for items listed in paragraph 5.9 above may be made to the licensing authority in the form given in Appendix-8 alongwith the documents prescribed therein.
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5.19 Restricted Items Required By Hotels, Restaurants, Travel Agents, Tour Operators And Other Specified Categories
Items mentioned as restricted for imports in ITC(HS) required by hotels, restaurants, travel agents and tour operators may be allowed against a licence. Import licence shall be granted on the recommendation of the Director General, Tourism, Government of India.
5.20 Hotels, including tourist hotels, recognised by the Director General of Tourism, Government of India or a State Government shall be entitled to import licences upto a value of 25% of the foreign exchange earned by them from foreign tourists during the preceding licensing year. Such licences shall be granted for the import of essential goods related to the hotel and tourism industry.
5.21 Travel agents, tour operators, restaurants, and tourist transport operators and other units for tourism, like adventure/wildlife and convention units, recognised by the Director General of Tourism, Government of India, shall be entitled to import licences up to a value of 10% of the foreign exchange earned by them during the preceding licensing year. Such licences shall be granted for the import of essential goods related to the travel and tourism industry, including office and other equipment required for their own professional use.
5.22 Import of motor vehicles, including tourist coaches and airconditioning units for the vehicles, shall be permitted within the entitlement of the licence granted under paragraphs 5.20 and 5.21 above in the case of hotels, travel agents and tour operators only.
5.23 The import entitlement under paragraphs 5.20 and 5.21 of any one licensing year can be carried forward, either in full or in part, and added to the import entitlement of the two succeeding licensing years.
5.24 The import licences granted under paragraphs 5.20 and 5.21 shall not be transferable. However, transferability of such licences granted to hotels/ restaurants/travel agents/tour operators may be allowed within their respective groups.
5.25 The goods imported against such licences shall not be transferred to anyone within a period of 2 years from the date of their import without the prior permission of the Director General of Foreign Trade.
5.26 An application for grant of a licence under paragraphs 5.20 and 5.21 may be made in the form given in Appendix-8 to the Director General of Foreign Trade or Director of Tourism, Government of India who will forward the application to the licensing authority concerned alongwith the recommendations on the import entitlement and the goods to be imported.
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5.29 Import of Other Restricted Items
ITC(HS) contains the list of restricted items. An application for import of such items may be made, in the form given in Appendix-8 to the Director General of Foreign Trade alongwith documents prescribed therein.
5.30 Restricted Items Licence
Restricted item licence (RIL) may be granted by the Director General of Foreign Trade or any other licensing authority authorised by him in this behalf. The DGFT/ licensing authority may take the assistance and advice of a licensing committee. The licensing committee will consist of representatives of technical authorities and Departments/ Ministries concerned.
Note:- Heading has been amended as per PN No.11(RE-01)1997-2002 Dt. 1.5.2001.
5.31 Gifts of Consumer or Other Goods
In terms of the provisions contained in paragraph 5.5 of the Policy, an application for grant of Customs Clearance Permit for import as gifts of items appearing as restricted for imports in ITC(HS) shall be made to the Director General of Foreign Trade in the form given in Appendix-8 alongwith documents prescribed therein.
However, where the recipient of a gift is a charitable, religious or an educational institution registered under a law relating to the registration of societies or trusts or otherwise approved by the Central or a State Government and the gift sought to be imported has been exempted from payment of customs duty by the Ministry of Finance, such import shall be allowed by the customs authorities without a Customs Clearance Permit.
5.32 Import under Govt. to Govt. Agreements
Import of goods under Government to Government agreements may be allowed without a licence or Customs Clearance Permit on production of necessary evidence to the satisfaction of the Customs authorities.
5.33 Import of Cheque Books/ Ticket Forms etc.
Indian branches of foreign banks, insurance companies and travel agencies may import cheque books, bank draft forms and travellers cheque forms without a Customs Clearance Permit. Similarly, airlines/shipping companies operating in India, including persons authorised by such airlines/shipping companies, may import passenger ticket forms without a Customs Clearance Permit.
5.34 Import of Reconditioned/ Second Hand Aircraft Spares
Air India, Indian Airlines, Vayudoot, Pawan Hans Ltd. and scheduled domestic private airlines, private sector/public sector companies and State Governments operating executive/ training aircraft or those engaged in the aerial spraying of crops and non scheduled airlines and charter service operators will be eligible to import, without a licence, reconditioned/second hand aircraft spares on the recommendation of the Director General of Civil Aviation, Government of India.
