Policy Circular No. 28/97-98 dated the 12th December 1997

Export Production Programme -Duty Free Imports in addition to Imports against Export Orders

Sub: Clarification regarding issuance of Duty Free Licences under production programme basis as per Paragraph 7.13 of Exim Policy 1997 -2002.

Sir

Attention is invited to Paragraph 7.13 of Exim Policy 1997-2002 wherein it has been provided that exporters having past export performance in the preceding three licensing years may also apply for Advance Licence, Advance Intermediate Licence and Special Imprest Licence for supply of goods to the category covered under Para 10.2 (b) of Policy,

2, Representations have been received from various exporters and Export Promotion Councils requesting this office to clarify whether the facility of issuance of Duty Free Licence as provided in the Exim Policy 1997 -2002 under production programme basis is in lieu of entitlement against specific export orders or not.

3. The matter has been considered. It is clarified that the facility of issuance of Duty Free Licences 'under export performance basis as provided under Paragraph 7.13 of Exim Policy 1997 -2002 is not in lieu of applicant's entitlement against specific export order (s), but this facility is in addition to the Duty Free licenses granted specific export order(s). This is in view of the fact that under Exim Policy 1992-97, production programme facility was available under Paragraphs 62 (a) and 62A of the Policy, Under Paragraph 62A of that Policy, it was specifically provided that the facility under Paragraph 62A was in lieu of his entitlement against specific order. No such stipulation has been made under Para 7.13 of Exim Policy 1997 -2002.

The approval Director General of Foreign Trade,

Sd/-
Director General of Foreign Trade
Director General of Foreign Trade

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