Public Notice No. 24 dated 14^th July 1999

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 31.3.97, the Director General of Foreign Trade hereby makes the following amendment in the Handbook of Procedures (Vol.1) (RE-99), 1997-2002.

1.      The following shall be added at the end of paragraph 7.5

The licensing authority may also issue Special Imprest Licence to main contractor or sub contractor subject to conditions stipulated in paragraph 7.5.

2.      The following shall be added in paragraph 7.6 before the last paragraph.

In case of exporters who have not availed any licence under the Exim Policy but have exported in the preceeding three licensing year, Advance Licences may be issued for a CIF value not exceeding the average FOB value in preceeding three licensing year subject to furnishing of 100% BG to the Customs authorities. However, in such cases, the condition of confirm irrevocable Letter of Credit as mentioned in the first sentence of paragraph 7.6 shall not be insisted upon.

3.      The following agencies shall be included in Appendix- 51B under the new heading Assam.

Federation of Industries & Commerce of North

Eastern Region, (FINER)

Shaheed Dilip Chakrabarty Path,

Behind Ice Factory, R.G. Baruah Road,

Guwahati � 781 005

Tel. No. 222537, 630076

Fax. No. 0361- 522037

4.      The first sentence of paragraph 10.12 shall be amended to read as under:

Supplies made by an Indian sub-contractor of an Indian or foreign main contractor, shall also be eligible for deemed export benefits provided the name of the sub-contractor is indicated either originally or subsequently in the contract, and payment certificate is issued by the Project Authority in the name of the sub-contractor in the form given in Appendix 14-B.

5.      Attention is invited to paragraph 7.34 wherein no revalidation of DEPB beyond the original period has been allowed. Representation have been received from individual exporters as well as various chamber of Commerce and Industry requesting for revalidation of DEPBs issued with Air cargo complex, Varanasi as a port of registration on the ground that no imports are allowed at Air cargo complex, Varanasi nor TRA facility existed to allow imports at any other port. However, Department of Revenue vide circular no. 24/ 99 dated 13th May, 99 has allowed imports through ICD, Varanasi in respect of DEEC issued with Air cargo Complex, Varanasi as port of registration and vice-a-versa. Various DEPBs issued with Air cargo complex, Varanasi as a port of registration had expired in the meantime.

In relaxation of paragraph 7.34, it has been decided to revalidate all the DEPBs issued with Air cargo complex, Varanasi as a port of registration for a period of 12 months from the date of revalidation.

6.      The following shall be added at S.No. 22 of Appendix-32B

Quality Certification Bureau Inc,

N-17, 1^st floor, NDSE-1,

New Delhi � 110049

7.      The Paragraph 9.37(b) (i) shall be substituted by the following:

Import of additional capital goods: to allow import of additional capital goods subject to the condition that the total value of imported capital goods is not more than US $ 10 million. In case where imported capital goods are obtained on loan/ free of cost, the value of the same will be excluded from the limit of US $ 10 million as and when the capital goods are returned or re-exported.

8.      The following shall be added at the end of note 1 as given in Appendix- 2A.

Indian companies issuing shares to foreign nationals/ NRIs under automatic route, 100% scheme or 24/ 40% schemes are not required to obtain prior approval of RBI.

9.      Corrigendum:

a.      The Customs Notification No.11/ 97 dated 1.3.97 and Customs Notification No.55/ 97 dated 13.6.97 shall be corrected to read as Customs Notification No.20/ 99 dated 28.2.99.

b.      The paragraph 15.2 appearing in paragraph 8.8 shall be corrected to read as paragraph 15.3.

c.      The Appendix 56 relating to application form for grant of Annual Advance Licence as given in Public Notice No. 10(RE-99) dated 7.6.99 shall be corrected to read as Appendix 57.

d.      Serial number 584 of Engineering product relating to DEPB rate for single-phase motor as given in Public Notice No. 11(RE-99) dated 7.6.99 shall be corrected to read as Serial number 585.

10.    This issues in public interest.