GENERAL NOTE FOR FUEL

Duty free import of fuel shall be allowed as per the quantity indicated in the relevant Standard Input Output Norms (SION). However, in cases where fuel has not been specifically included in the SION, duty free imports of fuel shall also be allowed under Actual User Advance Licence subject to the condition given in the EXIM Policy/Handbook of Procedures as per percentage rate indicated against each product as under:

Sl. No.	Product Group	Value of fuel to be permitted as percentage FOB value of exports.
1.	Bulk Drug and Drug Intermediates	5%
2.	Dye and Dye Intermediates	4%
3.	Glass	5%
4.	Ceramic Products	5%
5.	Paper made from wood pulp/waste paper	5%
6.	Pesticides (Technical)/ Pesticides formulation from Basic Stage	5%
7.	Refractory items of the following types:-
	a. Shaped and Fired	7%
	b. Shaped and Tempered	3%
	c. Others	2%
(Sl. No. 7. has been amended vide PN No. 54(RE-02), Dt. 03/01/2002
[OLD- 7.	Refractory items	7% ]
8.	Ferrous engineering products manufactured through forging/castings process	7%
9.	Non-ferrous basic metals (including down-stream products of aluminium) [OLD -Non ferrous basic metal]	4%
(Description of the product group against Sl. No. 9 has been amended vide PN No. 52/2002-07, Dt. 05/12/2002)
10.	Plastic and plastic products from Basic/Monomer Stage	5%
11.	Fibre to yarn	4%
12.	Yarn to finished fabrics/made-ups [OLD- Yarn to fabric/ Made-ups / Garments ]	3%
13.	Fibre to finished fabrics/made-ups [OLD- Fibre to fabric / made-ups / Garments]	7%
14.	Organic Chemicals	4%
15.	Inorganic Chemicals	3%
16.	Glass Artwares	3%
(In above table Sl. No. 14,15 & 16 has been added vide PN No. 15(RE-02), Dt. 04/06/2002)
17.	Leather Footwears and its Leather components	3%
(In above table Sl. No. 17 has been added vide PN No. 03(RE-03), Dt. 31/03/2003)
18.	Graphite Electrodes (against SION at C-485)	6%
(Sl. No. 18 has been added vide PN No. 27(RE-03), Dt. 06/10/2003)
19.	Bras Art Wares	2%
(Sl. No. 19 has been added vide PN No. 38(RE-03), Dt. 08/01/2004)
20.	For export of Rice, fuel is allowed at the rate of 2% of FOB value with a value cap of Rs. 15 per kg rice with the condition that (a) The fuel entitlement will be only for those firms having captive power plant (installed and in running condition) (b) Licence / ARO will be subject to actual user condition. (c) No DFRC will issued. (d) HSD will be procured only through the canalizing agency. (e) Export of rice will be subject to export policy in vogue
21.	Finished fabric to garment	2%
22.	Yarn to garment	5%
23.	Carbon Steel submerged Arc welded pipes coated/uncoated	4%
(Sl. No. 23 has been added vide PN. NO. 90/2005, DT. 28/02/2006 (Description at Sl. No. 12 & 13. has been amended and Sl. No. 20. to 22. has been added vide PN No. 05/2005, Dt. 27/04/2005)

Note: In any case, as per above General Note, the fuel shall not be allowed more than 7% of FOB value of exports.

For the purpose of import of fuel under Advance Authorisation, the applicant shall indicate the name of the specific fuel sought for import in their application. Import of fuel shall also be permitted under Paragraph 4.7 of Handbook of Procedures, v1, related to Adhoc Norms, as per the entitlement under “General Note for Fuel”. In case of DFIA, import entitlement for fuel as per SION, may be transferred only to companies, which have been granted licences to market fuel by the Ministry of Petroleum and Natural Gas.

(Above para has been replaced by PN. NO. 66/2009, DT. 19/05/2010)

[OLD- For the purpose of import of fuel under Actual User Advance Licence, the applicant shall indicate the name of the specific fuel sought for import in their application. Import of fuel however shall not be permitted against DFRC or under Para 4.7 of Handbook of Procedures or against Ad hoc Norms. Also, for the calculation of DEPB rates, the cost of the fuel shall not be taken into account.]

(Above para vide policy)

(Above Note has been added vide PN No. 20/2002, Dt. 01/07/2002)

[OLD-
For the purpose of import of fuel under Advance Authorisation, the applicant shall indicate the name of the specific fuel sought for import in their application. Import of fuel shall also be permitted under Paragraph 4.7 of Handbook of Procedures, v1 or against Adhoc Norms as per the entitlement under “General Note for Fuel”. In case of DFIA and erstwhile DFRC, import entitlement for fuel as per SION may be transferred only to companies which have been granted licences to market fuel by the Ministry of Petroleum and Natural Gas. For the purpose of calculation of DEPB rates, fuel shall not be taken into account. However, exporter can apply for fixation of DEPB rate (Brand Rate) in ANF 4C for the component of customs duty on fuel under DEPB Scheme.]

(Above Last Paragraph has been replaced by PN. NO. 42/2008, DT. 04/07/2008)

[OLD-
For the purpose of import of fuel under Advance Authorisation, the applicant shall indicate the name of the specific fuel sought for import in their application. Import of fuel, however, shall not be permitted under Paragraph 4.7 of Handbook of Procedures, v1 or against Adhoc Norms. In case of DFIA and erstwhile DFRC, import entitlement for fuel as per SION may be transferred only to companies which have been granted licences to market fuel by the Ministry of Petroleum and Natural Gas. For the purpose of calculation of DEPB rates, fuel shall not be taken into account. However, exporter can apply for fixation of DEPB rate (Brand Rate) in ANF 4C for the component of customs duty on fuel under DEPB Scheme. ]

(Above Last Paragraph has been replaced by PN. NO. 110/2007, DT. 15/02/2008)

[OLD-
For the purpose of import of fuel under Actual User Advance Licence, the applicant shall indicate the name of the specific fuel sought for import in their application. Import of fuel however shall not be permitted against DFRC or under para 7.5 of Handbook of Procedures or against Ad hoc Norms. Also, for the calculation of DEPB rates, the cost of the fuel shall not be taken into account. ]