Policy Circular No. 17 (RE-08)/2004-2009 dated
04.07.2008
Submission of multiple applications and part payments for claiming deemed export
benefits under para 8.3.1 of HBP
Sub paras 8.3.1(ii) and (iv) of HBP V I, inter alia
stipulate that claims for deemed export benefits should be filed within a period
of twelve months from the date of payment / date of receipt of supplies by
project authority. It is also laid down that 100% TED refund may be allowed
after 100% supplies have been effected physically and payment received at least
up to 90%.
2. It has been pointed out by Trade and industry that in case of project
supplies, there are large number of supplies and it will be difficult if only
one application within 12 months time is allowed, as is being interpreted by
some RAs. Another issue raised is that claims on the basis of part payments are
being disallowed by some authorities on the ground that as per PN 102 dated
16.1.08, 100% TED may be allowed after 100% supplies have been made physically
and payment received upto 90%.
3. The issues have been considered. It is seen that sub-paras 8.3.1 (ii) and
(iv) of Handbook v1 do not impose restriction on submission of multiple
applications. However, to reduce the paper work and ensure proper monitoring,
there is necessity to limit the number of applications which an applicant may
file within a financial year. Therefore, it is clarified that in respect of all
the claims arising for a particular calendar month /quarter (as per option of
applicant), a single consolidated application should be filed within the
stipulated time period. This may cover claims arising in respect of more than
one EPCG licence and /or Invalidation letters / ARO, project supplies etc. Any
subsequent application filed later on, in respect of claims arising in the same
calendar month / quarter (as per exercised option of applicant) will be treated
as supplementary claim for the purpose of applying cut as in para 9.4 of HBP v1.
4. Further, the condition of 100% supplies and 90% payment apply for 100% TED
refund. Accordingly, TED reimbursement on prorata or actual basis whichever is
less, would be admissible for part payments received, subject to production of
documents evidencing payment of TED.
5. This issues with the approval of Director General of Foreign Trade.
Sd/-
(Sanjay Rastogi)
Export Commissioner
(Issued from F.No.01/92/180/04/AM08/PC-VI
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