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17 Feb 18 Feb 19 Feb 22 Feb 23 Feb($/bbl) 29.89 31.86 31.07 31.26 30.79(Rs/bbl) 2050.06  2182.01 2127.88 2142.93 2113.53(Rs/$) 68.59 68.49 68.49 68.55 68.64(Previous Trading Day Price)Source: Ministry of Petroleum & Natural Gas

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Cabinet Ratifies WTO TF Agreement – Seeks Five Years to Implement No Movement on Agri Subsidies Re-negotiation as Demanded at Bali Meet

Nearly two years after the Bali agreement, the Cabinet on 17February approved the World Trade Organization’s (WTO)

Trade Facilitation Agreement (TFA), 69 of the 162 WTO Membershave ratified the agreement. This means 43% have ratified offi-cially. To implement the agreement, two-thirds of the total members, or 107 coun-tries, have to approve it. India was the 71stcountry to give nod to the agreement.

With India joining the group, most of theremaining countries will join the club.

The pact aims to expedite the movement,release and clearance of goods, includinggoods in transit, for international trade. Forthis purpose, it sets out measures foreffective cooperation between Customs andother appropriate authorities on trade facili-tation and Customs compliance issues.

Towards this end, a national committee on TFA would be set upto coordinate and implement the provisions of trade facilitation.The committee will be co-chaired by both the revenue secretaryand commerce secretary. WTO says that full implementation ofTFA could increase global merchandise exports by up to $1 trillionannually. The overall boost to world export growth has beenestimated at 2.7 per cent per annum.

Talking to reporters, Commerce & Industry minister NirmalaSitharaman said the pact will bring much-needed predictability totrade related matters, by allowing advance authorisations, easiersharing of information with exporters and ease of business.

Customs Act has to amend to fulfil India’s commitments underthe pact. Goods could be released before duty is paid on aguarantee basis in cases of specific imports. Inward and outwardprocessing for facilitating re-import and re-export of goods forrepair.

Advance ruling has to be broadened to extend the facility to “anyimporter, exporter or any person with justifiable cause”. India’scurrent regime allows advance rulings to a limited set of personssuch as joint ventures and foreign investors.

The minister said bringing about these changes will require asignificant amount of money. However, she said, the governmenthas not sought funding from WTO under Capacity Buildingprogramme.FTAs RelookThese provisions are classified into three classes. Category Aprovisions are those that a country already has in place. Category

B provisions have to be implemented after a transition periodwhile Category C commitments require the assistance of othercountries to become applicable. Most of India’s commitmentsfall in category B, while a few are in A and there is none in C. The

TFA has a few provisions that India hadsuggested in the first place. These includecustoms cooperation to tackle moneylaundering, return of rejected goods andinforming traders when their goods aredetained.

India may take a re-look at its free tradeagreements once the W orld TradeOrganization’s trade facilitation agreement(TFA) comes into force. The move followsa meeting chaired by Prime MinisterNarendra Modi on February 18 where the

role of India’s free trade agreements was discussed in wake ofthe country ratifying the trade facilitation pact.

The meeting, which was attended by commerce and industryminister Nirmala Sitharaman, finance minister Arun Jaitley, NITIAayog vice-chairman Arvind Panagariya and other senior offic-

346 BIG's Weekly Index of Changes No 48/24 February-01 March 2016

11 Col Format with Each Tariff Code coving Basic (SCH) – Basic (NTFN) – CVD I –CVD II Total duty with Cess – Import Policy – Country Preferences

Tariff Line Level Item Unit Basic Basic CVD 4% Spl Total Policy CountryDescription (SCH) (NTFN) EX CVD Duty* Prefs

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

2902 50 00 - Styrene Kg 10 2 12.5 4 19.800 Free SA Sg KrASN My Jp

New Presentation Format with Web Support Single Volume covering 1490 pages DGFT Notifies Minimum Import Price (MIP) on 173 Iron and Steel Items

under Chapter 72 for Six Months ITPO Monopoly on Exhibition Approval Broken, Ntfn 3/89 Superseded by

8/2016 Euro-III Compliant Motorcycles Allowed for Another Year only Till 31 March

2017, Euro-IV Must Thereafter Online Clearance of NTBs to Cover: Plant Quarantine, Food Safety, Drug

Controller, Animal Quarantine, Wild Life Control, Facility Available in Delhiand Mumbai Ports Now

DGFT Notifies Modified Online Application Form for IEC and BankCertificate – Effective from 1 April 2016

