Free Sale and Commerce Certificate

1. Regional Authorities (RAs) may issue, on application, Free Sale and Commerce certificate for export of items not covered under Drugs & Cosmetics Act, 1940, which have usage in hospitals, nursing homes and clinics, for medical and surgical purposes and are not prohibited for export. Validity of such certificate shall be two years from date of issue unless otherwise specified.

An application for grant of Free Sale and Commerce Certificate may be made to RA concerned as per format in ANF 2 H (application for free sale & commerce certificate) of Appendices and Aayat Niryat Forms with Annexure A therein. RA shall issue Free Sale and Commerce Certificate as per Annexure B of ANF2H.

Click here for ANF 2H (https://content.dgft.gov.in/Website/ANF-2H.pdf)

End User Certificate

In case of import of any freely importable item in India, if a foreign Government insists on certification of end user of the item, before permitting export of the same from their country, RA may issue such certificates as per Appendix 2Q of Appendices and Aayat Niryat Forms. The certificate shall be issued based on application made under ANF 2 J along with documents prescribed therein.

Click here for ANF 2J (https://content.dgft.gov.in/Website/ANF-2J.pdf)

Imports under Indo-US Memorandum of Understanding

a) Import of specified capital goods, raw materials and components, from United States of America (USA) is subject to US Export Control Regulations. US suppliers of such items are required to obtain an export authorisation based on import certificate issued in India. The following are designated Import Certificate Issuing Authorities (ICIA):

  • Department of Electronics (DoE), for computer and computer-based systems
  • Department of Industrial Policy and Promotion (DIPP), Technical Support Wing (TSW), for organised sector units registered under it, except for computers and computer-based systems.
  • Ministry of Defence (MoD), for defence related items.
  • DGFT for small scale industries and entities not covered above as well as on behalf of any of the above.
  • Embassy of India, Washington, DC, on behalf of any of the above.

b) Application for an import certificate shall be made in ANF 2K(i). Import certificate in Appendix-2P(Ia) may be issued by ICIA directly to importer with a copy to (i) Ministry of External Affairs (MEA) (AMS Section), New Delhi, (ii) DoE, New Delhi; and (iii) DGFT.

Click here for ANF 2K(i) (https://content.dgft.gov.in/Website/ANF-2K.pdf)

c) However, this import certificate will not be regarded as a substitute for an import authorisation in respect of items mentioned as restricted in ITC (HS) and an import authorisation will have to be obtained for such items.

d) India’s import and export with regard to USA’s unilateral export control items [Crime Control (CC) Items as listed in Appendix 2P(iia) and Regional Security (RS) items as listed in Appendix 2P(iib)] will be governed by the following regulations: Items listed at both Appendix 2P (iia) and Appendix 2P(iib) will be allowed by DGFT for import from USA provided the importer submits the following documents in ANF 2K(i) :

  • Documentary proof of Bill of Lading indicating Port of USA,
  • Legal undertaking that goods shall not be exported/ alienated;
  • Import is with Actual User condition.

e) In case the importer wants to subsequently export the imported items from USA, or any part thereof, such export will require an authorisation from DGFT as per ANF 2K (ii) and Export certificate will be issued in the format Appendix-2P(ib).

f) Import /export of such items shall be allowed only through EDI enabled ports of India.

Recognition as Pre-shipment Inspection Agency (PSIA) and issuance of Pre- shipment Certificate (PSIC)

a) Application for recognition in respect of PSIAs have to be made in proforma prescribed in ANF 2L (application for recognition as pre-ship,ment agency for metal)  Click here for ANF 2L (https://content.dgft.gov.in/Website/ANF-2L.pdf)

b) For applicants based in India application fee will be Rs. 7500/- and for applicants based abroad the application fee will be USD 200. The fees may be amended from time to time by DGFT.

c) The applications will be considered by an Inter- Ministerial Committee.

d) The pre-shipment inspection policy (PSIAs) will be issued a recognition certificate valid for three years. However, DGFT has the right to suspend/cancel such a certificate at any time during the 3-year term. At the end of 3 years PSIA has to make a fresh application for further recognition.

e) PSIA shall issue Pre-Shipment Inspection Certificate (PSIC) in the format given in Appendix 2H.

f) A PSIA can carry out inspections in countries within its area of operation, where it does not have a full-time equipped branch office, by deputing its Inspectors. However, for such inspections, the PSIA will be required to give prior intimation to DGFT by sending an email (at address psia-dgft@nic.in) and furnishing details of visit / inspection done by the Inspector in PSIC.

Registration- cum- Membership Certificate (RCMC)

a) An exporter may, on application given in ANF 2C register and become a member of a sectoral EPC. On being admitted to membership, applicant shall be granted forthwith Registration-cum-Membership Certificate (RCMC) of EPC concerned, in format given in Appendix 2R. In case an exporter desires to get registration as a manufacturer exporter, he shall furnish evidence to that effect. Click here for ANF 2C (https://content.dgft.gov.in/Website/ANF-2C_0.pdf )

b) Prospective / potential exporters may also, on application, register and become an associate member of an EPC.

