ZJDGFT CIRCULAR NO. 04/2002, Dt. 31/07/2002

Sub: - Monitoring of VABAL licences.

Reference is invited to Policy Circular No.16 (RE-01)/2001-2002 Dated 4th January, 2002 regarding Non-production of logged DEEC Book. The relevant portion of the circular in relation to erstwhile Value Based Licences is reproduced below

"The value based advance licences (VABAL) issued during 1992-97 period have got at least four years time now to submit all necessary documents including duly logged DEEC Book. This scheme had been discontinued in 1997 and, therefore, a delay of four years cannot be explained only by saying that the matter is pending with Customs Authorities. A valid presumption is raised that possibly in such cases the exporter may have wrongly availed MODVAT credit and, therefore, if the same MODVAT credit is not refunded to Customs logging of DEEC Book may not be possible. Similarly mis-declaration of value may be the reason why the DEEC books may not be logged by the Customs. In all such cases the above Policy Circular will not come to the help of the advance licence holder because the delay is not only because of Customs. The Regional Licensing Authorities are hereby directed to take immediate necessary action, including (but not restricted to) denial of future licence in accordance with the prescribed regulation."

So far this office has been liberal in giving abeyances against refusal memos and extension of time for submitting the relevant documents. The problems of the Exporters have also been discussed with customs from time to time on the basis of the above Policy Circular in all remaining VABAL cases. It is felt that this office should not wait indefinitely and should follow the above policy circular. In view of the above it has been decided that no further abeyance should be granted against refusal memos issued against any VABAL Licences and action should be completed on priority basis by all sections. Monitoring of all pending VABAL cases shall be completed within one month and a comprehensive report to this effect should be submitted to Zonal JDG at the end of one month.

SUBRAT RATHO
ZONAL JOINT DIRECTOR GENERAL OF FOREIGN TRADE

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