F.No. 1/92/180/508/AM00/ PC.II
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE
DIRECTORATE GENERAL OF FOREIGN TRADE
UDYOG BHAWAN,NEW DELHI
Dated: 23/09/99
Policy Circular No. 33 (RE-99)
To,
All Licensing Authorities,
All Export Promotion Councils / Commodity Boards,
FIEO,
All Chamber of Commerce and Industries Association
Subject: Clarification regarding admissibility of deemed export benefits
Attention is invited to DGFT Circular No. M-3(2)/AM92/DBK Cell dated 18th March, 1994 and Policy Circular No. 57(RE-98)/98-99 dated 16th December, 1998. Subsequently, following amendments have been carried out in EXIM Policy / Handbook of Procedures :
(i)Paragraph 7.6 of the Policy has been amended and the sentence “Special Imprest License is granted to a manufacturer exporter” has been replaced by “a Special Imprest License is granted to the main contractor.”
(ii)Public Notice No. 6 dated 22.4.1999 has deleted the following sentence from Paragraph 10.12 of the Handbook of Procedures
“In such cases, Main contractor shall be eligible for deemed export benefits only to the extent of goods manufactured and supplied by him as indicated in the Main contract and the Project Authority Certificate given in Appendix 14-A.”
In the light of above stated two changes the issue was discussed with Deptt. of Economic Affairs and Deptt. of Revenue and it has been decided to withdraw Policy Circular No. 57 dated 10th December, 1998. Accordingly, Policy Circular No. 57 dated 10th December, 1998 is withdrawn and DGFT Circular No. M-3(2)/AM92/DBK Cell dated 18th March, 1994 stands. Even the supplies effected between 16th December, 1998 to 31st March, 1999, and thereafter, shall also be entitled for deemed export benefits as clarified by DGFT Circular No. M-3(2)/AM92/DBK Cell dated 18th March, 1994.
This issues with the approval of DGFT.
Yours faithfully,
( L. B. Singhal )
Jt. Director General of Foreign Trade
