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Exemption from RCMC, ARO/ B to B L/C for AIL, Negotiation of Documents as
Proof of Exports & Other Issues
Public
Notice No. 39 dated 8th October 2002
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 amendments in the Handbook of Procedures (Vol.1): -
1.
The exports of blankets and travelling rugs made of shoddy and wool as
well as made of wool dominant blends in all the ITC (HS) classifications are
being exempted from furnishing of Registration Cum Membership Certificate (RCMC).
The last sentence of para 3.12.1 is amended to incorporate these categories of
products in the exempt category. Accordingly the amended version of para 3.12.1
is as under.
However
no RCMC would be insisted upon under any of the schemes under the Exim Policy if
the product of export is shoddy & woollen yarn, wool fabrics, wool tops,
hair belting of wool, felt & machine made carpets and woven shawls made of
wool, wool scarves, wool stoles, blankets & travelling rugs made of shoddy
and wool and wool dominant blends in all classifications.
2.
It has been decided that an Advance Release Order (ARO) may be issued
against an Advance Licence for Intermediate Supplies also. Accordingly the
second sentence of para 4.14.1 is amended to include the phrase
"Intermediate Supplies" at two places. The amended para 4.14.1 of the
HBP (Vol 1) would read as under:
An
ARO may be issued along with the Advance Licence for Physical Exports/
Intermediate Supplies/ Deemed Exports/ DFRC or subsequently, and its validity
shall be co-terminus with the validity of the Advance Licence for Physical
Exports/ Intermediate Supplies/ Deemed Exports.
3.
Paragraph 4.15 pertains to "Back-to-Back Inland Letter of
Credit". It has been decided to permit a back-to-back Inland Letter of
Credit against an Advance Licence for Intermediate Supplies also. Accordingly in
the second sentence of para 4.15 the phrase " an intermediate supply
and" would stand deleted. The amended para 4.15 would read as under:
An
Advance Licence holder, except for DFRC holders, may approach a bank for opening
an inland letter of credit (LC) in favour of an indigenous supplier.
4.
It has been decided to accept the negotiation of documents as proof of
exports against irrevocable letter of credit. In accordance with this decision,
the following sentence is added at the end of Note: - (a) to para 4.18
pertaining to "Acceptance of BG/ LUT":
However,
realisation of export proceeds shall not be insisted if the shipments are made
against confirmed irrevocable letter of credit and the same is certified by the
bank in column 14/15 of Appendix 22.
5.
A decision was taken on acceptance of Project Authority Certificate (PAC)
certifying quantity, value and date of supply instead of invoice by Excise
Authority for non-excisable products. This requires a modification in para 4.25
(i) of the Handbook of Procedures (Vol 1). Hence the following sentence is added
at the end of para 4.25 (i) pertaining to deemed exports:
However
in case of supply of items, which are non, excisable, a project authority
certificate (PAC) certifying quantity, value and date of supply would be
acceptable.
6.
A decision was taken for obviating the surrender of Special Additional
Duty (SAD) with interest under DEPB�s issued under Customs Notification No
45/2002 wherein export proceeds were not realised since SAD was not exempt for
imports under the DEPB�s issued under this notification. This requires an
amendment in para 4.45.1 by adding the phrase "(only in case SAD was exempt
for imports under DEPB) after the word "SAD" at two places.
Accordinglythe amended version of para 4.45.1 is as under:
If
the export proceeds are not realised within six months or such extended period
as may be allowed by RBI, the DEPB holder shall pay in case an amount equivalent
to the duty free credit utilised on imports, including SAD (only in case SAD was
exempt in case of imports under DEPB), against such exports with 15% interest
from the date of import till the date of deposit. In such cases, where the
amount realised in foreign exchange is less than the amount on which the DEPB
credit has been obtained, the holder of DEPB shall pay, in cash, an amount
proportionate to the duty free credit utilised on imports, including SAD (only
in case SAD was exempt for imports under DEPB) with 15% interest from the date
of import till the date of deposit.
7.
A decision was taken to discontinue with the proviso for submission of
copy of invoices certified by the Project authority in the case of redemption
under EPCG. In tune with the decision, the third sub-para of Para 5.13 (b)(i)
pertaining to redemption of EPCG licence for deemed exports is deleted and the
amended version of para 5.13(b)(i) is as under:
Copy
of ARO/ Back-to-Back Inland Letter of Credit or Advance Licence for Intermediate
Supplies
Or
Supply
Invoices duly certified by the Bond Office of EOU/ EPZ concerned showing that
the supplies have been received.
8.
S. No 2 under the sub heading "Documents to be enclosed with the
application form" in Appendix 9 pertaining to the "Application form
for grant of licences for capital goods including computer, computer sub-systems
and service system under the EPCG Scheme" is deleted. This amendment
obviates the need for submission of the proforma invoice/ quotation showing the
CIF value of capital goods.
9.
It was decided that the Project Authority Certificate may be dispensed in
respect of supplies against advance licence and supplies to EOU/ EPZ/ EHTP/ STP/
SEZ. Accordingly S. No 2 under the sub heading "Documents to be enclosed
with the application form" in Appendix 10 B pertaining to the
"Application form for grant of Advance Licence under Duty Exemption
Scheme" is amended by adding the phrase "supplies against advance
licence and supplies to EOU/ EPZ/ EHTP/ STP/ SEZ. The amended S. No 2 would read
as under:
2.
Project Authority Certificate in case of application for Advance Licence
for deemed export excepting
a.
In cases of supplies to an EPCG licence holder wherein an invalidation
letter would suffice,
b.
Supplies against advance licence and
c.
Supplies to EOU/ EPZ/ EHTP/ STP/ SEZ;
and
a copy of invalidation letter in case of application for Advance Licence for
intermediate supply.
10.
The district of Khandwa in added in the Agri Export zone for Potatoes,
Onion and Garlic in the state of Madhya Pradesh. Accordingly S. No 10 of
Appendix 15 pertaining to "Agri Export Zone" is amended as under"
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S.
No
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Product
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State
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Districts
covered
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10
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Potatoes,
Onion and Garlic
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Madhya
Pradesh
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Malwa,
Ujjain, Indore, Dewas, Dhar, Shajapur, Raltam, Neemuch, Mandsaur and
Khandwa
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This
issues in public interest.
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