DGFT makes major amendments Handbook of Procedures (Vol. I)

By Vijay Kumar

The highlights of the amendments are-

1. The Bank guarantee to be executed under para 2.20 for Advance Licence and EPCG included a 15% interest on the excise duty and education cess saved. Now this 15% interest clause is deleted.

2. DGFT in association with the Administrative Ministries/Departments and the Trade Associations will organize Industry Outreach Programme on regular basis for an effective awareness among the exporters/importers dealing with the trade, in particular, in SCOMET items. ( what is SCOMET? See the end of today’s DDT)

3. Exports made against the Government of India/EXIM Bank Line of Credit would be entitled for benefits under the Advance Licence Scheme. Further, exports made under Deferred Payment/Suppliers Line of Credit Contract backed by ECGC Cover would also be entitled for the benefit under the Scheme.

4. Items reserved for imports by State Trading Enterprises cannot be imported against advance licence. However those items can be procured from State Trading Enterprises against ARO issued to advance licence holder.

5. An application for amendment of an export item or inputs under SION or under Adhoc Norms may be filed by any manufacturer or merchant exporter as per Appendix 10J of the Handbook (Vol. I). The applicant would give the justification for seeking the amendment and the same would be considered by the Regional Office with the specific approval of the head of the Office.

6. licensee holding an advance licence for Physical export has an option either to export directly or to supply the product to EOU/ EHTP/STP/BTP units. Similarly a licensee holding an advance licence for deemed export (for supply to EOU/ EHTP/STP/ BTP units only) has an option either to supply to EOU/ EHTP/STP/ BTP units or export directly

7. Exports made against the Government of India/EXIM Bank Line of Credit and exports made under Deferred Payment/Suppliers. Line of Credit Contract backed by ECGC Cover would also be entitled for the benefit under DFRC Scheme.

8. If the licence issued under the scheme has actually been utilized for import in excess up to 10% of the CIF value/Duty saved amount of the licence, licence shall be deemed to have been enhanced by that proportion. The Customs shall automatically allow the clearance of goods in excess up to 10% of the licence value/Duty saved amount, as the case may be, without endorsement by the licensing authority. In such cases, the licence holder shall furnish additional fee to cover the excess imports effected in terms of CIF value/Duty saved amount subsequently. The export obligation shall automatically stand enhanced proportionately.

9. FOB actually realized and date of realization of export proceeds are to be given in all cases except where consignment has been sent against confirmed irrevocable letter of credit or exports made against the Government of India/EXIM Bank Line of Credit or exports made under Deferred Payment/Suppliers Line of Credit Contract backed by ECGC Cover. An endorsement to that effect need to be endorsed in BRC

10. Three more Agri Export Zones added. They are

PUBLIC NOTICE NO 45/ 2004-09, Dated January 14, 2005