Amendments in BG/LUT Format for DEPB and Incentive Schemes

[DGFT Public Notice No. 08 dated 6th September 2010]

Subject: Amendment of Appendix 25 C, Amendment 25 D and Sl. No. 9 under the Note.

In exercise of powers conferred under Para 2.4 of the Foreign Trade Policy, 2009-14, the Director General of Foreign Trade hereby makes the following amendments in the Handbook of Procedures (Vol.1), 2009-14:-

1. Sl. No. 3 under the ‘Note’ to Appendix 25 C related to “BG Format” stands replaced by the following:

3. **“The Bank Guarantee shall be valid till the expiry of the time period of 24 months from the date of export (Let Export Order Date). In case of a number of S/Bs filed against one application under DEPB Scheme / Incentive Scheme, 24 months time period shall be from the LEO date of latest S/B. In case of Revolving BG, the BG shall remain valid till all the obligations of the party are fulfilled to the ‘Full’ and ‘Final’ satisfaction of the Govt. as per policy and till such written consent is communicated to the party or the Guarantor, as the case may be.”

2. Sl. No. 4 under the ‘Note’ to Appendix 25 D related to “LUT Format” stands replaced by the following:

4. **“The LUT shall be valid for a time period of 24 months from the date of export (Let Export Order Date). In case of a number of S/Bs filed against one application either for DEPB or for any specific freely transferable Incentive Schemes under Chapter 3 of FTP, 24 months time period shall be from the LEO date of latest S/B. In case of Revolving LUT, the LUT shall remain valid till all the obligations of the party are fulfilled to the ‘Full’ and ‘Final’ satisfaction of the Govt. as per policy and till such written consent is communicated to the party.”

3. Sl. No. 9 under the “Guidance in the matter of Executing BG / LUT” mentioned after Appendix 25 D stands replaced by the following:

9. “Applicant shall have the option to file BG/ LUT against each application or a Revolving BG / LUT. The revolving BG/LUT shall be limited to a specific scheme, which means that for an exporter/party filing application for different schemes under the aforesaid laid down guidelines, shall be required to file separate BG/LUT for each scheme. BG/LUT filed in one RA shall not be utilized for BG/LUT to be filed in another RA for different application. The revolving BG / LUT shall remain valid till all the obligations of the party are fulfilled to the ‘Full’ and ‘Final’ satisfaction of the Govt. as per policy and till such written consent is communicated to the party or the Guarantor, as the case may be.”

This issues in public interest.