The Directorate General of Foreign Trade ( DGFT ) has issued a policy circular clarifying that Advance Authorization ( AA ) holders are exempt from obtaining a No Objection Certificate ( NOC ) when procuring Acetic Anhydride from Special Economic Zone ( SEZ ) units.
This exemption applies if the Acetic Anhydride is manufactured within the SEZ and the procurement is against a Certificate of Supplies.
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According to the new notice, the AA holders are no longer required to obtain an NOC from the Drug Controller and Narcotics Commissioner of India for Acetic Anhydride procurement from SEZ units.
The policy circular, issued on October 11, 2024, responds to references regarding the necessity of obtaining an NOC for such transactions. The clarification is expected to streamline procurement processes for exporters and promote trade between AA holders and SEZ units.
The NOC exemption will help the AA holders to minimise the procurement process. The notice states as follows:
“2 In this regard, the Paragraph 4.08 (ii) of the HBP 2023 is reproduced below:
(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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3. The issue has been examined with inputs obtained from the relevant authority. Consequently, it is clarified that the provisions under the said Para 4.08(ii) will not be
applicable in the case of procurement of Acetic Anhydride by an Advance Authorisation holder from an SEZ Unit, against Certificate of Supplies, provided the same is manufactured by an unit operating inside SEZ.”
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