DGFT Committee Minutes
THE POLICY RELAXATION COMMITTEE (PRC) MEETING NO. 06/AM14 HELD ON 14.05.2013 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. V.K. Srivastava Addl. DG 3. Shri Mukesh Bhatnagar Addl.DG 4. Shri L.B. Singhal Addl. DG 5. Shri K.C. Raut Addl. DG 6. Shri S.K. Samal Jt. DGFT 7. Shri Hardeep Singh Jt.DGFT 8. Shri Jaikant Singh Jt. DGFT 9. Shri Jaykaran Singh Jt. DGFT 10. Shri Ajay Kumar Srivastava Jt. DGFT 11. Shri A.K. Mishra Stats Advisor 12. Shri S.K. Mohapatra DDG 13. Smt. Sonika Khattar FTDO The decision taken on the individual cases are as under:
Case No.1. M/s Varsana Ispat Ltd., New Delhi
F.No. 01/60/162/89/AM14/EFGC (PRC) PRC Meeting No. 06/AM14 dated 14.05.2013
Subject: Request for EOP of Advance Authorization No. 0510261173 dated 25.03.2010.
After deliberating the case at length the following decisions were taken: I. Export obligation period is extended by 6 months from the date of endorsement or upto 30.11.2013, 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. This is further subject to verification by RA that EO as claimed to have been fulfilled is more than 50% (even on prorata basis) within the valid EOP. IV. The applicant is advised to submit the license for endorsement to RA as early as possible. They are further advised to start discharging their stipulated balance export obligation on the basis of this minute without waiting for the endorsement is done on the Authorization. (Action: RA CLA, New Delhi/Applicant)
Case No.2. M/s Mulder (India) Pvt. Ltd., Bangalore.
F.No. 01/60/162/98/AM14/EFGC (PRC)
Subject: Request for EOP of Advance Authorization No. 0710070651 dated 23.03.2010.
After deliberating the case at length the following decisions were taken: I. Export obligation period is extended by 6 months from the date of endorsement or upto 30.11.2013, 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. This is further subject to verification by RA that EO (value wise) as claimed to have been fulfilled is more than 50% (even on prorata basis) within the valid EOP. IV. The applicant is advised to submit the license for endorsement to RA as early as possible. They are further advised to start discharging their stipulated balance export obligation on the basis of this minute without waiting for the endorsement is done on the Authorization. (Action: RA Bangalore/Applicant)
Case No.3. M/s Union Quality Plastics Ltd. Mumbai.
F.No. 01/60/162/86/AM14/EFGC (PRC)
Subject: Request for EOP of Advance Authorization No. 031016968 dated 23.03.1997.
Deferred for seeking chronological details of the case from RA. (Action : RA Mumbai)
Case No.4. M/s RR Kabel Ltd. Mumbai.
F.No. 01/60/162/99/AM14/EFGC (PRC)
Subject: Request for extension of EOP of Advance Authorization No. 0310490680 dated 16.10.2008.
After detailed discussion it was opined that export obligation period has been reduced from 36 months to 18 months in the amended policy w.e.f. 5.6.2012. Therefore, there is no logic to allow extension beyond 48 months ( including 12 months deemed
which PRC considers after 36 months in old cases). The licence under question was issued on 16.10.2008 and thus 48 months period has already passed. There is no justification that goods imported 4 years back could not be processed and exported within 4 long years. The committee therefore decided to reject the request advising the applicant 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.5. M/s India Fashions Ltd, Mumbai.
F.No. 01/60/162/874/AM13/EFGC (PRC)
Subject: Request for EOP of Advance Authorization No. 0310493090 dated 05.11.2008.
After deliberating the case in length the following decisions were taken: I. Export obligation period is extended upto 30.06.2012 (i.e. 1 month) 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. IV. This is also subject to the condition that the case has not been adjudicated. V. RA shall check consumption of imported raw material under two resultant products as per SION. VI. Shortfall, if any, shall be regularized in terms of Para 4.28 of HBP. (Action : RA Mumbai)
Case No.6. M/s BGH Exim Ltd, Kolkata.
F.No. 01/60/162/760/AM13/EFGC (PRC)
Subject: Request for EOP of Advance Authorization No. 0210142914 dated 04.06.2010 for regularization purpose.
The committee after deliberation decided to reject the request for further relaxation as PRC has already granted relaxation in its meeting dt. 08.01.2013.
Case No.7. M/s TTK LIG Ltd., Chennai.
F.No. 01/60/162/103/AM14/EFGC (PRC)
Subject: Request for EOP of Advance Authorization No. 0410112812 dated 01.04.2010.
