Importability/ exportability of a particular item to be governed by policy as on date of import/export: DGFT

New Delhi, Apr 27 (KNN) The Directorate General of Foreign Trade (DGFT) has made amendments in the provision of the Foreign Trade policy (2015-20) on Transitional Arrangements. The amended rule states that the importability/ exportability of a particular item are governed by the policy as on the date of import/export and the Bill of Lading & Shipping Bill are the key documents for deciding the date of import and export respectively.

In a notification dated 25 April, DGFT has amended the provision in Para 1.05 (b) of the Foreign Trade policy (2015-20) on Transitional Arrangements.

As per the existing para of Foreign trade policy 1.05 (b) an export or import that is permitted freely under FTP is subsequently subjected to any restriction or regulation, such export or import will ordinarily be permitted, notwithstanding such restriction or regulation, unless otherwise stipulated,  subject to the condition.

The condition imposed was that the shipment of export or import is made within the original validity period of an irrevocable commercial letter of credit, established before the date of imposition of such restriction and it shall be restricted to the balance value and quantity available and time period of such irrevocable letter of credit.

Further it stated that for operationalising such irrevocable letter of credit, the applicant shall have to register the Letter of Credit with jurisdictional Regional Authority (RA) against computerized receipt, within 15 days of the imposition of any such restriction or regulation.

Now the amended para of the notification said the “item wise Import/Export Policy is delineated in the ITC (HS) Schedule I and Schedule II respectively and the importability/ exportability of a particular item are governed by the policy as on the date of import/export.”

Further, the date of import/ export is defined in para 2.17 of HBP, 2015-20.

Also, it stated that the Bill of Lading and Shipping Bill are the key documents for deciding the date of import and export respectively.

In case of change of policy from free' to 'restricted/prohibited/state trading' or 'otherwise regulated', the import/export already made before the date of such regulation/restriction will not be affected.

However the import through High Sea sales will not be covered under this facility.

Further, the import/export on or after the date of such regulation/restriction will be allowed for importer/exporter has a commitment through Irrevocable Commercial Letter of Credit (ICLC) before the date of imposition of such restriction/ regulation and shall be limited to the balance quantity, value and period available in the ICLC.

 For operationalizing such ICLC, the applicant shall have to register the ICLC with jurisdictional RA against computerized receipt within 15 days of imposition of any such restriction/regulation.

Whenever, Government brings out a policy change of a particular item, the change will be applicable prospectively (from the date of Notification) unless otherwise provided for. (KNN/YV)