Govt notifies conditions for issuing Free Sale, Commerce Certificate to Merchant Exporters

The Dollar Business Bureau

The Directorate General of Foreign Trade has come across some discrepancies with regard to the Proforma of the Free Sale & Commerce Certificate of the exporters in Annexure A and issued a notification on 15, September 2016. The Policy Circular No.- 02/2015-20, asks the exporters to indicate the details of the manufacturer or the exporter (if he himself is not the manufacturer) in Annexure “A” of the Free Sale & Commerce Certificate.

The notification issued says, Para 2.37 of Hand Book of Procedure, 2015-2020 deals with the issue of Free Sale & Commerce Certificate by Regional Authorities to exporters/merchants. As certain doubts have arisen in the Proforma of the certificate, it is clarified that the exporter has to indicate the details of the manufacturer or the exporter (if he himself is not the manufacturer) in Annexure “A” of the Free Sale & Commerce Certificate. Thereon the Regional Authority concerned will indicate the name of the manufacturer exporter as is being submitted by the Applicant in Annexure “B”. Thus Free Sale & Commerce Certificate can be issued to Merchant Exporters also if they provide details of manufacturer of the item in Annexure “A” of Appendix 2H.

The para details that the Free Sale and Commerce Certificate would be issued for the export of any item which is not restricted or prohibited for export and the certificate shall be valid for two-years from the date of issue unless otherwise specified. However in order to apply for the certificate the exporter has to send an application to the concerned RA as per format in ANF 2H of Appendices and Aayat Niryat Forms along with Annexure A. Only then the concerned Regional Authority will certify the name of the manufacturer in Annexure ‘B’.

The change in the notification being that a Merchant Exporter will also be issued a Free Sale & Commerce Certificate by the RA if they provide just the details of the manufacturer of the item in Annexure A.