F.NO.01/36/218/83/AM08/EPCG.I/PoL V
Government of
Ministry of Commerce & Industry
Directorate General of Foreign Trade
Udyog Bhavan,
Circular No. 33 (RE-2007)/2004-09
Dated 17th March, 2008
Reference is invited
to Paras 5.8.2 & 5.8.3 of HBP (Vol.I) as amended vide Public Notice No. 54
dated 1.10.2007. According to which authorization holder are required to
intimate the Regional Authorities about the export obligation fulfilled in a
particular block of years within three months from the expiry of block of years
and in case the authorization holder fails to do so, except in such cases where
the export obligation is extended for a particular period by the Competent
Authority, he is required to pay customs duty with interest.
2. It
has since been observed that some of Regional Authorities have been sending the
request for extension of block of years to the Headquarters. In this regard,
reference is invited to the provisions contained in Para 5.11 of HBP whereby
Regional Authorities have been authorized for considering the request for
extension in export obligation period. The issues relating to extension in
Export Obligation period and extension in block of years are thus interlinked
and hence have been re-examined and it has been decided as under:
"The request of the firm for extension of
Block of years for fulfillment of export obligation may be considered by the
concerned Regional Authorities, subject to payment of 2% of duty saved on
unfulfilled E.O. for each block, in respect of the licenses up to Rs.50 crores;
on a similar basis as contained in Para 5.11 of HBP Vol.I for extension of
export obligation period. All Cases above Rs.50 crores may be forwarded to DGFT
(HQ) for consideration of EPCG Committee".
3. The
above provisions will be applicable to all licenses irrespective of date of
issue.
4. The
above shall come into force from the date of issue.
5. This
issues with the approval of Director General of Foreign Trade (DGFT).
(G. Seetharam Reddy)
Jt. Director General
of Foreign Trade
Copy to:-
All Zonal /Regional Authorities