Revalidation and Extension in Export Obligation Period of Advance Licences issued under Duty Exemption Scheme - DGFT - 38 /(RE PN)1997-2002

Revalidation and Extension in Export Obligation Period of Advance Licences issued under Duty Exemption Scheme Public Notice No. 38/(RE PN)1997-2002 dated the 1st September, 1997 DES -Revalidation and Extension in Export Obligation Period of Advance Licences -Transitional Arrangements in respect of Advance Licences issued prior to 28/2/95 Subject: Revalidation and Extension in Export Obligation Period of Advance Licences issued under Duty Exemption Scheme. Attention is invited to Public Notice No.6 (PN)/1997-2002 dated 10th April, 1997 wherein it has been provided that the licences issued on or after 1.10.95 under Duty Exemption scheme with original export obligation period of 12 months shall have the extended export obligation period of 18 months and original validity of 12 months shall have the extended validity of 12 months and further revalidation and extension in export obligation period shall be governed by the provisions of Handbook of Procedures (Vol. 1) 1997-2002. 2. Representations have been received from various Associations and exporters for evolving a transitional arrangement for allowing revalidation for making imports and/or extension in the export obligation period in respect of advance licences issued 30 months prior to issuance of this Public Notice (i.e. prior to 28.2.1995) as per Exim Policy 1992-97. After reconsideration of the matter, the Director General of Foreign Trade by exercising the powers conferred upon him under Paragraph 4.11 of Export and Import Policy 1997-2002 makes the following arrangements in respect of advance licences issued prior to 28.2.95 : Wherever 100% exports have been completed upto the date of issuance of this Public Notice and no import has been effected or part import has been effected, revalidation of such advance licence (Quantity Based Advance Licence and Value Based Advance Licence) may be granted upto 31.12.1997. Wherever 100% exports have been completed till the date of issue of this Public Notice and part of exports have been effected outside the validity of export obligation period, extension in export obligation period may be allowed upto the date of issuance of this Public Notice for regularisation purposes. In such cases, regularisation may be subject to payment of an amount equivalent to a penalty of 5% on that part of the FOB value of exports which falls outside the approved export obligation period. Where no export and import has been made, till the date of this Public Notice, no extension in export obligation period/revalidation of licence will be allowed. In respect of Quantity Based Advance Licences where export obligation has not been completed, last extension upto 31.12.1997 will be allowed. In such cases, the extension will be subject to payment of an amount equivalent to a penalty of 5% on the unfulfilled value of export obligation. In respect of Value Based Advance Licences where expor1 obligation has been completed to an extent of a minimum of 50% of the export obligation imposed, last extension upto 31.12.1997 will be allowed. In such cases, the extension will be subject to payment of an amount equivalent to a penalty of 5% on the unfulfilled value of export obligation. No revalidation will be allowed in respect of licences where endorsement of transferability has been effected by the licensing authority. No revalidation/ extension in export obligation period will be allowed in the Licences where misrepresentation/ fraud has come to the notice of Regional Licensing Authority. Such cases, with full facts, will be referred to Advance Licensing Committee for appropriate action within 30 days of the date of issue of this Public Notice. No further extension, except as stated above, in the export obligation period or revalidation of the validity period or both on such licences shall be considered under any circumstances. 3. The revalidation/ extension in export obligation period or both under such licences shall be allowed directly by the Regional Licensing authority concerned who had issued the licences upon submission of regional licences and DEECs alongwith documents prescribed in the Exim Policy/ Proceduers. 4. This issues in Public interest. Sd/- (S.B. Mohapatra) Director General of Foreign Trade