DGFT Committee Minutes
RATIFIED MINUTES DIRECTORATE GENERAL OF FOREIGN TRADE (DESII SECTION) MINUTES OF THE NORMS COMMITTEEII MEETING NO. 41/10 HELD ON 12.01.2010. The Meeting No. 41/10 of Norms CommitteeII was held on 12.01.2010 for the licensing year 20092010 under the Chairmanship of Sh. A. KOMU, Addl. Director General of Foreign Trade to consider the following applications for ratification of norms in respect of advance authorisations under Duty Exemption Scheme (Chapter4) of Foreign Trade Policy 20042009. The following members were present in the meeting: S.No Name of the representatives & their Designation Deptt. 1. 2. 3. 4. 5. 6. Sh. B.D.Ghosh, AIA Sh. Gajraj Singh, Sr. D.O. Sh. S.K. Jain, D.O. Sh. K.K. Funda, Asst. Dir. Sh. A.K. Mishra, Asst. Dir. Sh. Shyam Sunder, DDG M/o Steel DHI DIPP DC(MSME) M/o Steel DGFT 1
Case No.:3/41/81ALC2/2009 Party Name:VIDEOCON
INDUSTRIES LIMITED Meet No/Date:41/81 ALC2/2009 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00388/AM10/ RLA File :03/95/040/00692/AM09/ Lic.No/Date:0310503872 27.01.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 held on 12.01.2010. The committee observed that the case is under examination of MIT. The case stands deferred and to be relisted on 02.03.2010. 2
Case No.:14/41/81ALC2/2009
Party Name:RATNAMANI METALS & TUBES LIMITED Meet No/Date:41/81ALC2/2009 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00399/AM10/ RLA File :08/24/040/00036/AM10/ Lic.No/Date:0810080089 20.05.2009 Defer Date:02.03.2010
Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. On the recommendation of the representative of DIPP present in the meeting, it was decided by the Committee to call for the following information/clarification from the firm and to relist the case on 02.03.2010: 1. Size i.e. OD, WT and length of export product. 2. Net weight of Flanges, Elbows, Stub Ends etc. in the export product 3. Thickness of item of import. 4. Information in respect of S.No. 5 & 11 of Standard Deficiency Letter. 3
Case No.:17/41/81ALC2/2009
Party Name:RATNAVEER STAINLESS PRODUCTS (PVT) LTD, 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00402/AM10/ RLA File :34/24/040/00171/AM09/ Lic.No/Date:3410024452 12.06.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. On the recommendation of the representative of DIPP present in the meeting, it was decided by the Committee to call for the following information/clarification from the firm and to relist the case on 02.03.2010: 1. Thickness of item of import. 2. Information in respect of S.No. 5 of Standard Deficiency Format. 3. Weight of nut, screws etc. in the export product. 4
Case No.:4/41/81ALC2/2009
Party Name:NICOMET INDUSTRIES LTD. 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00389/AM10/ RLA File :03/95/040/00162/AM10/ Lic.No/Date:0310526170 29.06.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. The NC observed the quantity sought that for import item No. 1 appears to be incorrect. Since the same quantity is shown as Nickel content in Nickel Concentrate. RA may please clarify. The case stands deferred and to be relisted on 02.03.2010. 5
Case No.:13/41/81ALC2/2009
Party Name:STANCORP 12.01.2010 Status: Approved
HQ File :01/81/050/00398/AM10/ RLA File :03/95/040/00256/AM10/ Lic.No/Date:0310531637 31.07.2009 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. Based on the recommendations of the representative of DC(MSME) present in the meeting, the Norms Committee, after deliberating upon the case, decided to ratify the norms in respect of the subject Advance Authorisation as per following modification: 1. Taking Clue from SION C1673, as applied for. R/A may take suitable consequential action accordingly. 6
Case No.:10/41/81ALC2/2009
Party Name:RPG CABLES LTD. 12.01.2010 Status:Approved HQ File :01/81/050/00395/AM10/ RLA File :03/95/040/00088/AM10/ Lic.No/Date:0310533266 11.08.2009 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. Based on the recommendations of the representative of DIPP present in the meeting, the Norms Committee, after deliberating upon the case, decided to ratify the norms in respect of the subject Advance Authorisation as per following modification: 1. Quantity of import item at Sl.No.1 i.e. Aluminium Wire Rod EC Grade may be allowed as applied for i.e. 24.897 MT inclusive of 1% wastage. 2. Quantity of import item at Sl.No.2 i.e. XLPE Semiconducting Compound may be allowed as 2.04 MT inclusive of 5 % wastage. 3. Quantity of import item at Sl.No.3 ie. XLPE Insulation Compound may be allowed as applied for i.e. 7.113 MT inclusive of 4 % wastage. 4. Description of import item at Sl. No. 4 may be modified to “PVC Resin” and quantity of this import item may be allowed as 4.231 MT inclusive of 1% wastage as applied for. R/A may take suitable consequential action accordingly. 7
