Policy Circular No. 2 dated the 7th April, 2000
Subject : (1) Transitional arrangement regarding various provisions on Handbook (Vol.1) (RE-99).
(2) Grant of DEPB benefit against a White Colour Shipping Bill generated under EDI Systems in Customs.
1. All pending applications for grant of Special Advance Licence for Electronics given in Appendix 53 of Handbook (Vol. 1) (RE-99), where licences could not be issued by 31.3.2000, shall be allowed to be converted into application for self declared licences under paragraph 7.5 of Handbook (Vol. 1) (RE-2000).
2. All pending applications for the grant of Advance Licence in terms of paragraph 7.3 of Policy (RE-99), where licences could not be issued by 31.3.2000, shall be allowed to be converted into application for Advance Licence for physical exports, if the applicant so desires, provided the applicant has not availed the facility under rule 12(i)(b) or rule 13(i)(b) of the Central Excise Rules, 1944 in respect of exports made Alternatively, the applicant may be advised to avail drawback facility as per Drawback Rules.
3. All pending applications for the grant of EPCG licence, where licence could not be issued by 3.3.2000, both against zero duty and 10% duty schemes, shall be allowed to be converted into 5% EPCG Scheme as per the terms and conditions given in EXIM Policy/Handbook (Vol. 1) (RE-2000).
4. All pending applications for grant of advance intermediate licences, where licences could not be issued by 31.3.2000, the applicant may be allowed to opt for Advance Licence for Intermediate Supply as per the terms and conditions given in Exim Policy/Handbook (Vol. 1) (RE-2000).
5. As the pre-export DEPB scheme stands abolished w.e.f. 1.4.2000, all the pending applications for the grant of pre-export DEPB stand rejected.
6. In respect of categories not eligible for refund of terminal excise duty (TED) in terms of Handbook (Vol. 1) (RE-2000), no TED refund shall be made for supplies effected on or after 01.04.2000 under deemed exports. Accordingly, no TED refund shall be available in case of deemed export supplies against Advance Licence issued under paragraph 7.3 of Policy (RE-99 or earlier) for supplies to fertilizer plant under paragraph 10.2(e), supplies to power projects (other than mega power project) and refineries under paragraph 10.2(g). However, such supplies, shall be entitled for MODVAT benefit, if any. Oil and Gas sector shall not be eligible for deemed export benefits from 1.4.2000.
7. Any benefit including that of duty drawback, and Advance Licence for deemed exports, made available to supplies under deemed exports categories, consequent to the change in the Policy/Handbook notified on 31.3.2000, shall be available only for supplies effected on or after 1.4.2000.
8. Many references have been received seeking clarification whether a DEPB can be issued against a While Colour Shipping Bill generated through the EDI Systems in Customs. In this connection, it is clarified that DEPB benefits car be granted against a Shipping Bill, irrespective of its colour, having an endorsement on the Shipping ill, irrespective of its colour, having an endorsement on the Shipping Bill that the export are made under the DEPB Scheme.
This issues with the approval of DGFT.
Dy. Director General of Foreign Trade
Government of India,
Ministry of Commerce
Directorate General of Foreign Trade
(P.C.-IV), New Delhi