DGFT Minutes

Date of Uploading o^fog: I /|9 Directorate General of Foreign Trade (PRC Section) Minutes of the Policy Relaxation Committee Meeting held on 23.07.2019 under the Chairmanship of Shri Alok Vardhan Chaturvedi. Director General of Foreign Trade Meeting No.13/AM20 held on 23.07.2019 The following members were present in the meeting: 1. Shri K.C. Rout Add!. DGFT 2. Shri R. P. Goyal Add!. DGFT 3. Shri Vijay Kumar Addl. DGFT 4. Shri Satyan Sharda Add!. DGFT 5. Shri Anil Aggarwal Addl. DGFT 6. Shri Rajbir Sharma Jt. DGFT Following cases were discussed. The decision taken on the individual cases are as under:- S. No Name of the firm Case No. 1. M/s Rubamin Limited, Vadodara 1 2. M/s Tams Fine Ceramics Private Limited, Chennai 2 3. M/s Sartorius Stedim India Pvt. Ltd., Bangalore 3&4 4. M/s Krishna Copper Pvt. Ltd., Mumbai 5 5. M/s Kwality Overseas Pvt. Ltd., Ludhiana 6 to 10 6. M/s JSW Steel Limited, Mumbai 11 7. M/s ACME Chem Limited, Kolkata 12 8. M/s Ruby Fragrance Pvt. Ltd., Tamil Nadu 13 9. M/s Bharat Parenterals Limited, Vadodara 14 10. M/s Alchem International Pvt. Ltd., New Delhi 15 11. M/s Ballarpur industries Limited, New Delhi 16 to 18 12. M/s Excide Industries Limited, Kolkata 19 I ii M/s Toyota Kirloskar Motor Private Ltd. 20 14. Incomplete Cases 21 PH Case No. 01 M/s Rubamin Limited, Vadodara F. No. 01/60/162/260/AM20/PRC PRC Meeting No. 13/AM20 dated 23.07.2019

Subject: To allow MEIS benefit against 9 time barred shipping bills.

Decision: The applicant had sought personal hearing in terms of Para 2.59 of FTP, 2015-2020, which was afforded on 23.07.2019, but no one appeared on behalf of the firm. The Committee decided to defer the case.

(Action: Applicant) PH Case No. 02 M/s Tarns Fine Ceramics Private Limited, Chennai F. No. 01/60/162/585/AM19/PRC

Subject: Waiver/extension of EOP in respect of EPCG License No.0430006068

dated 25.04.2008 and 0430006159 dated 27.05.2008. The applicant had sought personal hearing in terms of Para 2.59 of FTP, 2015-2020, which was afforded on 23.07.2019. Shri M. Murali, Advisor appeared on behalf of the firm and made the following submissions; This is a review case against the decision of PRC Meeting No. 31/AM19 dated 19.02.2019. They have submitted that a new investor group came in from 2015 and took effective steps to complete the installation and commence production and exports. They got the project study done by Dun & Bradstreet and after having satisfied have agreed to bring in further Rs.14 crores into the company for refurbishment of machinery and other requirements for commercial production, subject to the condition that the they shall get extension for EPCG EO. The investor rescued them from permanent closure by converting the dues into equity and saved further huge interest burden. The new investor has brought in Chinese and other foreign partners to get higher export buyback commitments. With the help of Chinese partners, the new investors already started developing products for exports. They are willing to take up to 25% higher EO than the original value with the new investor group. Now, they are ready to start installation and complete the same within 6 months from the date of approval.

are willing to take up to 25% higher EO than the original value with the new investor group. Now, they are ready to start installation and complete the same within 6 months from the date of approval. Their request is for extension in EO period by 6 years more. Decision: The Committee having reviewed the case on the basis of justification furnished by the firm observed that there is no merit in firm's contention and decided to maintain the decision of rejection taken in earlier PRC Meeting No. 31/AM19 dated 19.02.2019. Firm was also advised to get their case regularized. (Action: Applicant) PH Case No. 03 WI/s Sartorlus Stedim India Pvt. Ltd., Bangalore F. No. 01/60/162/21/AM18/PRC Subject: Condonation of non filing of bill of exports against Advance Authorization No.0710076205 dated 21.12.2010. (Action: Applicant)