Updated RTA Duties effective from 1 January 2016 67 Anti-dumping Duty and Safeguards Duty Notifications Issued in 2015-16 Appeals in HC/CESTAT above Rs.15 lakhs to be Withdrawn (17.12.2015) Export Promotion Schemes – MEIS, SEIS, EPCG, Advance Authorization Custom Procedures with Documentation Self-Assessment of Imports and Exports Food Safety and Standards Act, 2006 (FSSAI) Electronics, Hazardous Wastes

Anti-Dumping Duty and Safeguards Duty

19 Country Preferences: Japan, Malaysia, Singapore, ASEAN, Thai, SAFTA,SAPTA, Sri Lanka, Nepal, Chile, LDCs, Afghanistan, APTA, Korea

Import Policy in Each Tariff Line Export Policy in Full with Tariff

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New

ers of the ministries concerned, took place a dayafter the Union Cabinet approved India’s proposalfor notification of its commitments under agree-ment.

“Essentially, the meeting was to have a broaddiscussion on the TFA, its impact and role of freetrade pacts in wake of India ratifying the TFA...onhow the free trade agreements might have to bechanged once TFA agreement is in force,” said anofficial, who did not wish to be identified.

India has sought five years to make legislativechanges required to implement the agreementwhich seeks to expedite the movement, releaseand clearance of goods, including goods in tran-sit. It also sets out measures for effective coop-eration between customs and other appropriateauthorities on trade facilitation and customs com-pliance issues.

The agreement is part of the WTO’s Bali minis-terial package of 2013.

Nepal to Trade thru Vizag Port,India Allows Transit toBangladesh Also

Nepal and India, today, signed four cru-cial letters of exchange (LoEs) relatedwith trade and transit, which are ex-pected to create a momentum in theeconomic development of the country

through enhancement of the trade sector.Officials of India and Nepal have signed the long-

stalled LoEs on trade and transit on behalf of theirrespective governments in the presence of PrimeMinister KP Sharma Oli and his Indian counter-part Narendra Modi during PM Oli’s visit to India.

The India has agreed to provide transit facilitiesfor Nepal through the Visakhapatnam port soanother gateway for third-country trade like theKolkata Port will be opened.

Till date, the southern neighbour has beenallowing the use of Kolkata Port to import goodsfrom third countries.

Two critical LoEs related to rail transport - ‘RailTransport To and From Visakhapatnam to Nepal’and ‘Rail Transit Facility Through Singabad forNepal’s Trade With and Through Bangladesh’ -were also signed during the prime minister’s visitto India. The Indian government will extend railtransport facility for the Nepal-bound cargoesfrom Visakhapatnam Port and vice versa underthe provision of ‘Rail Transport To and FromVisakhapatnam to Nepal’.

Similarly, LoE on ‘Rail Transit Facility ThroughSingabad for Nepal’s Trade With and ThroughBangladesh’ will help operationalise rail transitfacility through Singabad in India for Nepal’s tradewith and through Bangladesh. Along with theagreement, the traffic in transit to and from Nepaland Bangladesh will move through Indian territoryby rail using Singabad Railway Station (WestBengal, India) and Rohanpur Railway Station inBangladesh.

Seamless movement of vehicles betweenKakadvitta of Nepal to Banglabandha corridor ofBangladesh. Nepal and Bangladesh use Indianterritory of over 52 km to and from Kakadvitta(Nepali border) to Banglabandha (inland port innorthern Bangladesh). Currently, Indian govern-ment allows only a limited number of vehiclesloaded with cargoes through this route citing secu-rity concerns.

BIG's Weekly Index of Changes No 48/24 February-01 March 2016 347

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23 February 2016

What's New ...Board Says Follow MIP on Steel Strictly, Urges Action under Customs Actagainst ViolatorsOctreotide and Somatropin Inserted in 5% Duty List and Anti-HaemophilicFactor Concentrates in Nil Duty ListOmeprazole and Lansoprazole are Two Separate Bulk Drugs – FPSBenefits Allowed to Each of the Two under Sl No. 503 of Table IFIEO Asks for Service Tax Exemption on Services going into Exports;Wants Corpus at 1% of Export Value in MAI and MDADGFT Clarifications on MIP on Steel Import CIF Price must be above Minimum Remittance should be as per

Invoice Goods Shipped on DA Payment before Crucial Date of 5 Feb not Hit by

Ntfn 38/2016 LC before Crucial Date Honored, Register with RLAIndustry Alleges Import of Diclofenac Sodium from China in Unfinished Formto Circumvent Anti-dumping Duty DGAD Launches Investigation of Circumvention in First Ever CaseAnimal Feed Phosphate Past Practice of Excise Levy RegularisedRupee Payment for Supplies to SEZ OK under Foreign Trade Policy 2009-14Report Case Withdrawal in CESTAT to ARRupee Falls by 50 Paise against Dollar to Rs. 68.95; Euro by 90 Paise to Rs.

