| Date: |
05-05-2016
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| Notification No: |
Trade Notice No. 04/2016
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| Issuing Authority: |
DGFT
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| Type: |
Trade Notice
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| File No: |
File No. 01/61/180/57/AM15/PC-3 |
| Subject: |
Clarification regarding benefit under Incremental Export Incentivisation Scheme(IEIS) notified vide Notification No. 27 dated 28th December, 2012.
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Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi
Trade Notice No. 04/2016
New Delhi, Date the 05th May 2016
To
1. All RAs of DGFT
2. Customs Authorities
Subject: Clarification regarding benefit under Incremental Export
Incentivisation Scheme (IEIS) notified vide
Notification No. 27 dated 28th
December 2012.
The Incremental Export Incentivisation Scheme (IEIS) was introduced vide
Notification No. 27 dated 28.12.2012. Under the scheme, an INC holder was
entitled for duty credit scrip (a,) 2% on the incremental growth during the
period 01.01.2013 to 31.03.2013 compared to the period from 01.01.2012 to
31.03.2012 on the FOB value of export subject to conditions prescribed therein.
- Vide
Notification No. 44 dated 25.09.2013 on the said IEIS Scheme, it
was provided that
(i) Benefit for Incremental Export Incentivisation Scheme (IEIS) for the
last quarter of 2012-13 will be limited to 25% growth or Incremental growth
of ₹ 10 crores in value, whichever is less.
(ii) Claims in excess of this value will be subjected to greater scrutiny by
Regional Authority.
- Thereafter on 23.092014, a clarification was issued by DGFT to RAs that
Para (i) and (ii) in
Notification No. 44 dated 25.09.2013 are independent.
The limiting of claim was clearly mentioned in the first sub-para of
Notification which fixes the upper limit of grant of benefit. The second
sub-para in the Notification only directs RAs to exercise caution while
dealing with cases of incremental growth of export under the scheme. It does
not entitle any applicant to higher levels of benefits under the scheme.
- The
Notification No. 44 dated 25.09.2013 on the issue of limiting the
entitlement has been challenged by many exporters in different high courts.
In view of the decisions of the various High Courts, the matter has been
re-examined in consultation with the Department of Legal Affairs and
accordingly. following instructions are hereby issued for processing the
cases of the IEIS claims by RAs:
- In supersession of clarification dated 23.09.2014, RAs may further
process the cases without imposing any cap on account of the earlier
stipulation of restricting growth to 25% or incremental growth of ₹ 10 crore
in value, whichever is less.
- RAs must, however, exercise due diligence while processing such claims
by following guidelines of greater scrutiny as prescribed in
Public Notice
No. 28 dated 25.09.2013 to check claims having high growth % and/or value
and against irregularities. In this regard the Policy
Notification No. 27
dated 28.12.2012 may also be carefully seen, in addition to other relevant
provisions. Inter alia, transfer of' export performance from any other IEC
holder was not permitted under the scheme as per Para 3.14.4 (d). Similarly
disclaimer provision of Para 3.17.10(b) was also not admissible as per Para
3.14.4(c).
- If in any case there are doubts/ suspicions about the
authenticity/genuineness of the increments in aspect like turn over /growth
etc., the matter may be referred to investigating agencies like DRI etc. and
the case may be finalized after taking into account their report.
- All these cases should be approved by Head of the Office.
- The above stipulations will not be a bar to the RAs in scrutinizing
small value claims also, when there is prima facie case to do so.
- It is pertinent that no right is vested in favour of claimant when
impropriety fraud has been detected.
(J M Gupta)
Joint Director General of Foreign Trade
e-mail : [email protected]
(Issued from File No. 01/61/180/57/AM15/PC-3)
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