In exercise of powers conferred under paragraph 4.11 of the Export and Import Policy, 1997-2002, as notified in the Gazette of India extraordinary, Part-II- Section 3 � Sub - section (ii) vide S.O No.  283(E) dated 31. 3. 1997, the Director General of Foreign Trade hereby lays down the following guidelines for extension in export obligation period in respect of EPCG and Advance Licences:

1.      In respect of Advance Licences issued on or after 1.4.92, where the licence holder has failed to complete his export obligation within the stipulated time limit, he can apply for extension of export obligation period for 1� years from the date of the Public Notice on submission of a Bank Guarantee, covering the Customs duty together with 24% simple interest on the unutilised exempt material from the date of import upto 31.3.200l, which shall be forfeited in the event of non fulfilment of export obligation in the extended period. Bank Guarantee should be valid upto 31.3.2002.

The above facility shall also be available to Value Based Advance Licence after converting the same into a Quantity Based Advance Licence.

2.      In respect of EPCG licences issued in pursuance of the following notifications, the licence holder shall be deemed to be eligible for extension of export obligation period upto 31.03.2001 provided the licence holder who has failed to complete his export obligation within the earlier stipulated time limit, applies for extension of export obligation period on submission of a Bank Guarantee, covering the Customs duty in proportion to the unfulfilled export obligation together with 24% simple interest thereon from the date of import upto 30.9.2001:

i.       Import & Export Policy 1990-93,Vol.I (Paragraph 197 as amended from time to time) notified under Public Notice No.1-ITC (PN) 1990-93 dated 30^th March 1990;

ii.      Export & Import Policy 1992-97 (Paragraph 38 as amended from time to time) notified under Public Notice No.1-ITC (PN) 1992-97 dated 31^st March 1992;

iii.     Export & Import Policy 1992-97 (Reprint June, 1992 - Paragraph 38 as amended from time to time) notified under Notification No. 22 (N.3) 1992-97 dated 30^th June 1992;

iv.     Export & Import Policy 1992-97 (Revised edition March, 1993 � Paragraphs 38 and 46A as amended from time to time) notified under Notification No. 1(RE) 1992-97 dated 31^st March 1993;

v.      Export & Import Policy 1992-97 (Revised edition March�94 � Paragraphs 38 and 46A as amended from time to time) notified under Notification No. 34(RE) 1992-97 Dated 31^st March 1994;

vi.     Export Import Policy 1992-97 (Revised edition March�95 � Paragraph 38 as amended from time to time) notified under Notification No. 1(RE) 1992-97 Dated 31^st March 1995.

The aforementioned Bank Guarantee shall be forfeited in the event of non-fulfilment of export obligation in the extended period. Bank Guarantee should be valid upto 31.3.2002.

3.      The request for extension shall be filed with the concerned licensing authority within a period of 60 days from the date of the Public Notice. The licensing authority, which originally issued the licence, shall be competent to grant extension in export obligation period.

4.      However, no extension in export obligation shall be allowed in respect of the licences where misrepresentation/fraud has come to the notice of the licensing authorities. Further, in respect of licences where adjudicating orders have already been passed, no extension in export obligation period shall be admissible.

5.      In such cases where the licence holder has not availed the facility accorded under this Public Notice, adjudication proceeding shall be initiated on the expiry of 60 days from the date of this Public Notice.

6.      In such cases where export obligation has been fulfilled prior to the date of this Public Notice but outside the prescribed export obligation period, such exports shall be deemed to have been made within the prescribed Export Obligation period for the purpose of regularisation of the case.

This issues in public interest.