ANNOUNCEMENT 10 May 2018

The Ministry of Commerce and Industry through Public Notice 6/2015-2020 has made amendments to the Foreign Trade Policy regarding input norms for import of raw materials and regarding additional export obligation fulfillment period for precious metal importers.

NUMBER OF INTERVENTIONS

3

  • 1 harmful
  • 2 neutral
  • 0 liberalising

SOURCE

Public Notce 6/2015-2020
http://dgft.gov.in/Exim/2000/PN/PN18/PN%206(e).pdf

Inception date: 10 May 2018 | Removal date: open ended
Still in force

Import tariff

The Public Notice has removed the Standard Input Output Norms (SION) in the Foreign Trade Policy for importing maize to produce export products such as maize starch powder, liquid glucose, dextrose monohydrate, anhydrous dextrose, modified starch, corn gluten, and sorbitol.

The SION norms prescribe the standard quantity of inputs for producing specified quantities of output. When importing raw materials (here, maize) to produce export products under duty-exemption schemes of the government, the SION norms are used by the customs officers to automatically allow/restrict the quantum of duty-free imports.

The removal of the SION norms will require the importer to justify each batch of imports to avail the duty exemption and can be expected to increase uncertainty and procedural delay.

 

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 10 May 2018 | Removal date: open ended
Still in force

Tax-based export incentive

The Public Notice also increased the Export Obligation Period for precious metals such as gold, silver, and platinum, if they are not imported for use in the gems and jewelry sector, from 120 to 180 days. The export obligation period is the period, from the date of imports, within which the importer has to fulfill its export obligations.

The reduced period of 120 days is applicable only if the above metals are imported for use in the gems and jewelry sector.

The Ministry of Commerce and Industry through its various export incentive schemes allows duty-free imports of raw materials or capital goods provided the importer fulfills certain export obligations within the specified periods.

Inception date: 10 May 2018 | Removal date: open ended
Still in force

Tax-based export incentive

The Public Notice has removed the Standard Input Output Norms (SION) in the Foreign Trade Policy for importing maize to produce export products such as maize starch powder, liquid glucose, dextrose monohydrate, anhydrous dextrose, modified starch, corn gluten, and sorbitol.

The SION norms prescribe the standard quantity of inputs for producing specified quantities of output. When importing raw materials (here, maize) to produce export products under duty-exemption schemes of the government, the SION norms are used by the customs officers to automatically allow/restrict the quantum of duty-free imports.

The removal of the SION norms will require the importer to justify each batch of imports to avail the duty exemption and can be expected to increase uncertainty and procedural delay.