PH Case No. 04 WI/s Sartorius Stedim India Pvt. Ltd., Bangalore F. No. 01/60/162/19/AM18/PRC Subject. Condonation of non filing of Bill of Exports against Advance Authorization No.0710073648 dated 17.08.2010. (Action: Applicant) PFI Case No. 05 IVl/s Krishna Copper Pvt. Ltd., Wlumbai F. No. 01/60/162/237/AM20/PRC

Subject: Condonation of delay of 167 days In completion of EO for purpose of

regularization against Advance Authorization No.0310803292 dated 14.03.2016. (Action: Applicant) PFI Case No. 06 WI/s Kwality Overseas Pvt. Ltd., Ludhiana F. No. 01/6G/162/269/AM20/PRC Subject: Acceptance of 37 shipping bills towards fulfillment of export obligation against Annual Advance Authorization No.3010084520 dated 19.03.2012. (Action: Applicant) PFI Case No. 07 WI/s Kwality Overseas Pvt. Ltd., Ludhiana F. No. 01/60/162/269(C)/AM20/PRC Subject: Acceptance of 03 shipping bills towards fulfillment of export obligation against Annual Advance Authorization No.3010061526 dated 08.06.2009.

{Action: Applicant) PH Case No. 08 M/s Kwality Overseas Pvt. Ltd., Ludhiana F. No. 01/60/162/269(6)/AM20/PRC Subject: Acceptance of 13 shipping bills towards fulfillment of export obligation against Annual Advance Authorization No.3ai0061589 dated 11.06.2009. (Action: Applicant) PH Case No. 09 M/s Kwality Overseas Pvt. Ltd., Ludhiana F. No. 01/60/162/269(A)/AM20/PRC Subject: Acceptance of 03 shipping bills towards fulfillment of export obligation against Annual Advance Authorization No.3010061307 dated 21.05.2009. (Action: Applicant) PH Case No. 10 M/s Kwality Overseas Pvt. Ltd., Ludhiana F. No. 01/60/162/269(D)/AM20/PRC Subject: Acceptance of 38 shipping bills towards fulfillment of export obligation against Annual Advance Authorization No.3010070308 dated 20.10.2010. (Action: Applicant) PH Case No. 11 M/s JSW Steel Limited, Mumbai

F. No. 01/60/162/213/AM19/PRC

Subject: To allow revalidation and import of Pig Iron through system based

amendment for inputs of Pig Iron or in any suitable permission manner in 38 advance authorizations. Decision: The applicant was called for personal hearing vide PRC Meeting NO.09/AM20 dated 25.06.2019, which was afforded on 23.07.2019, but no one, appeared on behalf of the firm. The Committee decided to defer the case. (Action: Applicant)

Case No. 12 M/s ACME Chem Limited, Kolkata

F. No. 01/60/162/247/AM20/PRC

Subject: Revalidation of MEiS Authorization No.0219027424 dated 15.09.2016

due to the reason server showing error code. They have stated that they had applied with DGFT/ICEGATE server online and also made personnel visit at RA, Kolkata but failed to utilize the same. Meanwhile the authorization has expired. They are unable to utilize the authorization due to server showing with error code. Decision: The committee went through the statements made by the firm and noted that there is no merit in it because on 16.9.2016 (as per the screen shot provided by the firm), there is no error. Accordingly it decided to reject the request of the firm. (Action: Applicant) Case No. 13 M/s Ruby Fragrance Pvt. Ltd., Tamil Nadu F. No. 01/60/162/187/AM20/PRC

Subject: First EOP extension up to 18.01.2019 against Advance Authorization

No.3510045096 dated 19.01.2017 for regularization of export which has been done outside the initial EOP of 18 months. They have stated that due to an inadvertent error, they could not obtain the extension of EOP timely. Soon on fulfilling the EG of the above advance authorization, they submitted the application for redemption with EG documents to RA, Madurai. However, RA replied them stating that Shipping Bill No.7370919 dated 05.09.2018 is out of EGP and cannot be considered for redemption. They applied for extension of EGP along with composition fee/amendment of Advance Authorization of INR 25,882 (which was paid through e-MPS system with DGFT) together with payment receipt to RA, Madurai for considering the case and redeem the advance authorization. Again, RA, Madurai replied them to approach the PRC in the matter. VL, 5

