||For purpose of FTP, unless context otherwise requires, following words
and expressions shall have the following meanings attached to them.
||“Accessory” or “Attachment” means a part, sub-assembly or assembly
that contributes to efficiency or effectiveness of a piece of equipment
without changing its basic functions.
||“Act” means Foreign Trade (Development and Regulation)Act, 1992 (No.22
of 1992) [FT(D&R) Act].
||“Actual User” means an actual user who may be either industrial or
||“Actual User (Industrial)” means a person who utilizes imported goods
for manufacturing in his own industrial unit or manufacturing for his own
use in another unit including a jobbing unit.
||“Actual User (Non-Industrial)” means a person who utilizes the
imported goods for his own use in
(i) any commercial establishment
carrying on any business, trade or profession; or
(ii) any laboratory,
Scientific or Research and Development(R&D) institution, university or
other educational institution or hospital; or
(iii) any service
||“AEZ” means Agricultural Export Zones notified by DGFT in Appendix 8
of HBP v1.
|| “Appeal” is an application filed under
section 15 of the Act and includes such applications preferred by DGFT
officials in government interest against decision by designated
adjudicating / appellate authorities.
||“Applicant” means person on whose behalf an application is made and
shall, wherever context so requires, includes person signing the
||“Authorisation” means a permission as included in Section 2 (g) of
FT(D&R) Act to import or export as per provisions of FTP.
||“BoA” means the Board of Approval as notified by DoC.
||“BTP” means Biotechnology Park as notified by DGFT on recommendation
of Department of Biotechnology.
||“Capital Goods” means any plant, machinery, equipment or accessories
required for manufacture or production, either directly or indirectly, of
goods or for rendering services, including those required for replacement,
modernization, technological upgradation or expansion. It also includes
packaging machinery and equipment, refractoriness for initial lining,
refrigeration equipment, power generating sets, machine tools, catalysts
for initial charge, equipment and instruments for testing, research and
development, quality and pollution control. Capital goods may be for use
in manufacturing, mining, agriculture, aquaculture, animal husbandry,
floriculture, horticulture, pisciculture, poultry, sericulture and
viticulture as well as for use in services sector.
||“Competent Authority” means an authority competent to exercise any
power or to discharge any duty or function under the Act or the Rules and
Orders made there under or under FTP.
||“Component” means one of the parts of a sub-assembly or assembly of
which a manufactured product is made up and into which it may be resolved.
A component includes an accessory or attachment to another
||“Consumables” means any item, which participates
in or is required for a manufacturing process, but does not necessarily
form part of end-product. Items, which are substantially or totally
consumed during a manufacturing process, will be deemed to be
||“Consumer Goods” means any consumption goods, which can directly
satisfy human needs without further processing and includes consumer
durables and accessories thereof.
||“Counter Trade” means any arrangement under which exports/ imports
from/to India are balanced either by direct imports/exports from
importing/exporting country or through a third country under a Trade
Agreement or otherwise. Exports/Imports under Counter Trade may be carried
out through Escrow Account, Buy Back arrangements, Barter trade or any
similar arrangement. Balancing of exports and imports could wholly or
partly be in cash, goods and/or services.
||“Developer” means a person or body of persons, company, firm and such
other private or government undertaking, who develops, builds, designs,
organises, promotes, finances, operates, maintains or manages a part or
whole of infrastructure and other facilities in SEZ as approved by Central
Government and also includes a co-developer.
||“Development Commissioner” means Development
Commissioner of SEZ.
||“DFRC” means Duty Free Replenishment Certificate (as given in FTP
|9.21 ||“Domestic Tariff Area (DTA)” means area within India which is outside
SEZs and EOU/ EHTP/ STP/BTP.
|9.22 ||“Drawback” in relation to any goods manufactured in India and
exported, means rebate of duty chargeable on any imported material or
excisable material used in manufacture of such goods in India. Goods
include imported spares, if supplied with capital goods manufactured in
|9.23 ||“EHTP” means Electronic Hardware Technology Park.
|9.24 ||“EOU” means Export Oriented Unit for which an LOP has been issued by
|9.25 ||“Excisable goods” means any goods produced or manufactured in India
and subject to a duty of excise under Central Excise and Salt Act 1944 (1
|9.26 ||“Exporter” means a person who exports or intends to export and holds
an IEC number, unless otherwise specifically exempted.
|9.27 ||“Export Obligation” means obligation to export product or products
covered by Authorisation or permission in terms of quantity, value or
both, as may be prescribed or specified by Regional or competent
|9.27.1 ||“FTP” means the Foreign Trade Policy which specifies policy for
exports and imports under section 5 of the Act.
|9.28 ||“Group Company” means two or more enterprises which, directly or
indirectly, are in a position to —
(i) exercise twenty-six per cent, or
more of voting rights in other enterprise; or
(ii) appoint more than
fifty percent, of members of board of directors in the other enterprise.
