PUBLIC NOTICE NO. 50 /2009-14 dated 29.3.2010
PROCEDURE/GUIDELINES FOR FILING/EVALUATION OF APPLICATIONS FOR ENTERING INTO AN ARRANGEMENT OR UNDERSTANDING FOR SITE VISITS, ON-SITEVERIFICATION AND ACCESS TO RECORDS/DOCUMENTATION

In exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy, 2009-14, the Director General of Foreign Trade hereby makes,  with immediate effect,  the following amendments to Handbook of Procedures (Volume 1)(2009-14):

2.  Aayat Niryat Form 2EE (ANF 2EE), as given in Annexure to this Public Notice, shall be inserted after ANF 2E in the Handbook of Procedures (Volume 1)                                  ( Appendices and Aayat Niryat Forms).

3.  In Para 2.49 of the Handbook of Procedures (Volume 1), following shall be inserted below Note 6:

 “PROCEDURE/GUIDELINES FOR FILING/EVALUATION OF APPLICATIONS FOR ENTERING INTO AN ARRANGEMENT OR UNDERSTANDING FOR SITE VISITS, ON-SITEVERIFICATION AND ACCESS TO RECORDS/DOCUMENTATION

An application for entering into an arrangement or understanding involving site visit, on-site verification or access to records/documentation by a foreign government or a foreign third party either acting directly or through an Indian party as mentioned in Appendix 3 of Schedule 2 of ITC(HS) shall be made in ANF 2EE to DGFT(Hqrs.), New Delhi along with documents prescribed therein.

These applications shall be considered by an Inter-Ministerial Working Group (IMWG) in DGFT based on following guidelines/general criteria:

I. Following factors, among others, will be taken into account in the evaluation of applications for entering into an arrangement or understanding for site visits, on-site verification and access to records/documentation:

(a)     Purpose for which arrangement / understanding is proposed under which site visit or     on-site verification or access to records/documentation is to be undertaken.

(b)     Credentials and details of the parties involved.

(c)    Credentials of end-user, credibility of declarations of end-use of the items or  technology, the integrity of chain of transmission of the item from the supplier to the  end-user, and on the potential of the item or technology, including the timing of its export, to contribute to end-uses that are not in conformity with India’s national security or foreign policy goals and objectives, the objectives of global non-proliferation, or its obligations under treaties to which it is a State party.

(d)    The assessed risk that the arrangement/understanding could lead to dual-use items and technology falling into the hands of terrorists, terrorist groups and non-State actors.

(e)    In case site visit, on-site verification or access to records/documentation is to be carried out by a foreign government or its representative(s), the following shall be taken into consideration :-

         i.    Export control measures instituted by the foreign government;

         ii.  Capabilities and objectives of programs of the foreign government relating to  weapons and their delivery.

(f)     Applicability of relevant bilateral and multilateral agreements to which India  is a  party

         (g)    Assessment of any threat that such site visit, on-site verification or access to records/documentation may pose to India’s national security, and relations with any other country.

(h)    Assessment of possible links of the foreign parties with terrorist organizations and non-state actors within their own country or in any other country.

 II.     Permission for arrangement or understanding involving site visit, on-site verification or access to records/documentation  will be subject to the following conditions:-

(a)     Site visit, on-site verification or access to records/documentation will be confined to the purpose, sites and activity for which permission given/which have been mentioned in the authorization.

(b)     Site visit, on-site verification or access to records/documentation will be allowed only to individuals mentioned in the authorization.

(c)     Site visit, on-site verification or access to records/documentation shall be concluded during the period mentioned in the authorization.

(d)    Exporter/Importer will keep a record of site visit, on-site verification or access to records/documentation alongwith detail of individuals who visited the premises during this visit and produce the same as and when required to do so by the GOI.

(e)     No exchange of goods, services and technologies and any documentation including drawings, specification sheets etc. will take place during the visit.

(f)    Exporter/importer may be required to give any additional assurance that the Government of India may require.

(g)     Any other condition that may be stipulated in the permission.

             III.   Provisions of Weapons of Mass Destruction Act, 2005 shall also apply to an  arrangement or understanding that involves site visit, on-site verification or access to records/documentation.

