DGFT Committee Minutes
THE POLICY RELAXATION COMMITTEE (PRC) MEETING NO. 39/AM13 HELD ON 12.02.2013 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 Shri V.K. Srivastava Addl. DG Shri Mukesh Bhatnagar Addl.DG Shri L.B. Singhal Addl. DG Shri K.C. Raut Addl. DG Shri Hardeep Singh Jt.DGFT Shri Jaikant Singh Jt. DGFT Shri J.K. Singh Jt. DGFT Shri A.K. Mishra Stats Advisor 0. Smt. Sonika Khattar FTDO The decision taken on the individual cases are as under:
Case No.1. M/s L&T Limited, Mumbai.
F.No. 01/60/162/897/AM13/EFGC (PRC) PRC Meeting No. 39/AM13 dated: 12.02.2013
Subject: Request for EOP extension of Advance Authorizationno. 03109554906 dt. 12.01.2010
The Committee deliberated the request in light of the NIL exports by the firm in valid EOP. It was noted that the firm had to export high tech product to Iran and due to economic sanction imposed by the US, export and realization of proceed from Iran had been suspended for quite considerable period. Therefore the exporter has failed to fulfill export within valid EOP. The Committee also noted that the firm has since received advance payment from the customer as per terms of the purchase order and utilized the authorization for import of inputs, the following decisions were taken: i. Export obligation period is extended for 6 months from the date of endorsement or upto 31.08.2013 whichever is earlier. 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. The applicant is advised to submit the licence for endorsement to RA as early as possible. (Action : RA Mumbai)
Case No.2. M/s Torrent Pharmaceuticals Limited, Ahmedabad.
F.No. 01/60/162/536/AM13/EFGC (PRC)
Subject: Request for EOP extension of Advance Authorizationno. 0810096593 dt. 23.2.2011 issued under PC9 condition.
After deliberating the case in length the following decisions were taken: i) Export obligation period is extended for 6 months from the date of endorsement or upto 31.08.2013 which ever is earlier. 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 is maintained. iii) The applicant is advised to submit the licence for endorsement to RA as early as possible. (Action : RA Ahmedabad)
Case No.3. M/s Sonal Adhesive Limited, Mumbai.
F.No. 01/60/162/913/AM13/EFGC (PRC)
Subject: Request for revalidation of Advance Authorizationno. 0310577358 dt. 4.6.2010.
The committee did not find any cogent reason given by the firm warranting relaxation. Hence, the request is rejected.
Case No.4. M/s Digvijay Exports, Bangalore.
F.No. 01/60/162/363/AM13/EFGC (PRC)
Subject: Request for EOP extension of DFIA No. 0710065568 dt. 24.6.2009
i) Export obligation period is extended for 3 months from the date of endorsement or upto 30.5.2013 which ever is earlier. 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) This is further subject to verification by RA that EO as claimed to have been fulfilled is more than 50% within the valid EOP. iv) The applicant is advised to submit the licence for endorsement to RA as early as possible. v) RA shall take action against the party under Rule 7 read with Rule 14 of FT(Regulation) Rules, 1993 if statement of more than 50% of exports (even if prorata) already made is found to be false/incorrect.
(Action : RA Bangalore)
Case No.5. M/s Naval Prakash Avikem Pvt Limited.
F.No. 01/60/162/912/AM13/EFGC (PRC)
Subject: Request for revalidation of Advance Authorizationno. 0310577844 dt. 8.6.2010.
The committee did not find any cogent reason given by the firm warranting relaxation. Hence, the request is rejected.
Case No.6. M/s Krishna Antioxidant P. Limited, Mumbai.
F.No. 01/60/162/921/AM13/EFGC (PRC)
Subject: Request for revalidation of Advance Authorizationno. 0310566521 dt. 25.3.2010.
The committee did not find any cogent reason given by the firm warranting relaxation. Hence, the request is rejected.
