Attention of the trade is invited to para 7.38 of the Handbook of Procedures 1997-2000 and also this office Trade Notice no. 19 dated 25.2.1999.

During 1997-98 DEPBs were issued without insisting on proof of realisation of export proceeds. During 1998-99 and 1999-2000, non-transferable DEPBs and transferable DEPBs (against exports made under letter of credit) were issued without insisting on proof of realisation of export proceeds. As per para 7.38 of Handbook of Procedures, wherever export proceeds are not realised within six months or such extended period as may be allowed by RBI, DEPB holders shall pay in cash an amount equivalent to the amount of credit obtained against such exports. In cases where the amount realised is less than the amount of which DEPB credit has been obtained, the licence holder shall pay in cash an amount equivalent to the DEPB entitlement of the value not realised.

It is observed that some of the exporters who have obtained DEPBs and unrealised export proceeds, have not submitted proof of realisation to this office so far. It has been decided that all exporters who have neither submitted proof of realisation nor paid the cash amount as required in the para 7.38 of the Handbook are allowed to submit either proof of realisation or payment of cash amounts as required upto 31.12.1999.

It is hereby notified that strict action will be initiated against the exporters who have taken DEPBs and fail to comply with the above instructions, and further issuance of DEPB / Adv. Licences etc. is liable to be stopped as per rule 7 of Foreign Trade (Regulation) Rules, 1993 to such exporters without any further notice in addition to any other action that may be taken in such cases under Foreign Trade Regulations Act, 1992, Rules and Orders issued thereunder.
 

(SUBRAT RATHO)
ZONAL JT.DIRECTOR GENERAL OF FOREIGN TRADE/
ADDITIONAL EXPORT COMMISSIONER