1

Directorate General of Foreign Trade

(Grievance Cell)

Record of Discussion of the 2nd Meeting of the Grievance Redressal Committee

meeting chaired by DGFT Shri Ajay Bhalla held on 18th January, 2017

The list of participants are given at Annexure-I.

DG welcomed the members for attending second meeting of grievance redressal

committee, which has been constituted vide Trade Notice No 14 dated 24.08.2016. DG

explained the purpose of reconstituting the committee under the provision of Para 9.08

of HBP for speedy redressal of grievances of trade. He, however, requested members to

forward request only after doing preliminary scrutiny and avoid bringing the cases,

which has been rejected by PRC/Norms committees, as there is procedure in place to

review decision of the committees. He informed that there are delay in fixation of

norms because inputs/comments by technical officers are not provided in time and some

ministries are not deputing technical officers to attend norms committee meeting. He,

therefore, requested all councils to take up the issue with respective ministry. This

Directorate are also taking up the matter with respective Departments.

Issues received from members were placed in the agenda and the same were discussed

at length. Status of individual cases were replied by concerned Addl. DGFT/Joint DGFT

during the meeting itself. DG instructed that the issues which required to be examine as

per Policy/procedure or need amendment in Policy will be noted by concerned Addl.

DGs/Joint DGs for necessary action at their end.

Agenda points discussed are placed at Annexure-II.

The meeting ended with a vote of thanks to the chair.

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Annexure-I

List of Participants [Representative of Councils] of the Grievance Committee

[DGFT(HQ)] meeting held on 18.01.2017

S.

No

Name Designation Name of

Council

1.

Shri H. C. Pant

Advisor FIEO

2.

SShri Prasant Seth

Joint. Director SRTEPC

3. Shri Suranjan Gupta

Addl. Executive Director EEPC

4. Shri T.S. Bhasin

Chairman EEPC

5. Dr. J. P. Tiwari

Regional Director CHEMEXIL

6. Prashant Seth

Joint Director FIEO

7. K.K. Duggal

Director(Policy) GJEPC

8. Shri Sanjay Kumar

Regional Director CLE

9. Shri Jacob George

Representative EEPC

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List of Participants [DGFT Officers] of the Grievance Committee [DGFT(HQ)]

meeting held on 18.01.2017

S.No. Name Designation

1. Shri Ajay Bhalla DG & Chairman

2.

Shri K.C. Rout Addl. DGFT

3. Shri. Jaikant Singh

Addl. DGFT

4. Shri. Darshan Singh

Addl. DGFT

5. Shri. J.V. Patil

Addl. DGFT

6. Shri. Nikunj Srivastav

Addl. DGFT

7. Shri Ajay Srivastav

Jt. DGFT

8. Shri Jay Karan Singh

Jt. DGFT

9. Shri Rajbir Sharma

Jt. DGFT

10. Shri Akash Taneja Jt. DGFT

11.

Shri. Rakesh Kumar Jt. DGFT

12.

Shri Lokesh HD Jt. DGFT

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Annexure-II

A: CHEMEXCIL

1. Cap/restrictions as in Notification no. 43 dated 25.09.2013 towards claiming 2% incentive under

“Incremental Exports Incentivisation Scheme” for period 01.04.2013 to 31.03.2014 ( M/S.

IHSEDU AGROCHEM PVT LTD.)

Decision: It was clarified that there is a cap of Rs. 1 Crore on the entitlement under IEIS on

Annual basis. The RA Mumbai has been advised to take necessary action on the issue.

(Action: Policy-3)

2. Delay in Fixation of Ad-hoc Norms/ Non-Redemption of Advance Authorizations (BENZO CHEM

INDS. PVT. LIMITED )

Decision: It was informed by Chairman of concerned NC that out of these 12 cases referred,

norms have been fixed in 10 cases. In 2 cases comments of Technical Authority are awaited.

3. Redemption & NBC/EODC (M/s. SHYAM CHEMICALS PVT LTD)

Decision: It was informed by Chairman, NC that Norms has been fixed.

