Sugar Contract Email Registration with DGFT Procedure – Advance Payment/LC Required

[DGFT Policy Circular No. 62 dated 14th May 2012]

Subject: Conditions and modalities for registration of contracts with DGFT for export of sugar.

As per Notification No. 117 (RE-2010)/2009-14 dated 14.05.2012 export of sugar has been made “Free” subject to registration of export contracts with DGFT for ITC(HS) Code 17010000. Procedure for registration of contracts is described below.

2.  Each intending exporter has to first send an e-mail addressed to sugarexport-dgft@nic.in before filing hard copy of the application to the concerned RA for issue of RC. The subject header of this e-mail shall be “Name of applicant / IE Code / quantity applied in Metric ton / Name of the RA where application is being filed. “

(for example if M/s. ABC exports having IE Code 1234567890 are intending to file an application at Ahmadabad for export of 1000 MT then the subject header would be: ABC exports / 1234567890 /1000 MT / Ahmadabad )

3.   The content of the e-mail would be a brief description of where the exporter wants to export and such other details that he may like to give. But it must contain the name, address, telephone number and other contact details, L/C number and date/ FIRC details and IEC Number of the applicant. An applicant can submit one application for issue of RC subject to a maximum quantity limit of 10,000 MT (Metric Tonnes) during the current sugar season (1st October 2011 – 30th September 2012). The hard copy of the application will be filed with concerned jurisdictional RA of DGFT ( as specified in Appendix 1 of Handbook of Procedures Vol 1 Appendices and Aayat Niryat Forms) and specify the IE Code, quantity sought for export, address of the factory from where the sugar will be sourced and details of exporter as given above.

4.  A printout of the e-mail sent to sugarexport-dgft@nic.in shall be enclosed to the hard copy of the application to be submitted to the RA within 2 days of sending e mail, alongwith:

(i)   Copy of Letter of Credit or FIRC as proof of having received advance payment

(ii)  Declaration/Undertaking as given in Annexure-I of this Policy Circular, on the letter head of the firm.

(iii)  Copy of IEC

(iv) Name and address of the sugar factory from where the sugar is being sourced alongwith the quantity being sourced from each sugar factory.

5.  If the documents received are found in order, the applicant shall be issued a Registration Certificate. Export against this registration certificate shall be completed within a period of 30 days from the date of issuance of such certificate. Sugar mill supplying sugar to an RC holder will intimate DGFT at the designated e mail id sugarexport-dgft@nic.in immediately after such supply.

6.  Failure to export the allowed quantity within the stipulated time would invite debarment from further registration. In addition, penal action as per Section 11(2) of the Foreign Trade(D&R) Act would be initiated. For ready reference Section 11(2) is extracted below:-

“11(2). Where any person makes or abets or attempts to make any export or import in contravention of any provisions of this Act or any rules or order made thereunder or the Foreign Trade Policy, he shall be liable to a penalty of not less than ten thousand rupees and not more than five times the value of the goods or services or technology in respect of which any contravention is made or attempted to be made, whichever is more.”

7.  A subsequent registration certificate will be issued only after submission of proof of having exported against previously obtained RC.

8.  Reporting

Holders of the RC would observe a two stage reporting system, sending two reports to the RA from whom the RC was obtained: (a) a simple first report only about the quantity of export, to whom exported, and when exported, in respect of each consignment immediately on obtaining the Let Export Order (LEO) and (b) a consolidated second report within 35 days of the issue of RC in detail (EP copy of shipping bill required) about all exports done in respect of the complete quantity for which the RC was obtained.

9.  This issues with the approval of Director General of Foreign Trade.

Annexure-1 to Policy Circular No. 62 (RE-2010)/2009-14 Dated:14.05.2012

Declaration / Undertaking

1.  I / We hereby declare that the particulars and the statements made in this application are true and correct to the best of my / our knowledge and belief and nothing has been concealed or held there from.

2.  I / We fully understand that any information furnished in the application if found incorrect or false will render me / us liable for any penal action or other consequences as may be prescribed in law or otherwise warranted.

3.  I / We undertake to abide by the provisions of the FT (D & R) Act, 1992, as amended, the Rules and Orders framed there under, FTP, HBP v 1 and HBP v2 and ITC (HS). I also undertake that in the event of non-performance after grant of Registration Certificate for export of sugar by the Directorate General of Foreign Trade, I shall be liable to Penal Action under Section 11(2) of Foreign Trade(Development & Regulation) Act, 1992, (as amended), including debarment from future allocations.

4.  I hereby certify that I am authorised to verify and sign this declaration.

Signature of the Applicant Place

Name Date

Designation

Official Address (if different than given in the letter head):

Line 1: Number of the office premises.

Line 2: Street name.

Line 3: City name.

Line 4: Pin code.

Telephone No.(with STD code):

Cell Phone No.:

Fax No.:

E-mail of the firm/company: E-mail of the signatory:

Residential Address of the signatory:

Line 1: House Number.

Line 2: Street name.

Line 3: City name.

Line 4: Pin code.