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Date: 27-06-2002
Notification No: DGFT Policy Circular No 6/2002
Issuing Authority: DGFT  
Type: Circular
File No:
Subject: Application by Branch Office of Registered Exporters for Deemed Export Benefits
Application by Branch Office of Registered Exporters for Deemed Export Benefits

Policy Circular No. 6 dated 27th June 2002

1) Application by branch office of Registered exporters for Deemed exports benefits

2) Endorsement by RLA�s for automatic extension of Status upto 31.03.2004 for Golden Certificate and other status holders

3) Retrospective effect to certain changes in the Exim Policy 2002-07

1)     The issue of application by the branch offices of registered exporters for deemed export benefits was deliberated upon in this office. Keeping in view the facility for branch offices of exporters to apply for Advance Licence under para 4.2 and 4.3 of the Handbook of Procedures (Vol 1), it was decided to extend the facility of application by branch offices of exporters even for deemed export scheme. The requirements of para 4.2 and 4.3 of the Handbook of Procedures (Vol. 1) shall apply for applications for deemed export benefits as well.

2)     The procedural implementation of the provision of the transitional arrangement for the status certificates expiring on 31.03.2002 as given in para 3.7.4 of the Exim Policy was deliberated upon in this office. The said para (as amended by Notification No 3 dated 01.05.2002) automatically permits the extension of such status certificates (along with the erstwhile golden status certificate) upto 31.03.2004. Some firms had represented that they were facing difficulty in the absence of specific endorsement to this effect on the status certificate. It has therefore been decided that the office, which has initially issued such a certificate, would make an endorsement on such status certificates (including golden status certificates) expiring on 31.03.2002 granting this 2-year deemed extension, if a status holder specifically makes such a request.

3)     The issue of retrospective applicability of some of the new provisions in the Exim Policy 2002-07 to the licences issued prior to 01.04.2002 under the various export promotion schemes was discussed in the light of a number of representations received in this office. It was decided that since the intention of these changes were to remove procedural bottlenecks and grant flexibility for export promotion, the following changes could be granted even for past cases.

a.     The direct negotiation of documents has been permitted to status holders without specific approval from the Reserve Bank of India (RBI) from 01.04.2002.  The direct negotiation of documents as per the specific permission granted by RBI for exports prior to 01.04.2002 would also be permitted provided the exporter has got specific permission of RBI and submits a FIRC (Foreign Inward Remittance Certificate) in lieu of BRC (Bank Realisation Certificate) during redemption.

b.     In the case of licences issued before 01.04.2002 under the provisions of previous Exim Policies, a decision has been taken to permit conversion of one shipping bill under one scheme to another shipping bill as per conditionalities under para 2.56 of Handbook of Procedures (Vol 1) 2002-07.

c.     The facility of Advance Licence for Intermediate Supplies would be granted against invalidation of Advance licences for physical exports issued before 01.04.2002 even in case where the intermediate supplier has supplied or intends to supply the material subsequent to the fulfilment of the export obligation by the ultimate exporter holding the Advance Licence as per the provisions of para 4.13 of the Handbook of Procedures (Vol 1).

This issues with approval of Director General of Foreign Trade.

       

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