4. Advance Authorization no. 0310763107 - reg. Correction in NORMS/ Removal of name from Defaulters

List (M/S AVA CHEMICALS PVT. LTD)

Decision: It was reported that norms has been fixed

5. Unable to attach S/Bills of 2014-15 & 2015-16 with E.Com File(M/S. JAYSYNTH GROUP OF

COMPANIES).

Decision: It was informed that as per Public Notice 48/2015-20 the firm can claim benefit under

chapter-3. The necessary changes in the online software have been made so that the exporter can

apply now.

6. Fixation of Norms against two Authorisations of M/S. SARAF CHEMICALS PVT.LTD.

Decision: It was informed that norms has been fixed

7. Long pending Technical issue regarding import product (M/s. BILAG INDUSTRIES PVT LTD/

Ms. BAYER VAPI PRIVATE LIMITED.)

Decision: It was informed that norms has been fixed.

B. EEPC INDIA

8. Submission of claim for MEIS benefits against exports to Nepal. (M/s STEEL AUTHORITY OF INDIA LTD.,

KOLKATA)

(i) Erroneous marking of “N” although they have declared intent.

(ii) Mis-match between DGFT and Customs Indexing system.

Decision: (i) As per present Policy, the software has provision of having ‘N’ as mandatory field

for claiming MEIS. DGFT may like to see for any exemption.

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(ii) The present system of DGFT does not support Non-EDI S/bill number as alpha numeric

code. DGFT (EDI) may like to take up the matter with Customs.

9. Request for amendment in the Table – 2 of Appendix 3B of the MEIS Schedule in line with the

First Schedule to the Customs Tariff Act, 1975 effective from 01.01.2017(M/s TATA MOTORS

LTD., MUMBAI)

Decision: New ITCH code have been Notified. (Policy-2)

10. Issues Taken up at the last Grievance Committee Meeting on September 21, 2016 not yet resolved as of November

18, 2016. (M/s Graphite India Ltd. and Thermax, Pune)

Decision: Clarification by Policy- 3 be issued to RA.

11. Correction of Anomaly in Production Description in MEIS Schedule at at Sl. No. 4527 and 4529. (TATA MOTORS

LTD.)

Decision: There is wrong description in the Appendix -3B – MEIS Schedule at Sl. No. 4527 and 4529 where in

both the cases “the words 3-wheeler has erroneously been mentioned in the product description of MEIS

Schedule as a result of which the exporters are facing considerable problems. The ITC (HS) description has no

reference of “Three Wheelers” in the codes 87042219 and 87042319. Both the tariff descriptions pertain to goods

vehicles with GVW (Gross Vehicle Weight) exceeding 5 MT & 20 MT respectively and 3-wheeler goods vehicles

do not fall in either of these load categories.

12. Registration of AD code and Advance Licence at every port of shipment:

Decision: To be taken up with DOR

13. Ease of Doing Business: (I) Server issue should be addressed; (ii) Transmission of EPCG

Authorisations; and (iii) Hard copy of all Authorisations has to be done away.

Decision: (i) The server is working fine now.

(ii)The EPCG authorisations are now being transmitted regularly to customs now.

(iii)DGFT (EDI) may like to take a view.

C. FIEO:

14. Target Plus Scheme ((M/s. Indian Products Private Limited, Mumbai) , M/s. General Commodities Pvt. Ltd.,

Bangalore and others)

Decision: The matter will be taken up with Finance for Budget.

15. Delays in up-dation of HS Codes at ICEGATE. (i) M/s Jansons Group of Companies; (ii) M/s JVS Exports; (iii)

M/s PI Industries Ltd. and others

Decision: Response to party has been given as per report from ICEGATE.

16. Non-appearance of Shipping Bills in DGFT System (M/s. Laopala RG LTD, Kolkata)

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Decision: S/bills have been unblocked.

17. Reward benefits for exports with LEO prior to 1.4.2015 and date of exports thereafter (Ref: Shipping bill No.

8397476 dated 16.03.2015 and many more of M/s. Choudhary Fashions

Decision: As per Public Notice 48/2015-20 the firm can claim benefit under chapter-3. The necessary changes

in the online software have been made so that the exporter can apply now.