Case No.7. M/s Krishna Antioxidant P. Limited, Mumbai.
F.No. 01/60/162/920/AM13/EFGC (PRC)
Subject: Request for revalidation of Advance Authorizationno. 0310561839 dt. 24.2.2010.
The committee did not find any cogent reason given by the firm warranting relaxation. Hence, the request is rejected.
Case No.8. M/s Krishna Antioxidant P. Limited, Mumbai.
F.No. 01/60/162/922/AM13/EFGC (PRC)
Subject: Request for revalidation of Advance Authorizationno. 0310560334dt. 16.2.2010.
The committee did not find any cogent reason given by the firm warranting relaxation. Hence, the request is rejected.
Case No.9. M/s Krishna Antioxidant P. Limited, Mumbai.
F.No. 01/60/162/923/AM13/EFGC (PRC)
Subject: Request for revalidation of Advance Authorizationno. 0310581162 dt. 22.6.2010.
The committee did not find any cogent reason given by the firm warranting relaxation. Hence, the request is rejected.
Case No.10. M/s Delton Cables Limited, New Delhi.
F.No. 01/60/162/392/AM13/EFGC (PRC) Subject: Request for warranting relaxation of policy and procedures in the matter of TED case (Deemed Export under chapter 8 of FTP & HBP. The case was discussed in length. The Committee noted that the name of applicant is not mentioned in the contract as subcontractor hence the condition of Para 8.6.2 of FTP is not complied with. Further, the supply was under ICB contract which is exempted abintio from payment of Terminal Excise duty, hence refund can’t be allowed by RA. However, the applicant is free to approach Excise Authority to file refund claim from the authority from where it was paid.
Case No.11. M/s INDSPA, New Delhi.
F.No. 01/60/162/714/AM13/EFGC (PRC)
Subject: Request for redemption of Advance Authorization no. 0510150675 dt. 9.2.2005.
The committee noted that without specific GSM of resultant product the Input Norms can not be correlated. Hence the request is rejected. The applicant is advised to get the case regularized in terms of Para 4.28 of HBP. (Action : RA, CLA New Delhi is requested to take action as per the provision of FT(D&R) Act 1992 ,as amended, if the licencee is failed to get the case regularized in terms of Para 4.28 of HBP within a month from the receipt of the minutes)
Case No.12. M/s United Phosphorus Limited, Mumbai.
F.No. 01/60/162/906/AM13/EFGC (PRC)
Subject: Request for clubbing of 5 Advance Authorizations .
1. 0310443909 dated 20.09.2007 2. 0310452979 dated 06.12.2007 3. 0310485352 dated 05.09.2008 4. 0310516819 dated 22.04.2009
5. 0310580437 dated 24.06.2010 After detailed deliberations, the committee rejected the request for clubbing of 5 Authorizations as there is a gap of more than 48 months between the date of issue of first licence and the last date of export made. However the firm is advised to approach RA for clubbing of authorizations where the last date of shipment is within 48 months of earliest Authorization required to be clubbed. (Action : Applicant/ RA – RA Mumbai to allow clubbing of the authorizations where the gap between the date of issue of first licence and the last date of export made under licence which is to be clubbed is not more than 48 months subject to following condition : i. This is only for regularization and closure purpose and not for any further exports/imports. Excess import if any shall be regularized in terms of Para 4.28 of HBP. ii. 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 shall 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. iii. RA may do clubbing subject to the condition that no adjudication order is issued against any licence to be clubbed.
Case No.13. M/s United Phosphorus Limited, Mumbai.
F.No. 01/60/162/905/AM13/EFGC (PRC)
Subject: Request for clubbing of 5 advance licences .
1. 0310485575 dated 08.09.2008 2. 0310497929 dated 15.12.2008 3. 0310518938 dated 07.05.2009 4. 0310518311 dated 04.05.2009 5. 0310638912 dated 28.06.2011 i) To allow clubbing of 5 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 shall be regularized in terms of Para 4.28 of HBP. Only exports which is affected within the 48 months 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 shall 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.14. M/s Haldia Petrochemicals Limited, Kolkata.