5.35 Import of Replacement Goods
- Goods or parts thereof on being imported and found defective or
otherwise unfit for use or which have been damaged after import may
be exported without a licence, and goods in replacement thereof may
be supplied free of charge by the foreign suppliers or imported
against a marine insurance or marine-cum-erection insurance claim
settled by an insurance company. Such goods shall be allowed
clearance by the customs authorities without an import licence
provided that:
- The shipment of replacement goods is made within 24 months from the date of clearance of the previously imported goods through the Customs or within the guarantee period in the case of machines or parts thereof where such period is more than 24 months; and
- No remittance shall be allowed except for payment of insurance and freight charges where the replacement of goods by foreign suppliers is subject to payment of insurance and/or freight by the importer and documentary evidence to this effect is produced at the time of making the remittance.
- The importer shall also have the option to claim refund of payment, if any, already made to the foreign supplier, instead of obtaining replacement of goods referred to above.
- In such cases where the goods have been found short-shipped, short-landed or lost in transit prior to actual import and/or detected as such at the time of customs clearance, import of replacement goods will be permitted on the strength of the certificate issued by the customs authorities without an import licence. This procedure shall also apply to cases in which short-shipment of goods is certified by the foreign supplier and he has agreed to replace the goods free of cost.
- Cases not covered by the above provisions will be considered on merits by the licensing authority for grant of licences for replacement of goods for which an application may be made in the form given in Appendix-8.
- Goods, which are importable without restriction, can be
transferred by sale or otherwise by the importer freely. Transfer of
imported goods, which are subject to Actual User condition under the
Policy and have become surplus to the needs of the Actual User,
shall be made only with the prior permission of the licensing
authority concerned. The following information alongwith supporting
documents shall be furnished with the request for grant of
permission for transfer, to the licensing authority concerned:
Reasons for transfer of imported material;
Name, address, Importer Exporter Code No. and industrial licence/ registration, if any, of the transferee;
Description, quantity and value of the goods imported and those sought to be transferred;
Copies of import licence and bills of entry relating to the imports made;
Terms and conditions of the transfer as agreed upon between buyer and the seller.
- Prior permission of the licensing authority shall not, however,
be necessary for transfer or disposal of goods, which were imported
with Actual User condition provided such goods are freely importable
without Actual User condition on the date of transfer.
- Prior permission of the licensing authority shall also not be required for transfer or disposal of imported goods after a period of two years from the date of import.
5.38 Sale of Exhibits
- Sale of exhibits of restricted items, mentioned in ITC(HS), imported for an international exhibition/ fair organised/ approved/ sponsored by the India Trade Promotion Organisation (ITPO) may also be made, without a licence, within the bond period allowed for re-export, on payment of the applicable customs duties, subject to a ceiling limit of Rs.5 lakhs (CIF) for such exhibits for each exhibitor. However, sale of exhibits of items, which were freely imported shall be made, without a licence, within the bond period allowed for re-export on payment of applicable customs duties.
- If goods brought for exhibition are not re-exported or sold within the bond period due to circumstances beyond the control of the importer, the customs authorities may allow extension of the bond period on merits.
On the winding up of overseas offices, set up with the approval of the Reserve Bank of India, used office equipment and other items may be imported without a licence.
5.40 Labels, Price Tags And Like Articles For Export Products
Supplies, made by foreign buyers or procured by the exporters on the advice of foreign buyers, of labels, price tags, hangers, PVC boxes, inlay cards, printed bags, stickers and trimming materials like buttons ,belts shoulder pads, buckles, eyelets, hooks and eyes and rivets to be attached to the goods against specific orders placed by foreign buyers on Indian exporters, may be imported without a licence.
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5.42 Prototypes
Import of new/second hand prototypes/ second hand samples not exceeding ten in number in a year on payment of duty may be allowed without a licence to an Actual User, industrial engaged in the production of or having industrial licence/ letter of intent for research in the item for which prototype is sought for product development or research, as the case may be, upon a self - declaration to that effect, to the satisfaction of the customs authorities. Applications for grant of licence/CCP for import of additional requirements of prototypes/ samples not exceeding ten in number in a year shall be considered by the Licensing Authority concerned on merits.
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5.47 Restricted items for R&D
All restricted items, except live animals, required for R&D purpose may be imported without a licence by Government recognised research and development Units.
