Procedure for granting supplementary claim of DFCE for service providers – DGFT clarifies.
As per Para 9.4 of the Handbook of Procedures, wherever any application for supplementary claim is received within the specified time limit, such application may also be considered after imposing a cut of 10%. Some licensing authorities have sought clarification about the applicability of this provision vis-a-vis claims filed under DFCE for service provider category.
DGFT after discussing at length has clarified that supplementary applications filed within the last date prescribed for submission of an application shall be allowed by imposing a cut of 10% on the entitlement across the Board to all Export Promotion Schemes under FTP. It is further clarified that Wherever a supplementary application is submitted late, but within six months of the last prescribed date, a 20% cut shall be applied on the entitlement which shall include 10% cut as per Para 9.3 and another 10% as per Para 9.4. Supplementary claims filed outside the purview of Para 9.3 of Handbook of Procedures (i.e. after six months of the last prescribed date) shall not be entertained
Now what is DFCE? And why should the Government resort to these acronyms and confuse people? Or is that they are too lazy to type the full form?. Any way DFCE means Duty Free Credit Entitlement. This is the forerunner to the much publicised Target plus scheme.
DGFT CIRCULAR NO. 01 (RE-2005)/2004-2009 Date: April 13, 2005