Certificates of Origin (CoO)

Certificate of Origin (CoO) is an instrument to establish evidence on origin of goods imported into any country. There are two categories of CoO Preferential and Non preferential

Redemption / No Bond Certificate

1. Bond Waiver: In case Authorisation holder exports first (before effecting imports) by using imported inputs / indigenously procured raw material, in that case the Authorisation holder can seek waiver of Bond condition by submitting evidence of export made and payment realised to that extent. If exports made are less than the export obligation stipulated in the Authorisation, request for waiver of bond condition, on pro-rata basis, can also be made.

  • For such a request, an applicant has to file online application attaching Shipping Bills and e-BRC. Scanned copy of other documents as prescribed in the ANF 4F shall also be uploaded. In case of deemed exports or exports from non-EDI ports, the documents evidencing proof of export/supply shall be submitted at the counter of Regional Authority concerned giving reference of online application in physical form except eBRC.Click here for ANF 4F (https://content.dgft.gov.in/Website/ANF-4F_0.pdf)
  • While allowing waiver of Bond, Regional Authority may revalidate the Authorisation in continuation for further six months from the date of endorsement provided applicant has made a specific request and paid requisite fee for revalidation.
  • In case EO has been fulfilled, Regional Authority shall issue Bond Waiver Certificate (BWC) and forward a copy to the Customs authority at the port of registration of Authorisation enclosing details of shipping bill number(s), date(s), FOB value in Indian Rupees as per shipping bill(s) and description of export products in respect of shipment considered for allowing waiver of Bond condition. Such bond waiver shall not preclude the Customs Authority from taking bond in terms of the Customs notification.
  • Copy of the Bond Waiver Certificate will also be endorsed by the Regional Authority to the Customs at the Port of Registration by post till system of transmitting these through EDI mode under message exchange is introduced between DGFT and CBEC.

2Export Obligation Discharge Certificate (EODC):

  • In case Authorisation holder imports / procures inputs first and exports later, the Authorisation holder shall submit online application in ANF-4F as in (a) (i) above. In such cases, if EO has been fulfilled, the Regional Authority may issue EODC / Redemption Certificate to Authorisation holder and forward a copy to the Customs authority at the port of registration of Authorisation indicating the same details of proof of fulfilment of EO as stated in paragraph (a) above evidencing fulfilment of Export Obligation.
  • Copy of EODC will also be endorsed by Regional Authority to Customs at the Port of Registration by post till system of transmitting these through EDI under message exchange between DGFT and CBEC is introduced.

Ordinarily, redemption of BG / LUT shall not preclude customs authority from conducting random checks and from taking action against Authorisation holder for any misrepresentation, mis- 114 declaration and default detected subsequently as per the Customs Act. Authenticity of such Certificate shall be verified by referring to DGFT website (dgft.gov.in). DGFT will publish details of such certificate on its official web every month. Regional Authority shall take action against Authorisation holder in case of non-submission of Appendix 4H & 4-I duly filled in.

Certificate of Installation of Capital Goods

  • Authorization holder shall produce, within six months from date of completion of import, to the concerned RA, a certificate from the jurisdictional Central Excise Authority or an independent Chartered Engineer, at the option of the authorisation holder, confirming installation of capital goods at factory/premises of authorization holder or his supporting manufacturer(s). The RA may extend the said period for producing the certificate by a maximum period of another 12 months. Where a unit registered with Central Excise opts for independent Chartered Engineer’s certificate, the authorisation holder shall send a copy of the certificate to the jurisdictional Central Excise Authority as intimation/record.
  • In the case of import of spares, the installation certificate shall be submitted by the Authorization holder within a period of three years from the date of import.

Registered Exporter system (REX) Certificate

REX is a self-certification scheme introduced by the European Union (EU), The scheme facilitates self-assessment of the rules of origin under the Generalized System of Preferences (GSP) and it also replaced issuance of certificates of origin by competent authorities.

Benefits –

The REX system was introduced to ease global trade by reducing effort and cost on the parts of the exporters. It was also aimed to benefit the preferential trade agreements with developing countries and the granting of unilateral tariff preferences to such countries, the REX system will enable exporter  from benefiting countries to become registered exporters. The REX is the first applied in the Generalized System of Preferences (GSP) that enables the EU to grant unilateral tariff preferences to developing countries.

When Importer from EU gets duty concession for importing from a developing country like India.

Benefit to the Importer (Outside India Importer): The importer imports goods from an exporter holding the Rex Registration, are exempted from custom duty on import of certain goods. This helps in allievating the cost incurred by such importers

Benefit to the Exporter (Indian): The REX registration number allotted to the exporter once the registration is completed, after receiving the REX number, the exporter would be in a position to issue the “statement of origin” on his own. He does not have to subsequently go to any of the agencies for issuance of a certificate of origin.

EURO GSP preferential tariff will only be available for the consignments above the value of 6000 Euro, if accompanied by a statement of origin by a registered exporter.

However, consignments having value less than 6000 Euro are entitle without being registered with in REX.

Procedure and list of Documents to be submitted along with REX application.

Note: Kindly do not use your Tax Identification Number for REX registration.

Take two prints of filled in application and submit in EIA office, along with the covering letter on company letter head along with these documents:

  1. Duly filled application firm
  2. Importer exporter profile
  3. Self attested Copy of IEC code certificate
  4. Self attested copy of any of the mentioned documents; TIN/ROC/VAT/Telephone Bill/ Central Excise registration/or any other Government documents
  5. Undertaking as per Appendix I
  6. DEL List verification on DGFT Website.

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