Sugar Exports Requires Release Order from Directorate of Sugar against Advance Licence Raw Sugar

[CBEC Circular No. 32 dated 31st August 2010]

Sub: Export of sugar against Advance Authorizations issued from 17.2.2009 to 30.9.2009.

I am directed to refer to Customs notification No.22/2009-Cus. dt.02.03.2009 and DGFT’s notification No.86 (RE-2008/2004-2009) dated 17.2.2009 whereby the actual user condition for import of raw sugar from 17.2.2009 to 30.9.2009 under the Advance Authorization scheme was relaxed and the said imports were allowed on ‘ton-to-ton’ basis instead of ‘grain-to-grain’ basis.

2. The Directorate of Sugar, Ministry of Consumer Affairs, Food and Public Distribution has informed vide letter dated 17.8.10 that they had reintroduced the requirement of obtaining export release orders w.e.f. 13.2.09 for exporters exporting sugar under Advance Authorization Scheme (AAS) on ‘ton to ton’ basis. The Directorate of Sugar has expressed concerns that some unscrupulous persons who had obtained advance authorizations during the afore mentioned period, in order to take advantage of high international price vis-à-vis domestic prices, may export sugar without obtaining release orders from the Directorate on the pretext that such exports are being carried out against the raw sugar imported by them on ‘grain-to-grain’ basis (i.e. with actual user condition). The Directorate of Sugar has requested that no export of sugar should be permitted against raw sugar imported under the Advance Authorization Scheme from 17.2.2009 to 30.9.2009 without the release order of the Directorate of Sugar. Further, if any sugar mill has exported sugar against such Advance Authorizations during the current sugar season, the names of such mills may be intimated to the Directorate of Sugar at an early date for taking appropriate action in the matter.

3. The above request of the Directorate of Sugar is brought to the notice of the field formations for taking necessary action in the matter.

4. Suitable Public Notice and Standing Order may be issued for the guidance of the trade and the staff. Difficulties, if any, faced in the implementation of this Circular may be brought to the notice of the Board.

F.NO.605/3/2009-DBK