Circular No. 65dated 30^th September 1999

The issue of granting endorsement of transferability of expired Advance Licences issued during Exim Policy 1992-97 was under examination in the Department of Revenue in consultation with the DGFT/ MOC. The matter was also referred to the Ministry of Law. The export obligation against all these Licences had been fulfilled in terms of Public Notice No. 62 (PN)/ 97-02 before 31.12.97/ . However, the endorsement of transferability could not be made.

2.      The issue has been examined in the Board and it has been decided that in respect of Advance Licences issued as per Exim Policy 1992-97, where the export obligation had been completed on or before 31.12.97, the endorsement of transferability shall be permitted by DGFT in the following two situations:

(i)      Where the licences were submitted for endorsement of transferability in terms of DGFT Public Notice No. 62 (PN)/ 97-02 dated 31.12.97 on or before 20.2.98 but endorsement could not be done by DGFT because Customs Notification No. 32/ 98 was issued on 4.6.98 or DGFT PN No. 7 was issued on 13.4.98 or delay at the end of DGFT.

(ii)     Where the licences could not be submitted to DGFT/ MOC for endorsement of transferability in terms of DGFT PN No. 62 because of delay in logging of DEEC book or delay in issuance of Modvat Reversal Certificate by Customs.

In respect of cases covered under (ii) above, the licence holder shall also be required to submit a certificate from the concerned Assistant Commissioner of Customs/ Central Excise certifying that for want of logging of DEEC book of issue of Modvat Reversal Certificate, he could not submit the Advance Licence to the DGFT/ MOC by 20.2.98 as specified in DGFT PN No. 62.

3.      Advance Licences of the types covered by (i) and (ii) above would be allowed transferability alongwith revalidation upto 31.3.2000. Suitable Public Notice is being issued by the DGFT/ MOC in this regard.