Case No.:16/41/81ALC2/2009
Party Name:SALZER ELECTRONICS LTD 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00401/AM10/ RLA File :32/24/040/00021/AM10/ Lic.No/Date:3210041042 14.08.2009 Defer Date:02.03.2010
Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. The committee observed that the case is under examination of DHI. The case stands deferred and to be relisted on 02.03.2010. 8
Case No.:15/41/81ALC2/2009
Party Name:SALZER ELECTRONICS LTD 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00400/AM10/ RLA File :32/24/040/00024/AM10/ Lic.No/Date:3210041176 08.09.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. The committee observed that the case is under examination of MIT. The case stands deferred and to be relisted on 02.03.2010. 9
Case No.:24/41/81ALC2/2009
Party Name:R.K.POLYMERS 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00409/AM10/ RLA File :13/24/040/00016/AM10/ Lic.No/Date:1310029960 11.09.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. On the recommendation of the representative of DIPP present in the meeting, it was decided by the Committee to call for the following information/clarification from the firm and to relist the case on 02.03.2010: 1. Voltage rating of cables 2. Detailed calculations as to how the quantity of raw materials proposed for import has been arrived at supported by size of conductors & insulation/ sheathing thickness. A copy of relevant National/International standard or buyers data sheet may also be furnished 10
Case No.:7/41/81ALC2/2009
Party Name:CROMPTON GREAVES LIMITED, 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00392/AM10/ RLA File :03/94/040/00328/AM10/ Lic.No/Date:0310537877 15.09.2009 Defer Date:02.03.2010
Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. NC observed that the Hard Copy is received and has been forwarded to DHI for comments. The case stands deferred and to be relisted on 02.03.2010. 11
Case No.:11/41/81ALC2/2009
Party Name:VIDEOCON INDUSTRIES LIMITED 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00396/AM10/ RLA File :03/95/040/00399/AM10/ Lic.No/Date:0310540446 06.10.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. The committee observed that the comments from MIT are still awaited and therefore decided to remind them to expedite the same. The case stands deferred and to be relisted on 02.03.2010. 12
Case No.:12/41/81ALC2/2009
Party Name:RPG CABLES LTD. 12.01.2010 Status:Approved HQ File :01/81/050/00397/AM10/ RLA File :03/95/040/00083/AM10/ Lic.No/Date:0310540928 08.10.2009 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. Based on the recommendations of the representative of DIPP present in the meeting, the Norms Committee, after deliberating upon the case, decided to ratify the norms in respect of the subject Advance Authorisation as per following modification: 1. Words “Aluminium Conductor PVC Insulated Unarmoured LT Cable” may be suffixed with the description of export product. 2. Taking clue from Engineering Tables 4 & 5, quantities of import items at S.No.1 & 2 may be allowed as applied for i.e. 20.759 MT & 4.592 MT respectively. R/A may take suitable consequential action accordingly. 13
Case No.:5/41/81ALC2/2009
Party Name:CANPACK INDIA PRIVATE LIMITED 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00390/AM10/ RLA File :03/94/040/00592/AM10/ Lic.No/Date:0310542696 27.10.2009 Defer Date:02.03.2010
Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. On the recommendation of the representative of DIPP present in the meeting, it was decided by the Committee to call for the following information/clarification from the firm and to relist the case on 02.03.2010: 1. Information in respect of S.No. 5 & 11 of Standard Deficiency Letter – export productwise. 14
Case No.:20/41/81ALC2/2009
