ZJDGFT Circular No. 7/1999-2000, 19th November, 1999

During 1997-98, transferable DEPBs were issued without insisting on realisation of export proceeds. During 1998-99, non-transferable DEPBs were issued without insisting on realisation of export proceeds and transferable DEPBs were issued on exports made under letters of credit. As per para 7.38 of Handbook of Procedures, Licensing Authorities have to monitor all such cases where DEPBs were issued without realisation of export proceeds.

This office had given sufficient opportunity to exporters earlier to submit proof of realisation by way of Trade Notice No. 19 dated 25.2.1999. This office has issued Trade Notice No.10 dt. 19.11.1999 directing all concerned exporters to submit proof of realisation in all overdue cases by 31.12.1999. After 31.12.1999 no further opportunity should be given to the defaulting exporters and strict action has to be initiated against such exporters. All sections are, therefore, advised to follow the following procedures and complete the monitoring of pending cases before 28.02.2000.

1. DEPB cases of 1997-98 shall be taken up for monitoring after 31.12.1999 and where it is noticed that parties failed to submit proof of realisation or failed to regularise their case as per para 7.38 of Handbook of Procedures, Defaulter Memo may be issued without giving any Show Cause Notice in view of Trade Notice No. 10 dated 19.11.1999 dt. mentioned above.
   
   
2. DEPB applications pertaining to 1998-99 and 1999-2000 shall be taken up for monitoring immediately. Cases must be taken up in the order of file numbers only. Wherever realisation date is mentioned in Col. 15 of Bank Certificate or any other proof of realisation is furnished by the exporters, such cases may be listed and sent to the Record Room for preservation. In cases where non-transferable DEPBs were issued without realisation of export proceeds or transferable DEPBs were issued on the basis of irrevocable letters of credit, if the party has not submitted any proof of realisation so far, a Show Cause Notice in the enclosed proforma may be issued to the party giving them 15 days time either to submit realisation or to regularise the case as per para 7.38 of Handbook of Procedures. In case the party fails to submit any realisation or regularise their case within 15 days, they may be declared defaulters by issuing default memos and no further licence or DEPB should be issued to them.
   
   
3. A weekly report in this regard may be furnished to the Zonal Jt.DGFT containing the following information :
   
   
   1. Number of DEPB cases listed and sent to the Record Room during the week;
      
      
   2. Number of DEPB cases where show cause notice has been issued and
      
      
   3. Number of DEPB cases where parties have been declared defaulters.

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

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