DGFT Committee Minutes
THE POLICY RELAXATION COMMITTEE (PRC) MEETING NO. 36/AM13 HELD ON 15.01.2013 AT 11.30 A.M. UNDER THE CHAIRMANSHIP OF Dr. A.K PUJARI, DIRECTOR GENERAL OF FOREIGN TRADE. PRC Meeting was held under the Chairmanship of DGFT and list of officers present in the meeting is given below: 1. Shri D.K. Singh Addl. DG 2. Shri Mukesh Bhatnagar Addl.DG 3. Shri L.B. Singhal Addl. DG 4. Shri K.C. Raut Addl. DG 5. Shri S.K. Samal Jt. DGFT 6. Shri Hardeep Singh Jt.DGFT 7. Shri Jaikant Singh Jt. DGFT 8. Shri J.K. Singh Jt. DGFT 9. Shri Ajay Kumar Srivastava Jt. DGFT 10. Shri A.K. Mishra Stats Advisor 11. Smt. Sonika Khattar FTDO The decision taken on the individual cases are as under:
Case No.1. M/s Indspa, New Delhi
F.No. 01/60/162/714/AM13/EFGC (PRC) PRC Meeting No. 36/AM13 dated: 15.01.2013
Subject: Request for redemption of advance licence no. 0510150675 dt. 9.2.2005.
The committee noted that there is no issue for relaxation. RA may take necessary action if it can be disposed off as per Public Notice 174 dt. 15.4.2009. (Action : RA New Delhi)
Case No.2. M/s Valco Industries Limited, Chandigarh
F.No. 01/60/162/794/AM13/EFGC (PRC)
Subject: Request for clubbing of advance authorization no. 2210007844 dated 30.5.2008 and 2210011366 dt. 18.5.2011.
After deliberating the case in length, the following decisions were taken: i) To allow clubbing of 2 advance authorizations as referred above.
ii) This is only for regularization and closure purpose and not for any further exports/imports. Excess import if any may be regularized in terms of Para 4.28 of HBP. Only exports which is affected within the extended validity of earliest authorization shall only be taken into account for clubbing purpose. iii) RA is also directed to examine the case in terms of Para 4.1.6 of FTP and ensure value addition of minimum 15% or as stipulated in the authorization whichever is higher. The 15% value addition for evaluating entitlement is to be applied on the entire FOB and CIF of the authorizations to be clubbed. RA should ensure proper accounting of the duty free inputs with reference to the export product while clubbing the authorizations. iv) RA may do clubbing subject to the condition that no adjudication order is issued against any licence to be clubbed. (Action : RA, Chandigarh)
Case No.3. M/s Wockhardt Limited, Mumbai
F.No. 01/60/162/795/AM13/EFGC (PRC)
Subject: Request for EOP extension of advance licence no. 0310646150 dt. 3.8.2011.
After deliberating the case in length the following decisions were taken: I. Export obligation period is extended from 12 months to 18 months (in continuation i.e. upto 28.2.2013) from the date of first import consignment. II. This is subject to a payment of composition fee @ 0.5% of FOB value of export to be made outside the original EOP and minimum value addition of 15% as prescribed under para 4.1.6 of FTP is maintained. (Action : RA, Mumbai)
Case No.4. M/s Alicon Castalloy Limited, Pune
F.No. 01/60/162/792/AM13/EFGC (PRC)
Subject: Request for EOP extension of advance licence no. 3110032573 dt. 5.2.2008.
The Committee rejected the request of the firm considering no merit in the case. However, it is advised to the party to get the case regularized in terms of Para 4.28 of HBP.
(Action : RA, Pune; If the party fails to get the case regularised in terms of Para 4.28 of HBP within a month from the date of communication of this decision, RA shall take action against the firm under the provision of FT(D&R) Act. 1992 and report)
Case No.5. M/s Silver India, Jaipur
F.No. 01/60/162/796/AM13/EFGC (PRC)
Subject: Request for revalidation of DFIA No. 1310026033 dt. 8.4.2008.
The committee did not find any cogent reason given by the firm warranting relaxation. Hence, the request is rejected.
Case No.6. M/s Silver India, Jaipur
F.No. 01/60/162/798/AM13/EFGC (PRC)
Subject: Request for revalidation of DFIA No. 1310030539 dt. 18.11.2009.
