Issue of transferable DEPBs & Registration with Councils dealing with main line - DGFT - 02/2005

Issue of transferable DEPBs Registration with Councils dealing with main line TRADE NOTICE NO. 02/2005 Dated 05/08/2004 Sub: (1) Issue of transferable DEPBs in terms of para 4.40 read with Para 4.47 of the HBP (Vol. I), 2002-07 (2) Registration with Councils dealing with main line of business I. Processing of DEPB with/without deficiencies : Attention of the Trade is invited to Para 4.44 and Para 4.47 of the Handbook of Procedures (Vol. I). As of now, the Mumbai office has been processing the applications by granting non-transferable DEPBs and without raising deficiencies even where the exporters had applied for transferable DEPB mistakenly without submitting the proof of realisation of proceeds. This is being done on the request of certain sections of the trade to avoid inconvenience and to reduce transactions cost to the Trade. Recently instances have come to notice that some cases where the applicants applied for transferable DEPB without mentioning the date of realisation in the relevant column of Bank Certificate of Exports submitting the BRC, this office not only issued the "non-transferable " but also applied late cut since the application was found submitted beyond six months from the date of shipping bill(s). In such cases, the exporters expected that deficiency should have been raised to give opportunity to the exporters before applying the cut. However, following such a selective approach is found to be cumbersome and hence not advisable. In view of the above, it has been decided that where transferable DEPB is applied by the exporters without furnishing the proof of date of realisation on the Bank Certificate, in such cases, non-transferable DEPBs would be issued without raising deficiency. However, if the application involves applying late cut, such applications will be returned with deficiencies. Further action will be taken after compliance of the deficiency by the exporter. II. RCMCs from the relevant authority : It has also been noticed that many exporters are getting incentives like DEPBs/Advance Licences etc. by enclosing RCMCs which do not seem to be having relevance to their main line of business. In certain cases, the earlier RCMCs of some exporters might have become irrelevant on formation of a new Export Promotion Councils. All such exporters are required to obtain the relevant RCMC to continue to avail benefits under Exim Policy. In this regards, the attention of all members of Trade is invited to Paras 3.12 and 3.12.1 of Hand Book of Procedures, Vol. I. In pursuance of these provisions, the exporters are requested to register themselves with appropriate Councils dealing with their main line of business (unless some specific exemptions are available to them). From 1.10.2004 applications not accompanied by registration from appropriate Council will not be entertained. (S. S. SANDHU) ZONAL JOINT DIRECTOR GENERAL OF FOREIGN TRADE