REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No.

76]

NEW DELHI, MONDAY, APRIL 2, 1973/CHAITRA 12, 1895

Separate paging is given to this Part in order that it may be filed

as a separate compilation.

MINISTRY OF COMMERCE

PUBLIC NOTICES

EXPORT TRADE CONTROL

New Delhi, the 2nd April 1973

SUBJECT :—Import policy for registered exporters for the period April, 1973—March, 1974—exports

through eligible export houses.

No. 48-ITC (PN)/73.—Attention is invited to the import policy for registered exporters as

contained in the Import Trade Control Policy (Red Book—Volume II) for the period April 1973—.

March 1974 published under the Ministry of Commerce, Public Notice No. 46-ITCC(PN)/73, dated

the 2nd April, 1973.

3. Part 'C' in Section I of the said Red Book contains the import policy in respect of exports

through Eligible Export Houses. It has been decided to enlarge the scope of the scheme for the

benefit of small scale industries. The following may, therefore, be added after the existing Para-

graph 17 in Part ' C ' , Section I of the said Volume II of the Red Book :—

Export Houses of Small Scale Industries.-18(1)

In order to promote small scale units to

consolidate their efforts in the export field, such units will be permitted to set up consortia of

their own to organise sales of their products abroad. Such consortia can apply for the grant

of certificates of eligibility as export houses, if the following conditions arc satisfied :—

(i) The consortium is a Limited Company or a partnership firm, and is

registered as

an exporter.

( 399 )

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[PART I—SEC. 1]

(11) It has been recognised as an Export House by the Ministry of Commerce.

(ill) The members of the Consortium are small scale units registered with the respective

State Directors of Industries and are also duly registered as manufacturer-exporters.

(iv) Each member-unit holds shares in the company or the partnership firm as the case

may be.

(v) The member-units undertake to export their products only through the consortium-

(vi) The total exports of the member-units in respect of non-traditional products (as are

specified in the Scheme of-Eigible Export Houses) during 1971-72 or 1073-73, as the

consortium might like to select, were of the value of at least Rs. 25 lakhs f.o.b., duly

certified by a bank or Charterd Accountant.

(2) On the basis of the above exports, the consortium may be granted an 'eligibility certificate'

as an Export House by the Chief Controller of Imports & Exports valid for 1973-74, subject

to the following conditions :—

(a) the Export House will be eligible for an initial licence on the basis of exports referred

to in (vi) above,

(b) the Export House will be eligible to apply for import replenishment licences on the

basis of its exports of the products manufactured by its member-units in accordance

with the import policy for 1 cgistcrcd Exporters, provided that the import entitlement

will not vest again with the manufacturer-exporter,

(c) the items allowed for import will be the same as permissible to other Eligible Export

Houses against their exports under the import policy in force,

(d) the imported materials will be disposed of to member-units for use in their factories for

export production,

(e) the Export House will not be eligible during 1973-74 to acquire by transfer the licences

issued to other Registered Exporters.

(f) the Export House shall be under an obligation to show an export performance in its

own name during 1973-74 '« respect of specified non-traditional products of f.o.b. value

which is at least 10 per cent higher than the value of exports referred to in (vl) above

and admitted for the purpose of issuing certificate of egibility,

(g) in the event of the failure of the Export House to fulfil the export obligation in (f) above

the value of the initial licence referred to in (a) above shall be adjusted againstthe future

import entitlements of the Export House and for its mcmber-unitSj for which they

will be severally and jointly responsible, without prejudice to any other action that may

be taken in this behalf undcrthe import controltegulations. For this purpose, it will

be necessary for member-units to give undertakings individually alongwith such un-

dertaking to be given by the consortium itself."

3. The Import trade Control Policy (Red Book-Volume II) for the period April 1973 March

1974 may be deemed to have been amended accordingly.

[PART I—SEC.I]

THE GAZETTE OF INDIA EXTRAORDINARY

401

402

PHE GAZETTE OF INDIA EXTRAORDINARY

[PART I—SEC li

SUBJECT :—Import policy for registered exporters for the period April 1973-March 1974-items per-

mtssib'n for import by manufacturer-exporters.

No. M-ITCiPtylTZ;—-Attention

is invited to the import poliy for registered exporters as

contained m the Import Trade Control Policy (Red Book-Volume II) for the period April 1973

March 1974 published under the Ministry of Commerce Public Notice Nb.46-ITC(PN)/73 dated

he 2nd April, 1973.