Case No.7. M/s Silver India, Jaipur
F.No. 01/60/162/797/AM13/EFGC (PRC)
Subject: Request for revalidation of DFIA No. 1310029753 dt. 17.8.2009
Case No.8. M/s Silver India, Jaipur
F.No. 01/60/162/799/AM13/EFGC (PRC)
Subject: Request for revalidation of DFIA No. 1310028595 dt. 4.5.2009
Case No.9. M/s Artistic Jewellery, Jaipur
F.No. 01/60/162/800/AM13/EFGC (PRC)
Subject: Request for revalidation of DFIA licence no. 1310028594 dt. 4.5.2009.
Case No.10. M/s Artistic Jewellery, Jaipur
F.No. 01/60/162/802/AM13/EFGC (PRC) Subject: Request for revalidation of DFIA licence no.1310029754 dt. 17.8.2009 (2) acceptance of shipping bill which have ecom reference no. instead of File no.. After discussion in detail, following decisions were taken: i)Request of further revalidation is rejected. ii) There is no import under the Authorisation hence no obligation. The applicant is therefore instructed to surrender unutilized Authoristion. (Action : RA Jaipur)
Case No.11. M/s Artistic Jewellery, Jaipur
F.No. 01/60/162/801/AM13/EFGC (PRC) Subject: Request for revalidation of DFIA licence no.1310029669 dt. 6.8.2009 (2) acceptance of shipping bill which have ecom reference no. instead of File Number. After discussion in detail, following decisions were taken: i)Request of further revalidation is rejected. ii) There is no import under the Authorisation hence no obligation. The applicant is therefore instructed to surrender unutilized Authoristion. (Action : RA Jaipur)
Case No.12. M/s Alpna Gems Inc., Jaipur
F.No. 01/60/162/803/AM13/EFGC (PRC)
Subject: Request for revalidation of DFIIA No. 1310028005 dt. 29.1.2009.
Case No.13. M/s CRI Limited, Kolkata
F.No. 01/60/162/793/AM13/EFGC (PRC)
Subject: Request for clubbing of advance authorization no. 0210097029 dt. 5.1.2007 and 0210144531 dt. 6.7.2010.
After deliberating the case in length the committee observed that the firm has approached for the clubbing of the authorization no. 0210144531 dt. 6.7.2010 which has been issued beyond 36 months from the date of the issue of the authorization no. 0210097029 dt. 5.1.2007. However, the committee observed that the firm has made the 100% import in authorization no. 0210097029 dt. 5.1.2007 and has discharged corresponding exports partially in authorization no. 0210144531 dt. 6.7.2010 which is within the extended validity of 48 months of earliest Authorisation. Hence the following decisions were taken: i. The request for clubbing is rejected. ii. However the exports made under shipment dt. 12.01.2011 under Authorization no. 0210144531 dt. 6.7.2010 may be counted towards discharge of export obligation against Advance Authorization No. 0210097029 dt. 5.1.2007. iii. Export Obligation period under Advance Authoristion no. 0210097029 dt. 5.1.2007 is extended upto 48 months from the issue date of Authoristion. iv. This is subject to payment of composition fee @0.5% on FOB value of export under shipping bill dt. 12.01.2011 v. This is only for regularization and closure purpose vi. RA is directed to made the Advance authorization no. 0210144531 dt. 6.7.2010 inoperative. Imports, if any, made under this Authorisation shall attract payment of duty + interest. No further import would be allowed. vii. RA is also directed to examine the case in terms of Para 4.1.6 of FTP and ensure value addition of minimum 15% or as stipulated in the authorization whichever is higher. The 15% value addition for evaluating entitlement is to be applied on the entire FOB and CIF of the authorizations to be clubbed. RA should ensure proper accounting of the duty free inputs with reference to the export product while clubbing the authorizations. (Action : RA, Kolkata)
Case No.14. M/s. Sadguru Exports, Karnataka
F.No. 01/60/162/791/AM13/EFGC (PRC)
Subject: Request for revalidation of advance licence no. 0710028560 dt.2.4.2004.
Case No.15. M/s English Indian Clays Limited, New Delhi
F.No. 01/60/162/805/AM13/EFGC (PRC)
Subject: Request for revalidation of advance licence no. 2510002865 dt. 21.5.2010.
The committee did not find any cogent reason given by the firm warranting relaxation and also noted that the subject authorization has already been redeemed. Hence, the request is rejected.
