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As per existing instructions, exporters under Part II of the
Export Finance Scheme are required to export eligible commodities
and realize proceeds there-against equivalent to at least twice
the amount of refinance obtained by them during July-June period
each year. However, under the provisions of the Scheme notified
vide ICD Circular No. 8 dated the 19th April, 1994, any contract/export
order/letter of credit partially utilized for export of goods
under Part I of the Scheme cannot be utilized for showing performance
under Part II for the balance amount. As such even if an exporter
has made shipments in excess of his requirements under one part,
the balance amount cannot be used in other part of the Scheme.
This has often resulted in hardship to exporters in meeting
the performance requirement under Part II of the Scheme. Thus,
the exporters are exposed to fines unnecessarily notwithstanding
their export performance. This situation has arisen due to reckoning
of the export performance through contracts/export orders /letters
of credit. 2.
With a view to mitigate the genuine difficulties of the exporters
it has been decided that monitoring of the performance shall
be based on specific E Form numbers instead of on the basis
of contract/export order/letter of credit as hitherto fore.
Accordingly, the exporter shall be allowed to report in the
EF-1 Statement performance regarding shipments made under
contract/export order/letter of credit which has been or may
be partly utilized in Part I of the Scheme. As such, a contract/export
order/letter of credit may be fully utilized in reporting
shipments in either parts of the Scheme. This will be subject
to the condition that no single E Form will be utilized in
both parts.
3. The above instructions pertaining to Part II shall be effective
for the monitoring year ended on 30th June, 1999 and onwards.
Any fine charged due to exclusion of such entries from EF-1
Statement of an exporter for the period 1998-99, shall be
refunded by the concerned office of the State bank within
15 days from the receipt of requests for refund from the exporters
through its banker, if otherwise in order.
4. We have accordingly amended format of EF-1 Statement. A
revised format is enclosed which may be used for reporting
performance as from the monitoring year ending 30th June,
2000.
Please
acknowledge receipt.
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