MINUTES OF THE POLICY RELAXATION COMMITTEE (PRC) MEETING NO. 09/AM09 HELD ON 27.01.2009 AT 11.45 A.M. UNDER THE CHAIRMANSHIP OF SHRI R.S. GUJRAL, DIRECTOR GENERAL OF FOREIGN TRADE.

PRC Meeting was held under the Chairmanship of DGFT and list of officers present in the meeting is given below:

1. Shri Shyam Aggarwal Addl. DG

2. Shri V.K. Srivastava Addl. DG

3. Shri S.K. Prasad Addl. DG

4. Shri S.K.Samal Jt.DGFT

5. Shri A.K. Komu Jt. DGFT

6. Shri Satyan Sharda Jt. DGFT

7. Shri Anil Agarwal Jt.DGFT

8. Shri A.K. Singh Jt.DGFT

9. Shri Tapan Mazumder Jt.DGFT

10. Shri Akash Taneja Jt. DGFT

11. Shri A.C. Jha Dy.DGFT

After deliberation, the following decision were taken.

Case No. 1: M/s. Intas Pharmaceuticals Ltd., Ahmedabad.

File No. 01/94/180/678/AM09/PC-4

(01/60/162/160/AM09/EFGC(PRC)

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: EOP extension against advance license No. 0810028778 dt.14.5.2003 up to 31.8.2006 for regularization purpose.

The Committee noted that EO fulfilled Qty. wise in respect of advance licence No. 0810028778 dt. 14.05.2003 was to the extent of 64.89% within EOP allowed under the policy, as claimed by the firm. Further the committee noted that the proportionate balance export obligation had already been fulfilled by 31.08.2006 whereas the EO (as allowed under policy) expired in November, 2005. Therefore, Committee decided to extend the EO period upto 31.08.2006 to regularize of the balance exports already made, subject to payment of composition fee @1% per month on the duty saved amount vis-à-vis the exports made after the valid EOP and also subject to verification by RA of EO claimed to have been fulfilled by the firm within the valid EOP and outside EOP. RA shall also verify for the payment of 2% & 5% composition fee for EO extension (in terms of para 4.22 of HBP.v1) beyond 18 months of original EO.

Case No. 2: M/s. Kumar Adhesive P. Ltd., Kolkata.

File No. 01/94/180/379/AM09/PC-4

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: Revalidation against Advance License No. 0210092324 dated 7.8.2006.

The Committee noted that EO fulfilled in respect of Advance licence No. 0210092324 dt. 07.08.06 was 100% within valid EOP, as claimed by the firm. Committee therefore, decided to revalidate the aforesaid advance licence for a period of six months from the date of communication of the decision of PRC, subject to payment of composition fee @ 1% of the unutilized cif value of the licence and also subject to verification by RA of EO fulfillment status, as claimed by the firm.

Case No. 3: M/s. Intas Pharmaceuticals Ltd., Ahmedabad.

File No. 01/94/180/698/AM09/PC-4

(01/60/162/159/AM09/EFGC(PRC)

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: EOP extension against advance license No.0810048361 dated 2.6.2005 for clubbing with another license No.0810065660 dated 28.6.2007, for regularization purpose by way of relaxation of condition of Policy Circular No.9 dated 30.6.03 on import of drugs under advance license.

The Committee noted that EO fulfilled in respect of advance licence No. 0810065660 dt. 28.06.2007 is more than 100% both qty. wise and value wise (which was required for clubbing with another advance licence No. 0810048361 dt. 02.06.2005), as claimed by the firm. Therefore, Committee decided to extend the EO period against advance licence no. 0810048361 dt. 02.06.2005 till 31.10.2007 (for Shipping Bill dated 02.06.07 to be adjusted) for clubbing with another licence no. 0810065660 dt. 28.06.2007, subject to payment of composition fee @1% per month on the duty saved amount vis-à-vis the exports made after the valid EOP and also subject to verification by RA of EO claimed to have been fulfilled by the firm within the valid EOP and outside EOP.

Case No. 4: M/s. Arcata Trade Links Pvt. Ltd., Ahmedabad

File No. 01/94/180/737/AM09/PC-4

(01/60/162/45/AM09/EFGC(PRC)

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: Revalidation of advance authorization no. 0810043208 dt.01.11.04 for 6 months.

The Committee noted that EO has been fulfilled to the extent of 34.41% qty wise within the valid EOP, as claimed by the firm.However, no imports could be effected proportionate to exports. Committee therefore, decided to revalidate the aforesaid advance licence for a period of six months from the date of communication of the decision of PRC. Imports to be allowed only in proportionate to exports made, subject to payment of composition fee @ 1% of the unutilized cif value of the licence after pro-rata reduction and also subject to verification by RA of EO fulfillment status, as claimed by the firm.

