The Public Notice No. 33 (RE-98)/97-02, dated August 27, 1998, issued by the Directorate General of Foreign Trade (DGFT), amends Chapter IV of the Handbook of Procedures for the period 1997-2002. The amendment permits units outside the small-scale sector (SSI) to expand or create new capacities for items previously reserved for SSI units. However, non-SSI units wishing to expand must first obtain an industrial license under the Industries (Development and Regulation) Act, 1951. A key condition of such licenses is the undertaking of an export obligation as specified by the Ministry of Industry. Furthermore, the licensee must provide a legal undertaking to the DGFT, ensuring that the export obligation is met. The Directorate General of Foreign Trade will monitor compliance with these export obligations. The notice was issued for the public interest and aims to regulate the export obligations of non-SSI units expanding into the SSI sector.
PART – I SECTION – I )
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE
PUBLIC NOTICE NO. 33 (RE-98)/97-02,
NEW DELHI :DATED THE 27th August, 1998
In exercise of powers conferred under Paragraph 4.11 of the Export and Import Policy, 1997-2002, the Director General of Foreign Trade hereby makes following amendment in Chapter IV of the Handbook of Procedures, 1997-2002, Vol. 1 ( incorporating amendments made upto l3th April, 1998 ) :-
Export of items reserved for SSI Sector.
4.22
Units other than small scale units are permitted to expand or create new capacities in respect of items reserved for the small scale sector, subject to the condition that they obtain an Industrial licence under the Industries (Development and Regulation) Act, 1951. It is a condition of such licences that the manufacturer shall undertake export obligation as may be specified by the Ministry of Industry and the licensee is required to furnish a Legal Undertaking to the Directorate General of Foreign Trade in this behalf. The export obligation shall be monitored by the Directorate General of Foreign Trade
This issues in public interest.
Sd/-
( N.L. LAKHANPAL )
DIRECTOR GENERAL OF FOREIGN TRADE
Copy to all concerned;
By Order etc.
( RAJAN SUDESH RATNA )
DY. DIRECTOR GENERAL OF FOREIGN TRADE
(Issued from File No. 39(197)/97-02/PC-I/SSI)0
