Kind attention is invited to Paragraph 6.5 (v) of the EXIM Policy, 1997-2002, which stipulate that the export obligation shall be over and above the average level of exports of the same product achieved by him in the preceding three licensing years. Some exporters have requested this office to clarify whether the average level of exports of the same product to be achieved by them in the preceding three licensing years is to be determined taking into account the licensing year in which the EPCG application is filed or the licensing year on which the EPCG licence was issued. In this context, it is clarified that average of preceding three licensing years should be taken after taking into account the licensing year in which the EPCG application is filed.
Representations have been received from individual exporters as well as clarifications sought by different regional licensing authorities with regard to availibility of deemed exports benefits for supply of goods/services to Civil Constructions projects. The issue whether supply of goods/services to Civil Construction project should be entitled for deemed export benefits or not has been examined in detail in this office. It is clarified that supply of goods under para 10.2(d) of Exim Policy are entitled for deemed exports benefits.
In Schedule XIV to’the Companies Act, 1956, under the heading PLANT AND MACHINERY”, under item (ii) relating to special rates, after sub-item D. 4, relating to Glass manufacturing concern–Direct fire glass melting furnaces, the following shall be inserted, namely
In Appendix 32A of the Handbook of Procedures the list of Inspection and Certification agencies have been listed. These agencies have been recognised to issue Inspection Certificate under Paragraphs 5.3, 5.4 and 6.3 of the Handbook of Procedures, Vol. 1, l997-2002 (incorporating amendments made upto l3th April, 1998). These certificates issued by the said Inspection and Certification Agencies are valid for import of metal scrap under Paragraph 5.3, second-hand capital goods under Paragraph 5.4 and under EPCG under Paragraph 6.3 of the Handbook of Procedures.
Subsequently, in the meeting of the heads of Stock Exchanges held in December 17, 1997, it was clarified that the 25% is only a threshold limit and it should not be treated as an exemption limit. This was conveyed vide SMD/POLICY/Cir-2/98 dated January 14, 1998. In this connection, the Stock Exchanges have submitted to SEBI to reconsider the above decision on treatment of 25% threshold limit.
Please refer to the circular no. SMD/POLICY/CIR-8/97 dated April 28, 1997 on the revised format for the Monthly Development Report (MDR). Enclosed please find the modified format for reporting details of completed settlements during the month, forming point no.1 of Section-I of the MDR.
The Exchanges, who are yet to incorporate the above provision in their bye-laws are therefore advised to take up the matter in their Governing Board meeting for consideration and make suitable amendment in the bye-laws without any further delay under advice to us.
The Government of India amended the import policy by allowing various items to be imported under Special Import Licence (SIL) through Notification No. 14(RE-98).
Under the Scheme, manufacturer exporters, merchant exporters tied to supporting manufacturer(s) and service providers are eligible to import capital goods. For Agricultural exports, import of irrigation equipments may be allowed provided ownership of these equipments rest with the EPCG licence holder, such equipments are not sold or leased and list of places where the equipments are to be located is made available to the jurisdictional Asst. Commissioner of Customs and Excise.
Instances have come to notice where some of the Licensing Authorities have been endorsing the licences to take supplies from Private Bonded Warehouses, which is not in keeping with the provisions of paragraph (vii) of the Policy Circular No. 7 dated 25.5.1998. The Licensing Authorities are hereby ordered not to make any such endorsement, as the same is not required.