Decision: The Committee went through the statement made by the applicant and report received from RA, discussed the matter at length and observed that it is not a case of relaxation and should have been done by RA at their level. It further decided that Regional Authority may allow First extension of EO period up to six months from the date of expiry of EO period only for regularization purpose subject to payment of composition fee of 0.5% of the shortfall in EO as per Para 4.42 of HBP-2015-20. The firm shall approach RA within 30 days from the date of uploading of the minutes of meeting. (Action: Applicant/RA)

Case No. 14 M/s Bharat Parenterals Limited, Vadodara

F. No. 01/60/162/914/AM19/PRC

Subject: Extension

in E.O. period against Advance Authorization No.3410038971 dated 23.12.2013 issued under PC-9 condition. They have stated that due to cancellation of order by foreign buyer, the entire quantity of exports item 1 and 25% quantity of export item 4 of the above advance authorizations were left out. Subsequently they received export orders from Merchant Exporter for item 1 in sufficient quantity to take care of shortfall of export item 4 also. Though they have supplied the product to merchant exporter well in advance of the validity of advance authorization, due to payment problem with foreign buyer (100% advance prior to export), merchant exporter has exported it 3 months later than validity of the advance authorization under free shipping bills. Hence requested EOP extension for 3 months and regularization of export done under only one free shipping bill (8890469 dated 08.04.2015) within this proposed extended date. Det:ision: The committee went through the statements made by the firm and noted that there is no merit in it and decided to reject the request of the firm. The applicant is directed to get the case regularized in terms of Para 4.49 of HBP. 2015-2020 within 30 days from the date of uploading of the minutes of meeting. (Action: RA, Vadodara; if the applicant fails to get the case regularized within a month from the date of uploading of these minute on the Directorate website, necessary action as per the provisions of F.T.(DR)Act, shall be initiated) Case No. 15 M/s Alchem International Pvt. Ltd., New Delhi F. No.

e of uploading of these minute on the Directorate website, necessary action as per the provisions of F.T.(DR)Act, shall be initiated) Case No. 15 M/s Alchem International Pvt. Ltd., New Delhi F. No. 01/60/162/259/AM20/PRC Subject; Extension in E.O. period against Advance Authorization No.0510392602 dated 29.12.2014. They have stated that they are a Pharma Exporter with export turnover for Rs.220.61 crores in 2018-19 with a low ratio of availing duty free imports under advance authorization in comparison to their exports. Being a Pharma product it has a highly fluctuating demand in the international market and they have a direct competition

with China. They are regularly exporting this product and had been successful in fulfilling the EO against all their pending advance licenses except the subject advance license. They could not start the EO in initial EO period, even after making the huge investment in imported raw material. But with lots of efforts and having their quality image in international market, they could fulfill only 57.71% of E.O.

tial EO period, even after making the huge investment in imported raw material. But with lots of efforts and having their quality image in international market, they could fulfill only 57.71% of E.O. and that too within 36 months. The Committee having discussed the case found no merit or hardship in the arguments made by the firm and hence decided to reject the request of the firm. The applicant is directed to get the case regularized in terms of Para 4.49 of HBP, 2015-2010 within 30 days from the date of uploading of the minutes of meeting. (Action: CLA, New Delhi: if the applicant fails to get the case regularized within a month from the date of uploading of these minute on the Directorate website, necessary action as per the provisions of F.T.(DR)Act, shall be initiated) Case No. 16 M/s Ballarpur Industries Limited, New Delhi F. No. 01/60/162/268/AI/l20/PRC

Subject: To accept manual application of WIEIS claim against 25 Shipping

Bills. They have stated that the firm has got 25 Shipping Bills amended from Customs due to wrong ITC MS mentioned in the shipping bill at the time of shipment. These shipping bill cover 3 Financial Year 2015-16, 2016-17 and 2017-18. The description of the ITC MS code available for MEIS is the same for all the 3 ITC HS codes No.48025750, 48023750 and 48025790. However, only one ITC HS code 48025790 appears in the MEIS list and as such they were unable to file their MEIS benefit as the other 2 ITC HS code which pertain to the same product which they export is not covered. They approached Customs, and after verifying their request, they were convinced and amended all their 83 shipping bills manually by stamping and signing the corrections to ITC HS 48025790. They have approached RA, Pune for filling Manual MEIS application, but RA, Pune informed to approach Policy Relaxation Committee. Decision: The Committee having discussed the case at length observed that reflection of such manual amendments in the automated system is not possible. Accordingly, it found no merit in it and hence decided to reject the request of the firm. (Action: Applicant) Case No. 17 M/s Ballarpur Industries Limited, New Delhi F. No. 01/60/162/267/AM20/PRC

Subject: To accept manual application of MEIS claim against 27 Shipping

Bills.

