'Late Cuts' and 'short Cuts' - Last date of filing of application for Duty Credit Scrips – DGFT clarifies

By Vijay Kumar

As per Para 3.23.10 of the HOP to the FTP 2008-09,

Last date of filing of application for Duty Credit Scrips: Application for obtaining Duty Credit scrip shall be filed within a period of twelve months from date of exports or within six months from date of realization, or within three months from date of printing/release of shipping bill, whichever is later, in respect of shipments for which claim is being filed. For SFIS, last date shall be 31st December.

DGFT has now amended this to read as,

“Applications for obtaining Duty Credit Scrip shall be filed within a period of twelve months from the date of export or within six months from the date of realization or three months from the date of printing/release of shipping bill, whichever is later, in respect of shipments for which claim is being filed. Further, for shipments already made prior to the inclusion/modification of the items/markets in relevant appendices by various Public Notices issued from time to time; the last date for filing applications shall be six months from the end of the month of the relevant Public Notice that included/modified the items/markets, or the time period permitted in the first sentence of this Para, whichever is later. For SFIS, the last date shall be 31st December, 2008.”

DGFT has further clarified that,

Regarding VKGUY, FMS and FPS Schemes under Chapter 3 of FTP, it has been decided that:

1. For exports made from 1-4-2006 till 31-3-2008 that have already been realized up to 31-3-2008, the last date for filing the application for obtaining benefits under Chapter 3 of the Foreign Trade Policy will be 30.11.2008, and if the realization is after 31.3.2008, then the last date for filing the application will be as per the provisions of Para 3.23.10 of HBP Vol.1 (RE-2008) as amended vide Public Notice No. 64 (RE-2008)/2004-2009 dated 14.8.2008.

2. Further, it is clarified that late cut, in terms of Para 3.23.2 HBP Vol.1 (RE-2008) read with Para 9.3 of HBP Vol.1 (RE-2008), shall be applicable for applications filed after the prescribed last date as above, even for exports made from 1.4.2006 till 31.3.2008.

DGFT is fond of shortcuts and no term is fully used! They also have a late cut. If applications are filed within six months after the last date, there is a cut of 2% and after six months but within a year the cut is 5%.

Now the shortcuts

1. HOP - Hand Book of Procedures

2. FTP - Foreign Trade Policy

3. SFIS - Served from India Scheme

4. VKGUY - Vishesh Krishi and Gram Udyog Yojana

5. FMS - Focus Market Scheme

6. FPS - Focus Product Scheme

PUBLIC NOTICE No.64(RE-2008)/2004-2009, Dated: August 14, 2008 and DGFT Policy Circular NO 27 (RE-2008)/2004-2009 Dated: August 14, 2008