FTP Corner December 2017

07-12-2017 CA Nagendra Hegde

1.Application fee for grant of import authorization [Trade Notice No.22/2018 dated 11.12.2017]:  

Said Trade Notice was issued to state that the application fee as prescribed in Appendix 2K of FTP2015-20 is the processing fee and the importers are required to submit their import authorisation applications at the Regional Authority along with the prescribed fee and simultaneously at DGFT(HQ). The importers shall note that the application for grant of import licence may only be deposited at the RA's office, after paying the applicable fees. Further while submitting their application in DGFT if they do not attach copy of the fee paid, their application will not be processed and no import authorization will be issued.  

2.Non-Compliance of Sanitary and Phyto-Sanitary measures by Indian Exporters/Importers [Trade Notice No.18/2018 dated 23.10.2017]  

The said Trade Notice was issued to invite the Attention of Trade and Industry, involved in the business of Import and export, towards the agreement on the 'Application of Sanitary and Phytosanitary Measures' (the "SPS Agreement") which came into force with the establishment of the World Trade Organization on I January 1995. It concerns the applications of food safety and animal and plant health regulations. India is signatory to this agreement, being member of WTO.  

Department of Agriculture, Co-operation and Farmers' welfare has brought to the notice of this Directorate about various instances of non-compliance of Sanitary/Phyto-sanitary measures by Indian Exporters while exporting goods. Importing Countries have been making complaints against Indian exporters, which amounts to disrepute to the image of the country and that can adversely impact the interest of other exporters as well as of country as a whole.  

In view of the provisions of FTP 2015-20 and the mandatory requirements to be followed by the exporters from the country, the exporters are sensitized to ensure that Sanitary and PhytoSanitary laws of importing countries are strictly adhered to. They are advised to seek requirement of importing country along with export order. And, while exporting goods, they must provide certificate(s) from designated agencies along with export documents indicating the observance of the norms mandated by the importing country.    

(The content of the article is property of Hiregange & Associates, Chartered Accountants. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form, or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission, in writing, from the partners of the Firm).