Attention is invited to Policy Circular Nos. 21 dated 17th August 2005, 28 dated 6th October 2005 and 44 dated 10th January 2006 where the method of submission of various categories of applications was laid down. Representations have been received from the trade and industry that the procedure for opening Electronic Fund Transfer (EFT) accounts with the DGFT designated banks is time consuming and the mandatory requirement of submitting licence fee through the EFT mode only may be deferred to a future date.

2. It has therefore been decided to make the system of remitting licence fee through the EFT mode optional till 31.03.2006. The exporter will now have an option to remit licence fee either through the EFT payment gateway of the DGFT designated banks on the DGFT website dgft.gov.in OR submit the licence fee through a Treasury Challan or Demand Draft. However, it may be clarified that the mandatory electronic submission of certain category of applications i.e. Advance Licence (excluding Para 4.7 and DFRC applications), Advance Licence for Annual Requirement, EPCG Licence and DEPB Licence (for EDI shipping bills from notified EDI Ports w.e.f. 01.10.2005) with digital signature on the DGFT website will continue. Wherever applications are submitted with digital signature only a 25% fee concession will be applicable and those submitted with digital signature and EFT will get a 50% fee concession. Regional Licensing Authorities may therefore accept licence fee through a Treasury Challan or Demand Draft even for those applications which have been submitted before the issue of this Circular.

3. In exceptional circumstances, EDI Custom ports allows clearance of export shipments on manual DEPB Shipping Bills instead of EDI DEPB Shipping Bills. At present, the DGFT EDI system does not allow filing of ECOM applications on the DGFT website in case of manual DEPB shipping bills from notified EDI ports and the exporter, in these cases, has to necessarily submit a manual DEPB application to the concerned Regional Licensing Authority in the Aayaat Niryaat Form along with necessary documents in original and payment of full fee. In the interest of trade facilitation, the earlier system of filing ECOM applications on the DGFT website in case of manual shipping bills from notified EDI ports is being re-introduced and no manual DEPB applications will be allowed. The exporter will have to submit an ECOM application on the DGFT website with digital signature only with the option of payment of licence fee through EFT or Treasury Challan/ Demand Draft. In all these cases, a single hard copy of the ECOM application (as generated on the DGFT website link ‘Print Application’) along with supporting documents i.e. manual DEPB shipping bills, BRC, fee etc. should also be submitted to the Licensing Authority. However, the DGFT EDI system will allow ECOM applications for such category of applications only after 30 calendar days have elapsed from the date of manual DEPB shipping bill from notified EDI ports. Regional Licensing Authorities, before allowing such DEPB claims must ensure that the shipping bills submitted along with the DEPB applications are manual DEPB shipping bills and not EDI shipping bills. Necessary checks are also being built into the DGFT EDI system to restrict the possibility of such claims as an EDI shipping bill.

4. Similarly, for DEPB claims based on manual DEPB shipping bills from non EDI ports (as distinct from notified EDI ports), only ECOM applications on the DGFT website will be allowed and no manual DEPB applications will be allowed. The exporter will have to submit an ECOM application on the DGFT website with digital signature only with the option of payment of licence fee through EFT or Treasury Challan/Demand Draft. In such cases, a single hard copy of the ECOM application (as generated on the DGFT website link ‘Print Application’) along with supporting documents i.e. manual DEPB shipping bills, BRC, fee etc. should also be submitted to the Licensing Authority.

5. Trade and Industry is also requested that necessary formalities for operationalising EFT accounts with DGFT designated banks may be completed before 31.03.2006 to ensure that their import/export shipments are not effected. No further extension beyond 31.03.2006 will be considered.

This issues with the approval of the DGFT.

(Anil Aggarwal)
Joint Director General of Foreign Trade

(Issued from File No 01/02/31/AM06/ EDI)