      IV.    Any violation of any condition of the license shall invite civil/ criminal prosecution as per law.”

 4.              This issues in public interest.

 (R.S. Gujral)

Director General of Foreign Trade and

                                                 Ex Officio Special Secretary to the Government of India

 (Issued from File No.01/91/171/14/AM-06/Export Cell)

ANNEXURE to Public Notice No.50/2009-14 dt.29.03.2010

ANF 2EE

Application Form for Request for Entering into an Arrangement or Understanding that Involves  Site Visit, On-Site Verification or Access to Records / Documentation as mentioned in Appendix 3 of Schedule 2 of ITC (HS) Classification of Export and Import Items

[Please see guidelines (at the end) before filling the application]

*IEC should not be under DEL on the date of application.

* Enclose additional sheet if required

DECLARATION/UNDERTAKING

1.   I / We hereby declare that the particulars and the statements made in this application are true and correct to the best of my / our knowledge and belief and nothing has been concealed or held there from.

2.   I / We fully understand that any information furnished in the application if found incorrect or false will render me / us liable for any penal action or other consequences as may be prescribed in law or otherwise warranted.

3.  I / We undertake to abide by the provisions of the FT (D & R) Act, 1992, the Rules and Orders framed there under, FTP, HBP v 1 and HBP v2 and ITC (HS).

4

a.   I / We hereby certify that the firm / company for whom the application has been made has not been penalized under Customs Act, Excise Act, FT (D & R) Act 1992 and FERA / FEMA.

b.  I / We hereby certify that none of the Proprietor / Partner(s) / Director(s) / Karta / Trustee of firm / company, as the case may be, is / are a Proprietor / Partner(s) / Director(s) / Karta / Trustee in any other firm / Company which has come to adverse notice of DGFT.

c.   I / We hereby certify that the Proprietor / Partner(s) / Director(s) / Karta / Trustee, as the case may be, of the firm/company is / are not associated as Proprietor / Partner(s) / Director(s) / Karta / Trustee in any other firm / company which is in the caution list of RBI.

d.   I / We hereby certify that neither the Registered Office / Head Office of the firm/company nor any of its Branch Office(s) / Unit(s) / Division(s) has been declared a defaulter and has otherwise been made ineligible for undertaking import / export under any of the provisions of the Policy.

5.  I / We hereby declare that I / We have not obtained nor applied for such benefits (including issuance of an Importer Exporter Code Number) in the name of our Registered / Head Office or any of our Branch(s) / Unit(s) / Division(s) to any other Regional Authority.

6.  I / We solemnly declare that I / We have applied for / obtained a RCMC to the EPC which pertains to our main line of business. In case we have applied to any other council, the application has been made within the purview of the provisions of Para 2.67 and Para 2.67.1 of the HBP v1.

7.

a.  I / We further undertake to maintain record of site visit, on-site verification or access to records / documentation and produce the same as and when asked to do so by the Government of India.

b.  I/We also hereby inform that we have complied with the conditions of all previous permissions issued to us for entering into an arrangement or understanding that involves site visits, on-site verification or access to records / documentation.

8.   I hereby certify that I am authorized to verify and sign this declaration as per Paragraph 9.9 of the Policy.

1.                   One original application in the prescribed format ANF 2EE and ANF 1 and six copies thereof along with self-certified copies of the documents as in para 2 below must be submitted to DGFT (HQ), Udyog Bhavan, New Delhi. Each page of the original application has to be signed by the applicant with stamp of the company. 

2.                   Application must be accompanied by self-certified copies of the documents as per details given below:

(i)                  Import & Export Code number.

(ii)                Copy of draft Declaration / draft Agreement / draft MOU proposed to be signed for entering into an Arrangement or Understanding that involves site visit etc.

(iii)               Technical Specifications (not exceeding one page for each item) for the items to be exported / imported.

(iv)              Profile of the foreign government / foreign third party / Indian party.

3.                   In case purpose of site visit / on-site verification is export / import, Original End User certificate (in the prescribed format Appendix 36 on Letter Head of the End User) indicating complete details of the export / import product, end product, end purpose for which the item of export / import will be used by end user alongwith complete address and telephone No. of end user must be furnished alongwith original application. End User Certificate from the following must also be submitted:

(i)                  By the final end user if the import is by a third party / contractor.

(ii)                By the third party /contractor, if any, who is supplying goods to the end user.

4.         Complete address(s) should be stated in relevant columns.  P.O. Box number will not be accepted.