Public Notice No. 05/(RE-99)/1997-2002 Dated 06-04-1999

Policy Guidelines

In exercise of powers conferred under paragraph 4.11 of the Export and Import Policy, 1997-2002, as notified in the Gazette of India extraordinary, Part-II- Section 3-Sub- section (ii) vide S.O No. 283(E) dated 31.3.97, the Director General of Foreign Trade hereby lays down the following guidelines for extention in export obligation period in respect of EPCG and Advance Licences:

1. In respect of Advance Licences issued on or after 1.4.92, where the licence holder has failed to complete his export obligation within the stipulated time limit, he can apply for extension of export obligation period for 1½ years from the date of the Public Notice on submission of a Bank Guarantee, covering the Customs duty together with 24% simple interest on the unutilised exempt material from the date of import upto 31.3.200l, which shall be forfeited in the event of non fulfillment of export obligation in the extended period. Bank Guarantee should be valid upto 31.3.2002.

The above facility shall also be available to Value Based Advance Licence after converting the same into a Quantity Based Advance Licence.

2. In respect of EPCG licences issued in pursuance of the following notifications, the licence holder shall be deemed to be eligible for extension of export obligation period upto 31.03.2001 provided the licence holder who has failed to complete his export obligation within the earlier stipulated time limit, applies for extension of export obligation period on submission of a Bank Guarantee, covering the Customs duty in proportion to the unfulfilled export obligation together with 24% simple interest thereon from the date of import upto 30.9.2001.

i. Import & Export Policy 1990-93,Vol.I(Paragraph 197 as amended from time to time) notified under Public Notice No.1-ITC (PN) 1990-93 dated 30th March, 1990;

ii. Export & Import Policy 1992-97 (Paragraph 38 as amended from time to time) notified under Public Notice No.1-ITC(PN) 1992-97 dated 31st March, 1992;

iii. Export & Import Policy 1992-97 (Reprint June, 1992 - Paragraph 38 as amended from time to time) notified under Notification No.22 (N.3) 1992-97 dated 30th June, 1992;

iv. Export & Import Policy 1992-97 (Revised edition March, 1993-Paragraphs 38 and 46A as amended from time to time) notified under Notification No.1(RE) 1992-97 dated 31st March, 1993;

v. Export & Import Policy 1992-97 (Revised edition March'94-Paragraphs 38 and 46A as amended from time to time) notified under Notification No.34(RE) 1992-97 Dated 31st March, 1994;

vi. Export Import Policy 1992-97 (Revised edition March'95-Paragraph 38 as amended from time to time) notified under Notification No.1(RE) 1992-97 Dated 31st March, 1995.

The aforementioned Bank Guarantee shall be forfeited in the event of non fulfilment of export obligation in the extended period. Bank Guarantee should be valid upto 31.3.2002.

3. The request for extension shall be filed with the concerned licensing authority within a period of 60 days from the date of the Public Notice. The licensing authority which originally issued the licence shall be competent to grant extension in export obligation period.

4. However, no extension in export obligation shall be allowed in respect of the licences where misrepresentation/fraud has come to the notice of the licensing authorities. Further, in respect of licences where adjudicating orders have already been passed, no extension in export obligation period shall be admissible.

5. In such cases where the licence holder has not availed the facility accorded under this Public Notice, adjudication proceeding shall be initiated on the expiry of 60 days from the date of this Public Notice.

6. In such cases where export obligation has been fulfilled prior to the date of this Public Notice but outside the prescribed export obligation period, such exports shall be deemed to have been made within the prescribed Export Obligation period for the purpose of regularisation of the case.

7. In cases where the Applicant wish to apply for extension in export obligation period prior to 31.3.2001 and submits a Bank Guarantee which may not be valid upto 31.3.2002, such cases may also be considered for extension provided the Bank Guarantee is valid for a period exceeding the export obligation period applied for by six months. In such cases it may be specifically endorsed on the licences that the applicant shall not be entitled for further extension.

In cases where the Bank Guarantee already executed in terms of Public Notice No 5 dated 06.04.1999 and valid upto 30.03.2002, it may be extended upto 31.03.2003 covering the Customs Duty and interest upto 30.09.2002 in proportion to unfulfilled` E.O. and proof thereof may be submitted on or before 29.06.2001.

(No. 7 has been amended vide Public Notice No. 3(RE-01)/97-02 Dt. 31/3/2001)

8. In cases where the Bank Guarantee already executed is valid upto 31.3.2002 and Bank Guarantee covers the Customs duty in proportion to the unfulfilled export obligation together 24% interest, no new Bank Guarantee shall be asked for. The applicant shall furnish a proof from the Customs authorities/ licensing authorities that Bank Guarantee already executed covers the same.

(Sr. No. 7 & 8 has been inserted vide Exim Public Notice No. 29(RE-99)/1997-2002 Dt. 1-9-99)

This issues in public interest.

Sd/-
(N.L.Lakhanpal)
Director General of Foreign Trade

Copy to all concerned,
By orders etc.

(L.B.Singhal)
Jt. Director General of Foreign Trade

(For B.G. & fulfillment of export obligation Pl. See Cir. No. 16(RE-01), Dt. 04/01/2002)

(Please refer PN. No. 09/2003, Dt. 22/05/2003)

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