Policy Circular No. 33 dated 23^rd September 1999 (As amended by Policy Circular No. 34/ 1999)

Attention is invited to DGFT Circular No. M-3 (2)/ AM92/ DBK Cell dated 18^th March 1994 and Policy Circular No. 57 (RE-98)/ 98-99 dated 16^th December 1998. Subsequently, following amendments have been carried out in EXIM Policy / Handbook of Procedures:

(i)     Paragraph 7.6 of the Policy has been amended and the sentence "Special Imprest License is granted to a manufacturer exporter" has been replaced by "a Special Imprest License is granted to the main contractor."

(ii)    Public Notice No. 6 dated 22.4.1999 has deleted the following sentence from Paragraph 10.12 of the Handbook of Procedures

"In such cases, Main contractor shall be eligible for deemed export benefits only to the extent of goods manufactured and supplied by him as indicated in the Main contract and the Project Authority Certificate given in Appendix 14-A."

In the light of above stated two changes the issue was discussed with Deptt. of Economic Affairs and Deptt. of Revenue and it has been decided to withdraw Policy Circular No. 57 dated 16^th December, 1998. Accordingly, Policy Circular No. 57 dated 16^th December 1998 is withdrawn and DGFT Circular No. M-3 (2)/ AM92/ DBK Cell dated 18^th March 1994 stands. Even the supplies effected between 16^th December 1998 to 31^st March 1999, and thereafter, shall also be entitled for deemed export benefits as clarified by DGFT Circular No. M-3 (2)/ AM92/ DBK Cell dated 18^th March 1994.

This issues with the approval of DGFT.