DGFT POLICY CIRCULAR. NO 20 DATED 5.12.2007
Subject: Norms Committee - Para 4.7 cases Guidelines
Work distribution in existing 7 Norms Committees (NC) is as per Indian Trade Classification (Harmonized System) – ITC (HS) of export products (Annexure A).
2. Time schedule is notified for fixation of norms, after issue of Advance Authorisation (AA) as under:
(i) 4 months for ad hoc norms fixation (Handbook of Procedures, Volume1 (HBPv1): Para 4.7.6),
(ii) 12 months validity of such fixed ad hoc norms (Public Notice 37 dt 23.8.07), and
(iii) Efforts to be made to convert ad hoc norms to Standard Input Output Norms (SION) within 6 months, and positively within 12 months from date of ratification of ad hoc norms.
3.1 Major causes for delay in ratification of ad hoc norms are as under:
(i) Receipt of application from RA and subsequent taking up in NC;
(ii)Availability of technical opinion from competent authority; and
(iii) Adequacy / Completeness of information supplied by AA applicant.
3.2 For expeditious disposal and adherence to above time schedule, action must be initiated by Regional Authorities (RAs) and NCs in a time bound manner as per Action Calendar annexed herewith (Annexure B).
NCs meet on a weekly basis and action points for RAs / NCs are given starting with ‘Week 0’, when AA is issued.
3.3 Presently, technical departments in Government are referred to for advice on admissibility of import/export requirements for fixation of ad hoc norms. NCs decide such Para 4.7 applications based on technical information. NCs should decide permissible quantities based on "average" yields / efficiency, process requirements, past production, consumption data etc.
Chairperson(s) of NC may also associate other competent technical authorities (like CSIR institutions, IIT departments etc) for advice, keeping in view delay in deciding such applications, wherever necessary.
3.4 Most exporters/industrial manufacturers prepare a project report, which include details
- establishing profitability, based on output sale proceeds and input cost forecasts, and
- outlining basic manufacturing process, giving quantitative details of inputs
Such project reports can also be submitted by exporters along with the ad hoc norm applications. This will expedite decision making for fixation of ad hoc norms.
In specific cases, RAs may also seek such reports to facilitate early fixation of ad hoc norms.
3.5 Norms Committees need to mention export / import item details in generic terms, with detailed technical nomenclature and specifications (rather than brand names); to the extent possible. This would enable its application to other cases also.
3.6 Ad hoc norms, once fixed, would be put on DGFT website. These ad hoc norms may form the basis of further AAs, to any other applicant, (without reference to DGFT / NCs) while these await changes/confirmation and conversion to SION.
Necessary changes are being made in DGFT website and EDI database for this. Ad hoc norms, fixed henceforth, would be uploaded on DGFT website on a monthly basis by the respective NCs.
3.7 In cases, where AAs are issued for components on net to net basis, they need not be forwarded to NC for finalization /ratification.
3.8 Quite often, ad hoc norms cannot be finalised for want of information from concerned applicant/firm. For example: Application for paints / surface coatings/printing inks must contain details (amongst others)
(a) solid resin content (in %), (b) pigment content (in %), and (c) volatile content in the export product (in %).
If such details (as outlined for different products in Appendix 33) are not given by applicant, licence / AA should not be issued by RAs to start with. Suitable amendments may also be made from time to time by Policy Division in Appendix 33, specifying additional information required to be submitted by Para 4.7 applicants. This would avoid recurrence of such cases in future.
At times, Technical Authorities seek additional information directly from AA applicant. In all such cases, NC must issue a deficiency letter also. Wherever additional information requested by Technical Authority/NC is not furnished within a reasonable period by Para 4.7 applicant and the application cannot be finalised for want of technical information / advice, in such cases the AA application shall be rejected by NC.
3.9.1 Wherever, a SION exists and an application under Para 4.7 is made for higher quantity of imported inputs (than the same fixed under SION), such requests can be entertained for SION revision only. That is, such applications cannot be considered under HBPv1 – 4.7 for ad hoc norms, and AA in such cases must be issued only as per the then prevailing SION.
3.9.2 In cases, where a SION exists and an application is made for additional inputs, other than those specified in SION, AA may be issued under Para 4.7.
4.1 After fixation of ad hoc norms, the same needs to be converted into SION with changes, if necessary. Following steps need to be taken in this respect :
(i) All suggestions received from different stakeholders consequent to uploading on DGFT website (as in Para 3.6 above) must be taken into account while finalizing SION; and
(ii) All ad hoc norms fixed after 1.4.2004 (when the then existing SIONs were last made available as a published document) would be uploaded on DGFT website during the current financial year 2007-08, and accordingly, the case should be finalised and notified into SION positively by July, 2008.
4.2 An exercise to review all SIONs (as to quantities fixed) which have been notified before 1.4.2004 (and where further AAs have been issued) may be initiated on an sustained / regular basis. This is necessary in view of ongoing technological advancements and industrial process developments.
4.3 Exporters, aggrieved with decisions of NC, can represent again to concerned NC within 4 months from date of decision on ad hoc norm fixation. All such representations must be made directly to NC (with a copy to jurisdictional RA) and NC shall decide such representations within 4 months thereafter.
5 For trade facilitation, information regarding status of Para 4.7 cases can be accessed by RAs and individual exporters on DGFT website (dgft.gov.in)
(R.S. Gujral)
Director General of Foreign Trade
Annexure A
Annexure B
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India may open gates for more Pak goods India is contemplating pruning the sensitive list to expand trade with Pakistan. Government officials said that two most important items in which Pakistan has an export interest are textiles and agricultural products. An Indian Council for Research in International Economic Relations (ICRIER) study observed that Pakistani exporters feel that India rigorously applies import restrictions in these two categories. India has 884 items under the sensitive list, while Pakistan has 1,183 items. Officials said that Pakistani trade negotiators have argued that India has a larger proportion of items in the list compared to Pakistan in key sectors such as textiles and agricultural products, a fact brought out by the ICRIER study. India has 20 per cent of the items in the sensitive list in the agriculture sector and 34 per cent in textile products. The corresponding figures for Pakistan in the two sectors are 4 per cent and 24 per cent respectively, the study said. Pakistani industry and policy makers have been voicing concerns about India’s protected market and feel that India imposes non-tariff barriers that restrict market access of Pakistani goods into India. As a result, the trade balance continues to be in India’s favour even though Pakistan follows a positive list approach. In August, both countries took a host of measures to improve trade relations and set a $10-billion bilateral trade target by 2010. India has given Pakistan a list of 484 tariff lines for inclusion in Pakistan’s positive list of items importable from India, and has asked Pakistan to submit a list of the 20 items that might be facing non-tariff barriers. Indian trade officials, however, maintained that a positive list policy is in gross violation of the South Asian Free Trade Agreement (SAFTA). The expansion of the positive list is done in consultation with industry bodies, though no clear criterion is applied to determine these items. "There continue to be products that are of trade interest but have not been included in the positive list so far. This was indicated by the fact that in the recent expansion of the positive list by 302 items, only 2 appeared in the top 50 items that were of export interest to India and of import interest to Pakistan," an official said. (Source: Hindustan Times) |