For group companies to claim benefits or have their exports
counted for benefits to be claimed by another member of group, the group
company should have been in existence at least 2 years prior to date of
application under any of export promotion schemes notified in FTP.
|9.29 ||“HBP v1” means the Handbook of Procedures (Vol.1) and “HBP v2” means
Handbook of Procedures (Vol.2) published under provisions of paragraph 2.4
|9.30 ||“Importer” means a person who imports or intends to import and holds
an IEC number, unless otherwise specifically exempted.
|9.31 ||“Infrastructure facilities” means industrial, commercial and social
infrastructure or any other facility for development of SEZ as
|9.32 ||“ITC(HS)” means ITC(HS) Classifications of Export and Import Items
|9.33 ||“Jobbing” means processing or working upon of raw materials or
semi-finished goods supplied to job worker, so as to complete a part of
process resulting in manufacture or finishing of an article or any
operation which is essential for aforesaid process.
|9.34 ||“Licensing Year” means period beginning on the 1 st April of a year
and ending on 31st March of following year.
|9.35 ||“Managed Hotel” means hotels managed by a three star or above hotel/
hotel chain under an operating management contract for a duration of at
least three years between operating hotel/ hotel chain and hotel being
managed. Management contract must necessarily cover the entire gamut of
operations/ management of managed hotel.
|9.36 ||“Manufacture” means to make, produce, fabricate, assemble, process or
bring into existence, by hand or by machine, a new product having a
distinctive name, character or use and shall include processes such as
refrigeration, re-packing, polishing, labelling, Re-conditioning repair,
remaking, refurbishing, testing, calibration, re-engineering. Manufacture,
for the purpose of FTP, shall also include agriculture, aquaculture,
animal husbandry, floriculture, horticulture, pisciculture, poultry,
sericulture, viticulture and mining.
|9.37||“Manufacturer Exporter” means a person who exports goods manufactured
by him or intends to export such goods.
|9.38 ||“MAI” means Market Access Initiative Scheme notified by Department of
|9.39 ||“Merchant Exporter” means a person engaged in trading activity and
exporting or intending to export goods.
|9.40 ||“NC” means the Norms Committee in the Directorate General of Foreign
Trade, for recommending grant of Authorisations under Duty Exemption
Scheme and for recommending Input Output norms and value addition norms to
be notified by DGFT.
|9.41 ||“NFE” means Net Foreign Exchange.
|9.42 ||“Notification” means a notification published in Official
|9.43 ||“Order” means an Order made by Central Government under the Act.
|9.44 ||“Part” means an element of a sub-assembly or assembly not normally
useful by itself, and not amenable to further disassembly for maintenance
purposes. A part may be a component, spare or an accessory.
|9.45 ||“Person” includes an individual, firm, society, company, corporation
or any other legal person including the DGFT officials.
|9.46 ||“Policy” means FTP 2009-2014 as amended from time to time.
|9.47 ||“Prescribed” means prescribed under the Act or the Rules or Orders
made there under or under FTP.
|9.48 ||“Public Notice” means a notice published under provisions of paragraph
2.4 of FTP.
|9.49 ||“Raw material” means:
(i) basic materials which are needed for
manufacture of goods, but which are still in a raw, natural, unrefined or
unmanufactured state; and
(ii) for a manufacturer, any materials
or goods which are required for his manufacturing process, whether they
have actually been previously manufactured or are processed or are still
in a raw or natural state.
|9.49.1 ||“Regional Authority” means authority competent to grant an
Authorisation under the Act / Order.
|9.50 ||“Registration-Cum-Membership Certificate” (RCMC) means certificate of
registration and membership granted by an Export Promotion Council/
Commodity Board/ Development Authority or other competent authority as
prescribed in FTP or HBP v1.
|9.51 ||“Rules” means Rules made by Central Government under Section 19 of the
|9.52 ||“Services” include all tradable services covered under General
Agreement on Trade in Services and earning free foreign exchange.
|9.53 ||“Service Provider” means a person providing
(i) Supply of a
‘service’ from India to any other country;
(ii) Supply of a ‘service’
from India to service consumer of any other country in India; and
(iii) Supply of a ‘service’ from India through commercial or physical
presence in territory of any other country.
(iv) Supply of a ‘service’
in India relating to exports paid in free foreign exchange or in Indian
Rupees which are otherwise considered as having being paid for in free
foreign exchange by RBI.
|9.54 ||“SEZ” means Special Economic Zone notified by Ministry of Commerce
& Industry, Department of Commerce.
|9.55 ||“Ships” mean all types of vessels used for sea borne trade or coastal
trade, and shall include second hand vessels.
|9.56 ||“SION” means Standard Input Output Norms notified by DGFT in HBP v2 /
approved by Board of Approval.
|9.57 ||“Spares” means a part or a sub-assembly or assembly for substitution,
that is ready to replace an identical or similar part or sub-assembly or
assembly. Spares include a component or an accessory.
|9.58 ||“Specified” means specified by or under the provisions of this Policy
through Notification / Public Notice.
|9.59 ||“Status holder” means an exporter recognized as Export House/Trading
House etc. by DGFT/Development Commissioner.
|9.59.1 ||“Stores” means goods for use in a vessel or aircraft and includes fuel
and spares and other articles of equipment, whether or not for immediate
|9.60 ||“STP” means Software Technology Park
|9.61 ||“Supporting Manufacturer” means any person who manufactures any
product or part/accessories/components of that product. Name of supporting
manufacturer as well as the exporter must be endorsed on export documents.
|9.62 ||“Third-party exports” means exports made by an exporter or
manufacturer on behalf of another exporter(s). In
such cases, export
documents such as shipping bills shall indicate name of both manufacturing
exporter/ manufacturer and third party exporter(s). BRC, GR declaration,
export order and invoice should be in the name of third party
|9.63 ||“Transaction Value” is as defined in Customs Valuation Rules of
Department of Revenue.
|9.64||“Wild Animal” means any wild animal as defined in Section 2(36) of
Wildlife (Protection) Act, 1972.