18. Description mismatch in MEIS viz a vis Shipping bill

Decision: Policy-3 will examine it.

19. Unable to avail eligible export reward for shipping bill No. 8397476 dated 16.03.2015 and B/L date 20.3.2015 (M/s

Topland Exports)

Decision: As per Public Notice 48/2015-20, the firm can claim benefit under chapter-3. The necessary

changes in the online software have been made so that the exporter can apply now.

20. Unable to avail eligible export reward for Shipping bill No. 8397476 dated 16.03.2015 and B/L

date 20.3.2015 (M/s Topland Exports)

Decision: As per Public Notice 48/2015-20 the firm can claim benefit under chapter-3. The

necessary changes in the online software have been made so that the exporter can apply now.

21. Denial of MEIS benefit by DC, Kandla (M/s. Rallis India Limited – A TATA Enterprise)

Decision: Policy-3 will take up issue with DC, Kandla

22. SEIS incentives to units operating in STPI and EOU (M/s. Axis Integrated Systems Limited)

Decision: Policy-3 will examine the issue.

23. Import of Natural Rubber as input under Post Export DFIA (M/s.Eastman Industries td.)

Decision: It was clarified that Inputs allowed with pre-import condition as per Appendix-4J

are not eligible under DFIA scheme. Necessary Trade Notice will be issued by Policy-4.

24. Request for Amendment in DFIA Authorization NO.0810112570 dt. 14.06.2012 - (2) File No.

08/91/076/00093/ AM12 with Jt. DGFT, Ahmedabad (M/s. Amrut International)

Decision: the applicant may be advised to seek policy relaxation by filing application on ANF-

2D to PRC.

25. Redemption of Advance Authorization is on hold despite submission of all required documents /

clarification (M/s Oberoi Group of Hotels)

Decision: Policy-4 may take up with RA, CLA.

26. Revalidation of Annual Advance Authorisation Lic. No. 0310620509 dtd. 10.03.2011 (File No. :

03/82/0039/00004/AM11) PRC FileNo.01/60/162/873/AM14/EFGC/(PRC) (M/s BDH Industries

ltd.)

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Decision: the case has been discussed in PRC meeting No 17 dated 06.09.2016 and after

affording PH to the applicant the case has been rejected. Such cases cannot be taken up in

grievance committee meeting.

27. Customs Duty on Small Quantity of imports under advance authorization due to difference in input

output as declared under norms and norms approved by ALC: (M/s. Sakata Inx (India) Pvt. Ltd.)

Decision: It was clarified that levy of duty falls under the preview of Customs Authority.

Hence, such waiver is not allowed under FTP by DGFT.

28. Incorrect information on letters issued by DGFT on ALC decisions: M/s. Sakata Inx (India) Pvt.

Ltd.)

Decision: Complete information has not been provided by the applicant. It was suggested to

provide complete information to the concerned norms committee.

29. Non acceptance of Norms Committee Decisions in respect of Advance Authorisation No.

0710072965 dated15.07.2010-HQ File No.01/81/50/00183/AM11 for Seam Welding Wheel (M/s

TTP Technologies Pvt Ltd, Bangalore)

Decision: Chairman of NC-2 informed that the matter is pending for comments of technical

Authority.

30. Fixation of norms against AA No 0710057471 of M/s MPP TECHNOLOGIES PVT LTD,

BANGALORE

Decision: Chairman of NC-2 informed that documents/information called from the applicant

have not received.

30. FIXATION OF NORMS for 6 Advance Authorisation No. 071008850, 0710108851, 0710108995,

0710108999, 071010964 and 0710109648 of M/s MPP TECHNOLOGIES PVT LTD,

BANGALORE

Decision: Chairman of NC-2 informed that norms have been fixed and order is under issue.

