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1) At the end of
para 2.2 pertaining to "Countries of
Imports/Exports" the following sub para is added as
under :
"The above provisions shall however
be subject to all
conditionality, or requirement of licence, or
permission, as may be required under ITC (HS) Schedule
II."
2) Para 4.15
pertaining to "Back to Back Inland Letter of
Credit" is amended as under :
"The exporter may alternatively avail the
facility of a back to back inland letter of credit from
the banks. An Advance Licence holder and a DFRC holder,
may approach a bank for opening an inland letter of
credit (LC) in favour of an indigenous
supplier."
(The amended
para clarifies that a DFRC holder is eligible for
getting a back to back inland letter of credit)
3) Para 4.22.1
is amended as under :
"The request for extension in export
obligation period may be made in the form given in
Appendix-10G. The regional licensing authority shall
grant one extension for a period of six months from the
date of expiry of the original export obligation period
to the licensee subject to payment of composition fee of
1% of
a) the
unfulfilled FOB value of export obligation with
reference to CIF value of imports made for which
extension is being sought
b) or
unfulfilled FOB value of quantitywise exports to be
completed for fulfilling export obligation vis a vis the
imports made (in case of multiple inputs, the input with
the highest import precentage quantitywise made is to be
taken) whichever is higher.
Request for a
further extension of six months may be considered by the
regional licensing authorities subject to payment of
composition fee of 5% of
a) the
unfulfilled FOB value of export obligation with
reference to CIF value of imports made for which
extension is being sought
b) or
unfulfilled FOB value of quantitwise exports to be
completed for fulfilling export obligation vis a vis the
imports made (in case of multiple inputs, the input with
the highest import percentage quantitywise made is to be
taken) whichever is higher.
However any further extensions beyond 30 months
from the date of issue of the Advance Licence or the
duration of the contracted project (in the case of
Advance Licence for Deemed Exports) or on the lapse of
any other extension(s) granted by this office would be
permitted on payment of the composition fee of 1% per
month of
a) the unfulfilled
FOB value of export obligation with reference to CIF
value of imports made for which extension is being
sought
b) or unfulfilled
FOB value of quantitywise exports to be completed for
fulfilling export obligation vis a vis the imports made
(in case of multiple inputs, the input with the higest
import percentage quantitywise made is to be taken)
whichever is higher.
However such
extension would not be permitted in the case of the
erstwhile Value Based Advance Licences (VABALs).
Additionally, no extension in export obligation would be
allowed in respect of licences where misrepresentation /
fraud has come to the notice of the licencing
authorities. Further, in respect of licences where
adjudication orders have already been passed, no
extension in export obligation period shall be
admissible."
(This amendment
penalises both valuewise and quantitywise shortfalls in
the case of application for EO extension under the
Advance Licence Scheme)
This issues in
public interest. | 
