1. Consequent upon abolition of ZALC and RALC from 1.4.99 in respect of various applications which are pending for decision in ZALC/ RALC including the applications referred to the technical authorities, it has been decided that the applicant may be given the option to convert such applications under paragraph 7.5 read with Customs notification 30/97 dated 1.4.97. The option shall be exercised for conversion before 30th June, 99. In cases where the applicant does not want to avail the benefit of paragraph 7.5, the same may be transferred to SALC expeditiously by the licensing authorities for fixation of norms.
   
   
2. The facility of production programme licence has been withdrawn in the revised Exim Policy announced on 31.3.99 as DGFT has notified the scheme of Annual Advance Licence. Since the Annual Advance Licence would come into force from 1.7.99, it was decided that the exporter applying for Advance Licence/Advance Intermediate Licence may be extended the facility of production programme licence upto 30th June, 99. The exporter willing to avail the production programme facility shall be required to furnish FOB value of exports in preceeding 3 licensing year. The value of licences under production programme shall not exceed 100% of the average FOB value of their exports in the preceeding three licensing year.
   
   
3. Paragraph 7.51 and 7.52 allows issuance of DEPB against lost Shipping Bills and Bank Certificate. The provision regarding lost Shipping Bill was incorporated by Public Notice No. 59 (RE-98) dated 24.12.98 whereas the provision for the Bank Certificate was incorporated in the revised Handbook (Vol.1) incorporating amendment upto 31st March, 1999. Since it is clearly stated that the claim against lost Shipping Bills/Bank Certificate shall be preferred within a period of six months from the date of exports, many cases have become time barred as six months period was already over before the incorporation of the provision. It has been decided that in cases where six months period has already expired or will expire before 30th June, 99, the applicant can file a claim on or before 30th June, 1999.
   
   
4. The import of second hand capital goods has been disallowed in the revised Exim Policy. Few licences have already been issued allowing import of second hand capital goods under EPCG Scheme. It is clarified that in cases where licences have been issued prior to 1.4.99 allowing import of second hand capital goods, the same may be imported subject to the conditions stipulated in paragraph 5.4 of the Handbook (Vol.1) (incorporating amendment upto 13th April, 1998)
   
   
5. In terms of paragraph 7.6 of the Handbook (Vol.1), Advance Licences to newcomers can be issued only against confirmed irrevocable Letter of Credit. The objective of the provision was to safeguard the interest of the newcomer against possible dispute over payment. In cases where a new comer wish to avail Advance Licences only after completion of the export obligation and realisation of payment, such application may be accepted by the licensing authorities even though the exports may not be against confirmed irrevocable Letter of Credit. However, the Advance Licences, in such cases shall be issued only after furnishing proof of exports in the form of Shipping Bills and proof of receipt of payment in the form of Bank Certificate of export and realisation and after ensuring that imports are not misused without fulfilling the export obligation.
   
   
6. Attention is invited to paragraph 5 of Policy circular no.28(RE-98) dated 28.7.98 regarding exemption from pre-shipment inspection from Central Silk board in respect of export of silk garments under DEPB scheme. Consequent upon notification of DEPB rate for Silk madeups and Silk fabrics, it is clarified that pre-shipment inspection by Central Silk Board is not required for exports of silk madeups and Silk fabrics under DEPB scheme.

(Ajay Sahai)
Jt.Director General of Foreign Trade

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