77.05RBI Clarifies Payment System for Start-ups with Foreign SubsidiaryRegulatory Relaxation for Startups on Sweat EquityGuidelines for Submission of Data under R-Returns (FETERS) Modified Liberalised Remittance Scheme in FETERS

Industry Alleges Import ofDiclofenac Sodium from Chinain Unfinished Form toCircumvent Anti-dumping Duty• DGAD Launches Investigation of

Circumvention in First Ever Case[Anti-dumping Initiation Notification No. 14/22/2014-DGAD dated 17th February 2016]Subject: Initiation of anti c ircumventioninvestigation concerning the alleged circumventionof anti-dumping duty imposed on the imports of“Diclofenac Sodium”, originating in or exportedfrom China PR vide Customs Notification No. 44/2014-Customs (ADD) dated 21st November, 2014.Having regard to the Customs Tariff Act, 1975, asamended from time to time (hereinafter referred toas the Act) and the Customs Tariff (Identification,Assessment and Collection of Anti-dumping Dutyon Dumped Articles and for Determination ofInjury) Rules, 1995 thereof (hereinafter referred toas the Rules or AD Rules),2. Whereas, the Designated Authority, in a sun-set review investigation, vide its Final FindingsNotification No 15/3/2013- DGAD dated 2nd Oc-tober, 2014, had recommended the imposition ofanti dumping duty on the imports of DiclofenacSodium, originating in or exported from China PR,and the Ministry of Finance, vide Customs Notifi-cation No. 44/2014-Customs (ADD) dated 21stNovember, 2014, had imposed the anti dumpingduty on the imports of Diclofenac Sodium, origi-nating in or exported from China PR.3. Whereas, in terms of the Section 9A of theCustoms Tariff Act 1975, read with Rule 25 of theAnti Dumping Rules, M/s Amoli Organics Ltd.(hereinafter referred to as the Petitioner or theDomestic Industry), a major manufacturer ofDiclofenac Sodium in India, has filed a petitionbefore the Authority alleging that Diclofenac So-dium, which is the product subject to anti dump-ing duty vide Customs Notification No. 44/2014-Customs (ADD) dated 21st November, 2014, isnow being circumvented into India by the export-ers of Diclofenac Sodium in China (hereinafterreferred to as the subject country) in an unfinishedform by way of exports of Indolinone (hereinafterreferred to as the subject goods), which is thepenultimate unfinished stage in the process ofmanufacturing the end product Diclofenac So-dium, to circumvent the anti dumping duty im-posed on the imports of Diclofenac Sodium,originating in or exported from China PR.Product Under Consideration4. The product under consideration (PUC) in thepresent petit ion is “Indolinone (1-(2,6-DICHLOROPHENYL)-2-INDOLINONE CRUDE)”.Existing Measures5. The measures currently in force and which areallegedly being circumvented are the anti-dump-ing measures imposed by the Ministry of Financevide Customs Notification No. 44/2014-Customs(ADD) dated 21st November, 2014 on the importsof Diclofenac Sodium, originating in or exportedfrom China PR.Grounds for Initiation6. The Petitioner claims that the circumventionof the anti dumping duty levied on the imports ofDiclofenac Sodium originating in or exported fromthe subject country started after the imposition of

