Policy Division

Policy Circular No. 17(RE-2005)/2004-2009 Dated: 15 July 2005

Subject: DFCE for Status Holders (2003-04) under EXIM Policy, clarification regarding.

Attention is invited to the Public Notice No 15(RE2005)/2004-09 dated 04.06.2005 relating to the DFCE for status holders (2003-04) under EXIM Policy under Foreign Trade Policy (2004-05).

2. In the CA certificate, as prescribed in Appendix 17 D announced on 04.06.2005, at Sr. No. (vii) a list of ineligible exports is given. In Sr. No. 11 therein, the clause relating to growth rate of supplier is mentioned. Representations were received from Trade & Industry regarding practical difficulties in certification of export figures by the CA/CS/ICWA relating to this clause. The clause is reproduced hereunder:

“Supplies made or export performance effected by a non-status holder (Merchant exporter/ Manufacturer with any export performance in 2003-04) to a status holder if the applicant as well as the non status holder have less than 25 per cent incremental growth over their respective previous years direct export turnover.”

3. It is necessary that the supplies made or export performance effected by non-status holder to status holder, the non-status holder has to achieve at least 25 per cent incremental growth over their respective previous years direct export turnover so as to make such supplies eligible for the benefits under the scheme. In light of this, it has been decided that to certify the export figures at Sr. No. 11 of the CA certificate, CA/CS/ICWA may rely on the declaration given by such suppliers (for their supplies made or export performance effected), that they have achieved at least 25% per cent incremental growth over their respective previous years direct export turnover.

This issues with the approval of DGFT

Sd/-

A K Singh

Joint DGFT

Trade and Industry

All Licensing Authorities

(F. No: 01/94/180/PolForm/AM05/ PC-IV)