Case No.16. M/s Haldia Petrochemicals Limited, Kolkata
F.No. 01/60/162/584/AM13/EFGC (PRC) Subject: Request for EOP extension of 4 advance licences 210119944 dt. 20.11.2008 (2) 201122139 dt. 13.1.2009 (3) 210129084 dt. 15.7.2009 (4) 210137022 dt. 28.1.2010. The committee wanted to know the date of the fire alongwith documentary details which is not mentioned in the request hence the request is deferred for want of report.
Case No.17. M/s Stellar Chemicals Laboratories Pvt Limited, Mumbai
F.No. 01/60/162/782/AM13/EFGC (PRC)
Subject: Request for revalidation of advance licence no. 0310553407 dt. 4.1.2010
Case No.18. M/s VWF Industries (P) Limited, Mysore
F.No. 01/60/162/780/AM13/EFGC (PRC)
Subject: Request for revalidation of advance licence no. 0710065598 dt. 26.6.2009.
Case No.19. M/s Shockely Hall Electronics (P) Limited, Kolkata
F.No. 01/60/162/780/AM13/EFGC (PRC)
Subject: Request for revalidation of advance licence no. 0210141453 dt. 30.4.2010
Case No.20. M/s SSA International Limited, New Delhi
F.No. 01/60/162/37/AM13/EFGC (PRC)
Subject: Request for revalidation of 2 DEPB No. 0510286639 dt. 23.3.2011 and 0510286640 dt. 23.3.2011
Deferred for obtaining the details of the (i) report from RA for granting validity of 7 months and 7 days to the duplicate DEPB NO. 0510286640 dt. 23.3.2011 and (ii) EDI Section about erode – 93 and present Status. (Action : RA, CLA New Delhi/ EDI Section.)
Case No.21. M/s Tetra Pak India Pvt Limited, Pune
F.No. 01/60/162/809/AM13/EFGC (PRC)
Subject: Request for revalidation of advance licence no. 3110042944 dt. 21.4.2010.
The request for waiver of bond and revalidation was made by the party on 20.6.2012, however, query was raised by RA on 16.10.2012 i.e. after 4 months. The Committee therefore decided to revalidate the advance licence no. 3110042944 dt. 21.4.2010 for the period of 4 months from the date of endorsement. The applicant is directed to get endorsement from RA within a months from the date of publication of this minutes on website. (Action : RA, Pune)
Case No.22. M/s The Metal Powder Company Limited, Maduari
F.No. 01/60/162/804/AM13/EFGC (PRC)
Subject: Request for revalidation of advance licence no. 3510029214 dt. 18.2.2010.
The reason cited by the firm that due to commercial viability they could not utilize the licence is not convincing to the committee hence rejected the request.
Case No.23. M/s Jabs International Private Limited, Ahmedabad
F.No. 01/60/162/770/AM13/EFGC (PRC)
Subject: Request for EOP extension for regularization purpose of advance licenno.0310543828 dt. 4.11.2009
The committee noted that authorization is issued for import of Raw Caraway Seeds and export of sterilized Caraway Seeds with preimport and limited obligation condition. It was very well know to the party that import of Raw Seeds is allowed with condition that export must be completed within 4 months from the date of import. Actually the licensee should have imported raw material only after getting confirmed LC in his favour. In
this case, exports are completed only after 20 months from the date of import. Thus, the justification given by applicant is not acceptable to the committee. Hence, the request is rejected. The applicant is directed to get the case regularized in terms of Para 4.28 of HBP. (Action : RA, Mumbai; If the party fails to get the case regularised in terms of Para 4.28 of HBP within a month from the date of communication of this decision, RA shall take action against the firm under the provision of FT(D&R) Act. 1992 and report)
Case No.24. M/s Drytech Processes (I) Private Limited, Mumbai
F.No. 01/60/162/810/AM13/EFGC (PRC)
Subject: Request for EOP extension of advance licence no. 0310533103 dt. 10.8.2009.
The Committee rejected the request of the firm considering no merit in the case. However, it is advised to the party to get the case regularized in terms of Para 4.28 of HBP. (Action : RA, Mumbai; If the party fails to get the case regularised in terms of Para 4.28 of HBP within a month from the date of communication of this decision, RA shall take action against the firm under the provision of FT(D&R) Act. 1992 and report)
Case No.25. M/s JJ Exports, Kolkata
F.No. 01/60/162/1987/AM11/EFGC (PRC)
Subject: Request for an extension of 30 days with regard to advance licence no. 0210109717 dt. 29.2.2008.