348 BIG's Weekly Index of Changes No 48/24 February-01 March 2016

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anti dumping duty on the imports of DiclofenacSodium vide Customs Notification No. 44/2014-Customs (ADD) dated 21st November, 2014. Thiscircumvention comes under the category of “prod-uct circumvention”. The Petitioner has submittedthat Indolinone already contains the monocularstructure of Diclofenac Sodium. The processinvolved in converting Indolinone to DiclofenacSodium is the process of hydrolysis and sinceIndolinone has basic characteristics of DiclofenacSodium and is comparable to crude DiclofenacSodium, the purification of which leads to manu-facture of Diclofenac Sodium, the value addition inthe production process of finishing the unfinishedIndolinone into Diclofenac Sodium constitutesless than thirty-five percent of the cost of finishedDiclofenac Sodium. This value addition from thestage of Indolinone to Diclofenac Sodium is muchbelow the limits prescribed under the relevantcircumvention provisions under the anti circum-vention rules in India. This circumvention is under-mining the remedial effects of the anti dumpingduty imposed on the imports of Diclofenac So-dium originating in or exported from the subjectcountry vide Customs Notification No. 44/2014-Customs (ADD) dated 21st November, 2014. Evenafter the imposition of anti dumping duty on theimports of Diclofenac Sodium originating in orexported from the subject country, the domesticindustry continues to suffer injury on account ofcircumvention of anti dumping duty from thesubject country.Procedure7. Having satisfied itself on the basis of thepositive prima facie evidence submitted by thedomestic industry substantiating the need for ananti circumvention investigation the anti dumpingduty imposed on the imports of Diclofenac So-dium originating in or exported from the subjectcountry, the Authority has concluded that suffi-cient prima facie evidence exists to initiate an anticircumvention investigation of the alleged circum-vention of the anti dumping duty imposed on theimports of Diclofenac Sodium originating in orexported from the subject country vide CustomsNotification No. 44/2014-Customs (ADD) dated21st November, 2014 in accordance with Section9A(1A) of the Act, read with Rule 25 of Antidump-ing Rules, to investigate as to whether imports ofIndolinone originating in or exported from ChinaPR are at dumped prices and are causing injuryto the domestic industry and the need for extend-ing anti dumping duty imposed on the imports ofDiclofenac Sodium originating in or exported fromthe subject country vide Customs Notification No.44/2014-Customs (ADD) dated 21st November,2014 to the imports of Indolinone originating in orexported from China PR.8. The country involved in this circumventioninvestigation is China PR.9. The period of investigation (POI) for the pur-pose of the present investigation is April, 2014 -September, 2015. The injury investigation periodwill, however, cover the periods April’2011-March’12, April’2012–March’2013, April’2013-March’2014 and the POI.[Full text of this notification available atwww.worldtradescanner.com]

Board Says Follow MIP on Steel Strictly, Urges Action underCustoms Act against Violators[CBEC Instruction No. 10 dated 17th February 2016]Subject: - Minimum Import Price (MIP) on Iron and Steel under Chapter 72 of ITC (HS), 2012- Schedule-I (Import Policy): amendment in Import Policy Conditions.

Kind reference is invited to Notification No. 38/2015-2020 dated the 5th February, 2016 issuedby Directorate General of Foreign Trade. The saidNotification has amended the Import Policy Con-dition against 173 HS Codes under Chapter 72 ofITC (HS), 2012- Schedule-I (Import Policy) as perAnnex to the notification and subject to condi-tions prescribed there under.

2. Keeping in view the above, the Board desiresthat aforementioned instructions are compliedwith strictly. Needless to say, suitable actionmay be initiated under Customs Act, 1962, againstthe importers violating the said provisions.3. Difficulty faced in this regard, if any, may bebrought to the notice of the Board.F.No.450/15/2016-CUS-IV

BIG's Weekly Index of Changes No 48/24 February-01 March 2016 349

ABS Help Desk Service ABS Consultancy Service provides advisory services on trade matters,particularly on trade policies and procedures, duty structure, and WTO issuesfor international organisations, governments and the private sector.

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? Call ARUN GOYAL Director, ABS Help Desk Service at 011-2324 0230 (OfficeHours) or 98100 79983 (Mob) for Help on Regulatory Affairs

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FDITech TradeExchange Control, Exchange RatesAnti-dumping

Your Budget Package DGFT Clarifications on MIP onSteel• Import CIF Price must be above Minimum

Remittance should be as per Invoice• Goods Shipped on DA Payment before

Crucial Date of 5 Feb not Hit by Ntfn 38/2016

• LC before Crucial Date Honored,Register with RLA

17-TN This Directorate has received10.02.2016 various queries for clarification(DGFT) on the Notification No. 38 dated

5th February, 2016 regardingMIP on Iron and Steel under Chapter 72 of ITC(HS) 2012. The following queries raised are clari-fied point-wise as under:-Question1: Whether imports below the USD unitvalue specified in the Notification are restricted forimports?Answer: Imports effected on or after 5.2.2016below the USD unit value specified in the Notifica-tion will be restricted from entry into India.Question 2: What must be the landed unit cost ofthe Importer?Answer: Landed unit cost must not be below thespecified MIP.Question 3: Whether it is possible to importitems covered under Notification No. 38 (2015-2020) having a unit CIF import price below the MIPby paying custom duty on the MIP unit valuespecified in the Notification?Answer: No. It is not possible to import itemscovered under Notification No. 38 (2015-2020)whose unit CIF import price is below the stipulatedMIP by paying custom duty on the MIP specifiedin the Notification. The imported items must havea unit CIF value equal to or above the MIP.Question 4: Import shipments are in Transit andshipped (B/L Date) before 5th February, 2016from China. As the Notification facilitates only LCholders, what happens to importers doing busi-ness on DA/TT basis?Answer: Imports are governed by provisions as inPara 2.17 of Handbook of Procedure (2015-20)which inter-alia lays down that the date of reckon-ing of “import” is decided with reference to date ofshipment/dispatch of goods from supplying coun-try as given in Para 9.11 of Handbook of Proce-dure: and not the date of arrival of goods at anIndian port. Accordingly, imports effected on5.2.2016 and thereafter will be governed by theNotification No. 38 dated 5th February, 2016.Question 5: Whether imports on letter of creditissued on 5th February, 2016 will be permitted forclearance?Answer: No. In the Notification it is clearly statedthat import shipments under letter of credit en-tered into before the date of the Notification shallbe exempted from the Minimum Import Pricecondition subject to Para 1.05(b) of the ForeignTrade Policy 2015-20.Question 6: Will the letter of credit required to beregistered? If so, with which authority?Answer: As per Para 1.05(b) of the Foreign TradePolicy 2015-20, for operationalising irrevocableletter of credit, the applicant/importer will have toregister the Letter of Credit with jurisdictionalRegional Authority(RA) against computerizedreceipt, within 15 days of the imposition of anysuch restriction or regulation.

