7.8

For standardisation of norms, an application may be made by the manufacturer exporter or merchant-exporter, tied to supporting manufacturer, duly filled in with complete data. Such applications shall be made to the Advance Licensing Committee (ALC) in the form given in Appendix-11A.

Import of fuel may also be allowed under SION by ALC subject to the following: -

(a) It may be allowed only when the total cost of power constitutes not less than 10% of the total cost of manufacture of the export product. The cost of manufacture would be the ex-factory value of production of the resultant product.

(Para (a) has been amended vide PUBLIC NOTICE 11(RE-01)/97-02, Dt. 01/05/2001.)

(b) Fuel should be allowed only under SION and in no case should it be allowed either under paragraph 7.5 or under ad-hoc norms.

(c) Fuel should be allowed only against an actual user licence and therefore, fuel shall not be allowed for imports against DFRC, which is transferable in nature.

(d) Even where fuel is included as an input under SION, it should not be taken into account while fixing the DEPB rate for the resultant product against which fuel has been allowed as an input.

The Director General of Foreign Trade may notify such norms as recommended by the ALC