Party Name:R+V INTERNATIONAL CO. 12.01.2010 Status:Approved HQ File :01/81/050/00405/AM10/ RLA File :30/24/040/00019/AM10/ Lic.No/Date:3010063979 13.11.2009 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. Based on the recommendations of the representative of DIPP present in the meeting, the Norms Committee, after deliberating upon the case, decided to ratify the norms in respect of the subject Advance Authorisation as per following modification: 1. Word “relevant” may be prefixed with the description of import item and its quantity may be allowed as applied for i.e 3500 Kgs. as 1.08 Kgs./Kg. content in the export product. R/A may take suitable consequential action accordingly. 15
Case No.:6/41/81ALC2/2009
Party Name:SOURIAU INDIA PRIVATE LIMITED 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00391/AM10/ RLA File :10/24/040/00089/AM10/ Lic.No/Date:1010036019 17.11.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. The committee observed that the comments from MIT are still awaited and therefore decided to remind them to expedite the same. The case stands deferred and to be relisted on 02.03.2010. 16
Case No.:8/41/81ALC2/2009
Party Name:RPG CABLES LTD. 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00393/AM10/ RLA File :03/95/040/00894/AM09/ Lic.No/Date:0310546258 18.11.2009 Defer Date:02.03.2010
Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. On the recommendation of the representative of DIPP present in the meeting, it was decided by the Committee to call for the following information/clarification from the firm and to relist the case on 02.03.2010: 1. Detailed calculations for the requirement of each raw material, export product wise supported by the Cross sectional diagram of the cable/Buyers data sheet 2. Material balancing viz. net content of each imported and indigenous input, export product wise, per KM of export product. 3.Total requirement of each raw material, export product wise, in a Tabular form 17
Case No.:9/41/81ALC2/2009
Party Name:RPG CABLES LIMITED, 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00394/AM10/ RLA File :07/24/040/00308/AM10/ Lic.No/Date:0710068403 19.11.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. NC observed that the Hard Copy is received and has been forwarded to MIT for comments. The case stands deferred and to be relisted on 02.03.2010. 18
Case No.:27/41/81ALC2/2009
Party Name:BHARAT HEAVY ELECTRICALS LIMITED 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00412/AM10/ RLA File :06/24/040/00034/AM10/ Lic.No/Date:0610016750 02.12.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. NC observed that the Hard Copy is received and has been forwarded to DHI for comments. The case stands deferred and to be relisted on 02.03.2010. 19
Case No.:28/41/81ALC2/2009
Party Name:BHARAT HEAVY ELECTRICALS LIMITED 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00413/AM10/ RLA File :06/24/040/00035/AM10/ Lic.No/Date:0610016751 02.12.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. NC observed that the Hard Copy is received and has been forwarded to DHI for comments. The case stands deferred and to be relisted on 02.03.2010.
20
Case No.:1/41/81ALC2/2009
Party Name:PEARL METAL PRODUCTS (BANGALORE) PVT. LIMITED 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00386/AM10/ RLA File :07/24/040/00394/AM09/ Lic.No/Date:0710068981 18.12.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. The Committee observed that the application of the firm is not received. Therefore, the Committee decided to remind RA for forwarding the copy of the application of the firm. The case stands deferred and to be relisted on 02.03.2010. 21
Case No.:2/41/81ALC2/2009
Party Name:JLC ELECTROMET PVT. LTD., 12.01.2010 Status:Approved HQ File :01/81/050/00387/AM10/ RLA File :13/24/040/00024/AM10/ Lic.No/Date:1310030836 18.12.2009 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. Based on the recommendations of the representative of DIPP present in the meeting, the Norms Committee, after deliberating upon the case, decided to ratify the norms in respect of the subject Advance Authorisation as per following modification: 1. Taking clue from SION C1580, quantity of import item at Sl No. 1 may be allowed as applied for i.e. 19570 Kgs inclusive of 3 % wastage. R/A may take suitable consequential action accordingly. 22
Case No.:25/41/81ALC2/2009
Party Name:CODINA METALIC PRIVATE LIMITED 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00410/AM10/ RLA File :04/24/040/00239/AM10/ Lic.No/Date:0410110392 23.12.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. NC observed that the Hard Copy is received and has been forwarded to DIPP for comments. The case stands deferred and to be relisted on 02.03.2010.