F.No. 01/60/162/398/AM13/EFGC (PRC)
Subject: Request for clubbing of Advance Authorizationno. 0210131651 dt. 17.9.2009 & 0210181085 dt. 21.8.2012
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 shall be regularized in terms of Para 4.28 of HBP. Only exports which is affected within the 48 months 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 shall 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, Kolkata)
Case No.15. DSM Sinochem Pharmaceuticals India Limited, Gurgaon.
F.No. 01/60/162/892/AM13/EFGC (PRC) Subject: Request for clubbing of Advance Authorizationno. 2210005750 dt. 10.7.2006 with 2210005756 dt. 11.7.2006 issued under PC9.
I. The committee rejected the request for clubbing of the above two authorizations because exports made against 2nd and subsequent authorizations are beyond the validity of export obligation period of first authorization. II. However, Export obligation period is extended from 6 months to 12 months from the date of first import consignment. III. This is only for regularization and closure purpose. IV. 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. V. The applicant has to pay duty +interest on inputs consumed and exported after 12 months from date of first import consignment. VI. PC18 condition is waived on this exports to the extent of requirement of reexport/destruction certificate on export made outside the extended EOP. (Action : RA, Chandigarh)
Case No.16. M/s K.K.Products, Mumbai.
F.No. 01/60/162/914/AM13/EFGC (PRC)
Subject: Request for revalidation of DFIA No. 0310553724 dt. 5.1.2010.
The committee did not find any cogent reason given by the firm warranting relaxation. Hence, the request is rejected.
Case No.17. DSM Sinochem Pharmaceuticals India Limited, Gurgaon.
F.No. 01/60/162/855/AM13/EFGC (PRC) Subject: Request for clubbing of (4)Advance Authorization nos. 2210006653 dated 10.04.2007, 2210007033 dated 06.09.2007, 2210007216 dated 02.11.2007 & 2210007353 dated 03.01.2008 issued under PC9 condition. i) To allow clubbing of 4 Advance Authorizations as referred above. ii) Exports effected within 12 months from the date of import of first consignment i.e. upto 31.07.2008 shall only be taken into account for clubbing purpose. iii) Extension of 6 months i.e. upto 31.07.2008 under Advance Authorization No. 2210006653 dated 10.04.2007 from the expiry of initial obligation period is allowed. This is subject to composition fee @ 0.5% of FOB value of export made beyond the stipulated EOP for clubbing and regularization. RA may examine the case in terms of Para 4.1.6 of FTP and to 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) Waiver of PC18 is allowed for inputs consumed and exported outside the EO period. However, the firm is liable to pay Custom duty + interest in terms of Para 4.28 of HBP on such inputs. v) RA may do clubbing subject to the condition that no adjudication order is issued against any licence to be clubbed.
Case No.18. DSM Sinochem Pharmaceuticals India Limited, Gurgaon.
F.No. 01/60/162/890/AM13/EFGC (PRC) Subject: Request for clubbing of Advance Authorization no. 2210007005 dt. 28.8.2007 & 2210007013 dt. 29.8.2007 for redemption purpose issued under PC9 condition. i. To allow clubbing of 2 Advance Authorizations as referred above. ii. Exports effected within 12 months from the date of import of first consignment under Advance Authorization No. 2210007005 dated 28.08.2007 shall only be taken into account for clubbing purpose. iii. EO period from 6 months to 12 months is extended under Advance Authorization No. 2210007005 dated 28.08.2007. iv. This is subject to composition fee @ 0.5% of unfulfilled FOB value under Advance Authorization No. 2210007013 dated 29.08.2007. v. RA may examine the case in terms of Para 4.1.6 of FTP and to 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. vi. Waiver of PC18 is allowed for inputs consumed and exported outside the EO period. However, the firm is liable to pay Custom duty + interest in terms of Para 4.28 of HBP on such inputs. vii. RA may do clubbing subject to the condition that no adjudication order is issued against any licence to be clubbed.
