DGFT Policy Circular No-26/2007 dated
09.01.2008
Export of restricted / prohibited items, clarification regarding eligibility
under Schemes under Chapter 3 of FTP 2004-09
Attention is invited to provisions contained in Chapter 3 of
the Foreign Trade Policy 2004-09, RE2004 to RE2007, with respect to export of
restricted / prohibited items.
2. It has been brought to the notice of DGFT that exporters of items that are
presently restricted / prohibited as per the itemized policy given in ITC HS
book, file claims under VKGUY Scheme if the said export product is appearing in
Appendix 37A. In the recent past, for many items, the itemized policy has been
modified from ‘free’ to ‘restricted’ or ‘prohibited’.
3. Attention is invited to Para 3.8.2.2 and sub paragraph (d) therein of FTP
(RE2007). It may be noted that this clause existed in Para 3.8.2.1 of FTP RE2004
(that applies to exports during 2004-05), FTP RE2005 (that applies to exports
during 2005-06) and FTP RE2006 (that applies to exports during 2006-07). For
schemes under Chapter 3 of FTP2004-09, the date of exports is to be determined
in terms of Para 9.12 of HBP v1.
4. In terms of this clause, if the itemized policy of an export product is
changed from ‘free’ to ‘restricted’/’prohibited’, then for grant of VKGUY
benefits, this clause is invoked. Accordingly, even when the exports may have
been permitted on account of EO of Advance Authorisation, or on account of
transitional arrangements or may have been otherwise permitted by DGFT; grant of
benefits under VKGUY scheme (erstwhile VKUY scheme) for exports of items which
are currently restricted or prohibited in terms of ITC HS itemized Policy shall
not be allowed, as the same is clearly ineligible.
5. Similarly, under Focus Market Scheme, vide Para 3.9.2.2 (k) of FTP RE2007
(that applies to exports during 2007-08) and Para 3.9.2.1 of FTP RE2006 (that
applies to exports during 2006-07), exports of restricted / prohibited items is
ineligible. Accordingly the decision as per Para 4 above shall apply mutatis
mutandis.
6. With respect to Focus Product Scheme/High-Tech Products Export Promotion
Scheme, it is clarified that Para 4 above shall again apply, as the item which
has been restricted / prohibited for exports is obviously ineligible, as the
same would no longer remain a Focus Product/High-Tech Product for the purpose of
boosting export through grant of benefits (even if the export product is
appearing under Appendix 37D/37E of HBP v1).
This issues with the approval of the DGFT.
Sd/-
(A. K. Singh)
Joint Director General of Foreign Trade
(Issued from File No: 01/94/180/895/AM08/PC-I)
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