After deliberating the case at length the following decisions were taken: I. Export obligation period is extended by 6 months from the date of endorsement or upto 30.09.2013, 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. This is further subject to verification by RA that EO as claimed to have been fulfilled is more than 50% (even on prorata basis) within the valid EOP. IV. The applicant is advised to submit the license for endorsement to RA as early as possible. They are further advised to start discharging their stipulated balance export obligation on the basis of this minute without waiting for the endorsement is done on the Authorization. (Action: RA Chennai/Applicant)
Case No.8. M/s Concept Pharmaceuticals Limited, Mumbai.
F.No. 01/60/162/721/AM13/EFGC (PRC) Subject: Request for clubbing of 3 Advance Authorizations No. 0310426732 dated 13.04.2007, 0310528123 dated 09.07.2009 & 0310551924 dated 21.12.2009 issued under PC9 condition. The committee deliberated the case at length and decided to reiterate its earlier decision taken in PRC meeting no. 34/AM13 dt. 01.01.2013 as the firm is representing with same request in different language. Export obligation period can not be extended beyond equivalent period of original validity permitted in the licence/ authorization.
Case No.9. M/s Concept Pharmaceuticals Limited, Mumbai.
F.No. 01/60/162/846/AM13/EFGC (PRC) Subject: Request for extension of EOP of Advance Authorization No. 0310444871 dated 01.10.2007 for regularization purpose. The Committee reiterated its earlier decision of PRC meeting no. 37/AM13 dt. 22.01.2013 and once again rejected the request of the firm as export obligation period can not be extended beyond equivalent period of original validity permitted in the licence/ authorization.
Case No.10. M/s JJ Plastalloy Pvt. Ltd., Varanasi.
F.No. 01/60/162/88/AM14/EFGC (PRC)
Subject: Request for revalidation of Advance Authorization No. 1510011534 dated 13.10.2010.
Deferred for seeking report from RA in respect of time taken to grant EODC. (Action : RA Varanasi)
Case No.11. M/s SSA International Ltd., New Delhi.
F.No. 01/60/162/37/AM13/EFGC (PRC) Subject: Request for revalidation of DEPB Authorization No. 0510286639 dated 23.03.2011 and 0510286640 dated 23.03.2011. The Committee noted that the firm could not utilize the DEPB on account of non transmission of DEPB. The committee therefore decided to revalidate the aforesaid DEPB for a period of 3 months from the date of transmission of said DEPB to ICEGATE Custom. (Action : EDI/RA, CLA, New Delhi)
Case No.12. M/s Vijay Electricals Ltd., Hyderabad.
F.No. 01/60/162/583/AM13/EFGC (PRC)
Subject: Request for clubbing of Advance Authorizations No. 0910039960 dated 18.11.2009 & 0910049878 dated 23.11.2011.
Deferred for seeking detailed report from RA on EDI problem in transmitting amendment to the Authorization. Thereafter the case to be examined on file. (Action : RA Hyderabad)
Case No.13. M/s Gland Pharma Ltd., Hyderabad.
F.No. 01/94/180/223/AM08/PC4(PRC)
Subject: Request for revalidation of Advance Authorization No. 0910011982 dated 13.11.2002.
Deferred for seeking chronological detailed report from RA. On receipt of report, the case will be reexamined on file. (Action : RA Hyderabad)
Case No.14. M/s Gland Pharma Ltd., Hyderabad.
F.No. 01/60/162/376/AM13/EFGC (PRC)
Subject: Request for EOP of Advance Authorization No. 0910014856 dated 27.06.2003.
Deferred for seeking chronological detailed report from RA. On receipt of report, the case will be reexamined on file. (Action : RA Hyderabad)
Case No.15. M/s Geltec Private Limited, Mumbai.
F.No. 01/60/162/858/AM12/EFGC (PRC) Subject: Request for relaxation from the conditions of reexport/destruction of the duty free inputs and grand condonation in respect of Advance Authorization No. 0310246443 dated 08.01.2004 issued under PC9 condition. The committee deliberated the case at length. It was noted that items permitted/imported under the Authorization are not drugs. The Policy Circular No. 9 condition was imposed by RA in advertently and the applicant never approached to RA for deletion of the same. RA is therefore requested to reexamine the case and consider it with normal condition and export made within 24 months from the date of issue of Authorization may be regularized subject to the payment of duty with interest for the default. (Action : Applicant/RA Mumbai)
Case No.16. M/s JJ Exports, Kolkata.