2. Part 'B* in Section I.of the said Red Book contains, inter alia, the provisions regarding item

permissible for import. In a review of the position, it has been decided that manufacturer-ex

porters who double their exports may be given greater facilities by allowing to them, within certain

value limits, the raw materials and components which are not normally permissible to others,

10 enable them to Improve the quality of their export products. The following may, therefore,

be added at the end of sub-paragraph 40 (a) in Part 'B', Section 1 of the said Volume II of the Red

Book :—

"The value limit of 5 per cent in respect of non-permissible items may be raised to 10 per-

cent of the face value of the replenishment licence subject to a single item not exceeding

Rs. 10,000/—in value, in the case of the manufacturer-exporters,—

(i) whose exports during 1972-73 in respect of non-traditional products were a

least twice the value of their exports during 1971-71, or

(il) whose exports in the first six months of 1973-74 in respect of non-traditional pro-

ducts arc at least equal to the value of their exports in the whole year 1972-73.

while claiming non-permissible items of a higher value under this provision,

manufacturer-exporters should furnish certificate from a bank or a chartered a

accountant, indicating the f.o.b. value of their exports with the name(s)of product

group (s) during 1971-72, 1972-73 and the first half of 1973-74, as the case may

be."

3. The Import Trade Control Policy (Red Book, Volume II) for the period April 1973-

March 1974 may be deemed to ha\e been amended accordingly.

[PART I—SEC.1]

THE GAZETTE OF INDIA EXTRAORDINARY

4O3

SUBJECT ,—Import Policy for registered exporters for the period April 1973—March J974~grant

of 'On Account'/'imprest' licences to manufacturer-exporters.

No. 50—ITC (PNV73.—Attention Is Invited to the import policy for registered exporters as

contained in the Import Trade Control Policy (Red Book-Volume II) for the period April 1973-

March 1974 published under the Ministry of Commerce Public Notice No. 46-ITC (PN)/73

dated the 2nd April, 1973.

2.

Part 'B', Section I of the said Red Book contains, inter alia, provisions regarding the

the grant of 'On Account* and 'Imprest* licences and release orders to manufacturer-

exporters. The value of such licences/release orders is adjustable against the normal Import

replenishments due to the applicants in accordance with the terms laid down in each case. On a

review of the position, it han been decided that half of the value of the 'On Account'/'Imprest'

icences and release orders will not be adjusted against the normal import replenishments due to

he applicant in cases where the applicant shows an improvement in his export performance up to

404

THE GAZETTE OF INDIA EXTRAORDINARY

[PART X—SEC. 1]

» specified extent.

The following may, therefore, be added in paragraph 54 In Part 'B', Section

1 of the said Volume II :—

"(ii) Half of the value of the 'On Account'liccncc/rcleasc order will be adjusted in in-

stalments as mentioned in the preceding sub-paragraph, within a period of six months

commencing from the month following that in which the 'On Account' licence/release

order ia issued. The Adjustment of the second half of the value of the 'On Account'

licence/release order will be deferred in the case of those exporters who improve their

export performance in respect of the specified product groups by atleast 10 per cent

in value (f.o.b.) during these six months as compared to the exports pertaining to the

same product groups made during the corresponding period of the previous year.

The deferment of adjustment will be for a period of six months at the expiry of which

the position will be reviewed. In the case of those exporters who improve their ex-

port performance in respect of the specified product groups by atleast 10 per cent in

value (f.o.b.) during the period of 12 months commencing from the month following

that in which the On Account' licence/release order was issued aa compared to the

exports pertaining to the same product groups made during the corresponding twelve

previous months, the adjustment of the second half of the value of the 'On Account'

licence/ release order will not be made upto the extent of 75 per cent of the increase in

exports.

(iii) The facility of non-adjustment mentioned above will be available only in the case

of first 'On Account' Licence/release order issued to an applicant and the value of

all the subsequent 'On Account' licences/release order issued to him will be adjusted

inaccordance with the provisions of para 54(i) above. In the case of exporters who are

not in a position to get the first half value of 'On Account' Licence[release order ad-

justed during the six months period following the month of issue of such licences/

release orders, will not be eligible for the facility of deferment of adjustment and non-

adjustment as referred to in para 54(ii) above.

(iv) The provisions regarding deferment an non-adjustment of the value of second

half of 'On Account' licence/release order as mentioned in paragraph 54 (ii) will also

apply in the case of imprest licence/release orders issued to manufacturer-exporters,

provided the export products are covered by paragraph 51 above and the licence/

release order holders show a similar increase in their export performance."

3. The existing paragraph 54 in Putt 'B', Section I of the said Volume II of the Red Book

may be re-numbered as 54(1).

4. The Import Trade Control Policy (Red Book, Volume II) for the period April 1973—

March 1974 may be deemed to have been amended accordingly.

S.G. BOSE MULLICK,

Chief Controller of Import and Exports.

PART I—SKC.1]

THE GAZETTE OF INDIA EXTRAORDINABY

405

PHTNTTtD BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MTNTO ROAD, NXW

DELHI

AND

PTJBLI8HED

BY

THl

MANAGER

OF

PUBLICATIONS,

DELHI,

1973