Case No.19. DSM Sinochem Pharmaceuticals India Limited, Gurgaon.
F.No. 01/60/162/891/AM13/EFGC (PRC) Subject: Request for clubbing of Advance Authorization no. 2210006210 dt. 13.11.2006 & 2210006293 dt. 13.12.2006 issued under PC9 condition.
i. To allow clubbing of 2 Advance Authorizations as referred above. ii. Exports effected within original validity under Advance Authorization No. 2210006210 dt. 13.11.2006 shall only be taken into account for clubbing purpose. iii. RA may examine the case in terms of Para 4.1.6 of FTP and to 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. Waiver of PC18 is allowed for inputs consumed and exported outside the EO period. However, the firm is liable to pay Custom duty + interest in terms of Para 4.28 of HBP on such inputs. v. RA may do clubbing subject to the condition that no adjudication order is issued against any licence to be clubbed.
Case No.20. DSM Sinochem Pharmaceuticals India Limited, Gurgaon.
F.No. 01/60/162/896/AM13/EFGC (PRC) Subject: Request for clubbing of Advance Authorization no. 2210006358 dt. 10.1.2007 & 2210006468 dt. 02.02.2007 issued under PC9 condition. i) To allow clubbing of 2 Advance Authorizations as referred above. ii) Exports effected within original validity under Advance Authorization No. 2210006358 dt. 10.1.2007 shall only be taken into account for clubbing purpose. iii) RA may examine the case in terms of Para 4.1.6 of FTP and to 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) Waiver of PC18 is allowed for inputs consumed and exported outside the EO period. However, the firm is liable to pay Custom duty + interest in terms of Para 4.28 of HBP on such inputs. v) RA may do clubbing subject to the condition that no adjudication order is issued against any licence to be clubbed.
Case No.21. DSM Sinochem Pharmaceuticals India Limited, Gurgaon.
F.No. 01/60/162/889/AM13/EFGC (PRC) Subject: Request for clubbing of Advance Authorization no. 2210007931 dt. 25.6.2008 & 2210007955 dt. 30.7.2008 issued under PC9 condition. i. To allow clubbing of 2 Advance Authorizations as referred above. ii. Exports effected within 12 months from the date of import of first consignment under Advance Authorization No. 2210007931 dt. 25.6.2008 shall only be taken into account for clubbing purpose. iii. EO period from 6 months to 12 months is extended under Advance Authorization No. 2210007931 dt. 25.6.2008 . iv. This is subject to composition fee @ 0.5% of unfulfilled FOB value under Advance Authorization No. 2210007931 dt. 25.6.2008 . v. RA may examine the case in terms of Para 4.1.6 of FTP and to 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. vi. Waiver of PC18 is allowed for inputs consumed and exported outside the EO period. However, the firm is liable to pay Custom duty + interest in terms of Para 4.28 of HBP on such inputs. vii. RA may do clubbing subject to the condition that no adjudication order is issued against any licence to be clubbed.
Case No.22. DSM Sinochem Pharmaceuticals India Limited, Gurgaon.
F.No. 01/60/162/887/AM13/EFGC (PRC) Subject: Request for clubbing of Advance Authorizationno. 2210006949 dt. 07.8.2007 & 2210006954 dt. 07.08.2007 issued under PC9 condition. i) To allow clubbing of 2 Advance Authorizations as referred above. ii) Exports effected within 12 months from the date of import of first consignment shall only be taken into account for clubbing purpose. iii) Extension of 6 months i.e. upto 30.09.2008 from the expiry of initial obligation period is allowed. This is subject to composition fee @ 0.5% of FOB value of export made beyond the stipulated EOP for clubbing and regularization. RA may examine the case in terms of Para 4.1.6 of FTP and to 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) Waiver of PC18 is allowed for inputs consumed and exported outside the EO period. However, the firm is liable to pay Custom duty + interest in terms of Para 4.28 of HBP on such inputs. v) RA may do clubbing subject to the condition that no adjudication order is issued against any licence to be clubbed.
