DGFT Policy Circular No. 02
(RE-08)/2004-2009 dated 16.4.2008
Clarification regarding Actual User Condition for import of Sugar under Advance
Authorisation Scheme
1. Attention is invited to the provision contained in
paragraph 4.1.5 of FTP wherein it has been stated that the “Advance
Authorisation and / or materials imported thereunder will be with Actual User
Condition. However, in case of Advance Authorisation wherein the input allowed
is Raw Sugar, a special dispensation was allowed vide CBEC letter No.
605/68/2004-DBK dated 21.9.2004, thereby allowing sale of duty free imported raw
sugar even before fulfillment of export obligation. The export obligation was
allowed to be fulfilled in such cases by the Advance Authorisation holders on
‘ton-to-ton’ basis instead of ‘grain-to-grain’ basis required under FTP.
2. The aforesaid facility stands withdrawn from immediate effect for any import
of raw sugar against advance licences / authorizations from the date of issuance
of this Circular.
3. This issues with the approval of Competent Authority.Sd/-
(Tapan Mazumder)
Joint Director General of Foreign Trade
(Issued from F. No. 01/94/180/AA-Sugar/AM 09/PC 4)
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