Policy Circular No.  01  (RE-2005)/2004-2009                        Date:  13^th April, 2005

Subject:  Applicability of Para 9.4 of Handbook of Procedures for granting supplementary claim of DFCE for service providers.

Attention is invited to Para 9.4 of the Handbook of Procedures Vol. I 2004-2009 which provides that, wherever any application for supplementary claim is received within the specified time limit, such application may also be considered after imposing a cut of 10%. Some licensing authorities have sought clarification about the applicability of this provision vis-a-vis claims filed under DFCE for service provider category.

2.         Matter has been discussed at length  and it is clarified that supplementary applications filed within the last date prescribed for submission of an application shall be allowed by imposing a cut of 10% on the entitlement as provided in Para 9.4 of the Handbook of Procedures Vol.I.  This shall be applicable across the Board to all Export Promotion Schemes under FTP.

3.         Wherever a supplementary application is submitted late, but within six months of the last prescribed date,  a 20% cut shall be applied on the entitlement which shall include 10% cut as per Para 9.3 and another 10% as per Para 9.4 of the Handbook of Procedures Vol.I.  Supplementary claims filed outside the purview of Para 9.3 of Handbook of Procedures (i.e. after six months of the last prescribed date) shall not be entertained.

4.         This issues with the approval of competent authority.

( M.K. Parimoo )

Dy. Director General of Foreign Trade

(F.No : 01/94/180/Policy Circular/AM06/ PC-I)