Circular No. ES/ 129/2018-19 July 23, 2018
To: Members of the Council
Sub:- Accountability of inputs where Advance Authorisations are issued on net to net basis for parts/ components
We would like to inform you that DGFT has issued Policy Circular No.10/2018-19 dated 13th July, 2018 regarding Accountability of inputs where Advance Authorisations are issued on net to net basis for parts/ components.
As you are aware, SI.No-6 of General Note for all products of Standard Input Output Norms reads as under:
“Unless specified, otherwise, the import of components wherever allowed shall be permitted on net to net basis, i.e., without any wastage, with accountability clause and the type, technical specifications (including part No. if any), etc., of the components sought for import should conform to those utilized in the manufacture of the resultant product, which should be reflected in export documents (Shipping Bills) also. A condition to this effect shall be imposed on the licence.”
In this connection, DGFT has received representations from Trade and Industry informing the difficulties being faced by them in getting EODCs where inputs have been obtained on net to net basis subject to accountability clause in terms of SI No-6 of General Notes for All Export Products Groups. Exporters have declared the inputs in the shipping bill.
However, doubts have been raised whether declaring inputs in the shipping bill amounts to fulfillment of accountability clause as mentioned in the above general notes. Some exporters have not indicated model/part numbers of inputs imported duty free while making shipments.
To improve ease of doing business and to facilitate issuance of EODC, it has been decided by Office of DGFT that EODC shall be issued on the basis of the following:
The above will also be applicable for Advance Authorisations where EODC are pending irrespective of policy period.
Members may kindly make a note of the above and do the needful at the earliest.