Animal Feed Phosphate PastPractice of Excise Levy Regularised04-CE(NT) Whereas the Central12.02.2016 Government is satisfied that(DoR) according to a practice that was

generally prevalent regardinglevy of duty of excise (including non-levy thereof)under section 3 of the Central Excise Act, 1944 (1of 1944), (hereinafter referred to as the said Act),on Di-Calcium Phosphate (animal feed grade) ofrock phosphate origin falling under heading 2835of the First Schedule to the Central Excise TariffAct, 1985 (5 of 1986) (hereinafter referred to as thesaid goods), was not being levied according to thesaid practice, during the period commencing onthe 1st day of February, 2008 and ending with the1st day of February, 2014;2. Now, therefore, in exercise of the powers con-ferred by section 11C of the said Act, the CentralGovernment hereby direct that the whole of theduty of excise payable under section 3 of the saidAct on the said goods but for the said practice,shall not be required to be paid in respect of thesaid goods on which the said duty of excise wasnot levied during the period aforesaid in accor-dance with the said practice.

Fully Drawn Polyester Yarn fromChina and Thailand–ClassificationCorrected to 5402 47 from 5402Ntfn 05-ADD In exercise of the powers22.02.2016 conferred by sub-section (1)(DoR) and sub-section (5) of section

9A of the Customs Tariff Act,1975 (51 of 1975) read with rules 18 and 20 ofthe Customs Tariff (Identification, Assessmentand Collection of Anti-dumping Duty on DumpedArticles and for Determination of Injury) Rules,1995, the Central Government hereby makesthe following amendment in the notification ofthe Government of India in the Ministry ofFinance (Department of Revenue), No. 51/2015-Customs (ADD), dated the 21st October,2015, published in the Gazette of India, Ex-traordinary, Part II, section 3, sub-section (i),vide number G.S.R. 804 (E), of the same date,namely:-

In the said notification, in the Table, in column(2), for the entry 5402, wherever it occurs, theentry 5402 47 shall be substituted.

350 BIG's Weekly Index of Changes No 48/24 February-01 March 2016

Exchange Rates for Customs Valuation

Rupee Falls by 50 Paise against Dollar to Rs.68.95; Euro by 90 Paise to Rs. 77.0529-Cus(NT) In exercise of the powers conferred by section 14 of18.02.2016 the Customs Act, 1962 (52 of 1962), and in super(DoR) session of the notification of the Central Board of Excise

& Customs No. 18/2016-CUSTOMS (N.T.), dated the 4th

February, 2016, except as respects things done or omitted to be done beforesuch supersession, the Central Board of Excise and Customs herebydetermines that the rate of exchange of conversion of each of the foreigncurrency specified in column (2) of each of Schedule I and Schedule IIannexed hereto into Indian currency or vice versa, shall, with effect from19th February, 2016, be the rate mentioned against it in the correspondingentry in column (3) thereof, for the purpose of the said section, relating toimported and export goods.

