DGFT Committee Minutes

MINUTES OF THE POLICY RELAXATION COMMITTEE MEETING NO.06/AM06 HELD ON 1st September, 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. Moserbaer India Ltd., New Delhi File No. 01/92/180/108/AM06/PC-II
Subject: Inter-unit transfer of material between group of companies in EOUs

The Commit t ee considered t he case as per det ails given in t he Agenda. The Commit t ee accorded ex-post-f act o approval f or int er-unit t ransf er of t he raw mat er ials bet ween t he t wo dif f erent unit s of t he same company in t he inst ant case subj ect t o prior int imat ion t o be given t o t he jurisdictional cent ral excise aut horit y and Development Commissioner and maint enance of proper accounts both by the transferor unit and the transferee unit.
Case No. 2. Firms Name M/s. Upper India Tannery (P) Ltd., Kanpur File No. 01/84/50/172/AM03/ DES-V Subject: Grant of EOP extension in r/o advance licence No.0610001800 dated 16.3.2001 without imposing penalty.

The Commit t ee considered t he case as per det ails given in t he Agenda. The Commit t ee did not agree t o t he proposal of ALC t o relax t he condit ion of payment of composit ion f ee. I t was decided t hat the policy in f orce is for extending the Export Obligation period on payment of applicable composition fee.

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Case No. 3. Firms Name M/s. Jindal Yarn Pvt. Ltd., Panipat File No. 01/84/162/70/AM06/ DES-V Subject: Request for regularization of supplies to SEZ in place of physical exports in r/o advance licence No.3310003528 dated 23.1.04 for grant of EODC.

The Commit t ee considered t he case as per det ails given in t he Agenda. The Commit t ee observed t hat in t he current Foreign Trade Policy, supplies t o SEZ unit s is t reat ed as physical export s f or all pract ical purposes and t heref ore decided t hat t he supplies made t o SEZ unit s in t he inst ant case be accepted towards discharge of export obligation subject to compliance of ot her usual condit ions and verif icat ion of original document s by t he RLA concerned to their satisfaction.
Case No. 4. Firms Name M/s Deepak Exports, Phagwara. File No. 01/84/162/375/AM05/DES-V Subject: Extension in EOP in r/o advance licence No.30001196 dt. 04.05.1999.

The Commit t ee considered t he case as per det ails given in t he Agenda. The Committee agreed t o allow EO ext ension in t his case upt o 30.11.2002 f or regularizat ion purposes only subj ect t o payment of applicable composition fee as per current Foreign Trade Policy.
Case No. 5. Firms Name M/s. Daimler Chrysler India P.Ltd., Pune File No. 01/93/180/M-107 /Am05/PC-I(B) Subject: Request for relaxation of Homologation condition against car imported prior to issuance of Notification No. 34. dt. 9.2.2004.

The Commit t ee considered t he case as per det ails given in t he Agenda. I t was obser ved t hat in t he inst ant case it is t he same manuf act uring company t hat has brought in t he car and t heref ore agreed t o relax provision of following homologation procedure for imports.

3 Case No. 6. Firms Name M/s. Superking Manufacturers (Tyre) P. Ltd., Delhi. File No. 01/87/162/466/AM05/DES-VIII Subject: Grant of revalidation of adv.Lic. No.0510045470 dt. 18.10.2001.

The Commit t ee considered t he case as per det ails given in t he Agenda. The Commit t ee was inf ormed t hat t he applicant had submit t ed request f or revalidat ion of t he licence in t he mont h of J anuary 2004 which was allowed t o t hem upt o 30.4.2004 but licence was handed over t o t hem only six days bef ore t he expiry of t his crit ical dat e and t heref ore onus was on t he RLA concerned and not on t he export er. I t was t heref ore decided t o relax t he policy provision and allow revalidat ion f or six mont hs which will commence f rom t he dat e such revalidat ion is endor sed on t he licence. The Commit t ee also decided t hat head of t he RLA concerned should be asked t o t ake suit able disciplinary act ion against erring of f icial who held t he licence f or near about f our mont hs and act ion t aken r eport t o t his ef f ect be f orwarded to headquarters.
Case No. 7. Firms Name M/s. Nectar Lifescience Ltd. File No. 01/94/162/702/AM05/ DES-IV 01/94/162/704/AM05/DES-IV 01/94/162/346/AM05/DES-IV Subject: Extension of EOP for adv. Licence issued for import of Penicillin G as raw material.

The Commit t ee considered t he case as per det ails given in t he Agenda. This case had come up on an earlier occasion when it was not agreed t o allow any relaxat ion. However, based upon t he f resh input s f rom t he applicant which st at ed t hat 89% of t he export obligat ion had been f ulf illed against t he subject licences in question taken together and only 11% of export obligation remained to be fulfilled, it was decided to allow EO extension for a period of six mont hs subj ect t o payment of applicable composit ion f ee as per current Foreign Trade Policy. The composit ion f ee shall be payable on all export s made beyond the prescribed EO period as per Foreign Trade Policy.

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Case No. 8. Firms Name M/s. Ranbaxy Laboratories Ltd. File No. 01/82/162/758/AM04/DES-III Subject: Request for revalidation of 5 post export DEPBs.

The Commit t ee considered t he case as per det ails given in t he Agenda. The Commit t ee was inf or med t hat t he cust oms aut horit ies had conf irmed t hat because of t he delay in seeking t echnical input s, t he DEPBs in quest ion could not be regist ered and consequent ly t he export er could not ut ilize t he same.
I t was t heref ore decided t o revalidat e DEPB licence No.0510069300 dat ed 26.9.2002, No.0510069456 dat ed 30.9.2002, No.0510070403 dat ed 11.10.2002,
No.0510072113 dat ed 6.11.2002, No.0510072112 dat ed 6.11.2002 and supplement ary DEPB licence No.0510089272 dat ed 8.5.2003 f or a period of six mont hs and t his six mont h period will commence f rom t he date such endorsement of revalidation is made on these licences.
Case No. 9. Firms Name M/s. Engineering Export Promotion Council File No. 01/81/162/57/AM05/ DES-II Subject: Request for conversion of free/white S/bills into DEPB S/bills of various of sanitary items.

The Commit t ee considered t he case as per det ails given in t he Agenda. The Commit t ee observed t hat t he input s f rom t he Dept t of Commerce reveals that CVD case was not fought on the premise and stand that DEPB would not be claimed/ allowed in t hese cases. The Commit t ee also f elt t hat t here is considerable merit in t he inst ant case f or S/Bills having not f iled under DEPB scheme as a circular t o t his ef f ect was issued by t he EEPC directing exporters not t o claim t hese benef it s as t his may hamper t he CVD case wit h t he Govt . of Unit ed St at es. The Commit t ee was however inf ormed t hat t here are a f ew cases pending in various court s where Govt . has t aken a st and against conversion of f ree S/ Bills int o DEPB S/ Bills and allowing t he conversion in the present case can go against the Department in this pending Court cases. I t was t heref ore decided t hat a det ailed proposal wit h background et c. on such pending cases be put up wit hin t hree weeks f or a policy decision at the highest level.
The meeting ended with vote of thanks to the Chair.

Annexure-I

LIST OF PARTICIPANTS

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

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