Grant of Advance Licences on Self-declaration basis in respect of applications for which Standard Input Output Norms are not fixed

SALC Circular No. 1 dated 28^th June 1999

Attention is invited to Paragraph 3 of the Public Notice NO. 40/ RE-98/ 1997-2002 dated 15.9.98 and the corresponding provisions contained in Paragraph 7.5 of the Handbook of Procedures 1997-2002, Vol. 1, (Revised Edition: March'99) on the above subject in terms of which the licensing authority can issue Advance Licences, where standard input-output norms are not prescribed, with actual user non-transferable condition to a manufacturer - exporter, and also to a merchant exporter where the merchant exporter agrees to the endorsement of the name(s) of the supporting manufacturer(s) on the relevant DEEC book, based on self-declaration and undertaking by the applicant for a final adjustment as per Ad-hoc / Standard Input Output Norms to be fixed by SALC

2 From the information received in the Hqrs. office, it is noticed that in many cases the licensing authorities do not appear to be scrutinising applications filed under the above provision properly. In some cases even the applications were found to be incomplete. It is accordingly directed that licensing authorities, while forwarding advance licence applications received in terms of Paragraph 7.5 of the Handbook of Procedures 1997-2002 (RE: March 1999) shall ensure that all such applications are complete and prescribed documents enclosed. It is hereby clarified that apart from ensuring that the applications are complete in all respects the licensing authorities are required to see that there are no Standard Input Output Norms for export of the intended export product and that the applicant is not seeking the misuse the facility under Paragraph 7.5 of the Handbook of Procedures by slightly changing the nomenclature of the export product.

3. Attention of all licensing authorities is also invited to sub-para (3) of Paragraph 7.5 of the Handbook of Procedures, 1997-2002, VoI.1 (Revised Edition: March 1999) as per which the applicants are required to submit their application in original to the concerned licensing authority, who shall forward a copy of the same to SALC for fixation of norms within the prescribed time. In order to effectively monitor such cases, it has been decided that licensing authorities shall maintain a proper monitoring register of all such cases as per the proforma. annexed to this Circular and that after issue of licence to the applicant on self-declaration basis, they shall forward a complete set of applications alongwith prescribed documents, both for issuance of advance licence (Appendix 11B) and for fixation of norms (Appendix 11A), alongwith a copy of licence by Speed Post/ Registered post directly, by name, to Shri S.P. Sharma, Dy. DGFT in-charge of R&I Division of the DGFT Headquarter office, who shall assign a special code with file number to each of such applications and keep a proper record of the same. For this purpose, licensing authorities while forwarding applications under Para 7.5 of the Handbook of Pr6tedures, 1997- 2000, VoI.1 (Revised Edition: March 1999), shall clearly indicate on the top of their forwarding note the following:-

"Application under Paragraph 7.5 of Handbook of Procedures: To be placed before SALC."

4. Further the licensing authorities should invariably maintain a separate record for all applications considered under Public Notice No,40/ RE-9811997-2002/ Para 7.5 of the Handbook of Procedures, Vol.1 (Revised Edition: March 199.9) in a proper monitoring register as per the Performa annexed to this Circular. While forwarding such applications, licensing authorities shall also allot a running number in respect of each of such applications being forwarded to the Hqrs. office so as to ensure their proper accounting. If within a period of 60 days from the date of forwarding of such applications, licensing authorities do not receive any intimation/ decision from the SALC, Headquarters in the case, they shall forward a list of all such cases, by name, to JDG, DES for early disposal of such cases. This exercise should be repeated every month thereafter till the necessary recommendations of the SALC, Headquarters are received. The list of cases where SALC decision does not get communicated within four months from the date of issue of licence should be forwarded demi-officially to DGFT, every month.

5. The procedure is suggested in paragraphs 3 and 4 above shall also apply to applications received in terms of Public Notice NO. 40/ RE-98/ 1997-2002, if the same have not been adopted so far while forwarding the applications to SALC, Headquarter for review in terms of provision of above Public Notice, and also if no recommendations of SALC, Headquarter have been received by them for adjustment of quantities etc in the licences already granted to the firm.

6. This issues with the approval of the Director General of Foreign Trade.

ANNEXURE

PROFORMA REFERRED TO IN PARAGRAPH 3 OF SALC CIRCULAR NO. 1 DATED 28^th June 1999