F.No. 01/60/162/1987/AM11/EFGC (PRC)
Subject: Request for EOP extension of Advance Authorization No. 0210109717 dated 29.02.2008.
The Committee reiterated its earlier decision of PRC meeting no. 36/AM13 dt. 15.01.2013 and once again rejected the request of the firm as there is no logic to allow EOP extension beyond 48 months. The applicant has failed to availed the opportunity extended to them by giving 3
months extension in the PRC meeting no. 01/AM13. The firm is therefore directed to get the case regularized in terms of Para 4.28 of HBP as a bona fide default. (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.17. M/s Pomsy Food Products Pvt. Ltd., Kollam.
F.No. 01/60/162/429/AM08/EFGC (PRC)
Subject: Request for EOP extension of Advance Authorization No. 01010015588 dated 31.03.2004.
As per Hon’ble High Court of Kerala Order dt. 09.01.2013, the case was placed before the Committee meeting held on 2.4.2013. After detailed discussion, it was decided that the applicant shall be given personal hearing before Addl. DG (DKS) and thereafter the facts may be brought before the committee for final decision. Accordingly, date of Personal hearing was fixed on 22.4.2013 at 3 PM in the Chamber of Addl. DG, Udyog Bhawan New Delhi. The applicant was communicated through email as provided on their letter head and by speed post. The email was bounced back therefore, Mr. Ramdas, GM of the company was contacted over his mobile no. 9846570060 and after taking correct email address, fresh mail was sent to them. On their request, date of PH was extended and refixed on 8.5.2013. Mr. Joel, authorized representative of the firm appeared before Addl. DG Shri D.K. Singh on 8.5.2013 and stated that they made zero export within the original validity of authorization i.e. 18 months from the date of issue. RA granted one extension of 6 months on their request . There was labour issue and financial problem in the firm. Therefore they could not discharge the stipulated export obligation in time. The imported raw material are still lying in their factory which was imported during 2004. He therefore requested to allow EOP extension. The case was again placed before the committee during the meeting held on 14.5.2013. The committee noted that the Authorization was issued on 31.3.2004 and the problem in the factory was from February 2005 to April 2006. The applicant did not affect any export from March 2004 to February 2005, the period in which factory was running smoothly. As per their request, EOP was extended upto 30.9.2006 and during this period also they have not made any effort to discharge stipulated export obligation. The committee did not found any logic and justification to allow extension after 9 years. Therefore it was decided to reject the request advising the applicant to get their case regularized in terms of Para 4.28 of HBP as a bona fide default.. (Action : RA Cochin. 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.18. M/s Ayush International, New Delhi.
F.No. 01/60/162/105/AM14/EFGC (PRC) Subject: Request for revalidation of the Duty Credit Licences No. 0510252557 dated 13.11.2009, 0510265606 dated 07.06.2010 & 0510241015 dated 08.05.2009.
The committee noted that the transferee should have enquired about the facts of pending inquiry against the original scripts holder before buying the same. Since the scrips were not in the position of government agencies while expired, the committee did not agree to allow revalidation of transferable duty credit scrips. Thus the request is rejected.
Case No.19. M/s JFC Business Ltd., Kolkata.
F.No. 01/60/162/619/AM13/EFGC (PRC)
Subject: Request for revalidation of Advance Authorization No. 0210133974 dated 18.11.2009.
It was decided that Addl. DG(LBS) shall verify the facts from the file during next visit to Kolkata office and submit report to the committee for consideration. (Action : Addl. DG(LBS)
Case No.20. M/s Calyx Chemical and Pharmaceuticals Limited, Mumbai.
F.No. 01/60/162/115/AM14/EFGC (PRC)
Subject: Request for EOP extension of Advance Authorization No. 0310459480 dated 29.01.2008.
The committee noted that no considerable exports, which form merit of the case have been made by the firm within the original validity and also the authorization is 5 years old. There is no logic and justification to allow EOP extension beyond 48 months for authorization as EO period has been reduced from 36 months to 18 months w.e.f. 5.6.2012. Hence the request is rejected. The applicant is directed to get their 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.21. M/s Calyx Chemical and Pharmaceuticals Limited, Mumbai.
F.No. 01/60/162/114/AM14/EFGC (PRC)
Subject: Request for EOP extension of Advance Authorization No. 0310487900 dated 25.09.2008.
The committee noted that no considerable exports, which form merit of the case have been made by the firm within the original validity and also the authorization is 5 years old. There is no logic and justification to allow EOP extension beyond 48 months for authorization as EO period has been reduced from 36 months to 18 months w.e.f. 5.6.2012. Hence the request is rejected. The applicant is directed to get their 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.22. M/s Universal Transformers, Indore.
