Amendment in Para 4.14 and 4.16 (ii) of the Foreign Trade Policy 2015-20

Circular No. ES/ 354/2018-19                                                         January 11, 2019

To:  Members of the Council

Sub: Amendment in Para 4.14 and 4.16 (ii) of the Foreign Trade Policy 2015-20

Dear Member,

We would like to inform you that DGFT has issued Notification No. 53/2015-20 dated 10th January, 2019 by making amendments in Para 4.14 relating to Details of Duties exempted and 4.16 (ii) relating to Actual User Condition for Advance Authorisation  under Foreign Trade Policy 2015-20.

  1. Amendments in Paragraph 4.14 of FTP 2015-20-

Existing Paragraph 4.14 of FTP 2015-20

Amended Paragraph 4.14 of FTP 2015-20

Imports under Advance Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty,  Countervailing  Duty,  Safeguard  Duty,  Transition  Product  Specific Safeguard  Duty,  wherever  applicable.  Import against  supplies  covered under paragraph 7.02 (c), (d) and (g) of FTP will not be exempted from payment of applicable Anti-dumping Duty, Countervailing Duty, Safeguard Duty and Transition Product Specific Safeguard Duty, if any. However, imports under Advance Authorisation for physical exports are also exempt from whole of the integrated tax and Compensation Cess leviable under sub-section  (7)  and  sub-section  (9)  respectively,  of  section  3  of  the Customs  Tariff  Act,  1975  (51  of  1975),  as  may  be  provided  in  the notification issued by Department of Revenue, and such imports shall be subject to pre-import condition.  Imports against Advance Authorisations for physical exports are exempted from Integrated Tax and Compensation Cess upto 01.10.2018 only. 

Imports under Advance Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty,  Countervailing  Duty,  Safeguard  Duty,  Transition  Product  Specific Safeguard  Duty,  wherever  applicable. Import against supplies  covered under paragraph 7.02 (c), (d) and (g) of FTP will not be exempted from payment of applicable Anti-dumping Duty, Countervailing Duty, Safeguard Duty and Transition Product Specific Safeguard Duty, if any. However, imports under Advance Authorisation are also exempt from whole of the Integrated Tax and Compensation Cess leviable under sub-section  (7)  and  sub-section  (9)  respectively,  of  section  3  of  the Customs  Tariff  Act,  1975  (51  of  1975),  as  may  be  provided  in  the notification issued by Department of Revenue, for making physical exports or domestic supplies notified at Sr. Nos. 1,2 and 3 of the table contained in Notification no. 48/2017- Central Tax dated 18.10.2017 issued by Department of Revenue. Imports against Advance Authorisations are exempted from Integrated Tax and Compensation Cess upto 31.03.2019 only. 

  1. Amendments in Paragraph 4.16 (ii) of FTP 2015-20-

Reference to jurisdictional customs authority is deleted.

Members may kindly make a note of the above.

Thanking you,

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR