DGFT Minutes

MINUTES OF THE POLICY RELAXATION COMMITTEE MEETING NO.04/AM06 HELD ON 27th JULY, 2005

The meet ing was held under t he Chairmanship of DG and t he list of of f icers present in the meeting is given in Annexure-I.
The decision t aken in each individual case t aken up f or discussion by PRC is detailed below:
Case No. 1 Firms Name M/s Nicholas Piramal India Ltd., Mumbai File No. 01/86/162/268/AM04/DES-IV Subject: Relaxing the necessity of submitting the certificate of payment against SIL

The Commit t ee considered t he case as per det ails given in t he Agenda. It was brought to the notice of the Committee that all the requisite documents except Cert if icat e of Payment f rom WHO have been f urnished by t he applicant f or redempt ion of t he subj ect Special I mprest Licence. The Licensing Aut horit y however has not redeemed t he case because Cert if icat e of Payment is one of t he prescribed document s t o be submit t ed. I t was decided t o relax t he policy provision and allow redempt ion wit hout insist ing upon t he Cert if icat e of Payment of WHO provided all ot her mandat ory requirements have been met with for seeking closure of the case.
Case No. 2 Firms Name M/s Eastman Impex, Ludhiana File No. 01/80/162/446/AM05/DES-I Subject: Revalidation of DEPB licenses

The Commit t ee considered t he case as per det ails given in t he Agenda.

2 Firms Name M/s Eastman Impex, Ludhiana File No. 01/80/162/446/AM05/DES-I Subject: Revalidation of DEPB licenses

The Commit t ee considered t he case as per det ails given in t he Agenda. The case was considered earlier by PRC on 22.3.2005 and at t hat point of t ime the Committee had desired to have the following information:-
(i) To call f or t he f act s and circumst ances leading t o lat e realizat ion of payment and whet her RBI s permission was obtained in this regard; and

2 (ii) Whet her t he f act s and circumst ances of t he inst ant case were similar t o t he case of M/ s Vinif ine Text ile Mills Pvt . Lt d., Mumbai which was considered by t he PRC in it s meet ing held on 1.11.2004.
I t has since been conf irmed t hat t he applicant had submit t ed suf f icient proof of RBI having given t he permission for receipt of delayed payment s.
The agenda papers also ref lect t hat t he delayed payment s were received because of t he export s were made t o count ries like Republic of Panama and Argentina where t here was f oreign exchange crisis. ALC also conf irmed t hat t he case was similar t o one of M/ s Vinif ine Text ile Mills Pvt . Lt d, Mumbai where PRC had allowed revalidation.
Taking all t hese f act ors int o considerat ion it was decided t o allow revalidation for a period of 6 mont hs f rom t he dat e of endorsement in respect of 8 DEPB licences list ed in t he Agenda.

aking all t hese f act ors int o considerat ion it was decided t o allow revalidation for a period of 6 mont hs f rom t he dat e of endorsement in respect of 8 DEPB licences list ed in t he Agenda. As f ar as t he commission aspect involved in t he case is concerned, t he RLA should consider ext ending t he benef it s against commission port ion wit hin t he exist ing paramet ers and guidelines issued by RBI from time to time.
Case No. 3 Firms Name M/s Nandyala Satyanarayana, AP File No. 01/94/180/58/AM06/PC-I Subject: To condone delay of one day in submitting application for Status

Commit t ee t aking a lenient view of one day s delay in submit t ing t he applicat ion f or grant of st at us, agreed t o relax t he policy f or accept ing t he applicat ion f or grant of St at us Cert if icat e f or t he year 2004-05 subj ect t o meeting other applicable conditions related to grant of status certificate.

3

Case No. 4 Firms Name M/s Hero Cycle Ltd., File No. 01/37/162/1248/AM04/EPCG-II Subject: Clarification whether average EO can be discharged through 3rd party annual export

The Commit t ee considered t he case as per det ails given in t he Agenda. It was observed t hat in t he inst ant case, t he export s f or maint aining the average export performance against subj ect EPCG licences was made t hrough anot her arm of t he same company i.e. M/ s Hero Export s.

hat in t he inst ant case, t he export s f or maint aining the average export performance against subj ect EPCG licences was made t hrough anot her arm of t he same company i.e. M/ s Hero Export s. I t was t heref ore, decided t hat in t he inst ant case keeping in view t he special circumst ances of t he case, t he export s made by M/ s Hero Export s be accept ed t owards maint enance of t he average export perf ormance by M/ s Hero Cycle Ltd against the subject EPCG licences.
Case No. 5 Firms Name M/s Vishnu Fabrics Pvt. Ltd.,
File No. 01/84/162/263/AM05/DES-IV Subject: Closure of pending issues on import and payment of duty

Commit t ee observed t hat t he applicant had request ed f or waiver of t he cust oms dut y and penalt y payable on account of non-fulfillment of export obligation against subject Advance licence. The basic issue of waiver of duty and penalt y t hereof f or non-f ulf illment of EO is out side t he purview of t he DGFT. Hence DGFT is not t he f orum which can decide on t he request .
Hence the matter was filed.

er of duty and penalt y t hereof f or non-f ulf illment of EO is out side t he purview of t he DGFT. Hence DGFT is not t he f orum which can decide on t he request .
Hence the matter was filed.

4

Case No. 6 Firms Name M/s National Mineral Development Corpn., Hyd File No. Pt. 01/82/40/84/AM98/ DES-I Subject: Waiver of submit t ing t he original SBs f or redemption of EO

Commit t ee agreed t o accept t he phot ocopies of t he S/ Bills duly cert if ied by MMTC in lieu of t he original ones f or f inal scrut iny wit h regard t o discharge of export obligat ion by t he RLA subj ect t o f urnishing all ot her prescribed documents for said redemption and closure of case.
Case No. 7 Firms Name M/s R.S. Impex International, Kolkata File No. 01/83/50/670/AM03/DES-IV Subject: Change in description of Export product and grant of 3rd revalidation

Committee observed that ALC had decided that export documents furnished by the firm showing description of the export product is acceptable towards discharge of export obligat ion. Since considerable time was t aken t o decide t he issue t he export er could not ut ilize t he licence f or t he purpose of import wit hin it s original validit y. I t was decided t o allow one revalidat ion f or a period of 6 mont hs and t his period of six mont hs shall commence f rom the date the said endorsement of revalidation is made on the licence.
Case No. 8 Firms Name M/s Plant Organics Ltd., Hyd. File No.

mont hs and t his period of six mont hs shall commence f rom the date the said endorsement of revalidation is made on the licence.
Case No. 8 Firms Name M/s Plant Organics Ltd., Hyd. File No. 01/83/162/771/AM04/DES-IV Subject: Clubbing of licenses

Commit t ee observed t hat t he issue of clubbing is basically an issue t o be decided by t he ALC/ RLA wit hin t he paramet ers of t he policy in f orce on t he dat e of issue of licence and not a PRC issue. The case was therefore

5 ref erred t o t he ALC f or deciding on t he issue of admissibilit y of clubbing of Licences as per Policy parameters.
Case No. 9 Firms Name M/s Yamaha Motors India Pvt. Ltd., UP File No. 01/53/8/58/Y-1/AM06/ ILS Subject: Import of motorcycle for display purpose

Commit t ee rej ect ed t he request of t he applicant t o relax t he provision cont ained in Chapt er 87 of I TC(HS) No.87114010 (I mport licensing not es Sr.No.2(c)) which permit s t he import of Mot or Cycle f or display purpose subject to a re-export condition within 6 months of the said import as there was no merit for allowing the relaxation from this requirement.
Case No. 10 Firms Name M/s Thermax Babcock & Wilcox Ltd., Pune File No. 01/81/50/360/AM04/ DES-II Subject: For reconsideration in PRC- endorsement of names of job workers, condone the lapse of using the duty free material for domestic production

The Commit t ee considered t he case as per det ails given in t he Agenda.
There were t wo basic issues bef ore t he Commit t ee.

e lapse of using the duty free material for domestic production

The Commit t ee considered t he case as per det ails given in t he Agenda.
There were t wo basic issues bef ore t he Commit t ee. On t he f irst issue of non endorsement of t he names of t he j ob workers on t he licence it was decided t o relax t he condit ion in t he inst ant case and allow t he same wit hin t he provision available in para 4.16 of t he Handbook of Procedures Vol.I 2004-09 updat ed as on 31.3.2005. Regar ding t he second issue of ut ilizat ion of mat erials import ed against t he advance licence f or export product ion other than that for the subject licence, the Committee decided to allow this f acilit y t o be availed by t he applicant in t he inst ant case. However, t he duty free imported material cannot be used for domestic production purposes.

6

Case No. 11 Firms Name M/s Thermax Ltd., Pune File No. 01/81/50/360/AM04/ DES-II Subject: To condone the lapse of using the duty free material for other export production

The Commit t ee considered t he case as per det ails given in t he Agenda.
Regarding t he issue of ut ilizat ion of mat erials impor t ed against t he advance licence f or export product ion ot her t han f or t he subj ect licence, t he Commit t ee decided t o allow t his f acilit y t o be availed by t he applicant in t he instant case.
Case No. 12 Firms Name M/s Aqdas maritime Agency P Ltd. File No. 01/94/180/128/AM06/PC-I Subject: Return of BG taken towards interest on duty saved amount in EPCG licence.

he instant case.
Case No. 12 Firms Name M/s Aqdas maritime Agency P Ltd. File No. 01/94/180/128/AM06/PC-I Subject: Return of BG taken towards interest on duty saved amount in EPCG licence.

Commit t ee observed t hat t he provision of execut ion of Bank Guarant ee including 15% int erest component was not t here in t he earlier policy and had been incorporat ed only in August 2004. Subsequent ly vide Public Not ice No.45 dt.14.1.2005 the interest component was not required to be taken into account f or execut ion of BG. I t was f urt her observed t hat even cust oms aut horit ies do not have a provision of asking f or BG including int erest component and t heref ore, it was decided t o allow r elaxat ion in t he inst ant case to allow the exporter to execute a fresh BG without taking into account t he 15% int erest amount as provided vide Public Not ice No.45/ 2004-09 dt.14.1.2005.

7

Case No. 13 Firms Name M/s Samrat Cotspin Ltd. Chandigarh File No. 01/94/162/10/AM06/PC I Subject: Permission to transfer goods imported against EPCG Lic. No. 2230000148 dt. 15.3.2005 and 2230000150 dt. 16.3.2005 along with EO.

Commit t ee agreed t o allow t ransf er of capit al goods import ed against subject 2 EPCG licences t o M/ s Fert ichem Colspun Limit ed, Chandigarh so long as t he company, t o whom t he said capit al goods are t ransf erred undert akes t o f ulf ill t he condit ions of t he licence including f ulf illment of export obligation fixed thereof.
Case No. 14 Firms Name M/s Indian Handicrafts, New Delhi File No.

erred undert akes t o f ulf ill t he condit ions of t he licence including f ulf illment of export obligation fixed thereof.
Case No. 14 Firms Name M/s Indian Handicrafts, New Delhi File No. 01/84/162/261/AM04/DES-V Subject: Regularisation of Advance Licenses.

Commit t ee agreed t o allow ext ension in EO period in respect of advance licence No.0514081 dt .17.2.1992 beyond 31.3.1999 upt o 5.11.1999 f or regularizat ion purpose subj ect t o payment of composit ion f ee bet ween 31.3.1999 and 5.11.1999 as provided in t he Foreign Trade Policy 2004-09. In case of Advance Licence No.0537736 dt .23.8.1994, No.2445307 dt .9.8.1996 and No.0501483 dt .17.11.1998 it was observed t hat t he import DEECs had been submit t ed t o t he RLA and subsequent t o t hat t hese DEEC books had been lost / misplaced. At t he t ime of submission of t hese import DEECs t o RLA, t he validit y of t he licence had expired and t heref ore no f urt her import s were possible. I t was t heref ore, decided t hat in respect of t hese licences DEEC (import) be not insist ed upon f or redempt ion of t he case provided all other requisite documents including logged DEEC for Export had been submitted and the condition of the licence with regard to fulfillment of EO has been made.

edempt ion of t he case provided all other requisite documents including logged DEEC for Export had been submitted and the condition of the licence with regard to fulfillment of EO has been made.

8

Case No. 15 Firms Name M/s Smarts Private Limited, Karol Bagh, N. Delhi File No. 01/92/180/058/AM06/PC II Subject: Extension of time for Export of Gold jewellery.

Commit t ee accorded ex-post-f act o approval f or allowing ext ension of six weeks f rom t he expiry of normal period of 90 days f or making export s against gold procured from the nominated agency on loan basis.
Case No. 16 Firms Name M/s Elque Polyster, Kolkata File No. 01/92/180/65/AM05/PC-II Subject: Provision of the FTP/HBP required relaxation.

Committee observed that the company has been declared sick by the BIFR in 2000. I n view of liberal provisions f or BI FR unit s f or t heir revival in Appendix 14-I -M of Handbook, t he Commit t ee agreed wit h t he recommendat ion of BOA f or grant of ext ension in adj ust ment of Advance DTA sale upto 30.9.2006. No further extension will be allowed.
Case No. 17 Firms Name M/s Priyaranjai Fibres Ltd; R.R. Dist. File No. 01/92/180/113/AM06/PC-II Subject: Request for Advance DTA Sale Permission.

Commit t ee observed t hat because of int ernal problems and t ake over of t he unit by the new Management, the unit is being restarted and for all practical purposes it can be t aken as a new unit . The unit has also f iled an applicat ion bef ore t he BI FR f or declaring it a sick unit .

Management, the unit is being restarted and for all practical purposes it can be t aken as a new unit . The unit has also f iled an applicat ion bef ore t he BI FR f or declaring it a sick unit . The Commit t ee accordingly agreed wit h t he recommendat ion of BOA f or allowing Advance DTA Sale permission f or a value of Rs.4 crore which is t o be adj ust ed against t heir future DTA sale entitlement in two years as per the Policy.

9 Case No. 18 Firms Name Mr. Peter Heuzeroth, Bayerische Motoren Werke, Muenchen File No. 01/93/180/46/AM06/PC-I(B). Subject: Clarification on homologation of vehicles for the purpose of test driving of four cars and exemption thereof.

Commit t ee agreed t o accord ex-post-f act o approval f or waiver of homologation procedure in the instant case as already allowed on file subject t o t he condit ion t hat t he vehicle is used f or t he purpose t hey have been import ed in t he count ry i.e. f or t est drive and subj ect t o t he condit ion that all t he f our cars thus impor t ed shall be re-export ed wit hin a period of 6 months from the date of such import.
Case No. 19 Firms Name M/s Primrose Multiplast Pvt. Ltd. Delhi M/s Gomati Impex (P) Ltd., Delhi File No. 01/93/180/1388/AM99/PC-IA Subject: Ex post facto approval for delay in submission of application for permission to import Diphenyl Methane Di-Isocynate under ITC(HS).

x (P) Ltd., Delhi File No. 01/93/180/1388/AM99/PC-IA Subject: Ex post facto approval for delay in submission of application for permission to import Diphenyl Methane Di-Isocynate under ITC(HS).

Commit t ee agreed t o accord ex-post-f act o approval f or grant of one t ime relaxat ion f or delay in submission of applicat ion f or permission t o import Diphenyl Methane Di-Isocynate under ITC(HS).
The meeting ended with vote of thanks to the Chair.

---

Annexure-I

LIST OF PARTICIPANTS

Ms. Seema Bahuguna, Addl.DGFT 2. Shri Surat Singh, Addl. DGFT 3. Shri S.K.Prasad, Addl. DGFT 4. Shri Vipin Saxena, EC 5. Dr(Ms.) Pratima Dikshit, Jt.DGFT 6. Shri Anil Bamba, Jt. DGFT 7. Shri P.C.Tripathi, Jt. DGFT 8. Shri A.K.Singh, Jt. DGFT 9. Shri S.B.S. Reddy, Jt. DGFT 10. Shri Anil Aggarwal, Jt. DGFT 11. Shri Ashutosh Jindal, Jt.DGFT 12. Shri P.K.Santra, Dy. DGFT 13. Smt. Kiran Sehgal, Dy. DGFT 14. Shri M.K.Parimoo, Dy.DGFT