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The Directorate General of Foreign Trade amends Policy Condition Number 4 of Chapter 84 of Schedule 1 of the ITC (HS), 2022. The update exempts IT hardware manufactured in Special Economic Zones from needing an import authorization when imported into the Domestic Tariff Area. Certain SEZ activities like re-packing and labelling do not qualify as manufacturing. Private entities importing for government defence or security purposes also avoid the authorization requirement if they supply a valid End User Certificate. The revised rules update exemptions for research, testing, repair, and return up to 20 items per consignment.
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[To be published in the Gazette of India Extraordinary Part-II, Section-3, Sub-section (II)]
Government of India Ministry of Commerce and Industry Department of Commerce Directorate General of Foreign Trade Vanijya Bhawan
Notification No. 38 /2023 New Delhi, Dated: $19^{\text{th}}$ October 2023
Subject: Amendment in Policy Condition no. 4 of Chapter 84 of schedule 1 (import policy) of ITC (HS), 2022 -reg.
S.O.(E): In exercise of powers conferred by Section 3 and Section 5 of Foreign Trade (Development & Regulation) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2023, as amended from time to time, and referring to previous Notifications 23/2023 dated 03.08.2023 & Notification 26/2023 dated 04.08.2023, the following changes in Import Policy Conditions are hereby notified:
are exempt from requiring an import authorization. However, these private entities at the time of import, must provide to the Customs Authorities, a valid End User Certificate issued by the relevant government entity.
[Image omitted. See the official document.]
| Existing Condition | Revised Condition |
|---|---|
| Exemption from import licence is provided for up to 20 such items per consignment for the purpose of R&D, Testing, Benchmarking and Evaluation, repair and re-export, Product Development purposes. Given imports shall be allowed subject to condition that the imported goods shall be used for the stated purposes only and will not be sold. Further, after the intended purpose, the products would either be destroyed beyond use or re-exported. | Exemption from import authorisation is provided up to 20 items per consignment for R&D, Testing, Benchmarking and Evaluation, Product Development purposes. Exemption is further provided for import for repair and/or return and/or replacement of IT Hardware sold earlier as well as re-import of such items repaired abroad on self-certification basis. |
Effect of the Notification: Import of IT Hardware manufactured in SEZ into DTA shall be exempt from an Import Authorisation. Import by private entities on behalf of Central & State Government Entities, for Defence & Security purposes, shall be exempt from an Import Authorisation.
This is issued with the approval of Minister of Commerce & Industry.
[Image omitted. See the official document.] (Santosh Kumar Sarangi) Director General of Foreign Trade & Ex- officio Addl. Secretary to the Govt. of India E-mail: dgft@nic.in
(Issued from F.No.01/89/180/39/AM-13/PC-2[A]/E-2261)