31. Permission for redemption of Advance Authorisations without insisting for GSM of the fabric

1. 0210131920 dtd. 23.09.2009 issued from RA File No. 02/24/040/00122/AM10 (NC Ref :

01/84/050/00130/AM10/DES-V).

2. 0210125566 dtd. 16.04.2009 issued from RA File No. 02/24/040/00288/AM09 (NC Ref :

01/84/050/00014/AM10/DES-V).

M/s JIWANRAM SHEODUTTRAI INDUSTRIES PRIVATE LIMITED, KOLKATA

Decision: It was informed that GSM of fabric can be calculated provided net weight and total

square meter of fabrics exported/imported are declared in the B/E and Shipping Bills.

However, Policy-4 may please seek details from RA, Kolkata and issue clarification.

32. Redemption of Advance Authorisation of (M/s. Associated Cables Pvt. Ltd., Pune)

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Decision: Policy-4 may seek report from RA, Pune.

33. Request for Waiver of 1% shortfall in FOB value under Adv. Lic NO. 0410089799 & No.

0410089095 for Regularization and redemption Ref: File No.04/24/040/0001/AM08 & File

No.04/24/040/00508 /AM07 –IEC Code -0401010180 (M/s Delphi – TVS Diesel Systems Limited)

Decision: It was clarified that for regularisation of such shortfall, provisions under Para 4.49

of HBP, 2015-2020 already available for regularisation of shortfall in value.

34. Fixation of Norms pending with Norms Committee of M/s. Metropolitan Eximchem Pvt. Ltd.

Decision: Action by NC-4

35. EPCG for upcoming manufacturing Establishments.

Decision: It was not agreed to issue EPCG without specifying place where the machine to be

installed.

36. Waiver from submitting Bill of Export for redemption of EPCG Licence No 0730002258 dtd 02-

11-2004 – File No 07/21/021/00531/AMO5 EPCG Licence No 0730001763 dtd 30-04-2004 – File

No 07/21/021/0031/AMO5 M/s. Ergo Spaces Pvt.Ltd )

Decision: It was clarified that Bill of export is mandatory document as per Rule 30 of SEZ

rules, 2006 for export incentive, which cannot be waived of .

37. Redemption of EPCG Authorisation where installation certificate is issued after 6 years. (M/s.

Sakata Inx (India) Pvt. Ltd.)

Decision: It was clarified that installation certificate has to be submitted within six months of

import of capital goods (extendable upto 18 months by RA) failing which relaxation of

procedure is required to be done by EPCG committee.

38. Duty Drawback against Deemed Export supplies made against EPCG Invalidation.

Decision: It was clarified that against ARO supplier is eligible for TED and DBK both. However,

against Invalidation letter supplier is eligible for TED refund and Advance Authorisation and not

DBK.

39. Shipping bills No. 1195165 dated 21.02.2014, No. 1357970 dated 03.03.2014 and No. 6938729 dated

13.08.2013 were manually entered in ‘Shipping Bill repository’ alongwith e-BRC attached to E-com

Applications under Chapter 3 (FPS). Later it was removed from e-Com file for making HS code

correction. Now all 3 shipping bills are not traceable in the system and we are unable to apply FPS. (M/s.

MIRC Electronics Ltd.)

Decision: EDI section informed that S/b have been released.

40. Delay in closer of Advance Authorization after fulfillment of EO - Advance Authorization No

0310774805 DT. 13.02.2014 issued by ZDGFT Mumbai. -M/s. Siemens Ltd.

Decision: NC to examine

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D. SRTEPC:

41. Issuance of manual DEPB scrip; condonation of delay in filing DBPB and issuance of DEPB scrip

against lost shipping bills: Winsome Textile Industries Ltd., Chandigarh (IEC No.228800112)

Decision: It was clarified that these are cases where Policy relaxation is required. The

applicant may be advised to approach PRC.

42. Reactivation of Shipping Bill of M/s Gimatex Ind.Pvt.Ltd., Mumbai (IEC no. 0397062826)

Decision: It was clarified that 8 S/bills may be made available for necessary changes by EDI.