Imprted Goods Exported GoodsSNo. Currency Current Previous Current PreviousSchedule I – Rate of exchange of one unit of foreign currency equivalentto Indian rupees1. Australian Dollar 49.65 49.45 48.40 48.002. Bahrain Dinar 186.90 185.85 176.20 175.153. Canadian Dollar 50.60 49.95 49.55 48.854. Danish Kroner 10.35 10.25 10.05 9.955. EURO 77.05 76.15 75.20 74.306. Hong Kong Dollar 8.85 8.80 8.70 8.657. Kuwait Dinar 235.15 232.50 222.45 218.358. Newzeland Dollar 46.20 45.85 45.00 44.659. Norwegian Kroner 8.10 8.05 7.90 7.8510. Pound Sterling 98.95 100.10 96.75 97.9011. Singapore Dollar 49.25 48.55 48.25 47.5512. South African Rand 4.55 4.40 4.30 4.1513. Saudi Arabian Riyal 18.75 18.65 17.75 17.6014. Swedish Kroner 8.15 8.15 7.95 7.9515. Swiss Franc 69.80 68.25 68.05 66.7516. UAE Dirham 19.15 19.00 18.10 18.0017. US Dollar 68.95 68.45 67.90 67.4018. Chinese Yuan 10.60 10.45 10.40 10.20Schedule II – Rate of exchange of 100 units of foreign currency equivalent toIndian rupees1. Japanese Yen 60.70 58.25 59.35 56.952. Kenya Shilling 69.15 68.35 65.35 64.55

[F.No.468/01/2016-Cus.V]

Tariff Value on Crude Palm Oil Rises by $55;Gold $15; Silver $23; Palmolein $48; Brass Scrap$109; Areca nuts $41Poppy Seeds Tariff Value Down by $12925-Cus(NT) In exercise of the powers conferred by sub-section (2) of15.02.2016 section 14 of the Customs Act, 1962 (52 of 1962), the(DoR) Central Board of Excise & Customs, being satisfied that

it is necessary and expedient so to do, hereby makesthe following amendment in the notification of the Government of India in theMinistry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.),dated the 3rd August, 2001, published in the Gazette of India, Extraordinary,Part-II, Section-3, Sub-section (ii), vide number S.O. 748 (E), dated the 3rdAugust, 2001, namely:-In the said notification, for TABLE-1, TABLE-2, and TABLE-3 the followingTables shall be substituted namely:-

“Table-1

SNo. Chapter/heading/sub- Description of goods Tariff value US $heading/tariff item (Per Metric Tonne)

(1) (2) (3) (4)1 1511 10 00 Crude Palm Oil 6212 1511 90 10 RBD Palm Oil 6353 1511 90 90 Others – Palm Oil 6284 1511 10 00 Crude Palmolein 6425 1511 90 20 RBD Palmolein 6456 1511 90 90 Others – Palmolein 6447 1507 10 00 Crude Soyabean Oil 7488 7404 00 22 Brass Scrap (all grades) 29309 1207 91 00 Poppy seeds 2464

Table-2SNo. Chapter/heading/sub- Description of goods Tariff value

heading/tariff item (US $)(1) (2) (3) (4)1 71 or 98 Gold, in any form, in respect of which 403 per 10

the benefit of entries at serial number grams321 and 323 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed

2 71 or 98 Silver, in any form, in respect of which 510 perthe benefit of entries at serial number Kilogram322 and 324 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed

Table-3SNo. Chapter/heading/sub- Description of goods Tariff value (US $

heading/tariff item Per Metric Tons)(1) (2) (3) (4)1 080280 Areca nuts 2599[F. No. 467/01/2016-Cus-V]

Omeprazole and Lansoprazole are Two Separate BulkDrugs – FPS Benefits Allowed to Each of the Twounder Sl No. 503 of Table ISubject: Clarification on availability of benefit under Focus Product Schemeon the export of item ‘OMEPRAZOLE AND LANSOPRAZOLE’.19-TN The product description appearing under ITC HS17.02.2016 30049034 mentioned at SI No.472 of Appendix 37-D,(DGFT) Table-1 of Foreign Trade Policy 2009-14 which was

placed at serial no. 503 in Table 1 of Appendix 37 D asnotified vide public notice no. 52 dated 25.02.2014, is as under:‘OMEPRAZOLE AND LANSOPRAZOLE’2. DGFT has received representations stating that the bulk drugsOmeprazole and Lansoprazole are two different export products but havethe same ITC HS code for availing FPS benefit under Foreign Trade Policy2009-14. These products should be given different serial numbers in Table1, Appendix. 37D of HBP 2009-14. It is also stated that Omeprazole andLansoprazole are two different molecules with their different identificationsbelong to group “Proton Pump Inhabitor”. There is no combination of thesetwo bulk drugs under any brand name in the market.3. Department of Pharmaceuticals have been consulted who have clarifiedthat this entry be interpreted as two specific entries containing

finished dosage forms based upon either Omeprazole or Lansoprazoleused as the Active Pharmaceuticals Ingredients rather than treatingthis entry as a formulated product containing both of these bulkdrugs.4. Accordingly all RAs are advised that while considering grant of FocusProduct Scheme benefit of Foreign Trade Policy 2009-14 under ITCHS30049034 mentioned at SI No.472 of Appendix 37-D, Table-1 which wasplaced at serial no. 503 in Table 1 of Appendix 37D notified vide public noticeno. 52 dated 25.02.2014, the product whether omeprazole is exported orlansoprazole is exported, it will be incentivised under FPS.

