Certification of Advance license applications for the duty free import of Raw Materials, Consumables, Packing materials, Catalyst, Solvent etc. As per Foreign Trade Policy announced by Commerce Ministry there is scheme for exporter to avail duty free import of raw materials against export of any product. Government announces Norms for allowance of per unit product export in Handbook of procedure. Till date Directorate General Foreign Trade has fixed around seven thousand norms under different categories such as Chemical and allied products, Pharmaceutical, Paper and Paper product, Ceramic and Ceramic Products, Electronic Products, Engineering Products, Fish and Marine Products, Food Products, Handicrafts, Leather Products, Plastic Products, Sports Products, Textile, Readymade garments, Hosiery and Knitwear’s and other miscellaneous products.
For an Exporter to remain competitive in international market government allows facility of Advance License for the duty free import of Inputs that goes into the making of said export product.
As per the Norms per unit of product that is fixed vide Handbook of Procedure an exporter can apply for advance license producing the evidence of having received the export order from any country in freely convertible currency. Now when the Norm for the export product is not fixed the application needs to be certified by Independent Chartered Engineer on the basis of whose certificate the norms are cleared. After becoming Chartered Engineer in 1990 i.e. in last twenty years I have certified not less that four thousand application for advance licenses. For doing so I have to go deep into every aspects of manufacture of the said product and arrive or check as whether the exporter has applied correct quantity or not. The job involves focus on raw material, its technical specifications, quantity per unit consumption, wastage involve in the manufacturing, the recoverable part of wastage, sell value of wastage, by-product generated from the process, whether corrective measures are taken to reduce wastage and rejection etc.
High technical skill and responsibility carries this type of certification work. With the grace of god I have clean track record in the certification of such job for last two decades.
Apart from Advance license application certification in the said policy there is also provision for filing the application for the fixation of norms. The fixation of norms is an art. Lot of care needs to be taken to see that norms proposed by my client are not by any chance miss-used by other exporter. The correct technical description, unit of measurement and per unit consumption of various inputs are worked out and proposal is put to the Government department (Directorate General of Foreign Trade, New Delhi). The case is put up to committee for approval and only after approval by the committee on the basis of recommendation from technical authority the norms are published. The said published norms are available to all exporters from any part of country. Such applications are also requires to be certified by Independent Chartered Engineer. Many times at the request of clients I have jointed attended Personal Hearing to explain officer concern or member of committee and convince to clarify any doubts in the officer’s mind. I am proud to inform that I am instrumental in fixation of not less than seven hundred to eight hundred norms out of seven thousand available in the handbook of procedure. I mean those many applications are routed through my certifications.
Apart from this advance license scheme there is also Scheme for the import of Capital goods at concessional rate of duty under Export Promotion Capital Goods scheme (EPCG Scheme). On the basis on nexus certified by Independent Chartered Engineer license is issued for the import of capital goods such as plant, machinery, moulds etc. at concessional rate of duty. Here again the role of Independent Chartered Engineer is vital on whose certification of nexus of commitment given by exporter to export the goods manufactured with the use of said capital goods. In last seven years (Since the Chartered Engineer Certification is made mandatory) I have issued not less than two thousand certificates in this regards.