Case No. 5: M/s. Dinman Polypacks Pvt. Ltd., Kolkata

File No. 01/94/180/725/AM09/PC-4

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: Revalidation of advance authorization no. 0210078078 dt.10.05.05 for 6 months.

The Committee noted that EO fulfilled in respect of Advance licence No. 0210078078 dt. 10.05.2005 was 100% within valid EOP, as claimed by the firm. Committee therefore, decided to revalidate the aforesaid advance licence for a period of six months from the date of communication of the decision of PRC, subject to payment of composition fee @ 1% of the unutilized cif value of the licence and also subject to verification by RA of EO fulfillment status, as claimed by the firm.

Case No. 6: M/s. Pratibha Packwell Pvt. Ltd., Indore

File No. 01/60/162/376/AM09/EFGC(PRC)

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: Revalidation of advance licence No. 1110013302 dated 03.05.2006.

The Committee noted that EODC has been issued in this case, as claimed by the firm. It was therefore decided to revalidate the advance licence No. 1110013302 dated 03.05.2006 for a period of six months from the date of the communication of the decision of PRC, subject to payment of composition fee @ 1% of the unutilized cif value of the licence and also subject to verification by RA of EO fulfillment status, as claimed by the firm.

Case No. 7: M/s. Elkay Telelinks Ltd., Faridabad

File No. 01/94/180/764/AM09/PC-4

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: Extension in EO period and revalidation of advance authorization no. 0510161152 dt. 01.07.05 for 6 months.

The Committee noted that export obligation fulfilled against advance licence No. 0510161152 dated 01.07.05 was to the extent of 73.81% Qty.-wise within valid EOP and imports could not be completed for some of the inputs within the import validity period. Accordingly, the Committee decided to extend EOP for a period of six months from the date of communication of the decision of PRC subject to verification by RA of EO claimed to have been fulfilled by the firm within the valid EOP and subject to the payment of composition fee @ 2% & 5% respectively for 6 months each from the original EOP of 24 months & for EO period beyond 36 months, @ 1% per month on the duty saved amount for the balance inputs. Further, the Committee decided to revalidate the aforesaid advance advance for a period of six months from the date of communication of the decision of PRC, subject to payment of composition fee @ 1% of the unutilized CIF value of the licence and also subject to verification by RA of EO fulfillment status, as claimed by the firm.

Case No. 8: M/s. Pitti Laminations Ltd., Hyderabad

File No. 01/81/162/0041/AM09/DES-II

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: Request for clarification on SION covered under C-297 (Engineering Product).

The Committee noted the request by the Norms Committee is on the issue as to whether the firm would be entitled for DFIA in case the Shipping Bills furnished by the firm contains Rotor & Stator (which on putting together constitute SAD as required under SION C-297 of Engineering Product). Since DFIA is on SION based and the inputs could be accounted for by clubbing the Shipping Bills, it could be considered as under one SION, for the purpose of DFIA as well. Accordingly, the Committee agreed for DFIA after clubbing the Shipping Bills to constitute the product as the stated SION.

Case No. 9: M/s. LMJ International Ltd., Kolkata.

File No. 01/94/180/654/AM09/PC-4

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: Extension in EOP against Advance Licence No.0210079950 dated 11.7.2005.

The Committee noted that in this case, inputs allowed for duty fee import against the advance licence No. 0210079950 dated 11.07.05 and the firm had fulfilled EO to the extent of 70% Qty. wise. (EOP as per policy), within valid EOP, as claimed by the firm. Therefore, the Committee decided to extend EOP for a period of six months from the date of communication of the decision of PRC subject to verification by RA of EO claimed to have been fulfilled by the firm within the valid EOP and subject to the payment of composition fee @ 1% per month on the duty saved amount for the balance inputs. RA shall also verify the payment of 2% & 5% composition fee for the 1st two extensions allowed under para 4.22 of HBP.V1.

Case No. 10: M/s. Premier Polyfilm Ltd., New Delhi.

File No. 01/94/180/657/AM09/PC-4

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: Revalidation of Advance Licence No. 0510175313 dated 27.1.2006.

The Committee noted that EO fulfilled in respect of Advance licence No. 0510175313 dt. 27.01.2006 was 100% both qty wise and value wise within valid EOP, as claimed by the firm. Committee therefore, decided to revalidate the aforesaid advance authorisation for a period of six months from the date of communication of the decision of PRC, subject to payment of composition fee @ 1% of the unutilized cif value of the licence and also subject to verification by RA of EO fulfillment status, as claimed by the firm.

Case No. 11: M/s. Indosol Drugs Ltd., Mumbai.