Rupee Payment for Supplies to SEZ OK underFTP 2009-14Subject: Closure of Advance Authorisation licences as per para 4.16(a) ofFTP 2009-14, pending for want of payment to be received from Foreigncurrency account of SEZ unit.16-TN A number of representations have been received in this10.02.2016 Directorate from Trade, Industry and Export Promotion(DGFT) Council for EOU and SEZ on the pending requests for

allowing closure/ redemption/EODC in cases where theAdvance Authorisation holder had made supplies to SEZ units and realisedthe proceeds in Indian Rupees as per the extant provisions laid down in Para

BIG's Weekly Index of Changes No 48/24 February-01 March 2016 351

WIndex No. 48 – 24 February-01 March 2016DIndex Delivered Daily by Email DIndex* WIndex

Foreign Trade Policy16-TN/10.02.2016 Rupee Payment for Supplies to SEZ OK under FTP 2009-14 6567 35017-TN/10.02.2016 DGFT Clarifications on MIP on Steel 6564 34919-TN/17.02.2016 Omeprazole and Lansoprazole are Two Separate Bulk 6584 350

Drugs – FPS Benefits Allowed to Each of the Two underSl No. 503 of Table I

CustomsNtfn 10/17.02.2016 Octreotide and Somatropin Inserted in 5% Duty List and 6583 351

Anti-Haemophilic Factor Concentrates in Nil Duty List25-Cus(NT)/15.02.16 Tariff Value on Crude Palm Oil Rises by $55; Gold $15; 6557 350

Silver $23; Palmolein $48; Brass Scrap $109; Areca nuts $4129-Cus(NT)/18.02.16 Rupee Falls by 50 Paise against Dollar to Rs. 68.95; Euro 6569 350

by 90 Paise to Rs. 77.0514/22/2014-DGAD/ Industry Alleges Import of Diclofenac Sodium from China in 6565 34717.02.2016 Unfinished Form to Circumvent Anti-dumping DutyCBEC CircularCBEC Instruction/ Board Says Follow MIP on Steel Strictly, Urges Action 6582 34817.02.2016 under Customs Act against Violators*See details in www.worldtradescanner.com

About ABS and its Achievements

Academy of Business Studies (ABS), NewDelhi is a group of professionals with back-grounds of management, law and IT. Theorganisation started operations in 1983 andoperates from a modest flat at Ansari Road inthe publishing district of the Delhi.

Over the last 30 years, theAcademy has made signifi-cant original contributions inbringing transparency to EximPolicy and tariff affairs be-sides adding to the body ofknowledge on trade issues.The promoterABS was founded by ArunGoyal. He is an MBA from IIMAhmedabad. He is a trade expert known by histrade column in Economic Times. He appearsregularly on public and private platforms in Indiaand abroad.Our current activities and past achieve-ments National Biodiversity Authority for de-

veloping the database 1) Bio ResourcesTrade Assessment; 2) Export and Import ofBio Resources Trade (at species level) fromCustoms DTR (Daily Trade Return); 3) BioResources Assessment of Trade; 4) BioResources Trade Assessment in the GlobalMarket and Policy Recommendations; 5)Development of 16 digit NBA Product Codesof Bio Resources with Suitable Incorpora-tion of New Fields of Parts Traded andSources Procurement.

Department of Electronics & InformationTechnology (DeitY) –IT Agreement 1996@WTO – HS Codes @WCO 1996, 2002,2007, 2012 and 2017 – Analysis and PolicyRecommendation for India.

Database Development on Customs forThomson Reuters and European Commis-sions.

It builds databases on government policiesparticularly export and import policy, cus-tom tariff, foreign exchange and other issuesin international trade. The popular book EasyReference Customs Tariff 2016-17, 38th

edition, along with the update service calledWeekly Index of Changes examples arepublished by ABS.

ABS News Service is accredited to Govern-ment of India. Recently, it has started publica-tion of Daily Index of Changes for specified

users as well as the web sitesand Newspapers on trade mat-ters. The ABS Consultancy Ser-vice provides advisory serviceson trade matters, particularlyon trade policies and proce-dures, duty structure, and WTOissues to internationalorganisations, governments and

the private sector. Design and implementation of online FDI ap-

plication system for DEA, Min of Finance,Govt of India. The site is up and running atwww.fipbindia.com

Design management and daily updation ofwebsite www.custada.in on Customs Tarifffor Economic Division, Ministry of Finance.

