MINISTER OF THE STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JAIRAM RAMESH)
(a) The scheme was introduced in the Import and Export Policy 1990-93 and is in operation
since 1.4.1990.
(b) & (c): Yes, Sir. The SSI Units and Agro Units are required to export goods equivalent
to 6 times of duty saved amount and others equivalent to 8 times of duty saved amount
within a specified period of 8 to 12 years from the Authorization Issue-date.
(d) & (e) The total number of authorization (licenses) issued and number of exporters
who defaulted in making requisite exports within the timeframe granted for the purpose
during 2005,06, 2006-07 and 2007-08 are as under:
Year Authorizations (licenses) Licenses defaulting in issued during the period E.O. fulfillment (pertaining to earlier years)
2005-06 16387 139
2006-07 21226 113
2007-08 14361 93
(Upto
31.12.2007)
The Authorizations are issued on furnishing of Bank Guarantee/Letter of Undertaking,
towards duty saved amount, depending upon the status of the exporters at the time of
import, to safeguard the interest of Government. In case of default, the Bank Guarantee
executed is invoked to recover the duty saved amount.
Besides, the defaulters are further proceeded against under the relevant provisions of
Foreign Trade (Development & Regulation) Act, 1992 for recovery of amount towards balance
of custom duty saved, applicable interest thereon from the date of first import till the
date of final payment and fiscal penalty for violation of the terms and conditions of the
Authorization (license).