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DGFT should issue orders on QCO item imports as replenishment under AA | Finance News

We refer to the DGFT notification no.71/2023 dated 11th March 2024 regarding the exemption for import of items covered under Quality Control Orders (QCOs). It says that imports under advance authorisations will be subject to pre-import condition and the export of goods manufactured from such imports must be made against the same advance authorisation. Now, we have some advance authorisations where we have already fulfilled the export obligation fully or partly and we have to import the items covered under QCOs as replenishment. We are not sure if the JDGFT will endorse such items for imports. Secondly, we cannot export against the same authorisation as export obligation is already completed. Please advise how we can proceed because unless we import such items duty free as replenishment, we will have to take losses.


The problem you have mentioned is quite widespread. The said notification no.71 does not deal with such situations. I suggest that you represent the matter to the DGFT through your export promotion council for granting a general relief to all exporters who have a similar problem. Simultaneously, you may approach the Policy Relaxation Committee for suitable relief in your individual case.  


Q: We are making an application in form ANF-10A for issue of General Authorisation for Export of Chemicals and Related Equipments (GAEC) of SCOMET Items. Such GAECs are issued with a validity of 5 years. The form ANF-10A asks for details such as buyer’s name and address, end product for which the export item will be used by the end user, consignee details, foreign bank details etc. At present, we do not know to whom we will be selling such SCOMET items during the next 5 years. We are making marketing efforts. We are confused about how to go about.  Please guide.


It appears the government intends to give GAEC for exports of SCOMET items only to the parties to whom you have already made some exports. If so, that should be made clear in the FTP. If not, the DGFT should consider prescribing a separate application form for GAEC. I agree that the form ANF-10A is more suitable for application for specific authorisations and not GAEC. Anyway, I suggest you give whatever details you can and say in your covering letter that details of buyers called for cannot be given now as the marketing efforts are on-going efforts and that you are hopeful of getting orders and executing them quickly. Of course, I am not sure that will work. 


We had imported certain items from a trader in Malaysia and claimed concessional duty under the India-Asean FTA on the basis of the Certificate of Origin, which shows the AIFTA content based on the FOB price trader charged to us. The Customs say that the FOB price should not include the trader’s margin. Is that correct?

The Customs are probably guided by the cost elements to be considered for calculation of FOB value given at Annexure-1 to the notification no.189/2009-Cus(NT) dated 31.12.2009.

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First Published: Apr 01 2024 | 11:41 PM IST

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