Design, management and daily updation ofwebsite www.worldtradescanner.com cov-ering database and daily updation of worldtrade, customs, excise and import policy.Also in print form.

The Academy of Business Studies did studyand survey of FDI based R&D Service units inIndia by the Ministry of Science and Technol-ogy (TIFAC). Another study on FDI in theexport sector for Ministry of Commerce is justcompleted.

Worked with APEDA to suggest a revisedITC(HS) Coding system at eight digit level foragri items covering Chapter 1 to 24 based onDTR data.

The Academy has worked on the conceptsubject of WTO since 1994 with the support ofWorld Trade Centre, Mumbai and Indian Insti-tute of Foreign Trade. Edited the state of artcompilation WTO in the New Millennium:Commentary, Case Law, Legal Texts overfive editions.

Octreotide and SomatropinInserted in 5% Duty List andAnti-Haemophilic FactorConcentrates in Nil Duty ListNtfn 10 In exercise of the powers17.02.2016 conferred by sub-section(DoR) (1) of section 25 of the

Customs Act, 1962 (52 of1962), the Central Government, being satis-fied that it is necessary in the public interestso to do, hereby makes the following furtheramendments in the notification of the Gov-ernment of India, in the Ministry of Finance(Department of Revenue), No. 12/2012-Cus-toms, dated the 17th March, 2012, publishedin the Gazette of India, Extraordinary, Part II,Section 3, Sub-section (i) vide numberG.S.R. 185(E), dated the 17th March, 2012,namely:-In the said notification,-

(i) in List 3, after item number (181) andthe entries relating thereto, the following itemnumbers and entries shall be inserted,namely:-“(182) Octreotide(183) Somatropin;”

(ii) in List 4, after item number (126) andthe entries relating thereto, the following itemnumbers and entries shall be inserted,namely:-“(127) Anti- Haemophilic Factor Concentrate(VIII and IX)”.[F.No. 332/24/2010-TRU (Pt.I)]

4.1.6(a) of FTP 2009-14.2. The matter has been examined and it isclarified that Para 4.1.6 (a) of FTP 2009-14 hadnot stipulated that DTA supplying goods underAdvance Authorisation to an SEZ unit has torealise payment from Foreign Currency Accountof SEZ unit. Moreover, Rule 30(8) of SEZ Rules2006 also do not mention that it is mandatory forSEZ unit to make payment to AdvanceAuthorisation holder from Foreign Currency Ac-count (FCA). The above condition was madeapplicable for Advance Authorisation in the FTP(2015-2020), as per para 4.21 (iii) w.e.f. 1st April,2015 only.3. In the interest of trade facilitation it has beendecided, in consultation with SEZ Division ofDepartment of Commerce, that closure/redemp-tion/EODC may be allowed where the AdvanceAuthorization holder or DFIA holder has madesupplies to SEZ units and realised the proceedsin Indian Rupees as per the extant provisions laidin para 4.1.6(a) of FTP 2009-14 by realising theproceeds in Indian Rupees. All the RegionalAuthorities may take necessary action as perclarification.4. It is further clarified that in the new FTP 2015-20 it has been stipulated in the para 4.21 (iii) that“Export to SEZ Units shall be taken into accountfor discharge of export obligation provided pay-ment is realised from Foreign Currency Accountof the SEZ unit.” Hence conditions of para 4.21(iii)of FTP will have to be complied in respect of theAdvance Authorisations issued during FTP 2015-20.5. This issues with the approval of DGFT.

Rupee Payment for Supplies...

352 BIG's Weekly Index of Changes No 48/24 February-01 March 2016

Owned, Edited, Published and Printed by Arun Goyal and Printed at Mercury Printers, 602 Choori Walan, DelhiPublished from 24/4866, Sheeltara House, Ansari Road, New Delhi 110002. (INDIA) Phone: 2328 1314; Fax: 91-11-2324 0230Email: academy.delhi@gmail.com; Website: worldtradescanner.comThis issue contains 8 pages in all (Page 345 to 352)

Publishing Date 24.02.2016 Date of Posting: Wednesday/Thursday – 24 February-01 March 2016

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ForthcomingCommentary on Foreign Trade Policy 2015-2020 and Non Tariff Barriers(As on 1 April 2016) by Arun Goyal Policy Provisions and Procedures MEIS and SEIS Schemes Duty Drawback Importer Exporter Code Application Forms Non Tariff Barriers: Food Law, Agri Permit, Plant Quarantine, Sanitary Import Permit

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