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Back to Back L/C against DFRC, EO Extension under AL, Condition for
Import/ Export
Public
Notice No. 58 dated 9th January 2003
In
exercise of powers conferred under paragraph 2.4 of the Export and Import
Policy, 2002-07, the Director General of Foreign Trade hereby makes the
following amendment in the Handbook of Procedures (Vol.1): -
1) At the end of para 2.2 pertaining to
�Countries of Imports/ Exports� the following sub para is added as under:
�The above provisions shall,
however, be subject to all conditionality, or requirement of licence, or
permission, as may be required under ITC (HS) Schedule II.�
2)
Para 4.15 pertaining to �Back to Back Inland Letter of Credit� is
amended as under:
�The exporter may
alternatively avail the facility of a back to back inland letter of credit from
the banks. An Advance Licence holder and a DFRC holder may approach a bank for
opening an inland letter of credit (LC) in favour of an indigenous supplier.�
(The amended para clarifies that
a DFRC holder is eligible for getting a back-to-back inland letter of credit)
3)
Para 4.22.1 is amended as under:
�The request for extension in
export obligation period may be made in the form given in Appendix-10G. The
regional licensing authority shall grant one extension for a period of six
months from the date of expiry of the original export obligation period to the
licensee subject to payment of composition fee of 1% of
a)
the unfulfilled FOB value of export obligation with reference to CIF
value of imports made for which extension is being sought
b)
or unfulfilled FOB value of quantity wise exports to be completed for
fulfilling export obligation vis a vis the imports made (in case of multiple
inputs, the input with the highest import percentage quantity wise made is to be
taken) whichever is higher.
Request
for a further extension of six months may be considered by the regional
licensing authorities subject to payment of composition fee of 5% of:
a)
the unfulfilled FOB value of export obligation with reference to CIF
value of imports made for which extension is being sought
b)
or unfulfilled FOB value of quantity wise exports to be completed for
fulfilling export obligation vis a vis the imports made (in case of multiple
inputs, the input with the highest import percentage quantity wise made is to be
taken) whichever is higher. However any further extensions beyond 30 months from
the date of issue of the Advance Licence or the duration of the contracted
project (in the case of Advance Licence for Deemed Exports) or on the lapse of
any other extension (s) granted by this office would be permitted on payment of
the composition fee of 1% per month of
a)
the unfulfilled FOB value of export obligation with reference to CIF
value of imports made for which extension is being sought
b)
or unfulfilled FOB value of quantity wise exports to be completed for
fulfilling export obligation vis a vis the imports made (in case of multiple
inputs, the input with the highest import percentage quantity wise made is to be
taken) whichever is higher.
However
such extensions would not be permitted in the case of the erstwhile Value Based
Advance Licences (VABALs). Additionally, no extension in export obligation would
be allowed in respect of licences where misrepresentation/ fraud has come to the
notice of the licencing authorities. Further, in respect of licences where
adjudication orders have already been passed, no extension in export obligation
period shall be admissible.�
(This amendment penalises both
value wise and quantity wise shortfalls in the case of application for EO
extension under the Advance Licence Scheme)
This
issues in public interest.
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