The Directorate General of Foreign Trade ( DGFT ) has clarified that Advance Authorization ( AA ) holders can procure Acetic Anhydride from Special Economic Zone ( SEZ ) units without being subject to the restrictions outlined in Paragraph 4.08(ii) of the HandBook of Procedures ( HBP ) 2023.
This clarification comes in response to inquiries regarding the necessity of a No Objection Certificate ( NOC ) for such procurements.
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According to Paragraph 4.08(ii) of the HBP 2023, the Regional Authority is responsible for endorsing a copy of the Advance Authorization to the relevant agencies. Additionally, it requires that before any imports are made, the AA holders must obtain a No Objection Certificate from the Drug Controller and the Narcotics Commissioner of India. This requirement has raised questions about the implications for procuring Acetic Anhydride from SEZ units.
The words of paragraph 4.08(ii) of the HBP 2023 “(ii) Regional Authority shall endorse a copy of such Advance Authorisation to the above three agencies. Regional Authority shall also endorse a condition that before effecting imports, ‘No Objection Certificate’ shall be obtained from Drug Controller and Narcotics Commissioner of India.”
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After thorough examination and consultation with the relevant authorities, the DGFT has clarified that these provisions do not apply when Advance Authorization holders procure Acetic Anhydride from SEZ units. The procurement must be against a Certificate of Supplies and the Acetic Anhydride must be manufactured by a unit operating within the SEZ. This exemption is significant as it simplifies the procurement process for AA holders and encourages operational efficiency within SEZs.
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