Public Notice No. 27 dated 25^th July 1997

In exercise of powers conferred under paragraph 4.14 of the Export and Import Policy, 1997-2002, published in the Gazette of India extraordinary, Part-II-5ection 3-Sub-section (ii) vide S.O No.283 (E) dated 1.3.97, the Director General of Foreign Trade hereby makes following amendment in the Handbook of Procedures (Vol. 1), 1997 -2002:

The paragraph 8.37 shall be corrected to read as follows:

8.37 For conversion of quantity of gold/ silver/ platinum in terms of equivalent quantity in terms of fineness, the following formula shall be used:

i.       Where items of gold has been exported in terms of carats, the quantity of gold shall be multiplied by the number of carat of gold exported, divided by 24 and thereafter again 221 divided by 0.995/ 0.999/ 0.9999 to arrive at the equivalent quantity of gold in terms fineness of 0.995/ 0.999/ 0.9999 respectively; and

ii.      Wherever the purity of the item of export is expressed in terms of fineness, the quantity of gold/ silver/ platinum shall be multiplied by the fineness of gold/ silver/ platinum exported and thereafter divided by 0.995/ 0.999/ 0.9999 to arrive at the equivalent quantity of gold/ silver/ platinum in terms of 0.995/ 0.999/ 0.9999 fineness respectively.

2.      The paragraph 8.64 shall be amended to read as follows:

The exporter may obtain the required quantity of precious metal in advance on outright purchase basis subject to furnishing of Bank Guarantee to the nominated agencies for an amount as may be described by the nominated agency. On failure to effect exports within the period prescribed, the nominated agencies shall enforce the Bank Guarantee.

3.      The paragraph 8.66 shall be amended to read as follows:

The exporter may obtain the required quantity of precious metal on loan basis subject to furnishing of Bank Guarantee to the nominated agencies for an amount as may be prescribed by the nominated agencies. On failure to effect exports within the period prescribed, the nominated agencies shall enforce the Bank Guarantee.

4.      The paragraph 8,87 shall be amended to read as follows:

'8.87 The cases of bonafide default in fulfilment of export obligation by an exporter who has obtained precious metals from the nominated agencies may be regularised provided the exporter has paid customs duty alongwith 24% interest thereon to the Customs. However, in the case of advance licence, the provisions as given in Chapter-7 of this Handbook shall apply. This shall be without prejudice to any action that may be taken against the exporter under the Foreign Trade (Development and Regulation) Act 1992, the Order or the Rules issued thereunder.'

5.      Following amendments shall be made in appendix-29 of the List of licensing authorities and their jurisdiction.

a.        In S.No. ii), Cut tack shall be deleted against the jurisdiction of Jt. DGFT, Calcutta.

b.        In S.No. viii), Surat shall be deleted against the jurisdiction of Jt. DGFT, Ahmedabad.

c.        The following shall be inserted at S.No. x)

         d.        The following shall be inserted at S.No. xi)

This issues in public interest.