They have stated that the firm has got 27 Shipping Bills amended from Customs due to wrong ITC HS mentioned in the shipping bill at the time of shipment. These shipping bill cover 3 Financial Year 2015-16, 2016-17 and 2017-18. The description of the ITC HS code available for MEIS is the same for all the 3 ITC HS codes No.48025750, 48023750 and 48025790. However, only one ITC HS code 48025790 appears in the MEIS list and as such they were unable to file their MEIS benefit as the other 2 ITC HS code which pertain to the same product which they export is not covered. They approached Customs, and after verifying their request, they were convinced and amended all their 83 shipping bills manually by stamping and signing the corrections to ITC HS 48025790. They have approached RA, Pune for filling Manual MEIS application, but RA, Pune informed to approach Policy Relaxation Committee. Decision: The Committee having discussed the case at length observed that reflection of such manual amendments in the automated system is not possible. Accordingly, it found no merit in it and hence decided to reject the request of the firm. (Action: Applicant) Case No. 18 M/s Baliarpur Industries Limited, New Delhi F. No. 01/60/162/269/AM20/PRC

Subject: To accept manual application of MEIS claim against 31 Shipping

bills. They have stated that the firm has got 31 Shipping Bills amended from Customs due to wrong ITC HS mentioned in the shipping bill at the time of shipment. These shipping bill cover 3 Financial Year 2015-16, 2016-17 and 2017-18. The description of the ITC HS code available for MEIS is the same for all the 3 ITC HS codes No.48025750, 48023750 and 48025790. However, only one ITC HS code 48025790 appears in the MEIS list and as such they were unable to file their MEIS benefit as the other 2 ITC HS code which pertain to the same product which they export is not covered. They approached Customs, and after verifying their request, they were convinced and amended all their 83 shipping bills manually by stamping and signing the corrections to ITC HS 48025790. They have approached RA, Pune for filling Manual MEIS application, but RA, Pune informed to approach Policy Relaxation Committee, Decision: The Committee having discussed the case at length observed that reflection of such manual amendments in the automated system is not possible. Accordingly, it found no merit in it and hence decided to reject the request of the firm. (Action: Applicant) Case No. 19 M/s Excide Industries Limited, Kolkata F. No. 01/60/162/262/AM20/PRC

sible. Accordingly, it found no merit in it and hence decided to reject the request of the firm. (Action: Applicant) Case No. 19 M/s Excide Industries Limited, Kolkata F. No. 01/60/162/262/AM20/PRC

Subject; Time relaxation for chapter 3 clatm against the export made in the year 2012 to 2016 which could not be applied due to expiry of time. They have stated that they could not avail the Chapter 3 benefit (FMS and MEIS), due to not uploading of shipping bill and BRC in the respective sites. Hence, request to relax and allow for chapter 3 claim against the export made in the year'2012 to 2016 which could not be applied due to expiry of time. P^^'S'on: The Committee having discussed the case in detail found no merit in it and hence decided to reject the request of the firm. (Action: Applicant) Case No. 20 M/s Toyota Kirloskar Motor Private Ltd. F. No, 01/93/180/1483/AM03/PC2(A)A/ol.lV Subject: To allow import clearance of used cars for Research and Development purposes. They have stated that they want to import 1 Number "Toyota Miral" Hydrogen Fuel Cell - used vehicle Frame No.JTDBVRBD30A003905 and 1 Number "Toyota Land Cruiser 200 of Model Code VDJ200R-GNTEZQ — used vehicle from Toyota Motor Corporation, Japan through the Chennai/ Kattupalli/ Ennore Sea Ports for smooth import clearance of the vehicles. They have further stated that the above mentioned vehicles will be registered under CMVR Rules as per PC No.06 (RE-06)/2004-2009 dated 18.05.2006.