43. Fixation of SION SRF Ltd. (Technical Textiles Business) IEC : 0588109592- (Branch code- 5)

Decision: The firm may provide full details to Norms Committee -5 as already asked vide

email dated 17.01.2017 for enable to process the matter .

44. Pending Advance Authorisation Licenses of M/s SRF Ltd.

Decision: Report from RA, Chennai is awaited. Action by Policy-4

45. Non-utilsation and non-verified Licences under Focus Product Scheme Horizon Exports (IEC No.

0301049441)

Decision: It was clarified that validity of duplicate scrip remains co-terminus with the validity

of original scrip. RA has correctly rejected the request.

46. Pending issue with Policy Relaxation Committee towards Status Holder Incentive Script Shree

Rajasthan Syntex Ltd., Udaipur

Decision: PRC has rejected the case.

47. MEIS Authorisation Transmission Error. M/S. Dicitex Furnishings Pvt. Ltd IEC – 0399014365

Decision: EDI reported that issue has been resolved.

48. Redemption of Advance Authorisation M/S. Dicitex Furnishings Pvt. Ltd

Decision: The applicant may approach to RA, Mumbai.

49. Refund of Import Licence Application Fee Raymond Limited

Decision: It was informed that error has been removed by EDI.

50. Release of pending DBK claims regarding purchase of HSD Oil during period 1995-1996 to 2005

in respect of being an 100% EOU of M/s Pasupati Spinning & Weaving Mills Ltd.

Decision: Vide this Directorate’s letter No. 01/92/180/55/ AM-16/VI/dated 29.12.2016 the Council was

requested for a copy of representation submitted by the firm..Meanwhile DC, Noida SEZ has been

requested to provide comments in the matter.

Action: Policy-6

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E. GJEPC:

51. Replenishment Scheme: Amendments in paragraph 4A.21 of Hand Book of Procedures 2009-14 for

export of Gems and Jewellery products manufactured from gold during the period 22.07.2013 to 14.02.2014

in terms of paragraph 4A.18 of Handbook of Procedures 2009-14 as one time exemption to claim

replenishment of Gold.

Decision: In this regard PN 29 dated 08.09.2016 has been issued.

52. Clarity regarding separate Harmonized Systems Code (HS Code) for the lab-grown diamonds as per Budget

2016:

Decision: Policy-2 will examine the issue.

53. Mandatory import of precious metal Gold from LBMA approved refineries

Decision: The matter may be referred to DOR.

54. Inclusion of gems and jewellery products under Merchandize Export from India Scheme (MEIS)

Decision: Suggestion noted

55. Release of Bank Guarantee and acceptance of Legal under Taking (LUT) post export of jewellery

by an exporter using duty free gold from the nominated agencies/bank

Decision: Suggestion not acceptable.

56. Supply of gold by foreign buyer post export of jewellery.

Decision: Issue related to DOR. It was discussed in meeting with CIM. However, it was not

accepted.

57. Re-introduction of policy on Export of gold jewellery against import of scrap/Promulgation of a

Gold Scrap Policy

Decision: Policy-4 may take up with DOR.

58. Allowance of replenishment scheme for export and import of gems and jewellery items on

consignment basis.

Decision: Policy-4 may take up with DOR.

59. Allowance of Personal carriage of Gems & Jewellery from Coimbatore Airport.

Decision: may be taken up with DOR

60. Personal Carriage from Mumbai.

Decision: may be taken up with DOR.

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61. To recommend CAG for dropping the Audit Para pertaining to Para 4.32 of FTP 2015-20 raised

during the performance audit of the sector as the same has already been clarified by the DGFT vide

Policy Circular No. 11(RE-2002) dated 12th August 2002.

Decision: will be taken up with CAG.

62. Request for resuming Export/ Import of Coral from Jaipur port.

Decision: the issue will be taken up with the state Government.

GIA Japan

Decision: to be taken up with DoC.

64. Allowance of import of jewellery/samples through courier mode.

Decision: To be taken up with DoR.

65. Export of Gold Medallions from the country.

Decision: Not agreed to.

