SALC POL CIR No. 05/1999-2002 Dated 15-10-1999

Subject:- Advance Licences issued for export of Soyabean and Guargum products - reg.

Kinly refer to the Circular dated 2nd September, 1999 issued by Jt. Director Generalof Foreign Trade, Mumbai (copy enclosed) on he issue related to alleged misuse of Advance Licences issued for export of Soyabean and Guargum products following the Standard Input Output Norms available at Sl.No. A-1814 of Hand Book of Procedures,Vol.2 and import of inputs such as vitamins etc. issued against such licences.

2. The issue has been examined and it has been decided to suspend the operation of SION at A-1814 with immediate effect. Accordingly henceforth the Licensing Authorities shall not issue any Advance Licence for export of products as per SION at S. No. A- 1814 of Hand Book of Procedures, Vol. 2 till further instructions from this office. Even the facility of self declared licensing scheme under Para 7.5 of the current Hand Book of Procedure (RE: March 1999) shall not be available for export of soyabean extraction etc. except for Standard Input Output Norms as appearing at Sl. No. E-42 of Hand Book of Procedures, Vol. 2.

3. It is also directed that in all cases of Advance Licences issued as per SION atS. No. A-1814 or Advance Licences of similar nature, as per the decision of ALC/RALC/ZALC, the following actions shall be taken:

(i) In respect of the advance licences issued as per SION Entry No. A-1814, Licensing Authorities shall check the details of exports made at the time of redemption/no bond/transferability to ensure that the product actually exported strictly conforms to the description of the resultant product at SION A-1814. This must be done by minutely checking all the Shipping Bills and corresponding entries in the DEEC (Export). In case there is any deviation, then the facility of redemption/no bond/transferability should be denied and the matter should be referred back to the concerned Customs Authorities for appropriate action.

(ii) Wherever a licence has been obtained for an export product, similar to SIONEntry No. A-1814 or E-42, through the ALC/RALC/ZALC, with a deviation of the inputs, all such cases shall be reviewed by the concerned Licensing Authorities at the level of Head of the Office. A list of all such cases should be complied and relevant files should be sent to the Head of the Zonal Jt. DGFT-Incharge, who will scrutinise all these individual cases and will pass suitable ordersfor taking corrective measures wherever such licences are found to have been obtained with the intention of taking undue advantage of Duty Exemption Scheme.If necessary, enforcement action may also be initiated against the concerned licensees including referring the matter to DRI for initiating appropriate action against such licensees.

(iii) It has also been reported by JDGFT, Mumbai, that some exporters have takenlicences from RALC/ZALC, deviating from the SION Entries No. E-23, E-24, E-25, E-26 etc. for the export of guargum products. Similar action as at (i) and (ii)above may, therefore, be taken to deal with such cases.

4. All the four Zonal Jt. DGFTs are also advised to coordinate various actions as suggested above and send final report to this office by 31.12.99.

5. This issues with the approval of DGFT.

Sd/-
(Ashutosh Mishra)
Deputy Director General of Foreign Trade

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