23
Case No.:26/41/81ALC2/2009
Party Name:SHIVALIK BIMETAL CONTROLS LTD. 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00411/AM10/ RLA File :05/24/040/00417/AM10/ Lic.No/Date:0510255223 24.12.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. The Committee observed that the application of the firm is not received. Therefore, the Committee decided to remind RA for forwarding the copy of the application of the firm. The case 24
Case No.:18/41/81ALC2/2009
Party Name:ANAND INDUSTRIAL ENTERPRISES 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00403/AM10/ RLA File :07/21/040/00900/AM10/ Lic.No/Date:0710069152 30.12.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. The Committee observed that the application of the firm is not received. Therefore, the Committee decided to remind RA for forwarding the copy of the application of the firm. The case 25
Case No.:19/41/81ALC2/2009
Party Name:LUMINOUS POWER TECHNOLOGIES PVT. LTD. 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00404/AM10/ RLA File :05/23/040/00130/AM10/ Lic.No/Date:0510255323 30.12.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. The Committee observed that the application of the firm is not received. Therefore, the Committee decided to remind RA for forwarding the copy of the application of the firm. The case 26
Case No.:21/41/81ALC2/2009
Party Name:MINEX METALLURGICAL COMPANY LIMITED 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00406/AM10/ RLA File :03/95/040/00637/AM10/ Lic.No/Date:0310553140 31.12.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. The Committee observed that the application of the firm is not received. Therefore, the Committee decided to remind RA for forwarding the copy of the application of the firm. The case
27
Case No.:22/41/81ALC2/2009
Party Name:EFD INDUCTION LIMITED, 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00407/AM10/ RLA File :07/24/040/00331/AM10/ Lic.No/Date:0710069195 31.12.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. The Committee observed that the application of the firm is not received. Therefore, the Committee decided to remind RA for forwarding the copy of the application of the firm. The case 28
Case No.:23/41/81ALC2/2009
Party Name:WELSPUN GUJARAT STAHL ROHREN LTD. 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00408/AM10/ RLA File :34/24/040/00161/AM10/ Lic.No/Date:3410026017 31.12.2009 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. The Committee observed that the application of the firm is not received. Therefore, the Committee decided to remind RA for forwarding the copy of the application of the firm. The case 29
Case No.:29/41/81ALC2/2009
Party Name:JCR DRILLSOL PVT LTD 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00414/AM10/ RLA File :07/21/040/00919/AM10/ Lic.No/Date:0710069229 04.01.2010 Defer Date:02.03.2010 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. The Committee observed that the application of the firm is not received. Therefore, the Committee decided to remind RA for forwarding the copy of the application of the firm. The case 30
Case No.:30/41/81ALC2/2009
Party Name:MAHENDRA INDUSTRIES 12.01.2010 Status: Deffered and Reindexed HQ File :01/81/050/00415/AM10/ RLA File :07/24/040/00367/AM10/ Lic.No/Date:0710069240 04.01.2010 Defer Date:02.03.2010
Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. The Committee observed that the application of the firm is not received. Therefore, the Committee decided to remind RA for forwarding the copy of the application of the firm. The case PART ARFRESH
Case No. AR57
M/S Laxmi Electronics Moulds & Precision Engineering Pvt.Ltd.Bangalore. Meeting No.41/81 F.No.01/81/50/099/AM09/DESII Dated 12.01.2010 Advance License No.0710056200 dt. 03.03.2008 RlA F.No.07/24/40/770/AM08 Decision : The case regarding ratification of norms in respect of above advance authorization was considered by the Norms Committee II in its M.No. 41/81 scheduled to be held on 12.01.2010. On the recommendation of the representative of DIPP present in the meeting, it was decided by the Committee to call for the following information/clarification from the firm and to relist the case on 02.03.2010: 1. Documentary evidence for use of 4 numbers each of import items at S.No.6 (Isolator Fan Mount) and S.No.7 (EMI Gasket) in the assembly of one Fan Module. PARTBFRESH
Case No. B4
M/S Hindalco Industries Ltd., Birla Copper, Gujarat. Meeting No.41/81 F.No.01/80/162/00385/AM10/DESI/DESII Dated 12.01.2010 Decision : M/s. Hindalco Industries Ltd., sought clarification w.r.t. CAG’s audit objection regarding calculation of the copper content in the Copper concentrate as per SION C1503 under the advance Authorisation Scheme. As per decision taken in NC meeting No. 24/10 dated 15/09/2009 a reference in this regard was made to the Administrative Ministry namely M/o Mines for suitable clarification.
