Circular No. 51 dated 24^th October 1996

Attention is invited to Circular No. 44/ 96-Cus dated the 21^st August 1996 on the above subject. The said circular provides that conversion should be considered only respect of exports made after the exporter has applied for issued of Pass Book to the designated authority in the light of para 66 of the Exim Policy.

2.      The matter has been re-examined in the Ministry in the light of representations received. The instructions issued by the Ministry permit conversion of Sipping Bill filed under DEEC on or after 30th May 1995. Since exports under DEEC Scheme can be made only after filing of an application for an Advance Licence, exporters can be deemed to have complied with the provisions of para 66 of the Exim Policy while effecting exports. Notification No. 104/ 95-Customs does not debar credit to be allowed if on the date of application seeking the credit exporter has been issued a Pass Book. There is no express condition that on the date of export, the exporter should have applied for a Pass Book.

3.      There should not therefore be any objection in allowing conversion of shipping Bills filed under DEEC Scheme on or after 30th May, 1995 provided on the date of seeking conversion of the Sipping Bills the exporter is in possession of a Pass Book. Instructions issued vide Circular No. 44/ 96-Cus. should be deemed to have been modified to this extent.

4.      Suitable public notice for information of the trade and standing orders for the guidance of staff may be issued.