66. Advance Authorisation License Issuance M/s Emerald Jewel Industries Limited, Coimbatore.

Decision: issue has been resolved.

67. Re-import of 2% Rejected jewellery by M/s Diagold Designs Ltd, Mumbai and REP License Issue faced by

our member exporters M/s Dipak Dipchand Taswala, Mumbai.

Decision: Issues are related to DoR. Hence will be taken up with DoR.

F. CLE:

68. To relax the condition of requirement of mentioning YES and Declaration of Intent for all Shipping Bills

from 1st April 2015 to 16th May 2016 (i.e. date of issue of aforesaid Public Notice No. 09/2015-20),

considering that most of the Shipping Bills are exported under Drawback scheme and hence subject to

scrutiny. This will be a major relief to many exporters.

Decision: The request was not acceded to.

69. According to Customs Tariff and ITC (HS) Schedule, there are separate HS Code for Shoes made of leather

uppers and rubber/plastic/synthetic soles covering the ankle as detailed below.

640391 – Covering the Ankle

63. Inclusion of the Laboratories for the import of diamonds for certification/grading and re-export:

IGI Lab

GSI Lab

Inclusion of the Laboratories for the export of diamonds for certification/grading and re-import:

GIA Israel

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64039110 – Leather Boots and Other Footwear with rubber soles

64039120 – Leather Footwear with plastic and synthetic soles

Decision: this issue has already been resolved.

G. CAPEXIL:

70. Abolition of export duty on Upgraded Beneficiated Ilmenite DCW Ltd.

Decision: Will be taken up with DoR being issue relating to levy of customs duty.

71. To include Iron Oxides falling under chapter 2821.1010 and Trichloroethylene falling under chapter

2903.2200 as an item eligible product in the list of Merchandise Exports from India (MEIS) scheme of the

Foreign Trade Policy. M/s DCW Ltd.

Decision: To be examined by Policy-3.

72. To extend the validity of Advance Authorisations and EPCG authorisations in the Foreign Trade Policy.

Decision: To be examined by Policy- 4 and 5.

73. To allow MEIS benefit for Oct 2015 shipping bills when scheme selection intent was not done. M/s DCW

Ltd.

Decision: Mistake in shipping bill can be rectified within three months by Customs Authority. No

benefits can be allowed if option of “Y” is not opted.

74. Correction in ITCHS code of finished product i.e “Gelatin Capsule Empty” M/s Healthcaps India Limited.

Decision: To be examined by Policy-2

75. Incremental Exports Incentivisation Scheme licenses of M/s Jyoti Ceramic Industries Pvt. Ltd.

76. Unable to apply for rewards under MEIS scheme to DGFT office at Mumbai by M/s National Rubber

Engineers.

Decision: To be examined by NIC.

77. Retransmit of Shipping Bill for MEIS (JDGFT) M/s Nuchumannil Rubbers.

Decision: The firm has already claimed MEIS benefits on S/bill given in Annex-2 vide file no.

10/92/090/81687/AM17 dated 19.12.2016.

78. Bangladesh Budget: 2016-17H.S. Code Chapter No.69.10 under 6910.10.00 & 6910.90.00 (Disparity in

Import Duty) M/s R.M.CHATTERJEE IRON FOUNDRY.

Decision: DoC may take up the issue.

79. MEIS claim issue of M/s Rushabh Investment Pvt. Ltd.

Decision: It was informed that the issue has been resolved.

Decision: It was informed that office note has been prepared in file no. 03/21/092/00147/AM14 and for file

no. 003/21/092/00355/AM15/ deficiency letter has been issued. RA, Mumbai has to take appropriate action.

(Action: RA, Mumbai)

76.

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80. VAT issue Reduction in application processing time M/s Tata Books

Decision: May be taken up with respective state.

81. Anomaly of transition from DEPB regime to Drawback regime. M/s V&M

Decision: It was noted that no draw back was fixed for composite product "leather covered

notebook" (HS Code 48201090) whereas DEPB was available on such products. The issue

needs to be taken up with DoR.