The reply received from M/o Mines vide their O.M. No. 4/24/2009Met.III/L dated 4th January 2010 was deliberated upon in NC meeting dated 12012010 . The NC noted the following relevant portion of the OM of M/o Mines in this regard as under: “Copper content in copper concentrate is expressed as percentage (%) of copper per DMT of copper concentrate. DMT weight of copper concentrate is taken as the basis for computation of transaction value of copper concentrate and not WMT weight. Depending on the source of concentrate and production process typically moisture content in copper concentrate may very from 5% to 9% copper concentrate (a fine powder) in dry state flies off during handling and transportation. Hence at times, supplier adds extra water to bring up the moisture content in copper concentrate to 7& to 10% to avoid difficulty and minimize consequent losses in handling and transportation. SIONC1503 stipulates duty free import of copper concentrate having 1.06MT copper against the export of 1MT of continuous cast Copper Rod/ Copper Wire Rod/Cathode. It may, therefore, be concluded that Dry Metric Ton (DMT) weight is to be considered for copper concentrate for advance authorization issued under SION C1503.” Norms Committee after deliberations, decided to convey the above clarification to the exporter and RA. Accordingly, DGFT may issue necessary clarification.
There is a CAG’s Audit objection w.r.f the calculation of Copper content in the imported copper concentrate under Advance Authorisation w.r.t SION C1503. On a reference from M/s Hindalco Industries Ltd., the matter was taken up with NCII. The decision taken in this regard by NCII in meeting dt.12.01.2010 is reproduced below: “M/s. Hindalco Industries Ltd., sought clarification w.r.t. CAG’s audit objection regarding calculation of the copper content in the Copper concentrate as per SION C1503 under the advance Authorisation Scheme. As per decision taken in NC meeting No. 24/10 dated 15/09/2009 a reference in this regard was made to the Administrative Ministry namely M/o Mines for suitable clarification. The reply received from M/o Mines vide their O.M. No. 4/24/2009Met.III/L dated 4th January 2010 was deliberated upon in NC meeting dated 12012010 . The NC noted the following relevant portion of the OM of M/o Mines in this regard as under: “Copper content in copper concentrate is expressed as percentage (%) of copper per DMT of copper concentrate. DMT weight of copper concentrate is taken as the basis for computation of transaction value of copper concentrate and not WMT weight. Depending on the source of concentrate and production process typically moisture content in copper concentrate may very from 5% to 9% copper concentrate ( a fine powder) in dry state flies off during handling and transportation. Hence at times, supplier adds extra water to bring up the moisture content in copper concentrate to 7& to 10% to avoid difficulty and minimize consequent losses in handling and transportation. SIONC1503 stipulates duty free import of copper concentrate having 1.06MT copper against the export of 1MT of continuous cast Copper Rod/ Copper Wire Rod/Cathode. It may, therefore, be concluded that Dry Metric Ton (DMT) weight is to be considered for copper concentrate for advance authorization issued under SION C1503.”
Norms Committee after deliberations, decided to convey the above clarification to the exporter and RA. Accordingly, DGFT may issue necessary clarification.” Accordingly, we may issue clarification to the exporter & RA stating that Dry Metric Ton (DMT) weight of Copper concentrate imported has to be considered for working out the copper content by enclosing a copy of above NC decision.
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