The AEPC organised a meeting in Chennai to help exporters understand the existing advance licensing scheme of the Foreign Trade Policy.

The norms committee members of Director General of Foreign Trade interacted with exporters and highlighted normal precautions to be taken while submitting applications for obtaining licences under self-declared advance licensing scheme. Leading garment exporters of the region were present.

Due to insufficient details, decisions on consumption are delayed and exporters or their representatives are required to visit Office of the Director General of Foreign Trade in New Delhi for personal hearing in such cases.

The general mistakes found in self-declaration licence application are: wrong ITC codes mentioned for both import and export items, unit of measurement wrongly given in metres instead of square metres, mismatch of GSM of fabric both import and export, mismatch of description of import and export items, consumption of fabric required for manufacture of resultant product not given properly, wastage claimed in resultant product not correctly mentioned, CAD and sketch of resultant product not submitted.

Before preparing application, exporters should verify whether the resultant product is covered under SION. In case item is not covered under SION, then application is prepared under self declaration scheme.

Exporters should also verify whether the application is to be made under para 4.7 or 4.7.1 of HBP. In case ad hoc norms have already been fixed for resultant product, then application is prepared under para 4.7.1 of HBP.

Source: http://www.aepcindia.com/news.asp?id=212&yr=2010