a Ports for smooth import clearance of the vehicles. They have further stated that the above mentioned vehicles will be registered under CMVR Rules as per PC No.06 (RE-06)/2004-2009 dated 18.05.2006. Also they have stated that they are approaching Ministry of Road Transport to seek permission to drive Toyota Land Cruiser on road from Bangalore to Delhi from 16.09.2019 to 27.09.2019 for carrying out the research purpose. Hence, requested to allow clearance of the used vehicles at Chennai/ Kattupalli/ Ennore Sea Port for R&D Purpose. Decision: The Committee having discussed the case on the basis of justification furnished by the firm and decided to accede to the request of the firm for import of used vehicle 1 Number "Toyota Mirai" Hydrogen Fuel Cell-Frame No. JTDBVRBD30A003905 and 1 Number "Toyota Land Cruiser 200" of Model Code VDJ200R-GNTEZQ from Chennai/ katupalli/ Ennore seaport. These vehicles can also be driven on public roads in India for R&D purpose subject to permission from the Ministry of Road Transport & Highways. (Action: Appljcant/PC-2A)

Case No. 21: Incomplete Cases

Following cases were discussed. The Committee observed that the applications have been received without ANF 2D and Application Fee as per Appendix 2K (fully/partly) and also without Reasons/Justifications as per Para-15 of ANF 2D are to be treated as incomplete applications. Therefore, such cases are not been taken up by the Committee as mentioned below:

^No. 1. 3. 6. 7. 9. 10., Name of the firm M/s. Overseas Carpets Limited, New Delhi M/s. Indoco Remedies Limited, Mumbai M/s. Alchem International Private Limited, New Delhi M/s. GBKC Fashions, Dehradun M/s. Centex International Pvt. Ltd., Ludhiana M/s. Matrix Fine Sciences Pvt. Ltd., Aurangabad M/s. Core Fashion INC, Dehradun M/s. Shalimar Paints Ltd., Gurugram M/s. Kanidi Biotech LLP NO-2, Forest lane, Sultanpur, New Delhi M/s. Sunita Exports, Mumbai 11 , 12, M/s. Geltec Private Limited, Mumbai M/s. Greglo Exports (India) Private Limited, Subject of the firm To allow MEIS benefit against Shipping bill No. 7198858 dated ^1.04.2016. 2"^ EOP Extension of Advance Authorization no. 0310817401 dated 29.11.2017 issued under PC-9 condition. EO extension for Advance Authorization no. 0510392602 dated 29.12.2014 Extension in EOP against EPCG License no.

f Advance Authorization no. 0310817401 dated 29.11.2017 issued under PC-9 condition. EO extension for Advance Authorization no. 0510392602 dated 29.12.2014 Extension in EOP against EPCG License no. 6130000269 dated 17.06.2011 Regularization & clubbing of Advance License no. 3010103022 dated 16.07.2014 & 3010103430 dated 18.03.2015. To allow MEIS claim against S/Bill No.7952210 dated 30.05.2016. Extension in EOP for further two years in respect of EPCG authorization license no 6130000221 dated 20.10.2010. Extension in EOP against Advance Authorizations. Extension of time for installation of Machine Imported under EPCG License No. 0530171840 dated 22.02.2018. To allow supplementary MEIS against subsequent issued BRC against shipping bills no. 9984425 dated 29.12.2018, shipping bill no. 3971956 dated 04.04.2018 and shipping bills no. 377151 dated 26.03.2018 Fixation of norms against Advance Authorization no. 0310821487 dated 06.06.2018. Requisition for relaxation of time limit to claim the MEIS benefit Remarks Proof of fee not submitted ANF 2D and proof of fee not submitted ANF 2D and proof of fee not submitted ANF 2D and proof of fee not submitted Proof of fee not submitted ANF 2D and proof of fee not submitted ANF 2D not submitted ANF 2D and proof of fee not submitted ANF 2D and proof of fee not submitted ANF 2D and proof of fee not submitted ANF 2D and proof of fee not submitted ANF 2D and proof of fee not submitted 10

itted ANF 2D and proof of fee not submitted ANF 2D and proof of fee not submitted ANF 2D and proof of fee not submitted ANF 2D and proof of fee not submitted ANF 2D and proof of fee not submitted 10

Coimbatore 13. M/s. Team A Toys LLP, Tamil Nadu Permission for Export of unutilized fabrics. imported against Advance Authorization no. 3210078419 dated 28.02.2018. ANF 2D and proof of fee not submitted 14. M/s. Lachemi Chemorgs Pvt. Ltd., Puna Waiver on interest of Rs. 6.60 lakh on the unpaid duty for issuance of Redemption / EODC against redemption of DFIA no. 3110028994 dated 18.04.2007. ANF 2D and proof of fee not submitted 11