4.9

For standardisation of norms, an application may be made by the manufacturer exporter or merchant-exporter, tied to supporting manufacturer, duly filled in with complete data. Such applications shall be made to the Advance Licensing Committee (ALC) in the form given in Appendix-10.

Import of fuel may also be allowed by ALC subject to the following: -

(a) The facility of import of fuel shall be allowed only to the manufacturer having captive power plant.

(b) Fuel should be allowed either under specific SION or as per the general fuel policy for products for which SION exists or as per general fuel policy under paragraph 4.7 or under ad-hoc norms.

(c) Fuel should be allowed only against an actual user licence and therefore, fuel shall not be allowed for imports against DFRC, which is transferable in nature.

(d) Even where fuel is included as an input under SION, it shall not be taken into account while fixing the DEPB rate for such products against which fuel has been allowed as an input.

(e) The applications of fixation of fuel entitlement for new sectors and modification of the existing entitlement as per the General Note for Fuel in the Handbook of Procedures (Vol 2) would be made to the Advance Licencing Committee along with the requisite data in Appendix 10 H pertaining to the “Data Sheet for Fuel Rate”. The Advance Licence holders wishing to procure the fuel indigenously may apply for an Advance Release Order or Back to Back Inland Letter of Credit. The indigenous supplier supplying fuel shall be entitled for deemed export benefits given in para 8.3(a), (b) & (c) of the Policy. In case the indigenous suppliers is not willing to avail of DE benefits under such supplies of fuel to the Advance Licence holder, he may issue a disclaimer on the basis of which the Advance Licence holder can avail of the deemed export benefits as per procedure given in Chapter 8 of the Handbook of Procedures (Vol 1) .

(Above Para 4.9 has been amended vide PN. No. 51/2002-07, Dt. 04/12/2002)

[OLD - For standardisation of norms, an application may be made by the manufacturer exporter or merchant-exporter, tied to supporting manufacturer, duly filled in with complete data. Such applications shall be made to the Advance Licensing Committee (ALC) in the form given in Appendix-10.

Import of fuel may also be allowed under SION by ALC subject to the following: -

(a) The facility of import of fuel under SION shall be allowed only to the manufacturer having captive power plant. (b) Fuel should be allowed only under SION and in no case should it be allowed either under paragraph 4.7 or under ad-hoc norms.

(c) Fuel should be allowed only against an actual user licence and therefore, fuel shall not be allowed for imports against DFRC, which is transferable in nature.

(d) Even where fuel is included as an input under SION, it shall not be taken into account while fixing the DEPB rate for such products against which fuel has been allowed as an input.

(e) The applications of fixation of fuel entitlement for new sectors and modification of the existing entitlement as per the General Note for Fuel in the Handbook of Procedures (Vol 2) would be made to the Advance Licencing Committee along with the requisite data in Appendix 10 H pertaining to the “Data Sheet for Fuel Rate”. The Advance Licence holders wishing to procure the fuel indigenously may apply for an Advance Release Order or Back to Back Inland Letter of Credit. The indigenous supplier supplying fuel shall be entitled for deemed export benefits given in para 8.3(b) & (c) of the Policy. In case the indigenous suppliers is not willing to avail of DE benefits under such supplies of fuel to the Advance Licence holder, he may issue a disclaimer on the basis of which the Advance Licence holder can avail of the deemed export benefits as per procedure given in Chapter 8 of the Handbook of Procedures (Vol 1).

(Sup para (e) has been added vide PN NO. 18/2002, Dt. 14/06/2002)]