File No. 01/94/180/652/AM09/PC-4

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: Revalidation of advance licence Nos.0310219586 dt.19.8.03 (ii) 0310254875 dt.25.2.04 and (iii) 0310320444 dt.9.3.05 for clubbing with other advance licences.

The Committee noted that EO fulfilled in respect of three advance licence nos. 0310219586 dt. 19.08.03, 0310254875 dt.25.02.04 and 0310320444 dt. 09.03.05 was more than 50% both qty wise and value wise, within valid EOP, as claimed by the firm. Committee also noted that revalidation of these three advance licences had been sought for the purpose of clubbing with other advance licences and not for further imports. Committee therefore, decided to revalidate the aforesaid three advance licences for a period of six months from the date of communication of the decision of PRC, for the purpose of only clubbing with other advance licences, subject to payment of composition fee @ 1% of the unutilized cif value of the licence and also subject to verification by RA of EO fulfillment status, as claimed by the firm.

Case No. 12: M/s. Plastene India Ltd., Ahmedabad

File No. 01/94/180/659/AM09/PC-4

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: Revalidation of Advance Licence No. 3710000410 dated 8.2.2006.

The Committee noted that EO fulfilled in respect of Advance authorisation No. 3710000410 dt. 08.02.2006 was 84.08% qty wise, within valid EOP, as claimed by the firm. Committee therefore, decided to revalidate the aforesaid advance authorisation for a period of six months from the date of communication of the decision of PRC, subject to payment of composition fee @ 1% of the unutilized cif value of the licence and also subject to verification by RA of EO fulfillment status. Import entitlement shall be reduced by RA on pro-rata basis.

Case No. 13: M/s. Plastene India Ltd., Ahmedabad

File No. 01/94/180/661/AM09/PC-4

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: Revalidation of Advance Licence No. 3710000412 dated 8.2.2006.

The Committee noted that EO fulfilled in respect of Advance authorisation No. 3710000412 dt. 08.02.2006 was more than 100% both qty and value wise, within valid EOP, as claimed by the firm. Committee therefore, decided to revalidate the aforesaid advance authorisation for a period of six months from the date of communication of the decision of PRC, subject to payment of composition fee @ 1% of the unutilized cif value of the licence and also subject to verification by RA of EO fulfillment status. Import entitlement shall be reduced by RA on pro-rata basis.

Case No. 14: M/s. Indus Garments (India) P. Ltd., Bangalore.

File No. 01/94/180/691/AM09/PC-4

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: EOP extension against advance licence Nos.0710039251 dated 21.7.2005 and (ii) 0710039997 dated 31.8.2005.

The Committee noted that EO fulfilled in respect of Advance authorisation Nos. 0710039251 dt. 21.07.2005 and 0710039997 dt. 31.08.2005 was more than 50% Qty. and value wise, within valid EOP, as claimed by the firm. Therefore, the Committee decided to extend EOP, against both the aforesaid authorisations, for a period of six months from the date of communication of the decision of PRC subject to verification by RA of EO claimed to have been fulfilled by the firm within the valid EOP and subject to the payment of composition fee @ 1% per month on the duty saved amount for the balance inputs.

Case No. 15: M/s. Engser Ltd., Howrah

File No. 01/94/180/726/AM09/PC-4

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: Extension in EO period of advance licence no. 0210084529 dt. 20.12.05.

The Committee noted that EO fulfilled in respect of Advance authorisation No. 0210084529 dt. 20.12.05 was more than 50% Qty. wise, within valid EOP. Therefore, the Committee decided to extend EOP for a period of six months from the date of communication of the decision of PRC subject to verification by RA of EO claimed to have been fulfilled by the firm within the valid EOP and subject to the payment of composition fee @ 1% per month on the duty saved amount for the balance inputs.

Case No. 16: M/s. International Tractors Ltd; HOSHIARPUR

File No. 01/80/162/244/AM07/DES–I

PRC Meeting No.09/AM09 dated: 27.01.2009

Subject: Request for clubbing of Advance Licence No.3010038882 dated 01.12.2004 and Licence No.3010044631 dt. 10.11.2005 for import purpose and waive the export obligation against licence dated 10.11.2005.

The Committee noted that the firm obtained two advance licences for import of components (some components against one licence and some components against another licence) as per SION for export of 75 nos. of Tractors. But, inadvertently, two licences were obtained with the export obligation of 75 nos. of Tractors each, thus, counted twice. Keeping in view the circumstances and RA’s report, Committee decided to club Advance Licence No.3010038882 dated 01.12.2004 and Licence No.3010044631 dt. 10.11.2005 for import purpose and waive the export obligation against above Advance licence dated 10.11.05.