F.No. 01/60/162/113/AM14/EFGC (PRC)
Subject: Request for EOP extension of Advance Authorization No. 1110022273 dated 26.04.2010.
After deliberating the case at length the following decisions were taken: I. Export obligation period is extended by 6 months from the date of endorsement or upto 30.10.2013, 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. This is further subject to verification by RA that EO as claimed to have been fulfilled is more than 50% (even on prorata basis) within the valid EOP. IV. The applicant is advised to submit the license for endorsement to RA as early as possible. They are further advised to start discharging their stipulated balance export obligation on the basis of this minute without waiting for the endorsement is done on the Authorization. (Action: RA CLA, New Delhi/Applicant)
Case No.23. M/s Wockhardt Limited, Mumbai.
F.No. 01/60/162/94/AM14/EFGC (PRC) Subject: Request for EOP extension of Advance Authorization No. 0310439532 dated 14.08.2007 issued under PC9 condition for regularization purpose. After deliberating the case in length the following decisions were taken: I. Export obligation period is extended from 6 months to 12 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.
IV. The applicant has to pay duty +interest on inputs consumed and exported after 12 months from date of first import. V. 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, Mumbai
Case No.24. M/s Wockhardt Limited, Mumbai.
F.No. 01/60/162/96/AM14/EFGC (PRC) Subject: Request for EOP extension of Advance Authorization No. 0310464154 dated 10.03.2008 issued under PC9 condition for regularization purpose. After deliberating the case in length the following decisions were taken: I. Export obligation period is extended from 6 months to 12 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. IV. The applicant has to pay duty +interest on inputs consumed and exported after 12 months from date of first import. V. 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, Mumbai)
Case No.25. M/s Wockhardt Limited, Mumbai.
F.No. 01/60/162/97/AM14/EFGC (PRC) Subject: Request for EOP extension of Advance Authorization No. 0310465113 dated 14.03.2008 issued under PC9 condition for regularization purpose. After deliberating the case in length the following decisions were taken: I. Export obligation period is extended from 6 months to 12 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. IV. The applicant has to pay duty +interest on inputs consumed and exported after 12 months from date of first import. V. 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, Mumbai)
Case No.26. M/s Wockhardt Limited, Mumbai.
F.No. 01/60/162/95/AM14/EFGC (PRC) Subject: Request for EOP extension of Advance Authorization No. 0310462853 dated 27.02.2008 issued under PC9 condition for regularization purpose. After deliberating the case in length the following decisions were taken: I. Export obligation period is extended from 6 months to 12 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. IV. The applicant has to pay duty +interest on inputs consumed and exported after 12 months from date of first import. V. 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, Mumbai)
Case No.27. M/s Jindal Poly Films Ltd., New Delhi.
F.No. 01/60/162/50/AM14/EFGC (PRC)
Subject: Request for clubbing of Advance Authorizations No. 0510158867 dated 01.06.2005 with 0510258414 dated 12.02.2010. The Committee noted that the gap between the above two authorizations is beyond 36 months, therefore Committee did not agree to club these authorizations. The applicant is advised to get their case redeemed separately in terms of Para 4.28 of HBP. (Action : RA CLA, New Delhi. 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.28. M/s Vysali Pharmaceuticals Limited, Cochin.
F.No. 01/60/162/104/AM14/EFGC (PRC) Subject: Request for EOP extension of Advance Authorization No. 1010025119 dated 12.12.2006 issued under PC9 condition. After deliberating the case in length the following decisions were taken: I. Export obligation period is extended from 6 months to 12 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. IV. The applicant has to pay duty +interest on inputs consumed and exported after 12 months from date of first import. V. 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, Mumbai
Case No.29. M/s Sood Paper & Allied Chemicals, Mumbai.
F.No. 01/60/162/117/AM14/EFGC (PRC) Subject: Request for clubbing/redemption of 3 Advance Authorizations No. 03104448707 dated 01.11.2007, 0310525357 dated 23.06.2009 & 0310569368 dated 13.04.2010. After deliberating the case at length and taking into consideration the facts of the case, the following decisions were taken:
I. To allow clubbing of the above referred 3 Advance Authorizations. 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. III. RA may grant necessary extension in EO 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.30. M/s. Mahindra and Mahindra Ltd. Mumbai
F.No. 01/89/180/32/AM10/PC2(A)
Subject: Request for import of a second hand car for R&D purposes in relaxation of policy conditions.
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 one used LHD vehicle for R&D purpose. The Committee ended with the Vote of Thanks to the Chair.
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