| Date: |
10-02-2016
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| Notification No: |
Trade Notice No. 16/2015
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| Issuing Authority: |
DGFT
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| Type: |
Trade Notice
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| File No: |
F. No. 01/94/180/12/AM16/PC-4 |
| Subject: |
Closure of Advance Authorisation licences as per para 4.16(a) of FTP 2009-14, pending for want of payment to be received from Foreign currency account of SEZ unit.
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Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi
New Delhi, Dated the 10th February, 2016
Trade Notice No. 16/2015
To,
All RAs of DGFT
Members of Trade
Subject: Closure of Advance Authorisation licences as per para 4.16(a) of FTP
2009-14, pending for want of payment to be received from Foreign currency
account of SEZ unit.
A number of representations have been received in this Directorate from Trade,
Industry and Export Promotion Council for EOU and SEZ on the pending requests
for allowing closure/ redemption/EODC in cases where the Advance Authorisation
holder had made supplies to SEZ units and realised the proceeds in Indian Rupees
as per the extant provisions laid down in Para 4.1.6(a) of FTP 2009-14.
- The matter has been examined and it is clarified that Para 4.1.6 (a) of FTP
2009-14 had not stipulated that DTA supplying goods under Advance Authorisation
to an SEZ unit has to realise payment from Foreign Currency Account of SEZ unit.
Moreover, Rule 30(8) of SEZ Rules 2006 also do not mention that it is mandatory
for SEZ unit to make payment to Advance Authorisation holder from Foreign
Currency Account (FCA). The above condition was made applicable for Advance
Authorisation in the FTP (2015-2020), as per para 4.21 (iii) w.e.f. 1st April,
2015 only.
- In the interest of trade facilitation it has been decided, in consultation
with SEZ Division of Department of Commerce, that closure/redemption/EODC may be
allowed where the Advance Authorization holder or DFIA holder has made supplies
to SEZ units and realised the proceeds in Indian Rupees as per the extant
provisions laid in para 4.1.6(a) of FTP 2009-14 by realising the proceeds in
Indian Rupees. All the Regional Authorities may take necessary action as per
clarification.
- It is further clarified that in the new FTP 2015-20 it has been stipulated in
the para 4.21 (iii) that “Export to SEZ Units shall be taken into account for
discharge of export obligation provided payment is realised from Foreign
Currency Account of the SEZ unit.” Hence conditions of para 4.21(iii) of FTP
will have to be complied in respect of the Advance Authorisations issued during
FTP 2015-20.
- This issues with the approval of DGFT.
(S. Latha)
Deputy Director General of Foreign Trade
[Issued from F.No. 01/94/180/12/AM16/PC-4]
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