DFIA Ban on Raw Sugar after 1 May 2015
·
No Sympathy for Cases in Pipeline
[DGFT Public Notice No. 56 dated 22nd
January 2016]
Effects of this Public Notice: Procedure for processing pending applications in RA
for issuance and transferability of DFIAs has been issued.
Subject: Procedure to deal with the pending
applications for issuance of Duty Free Import Authorisation(s) (DFIA) and their
transferability.
Several references have been received in this
Directorate from Trade and Industry and Regional Authorities of DGFT regarding
the manner of processing pending applications where DFIAs are yet to be issued
and the manner of processing applications for transferability where DFIAs have
already been issued. Therefore, in exercise of powers conferred under paragraph
1.03 of the Foreign Trade Policy, 2015-2020, the Director General of Foreign
Trade hereby notifies procedure to be followed for issuance of DFIA and their
transferability as under:
1. Pre-Export DFIA with AU condition and subsequent transferability on
completion of export was available in the FTP 2009-14. Exemption from various
duties was available as per Para 4.2.2 (d)&(e)
read with para 4.2.6 of FTP2009-14. In FTP 2015-20 the Duty Free import
Authorisation (DFIA) with AU condition has been dispensed with w.e.f 1.04.2015. Now DFIA scheme is available only on Post
Export basis with eligible exemption only from basic customs duty as per para
4.26 of FTP 2015-20.
2. As per Para 4.28 of HBP 2015-20 (relevant Para 4.12.1 of HBP
2009-14) “Exports/supplies made in anticipation of grant of Advance
Authorisation shall be entirely on risk and responsibility of the exporter.”
Moreover, the exporter has
also been given the option under Para 4.29 of HBP 2015-20 (relevant para 4.12.2
of HBP 2009-14) to get conversion of duty free shipping bills to drawback
shipping bills in case application of Advance Authorisation is rejected or
modified by RA for allowing drawback to the exporter, if admissible.
3. Vide Notification No.5/2015-20 dated 1.05.2015, import of “raw
sugar” under Duty Free Import Authorization (DFIA) scheme was withdrawn with
immediate effect. Therefore, no benefit of DFIA scheme can be allowed for
import of “raw sugar “on DFIAs issued on or after 1.05.2015.
4. The manner of dealing with the requests for issuance of DFIA and
transferability will be as per paragraphs given below:
4.1 Cases where
Authorisation ( DFIA ) could not be issued up to
1.04.2015:
a. Cases where DFIA applications were filed on line to Regional
Authorities (RAs) before 1.04.2015 by exporters but no exports have been made
by exporter before 1.04.2015- In
such situations, application will be treated as valid application and RA may
issue DFIA based on Post Export basis only as per FTP 2015-20 and HBP 2015-20.
b. Cases where DFIA applications were filed on line to Regional
Authorities (RAs) before 1.04.2015 by exporters and exports have been made partially/fully up to
31.03.2015- In such situation, RA may issue DFIA based on Post Export basis
only as per FTP 2015-20 and HBP 2015-20 as per admissibility.
c. Cases where DFIA applications were filed on line to Regional
Authorities (RAs) before 1.05.2015 by exporters and exports have been made
partially/fully up to 30.04.2015 and exporter has used “raw sugar” as input as
per SION- In such situations, DFIA
will be allowed as per FTP 2015-20 to the extent of the entitlement of “raw
sugar” on the export consignments for which Let Export Orders (LEOs) have been
issued till 2400 hrs on Thursday 30.4.2015. Any
shipments having LEO on or after 1.05.2015, where raw sugar has been used as an
input will not be eligible for grant of DFIA. Exporter will have option to
avail facility to get his Shipping Bills converted to Drawback Scheme as per
para 4.29 of HBP 2015-20
4.2 Cases where DFIA (not
involving import of raw sugar as an input) was issued as per provisions of FTP
2009-14 but request for transferability could not be considered up to
30.03.2015.
In such cases
Transferability request may be considered by RA as per the terms and conditions
of DFIA issued during FTP 2009-14, provided all documents are in order.
4.3 Cases involving import
of raw sugar where request for transferability could not be considered.
a. Request for transferability in respect of DFIA which were already
issued in earlier FTP 2009-14 and involve raw sugar as an input – Requests of transferability in such cases of
DFIAs may be considered by RA, as per FTP 2009-14, by allowing entitlement of
raw sugar for export consignments for which Let Export Orders (LEOs) have been
issued till 2400 hrs on Thursday 30.4.2015. Any
exports with LEO on or after 1.05.2015 will not be eligible for DFIA benefit in
view of Notification No. 5/2015-20.Exporter will have option to avail facility
to get his Shipping Bills converted to Drawback Scheme as per para 4.29 of HBP
2015-20.
b. Requests for transferable DFIA as per FTP 2015-20 on the exports
made from 1.04.2015 till 30.04.2015 where raw sugar in an input- RA may grant transferable DFIA as per FTP 2015-20
by allowing entitlement of raw sugar for export consignments made from
1.04.2015 up to 30.04.205 for which Let Export Orders (LEOs) have been issued
till 2400 hrs on Thursday 30.4.2015. Any exports with
LEO on or after 1.05.2015 will not be eligible for grant of DFIA benefit in
view of Notification No. 5/2015-20.Exporter will have option to avail facility
to get his Shipping Bills converted to Drawback Scheme as per para 4.29 of HBP
2015-20.