The Committee rejected the request of the firm considering no merit in the case. However, it is advised to the party to get the case regularized in terms of Para 4.28 of HBP. (Action : RA, Kolkata; If the party fails to get the case regularised in terms of Para 4.28 of HBP within a month from the date of communication of this decision, RA shall take action against the firm under the provision of FT(D&R) Act. 1992 and report)
Case No.26. M/s Cadila Healthcare Limited, Ahmedabad
F.No. 01/60/162/790/AM13/EFGC (PRC) Subject: Request for clubbing of 4 advance licence no. 1) 0810082357 dt. 18.08.2009, 2) 0810084549 dt. 01.12.2009, 3) 0810087774 dt. 09.03.2010 and
4) 0810090541 dt. 16.07.2010 issued under PC9 condition. Discussed with DG to be deferred.
Case No.27. M/s Apex International, Noida
F.No. 01/94/180/232/AM12/PCIV Subject: Request to count the period for claiming DEPB from date of clarification letter i.e. 26.4.2012 issued by DGFT. Not an issue for PRC hence withdrawn.
Case No.28. M/s Gemi Motors, Faridabad
F.No. 01/60/162/1994/AM111/EFGC (PRC) Subject: Request for revalidation of 15 transferable DFIAs issued to various exporters by Jt .DGFT Ahmedabad based in Gujarat and 5 transferable DFIA issued by CLA, New Delhi. The case was discussed in PRC in detail. There are 2 sets of issues. It was felt that 15 DFIAs are different than the 5 DFIAs. The committee went into the details of 5 DFIAs which the firm has alleged to be expired during the custody of Custom. The Committee found that the applicant in this case is M/s. Global Exim, Mumbai who had filed Bill of Entry on 27.4.2009 which involves only 2 DFIAs no. 0510197802 dt. 15.1.2007 and 510197804 dt. 15.1.2007. The firm has not given details of expiry of other 3 DFIAs nor there is any documents to show that these DFIAs have expired in the custody of custom or they have been denied filing of bill of entry against 3 DFIAs. The firm may be requested to submit the documentary details for further examination. The Committee decided to examine it further about cases of 15 DFIAs on file and bring the facts clearly. If needed a report may be called from RA Ahmedabad.
Case No.29. M/s Saritha Synthetics & Industries Limited
F.No. 01/92/180/2/AM13/PC.VI Subject: Request regarding DTA sale entitlement against deemed exports effected during the period third and fourth quarters of 19902000.
The case was discussed in detail in PRC. In this case, the firm has already effected sale in the domestic market on payment of concessional duty as advance DTA sale. This advance DTA sale had to be offset within 2 years from the permission of advance DTA sale. The firm has not been able to effect exports to account for the quantum of sale effected in the domestic market at concessional duty as a part of advance DTA sale. Since the firm was not able to account for this DTA sale at concessional duty by 31.3.2000, it has already approached High court in 2002. PRC did not agree with the request of the firm for relaxation of policy.
Case No.30. M/s Apar Industries Limited
F.No. 01/94/180/373/AM10/PCIV/PRC Subject: Request for EOP extension of 2 advance licence no. 0310231177 dt. 16.10.2003 & 0310240217 dt. 8.12.2003 issued in the name of M/s Uniflex Cables Limited Mumbai with change of export product. The committee noted that since it is a BIFR case, export obligation period is extended for 5 years from the date of BIFR rehabilitation package. For amendment of description of export product, Norms committee will consider the same. (Action : RA Mumbai/ Norms CommitteeII)
Case No.31. M/s Tetra Pal India Pvt Limited, Pune
F.No. 01/60/162/808/AM13/EFGC (PRC)
Subject: Request for revalidation of advance licence no. 3110042830 dt. 12.4.2010
The request for waiver of bond and revalidation was made by the party on 20.6.2012, however, query was raised by RA on 16.10.2012 i.e. after 4 months. The Committee therefore decided to revalidate the advance licence no. 3110042944 dt. 21.4.2010 for the period of 4 months from the
date of endorsement. The applicant is directed to get endorsement from RA within a months from the date of publication of this minutes on website. (Action : RA, Pune)
Case No.32. M/s Ambica Steels Limited, Delhi
F.No. 01/60/162/820/AM13/EFGC (PRC)
Subject: Request for issuance of duplicate DEPB in lieu of misplaced DEPB no. 0510273273 dt. 22.9.2010
The committee noted the request and decided that RA may issue duplicate DEPB with validity of 2 months. (Action : CLA New Delhi)
Case No.33. M/s Sanofi India Limited, Mumbai
F.No. 01/60/162/824/AM13/EFGC (PRC)
Subject: Request for EOP extension of advance licence no. 0310547698 dt. 26.11.2009 issued under PC9 condition
After deliberating the case in length the following decisions were taken: I. Export obligation period is extended from 12 months to 18 months from the date of first import consignment. II. This is only for regularization and closure purpose. III. This is subject to a payment of composition fee @ 0.5% of FOB value of export made outside the original EOP and minimum value addition of 15% as prescribed under para 4.1.6 of FTP. (Action : RA, Mumbai)
Case No.34. M/s M. Lakhamsi & Co, Mumbai
F.No. 01/60/162/826/AM13/EFGC (PRC)
Subject: Request for EOP extension of advance licence no. 0310511313 dt. 13.3.2009.
