One-time extension in Export Obligation for bonafide default in respect of old Advance Licences - DGFT - 07/(RE-98) 1997-2002

One-time extension in Export Obligation for bonafide default in respect of old Advance Licences. PUBLIC NOTICE NO. 7/(RE-98) 1997-2002 Dated 24/04/1998 . Sub: One-time extension in Export Obligation for bonafide default in respect of old Advance Licences. In exercise of the powers under Paragraph 4.11 of Export and Import Policy, 1997-2002, the Director General of Foreign Trade makes the following arrangements in respect of Advance Licences issued under Duty Exemption Scheme: i. In respect of Quantity Based Advance Licences, where 100% exports have already been completed upto 31st March, 1998, and part of exports have been effected outside the validity of the export obligation period, extension in export obligation period is allowed upto the said date (31st March, 1998) for regularisation purpose, on payment of an amount (herein after referred to as composition fee) equivalent to 5% on that part of the F.O.B value of exports which falls outside the approved export obligation period. The composition fee shall be recoverable only in respect of those cases where a penalty of 5% was not paid in terms of Public Notice No. 38/(PN)/1997-2002 dated 1st September, 1997; ii. Where no export and / or import has been made till the date of issue of this Public Notice , no extension in export obligation period of licence will be allowed; iii. In respect of all Quantity Based Advance Licences, where at least 50% export obligation has been completed, either in terms of quantity or value or both, a one time final extension in the export obligation period is allowed up to 31st March,1999 on payment of a composition fee equivalent to 5% of the unfulfilled F.O.B value of export obligation. This composition fee of 5% shall be payable for each year reckoned from the date of expiry of the export obligation period (including extended export obligation period, if any) or part thereof; iv. In respect of the Value Based Advance Licences where shortfall in terms of quantity or value or both is more than 15% of the total export obligation imposed, such licences may be converted into Quantity Based Advance Licences, and thereafter, extension in export obligation period may be allowed in the manner indicated in (i) or (iii) above. This benefit shall not be available in respect of Value Based Advance Licences where reversal of MODVAT was not made in terms of Policy Circular No. 8/97-98 dated 1.7.1997. In respect of the Value Based Advance Licences where shortfall in export obligation in terms of quantity or value or both is not more than 15%, pro-rata closure and regularisation of such licences may be allowed without converting Value Based Advance Licence into a Quantity Based Advance Licence as provided under Para 128 B (ii) of the Handbook of Procedures, 1992-97 (Vol.1). v. In the case of Steel products, where special types of advance licences (QBAL and VABAL) had been issued sub-group wise as per Standard Input-Output Norms (that is, with quantity and/or value limits prescribed for each sub-group), where exports were completed upto 31.3.1998, such licences may be allowed to be regularised on pro-rata basis to the extent of exports made against the inputs allowed sub-group wise and not with reference to each and individual input, provided that the minimum value addition as was prescribed under the relevant broad-banded Standard Input-Output Norms is maintained. In such cases regularisation would be subject to payment of a composition fee of 5% on that part of the F.O.B value of exports which falls outside the approved export obligation period (including extended period, if any) , in respect of such licences also, where there is short fall in fulfillment of export obligation, extension in export obligation period is allowed up to 131st March,1999 on payment of composition fee in the manner stated in sub-para (iii) above, and thereafter on completion of exports the licences may be regularised in the same manner as stated earlier in this sub-para. vi. No extension in export obligation period will be allowed in respect of the licences where misrepresentation/fraud has come to the notice of the Licensing Authorities and/or where any enforcement action has been initiated by Enforcement Wing of Regional Licensing Authority/Headquarters, DGFT. However, cases which relate to bonafide default in fulfillment of export obligation only, can be examined for considering export oboigation period extension by the Advance Licensing Committee at Headquarters. Further, in respect of Advance Licences where adjudicating order has already been passed, no extension in export obligation period will be allowed. 2. Extension in export obligation period as admissible under this Public Notice shall be allowed directly by the Regional Licensing Authority concerned, upon submission of original licences and DEECs alongwith documents prescribed in the Exim Policy/Procedures. 3. This Public Notice shall be applicable in respect of Advance Licences under the Duty Exemption Scheme issued upto 31.3.1996. 4. As this is only a one time relaxation which is being allowed, all documentary and other formalities shall be completed by the concerned Regional Licensing Authorities of the DGFT as also by the Customs Authorities on top priority basis so that the cases covered by this Public Notice can be closed within the time prescribed and there is no occasion for the exporters to complain about any delay and seek further time for closure of these cases. For this purpose, the exporters should be allowed to make exports on a provisional basis pending endorsment of extension in export obligation period by the Licensing Authorities. Such provisional exports will be regularised and entered in the DEEC Book (Part.II) after extension in export obligation period is endorsed on the licence by the Licensing Authorities. 5. This issues in the Public interest. Sd/- (N.L.LAKHANPAL) DIRECTOR GENERAL OF FOREIGN TRADE Copy to all concerned; By Order etc; (L.B.SINGHAL) DY. DIRECTOR GENERAL OF FOREIGN TRADE (ISSUED FROM FILE NO. 1/5/98-99/PC.II) Note : 1. Has been substituted vide Public Notice No. 44(RE-98) dated 28/9/98