Issue of Advance licenses for Deemed Exports for supplies to EOUs/ EPZs/ EHTPs/ STPs - DGFT - 01/2003

Issue of Advance licenses for Deemed Exports for supplies to EOUs/ EPZs/ EHTPs/ STPs TRADE NOTICE NO. 01/2003 Dated 05/05/2003 Reference is invited to this office's Trade Notice No-4 dated 28.5.2002, which was superceded by Trade Notice No-11 dated 25.9.2002. These Trade Notices were issued to prevent misuse of the Advance Licences for deemed exports wherein the EOUs/EPZs/EHTPs/STPs are procuring finished products and re-exporting the same to claim higher DTA entitlement. Representations have been received from the trade that this Trade Notice is being made applicable even to the supplies made under sub para (b) to (f) of para 7.2 of Appendix-14-I of Handbook of Procedures Vol-I, thereby taking away the benefits granted under the policy in force. It is hereby clarified that it is not the intention of these Trade Notices not to allow the supplies of capital Goods, raw material for making capital goods for use within the unit and others as specified in para (d) , (e) and (f) of para 7.2 of Appendix-14-I of Handbook of Procedures Vol-I. Therefore it is further clarified that the Trade Notice No-11 dated 25.9.2002 is applicable only when the EOUs/EPZs/EHTPs/STPs are procuring material in terms of para 7.2 (a) of Appendix - 14-I of handbook of Procedures Vol-I . (S.S.SANDHU) ZONAL JT. DIRECTOR GENERAL OF FOREIGN TRADE