The case was placed before the Committee and after deliberating the case in length the following decisions were taken: i) Export obligation period is extended for 3 months from the date of endorsement. However, request for endorsement to RA shall be made within a month from the date of communication of PRC decision. ii) This is subject to payment of composition fee @ 0.5% on unfulfilled FOB value of exports and minimum value addition of 15% as prescribed under para 4.1.6 of FTP. iii) RA shall verify that more than 90% EO has been fulfilled within original validity of Authorisation. If statement is found false, necessary penal action should be initiated against the party under Rule 7 of FT(D&R) Act. (Action : RA, Kolkata)
Case No.35. M/s Galaxy Surfactants Limited, Raigad
F.No. 01/60/162/807/AM13/EFGC (PRC) Subject: Request for clubbing of advance licence no. 0310425035 dt. 29.3.2007 & 0310530181 dt. 22.7.2009 as per PN 79 for regularization purpose After deliberating the case in length the following decisions were taken: i) To allow clubbing of 2 above advance authorizations as referred above. ii) This is only for regularization and closure purpose and not for any further exports/imports. Excess import if any may be regularized in terms of Para 4.28 of HBP. Only exports which is affected within the extended validity of earliest authorization shall only be taken into account for clubbing purpose. iii) RA may grant necessary extension in EO in the earliest authorization subject to composition fee @ 0.5% of FOB value of export made beyond the stipulated EOP for clubbing and regularization. RA is also directed to examine the case in terms of Para 4.1.6 of FTP and ensure value addition of minimum 15% or as stipulated in the authorization whichever is higher. The 15% value addition for evaluating entitlement is to be applied on the entire FOB and CIF of the authorizations to be clubbed. RA should ensure proper accounting of the duty free inputs with reference to the export product while clubbing the authorizations. iv) RA may do clubbing subject to the condition that no adjudication order is issued against any licence to be clubbed. (Action : RA, Mumbai)
Case No.36. M/s Oriental Rubber Industries Limited, Pune
F.No. 01/60/162/825/AM13/EFGC (PRC)
Subject: Request for give the relaxation to get the benefit of DEPB against shipping bill no. 500183 dt, 26.5.2009.
The Committee noted that the firm could not apply for DEPB since they have been issued the BRCs only on 5.6.2012 by the concerned bank. The Committee also noted that as such no detailed justification has been provided either by the firm or by the banks about the delay in issuance. However, considering genuine harship the facts, the Committee decided that the DEPB may be issued with a late cut of 10% on the entitlement subject to fulfillment of other terms and conditions.
Case No.37. M/s Tata Motors Limited, Mumbai
F.No. 01/89/180/54/AM13/PC2(A) Subject: Request for import of new left hand drive vehicle and permission to register and run this vehicle on Indian roads for R&D purpose The Committee considered the case and granted permission to relax the provisions of Para 2(II) (f) of Import Licensing Note of Chapter 87 for import of 4 new vehicles for R&D purpose.
Case No. 38 Reference received from Norms Committees
F.No. 01/80/050/00949/AM09/DESI
Subject: PRC condoned delay in filing representation beyond 4 months for consideration by NCI in the following case.
Sl. No. Name of the firmAdv. Autho. No. M. No. & Date Date of communication of earlier decision Representation submitted on Present status 1. M/s. CICB Chemicon Pvt. Ltd., Bangalore 0710059270 dt.21.08.2008 NC No. 18/13 dt.27.11.2012 27.01.2010 29.08.2012 NC Approved The committee considered expostfacto approval for consideration of request beyond 4 months for fixation of norms in terms of Para 4.7.6 of HBP. The Committee ended with the Vote of Thanks to the Chair.
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