Case No.23. DSM Sinochem Pharmaceuticals India Limited, Gurgaon.
F.No. 01/60/162/886/AM13/EFGC (PRC) Subject: Request for clubbing of Advance Authorizations no. 2210007456 dt. 14.2.2008 2210007529 dt. 05.03.2008 2210007714 dt. 15.4.2008 issued under PC9 condition. The Committee noted that under all three Advance Authorizations exports are made after 12 months from the date of import under earliest Authorization hence request for clubbing can’t be allowed. However following decisions were taken: i. To reject the request for clubbing. ii. To allow 6 months EOP extension in each Authorization from the date of initial expiry of export validity. iii. This is subject to composition fee @ 0.5% of unfulfilled FOB value, if any, exported during this extended validity. iv. Export made outside the extended validity shall be regularized one payment of duty + interest in terms Para 4.28 of HBP.
Case No.24. M/s JSW Steel Limited, Karnataka.
F.No. 01/89/180/60/AM13/PC2(A) Subject: Request for import of Mercedes Benz 6X6 chassis model ACTROS 3346 for fabrication od airfield crash fire tender. The Committee considered the request to allow import of one Mercedes Benz 6x6 chassis model ACTROS 3346 from M/s Daimler AG, Germany for fire fighting.
Case No.25. Shri Rajendra Chamaria, New Delhi.
F.No. 01/89/180/61/AM13/PC2(A) Subject: Request for import of a Left Hand Driving Control Car specifically designed for physically handicapped person. The committee considered the case and granted relaxation of the provisions contained in policy conditions 2 (II) (a) (ii) of Chapter 87 for import of a Left Hand Driving Control Car specifically designed for physically handicapped person
Case No.26. M/s Robert Bosch Engin. & business Solutions Limited, Bangalore.
F.No. 01/89/180/21/AM13/PC2(A) Subject: Request for import of New Left Hand Steering & Control Cadillac XTS premium Car for software Development & Engineering R&D. The committee considered the case and granted relaxation of the provisions contained in policy conditions 2 (I) (b) & (c) and 2 (II) (a) (ii) & (f) of Chapter 87 for import of New Left Hand Steering & Control Cadillac XTS premium Car for software Development & Engineering R&D.
Case No.27. M/s Stallion Enterprises, Mumbai.
F.No. 01/53/162/1154/AM13/S97/ILS
Subject: Request for grant of 2nd revalidation of import licence no. 0350002081 dt. 5.8.2010.
The committee considered the request and granted expostfacto approval of grant of 2nd revalidation of import licences No. 0350002081 dt. 5.8.2010. . {(Action : Jt. DG(HS)}
Case No.28. M/s Godrej & Buyce Mfg. Co. Ltd. Mumbai.
F.No. 01/91/180/1019/AM11/EC(S)
Subject: Request for third time revalidation of SCOMET export licence no. 0074332 dt. 14.2.2011.
The committee considered the request and granted 6 months revalidation.
Case No.29. M/s Finepac Structures Pvt. Ltd. Pune
F.No. 01/77/110/04/AM13/EC(S) Subject: Request for relaxation in the Policy Circular No. 99 (RE08)/200409 dt. 11.8.2009 limiting the time for issuance of SCOMET Licence within 4 months against Advance Authorization no. 3110053821 dt. 18.4.2012. The case was considered by the Committee and allowed relaxation of Policy Circular no. 99 dt. 11.8.2009 till the date of issue of SCOMET licence by RA. The Committee ended with the Vote of Thanks to the Chair.
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