Executive Summary:
This public notice from the Ministry of Commerce and Industry, Directorate General of Foreign Trade, introduces a procedure for processing export claims where exporters receive payment through insurance agencies rather than banks. Effective January 8, 2014, it amends the Handbook of Procedures Vol. I, 2009-14, by adding new sub-paragraphs under paragraph 2.25.2, which outlines the process regional authorities (RA) must follow.
Key Points / Main Content:
* **Amendment to Handbook of Procedures:**
* Paragraph 2.25.2 of the Handbook of Procedures Vol. I (2009-14) is amended with immediate effect.
* Two new sub-paragraphs, 2252(a) are added.
* **Processing Claims via Insurance Agencies:**
* Applicants realizing export proceeds through insurance agencies must approach the concerned RA with proof of payment issued by the insurance agency.
* The RA will verify the claim's authenticity and obtain approval from Additional DGFT EDI.
* The RA will then upload the value in lieu of eBRC value in the EDI system of DGFT for processing the case.
* **Foreign Exchange and INR Conversion:**
* If the proof of payment mentions the claim value in both foreign exchange and INR, the RA will use the foreign exchange value for processing.
* If the claim value is mentioned only in equivalent INR, the RA will convert the INR value to equivalent US dollars using the exchange rate published by CBEC applicable on the date of settlement.
Impact Analysis:
**Exporters:**
* Impact: Establishes a procedure for processing claims when export payments are received through insurance agencies instead of banks, providing a route to realize export proceeds.
* Action Required: Approach the concerned RA with proof of payment issued by the insurance agency.
**Regional Authorities (RA):**
* Impact: RAs are now responsible for processing claims related to export proceeds realized through insurance agencies, including verifying claim authenticity and managing currency conversions.
* Action Required: Implement the new procedure outlined in the amended handbook, including obtaining approval from Additional DGFT EDI and managing currency conversions as specified.
Key Entities Referenced
Ministry of Commerce and Industry: The Indian government ministry responsible for international trade and commerce.
Department of Commerce: A department within the Ministry of Commerce and Industry.
Directorate General of Foreign Trade (DGFT): The agency of the Indian government responsible for implementing the Foreign Trade Policy.
Foreign Trade Policy, 2009-14: The prevailing Foreign Trade Policy at the time of the notification.
Handbook of Procedures Vol. I 2009-14: A document providing detailed procedures related to the Foreign Trade Policy 2009-14.
New Delhi: The location where the notification was issued, New Delhi, Delhi
Anup K. Pujari: The Director General of Foreign Trade at the time of the notification.
CBEC: Central Board of Excise and Customs (now renamed as Central Board of Indirect Taxes and Customs (CBIC)), the nodal national agency responsible for administering Customs, GST, Central Excise, Service Tax & Narcotics in India.
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EXTRAORDINARY
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PART I—Section 1
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ls fuEufyf[kr la'kks/u djrs gSa % MINISTRY OF COMMERCE AND INDUSTRY
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(DIRECTORATE GENERAL OF FOREIGN TRADE)
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PUBLIC NOTICE
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New Delhi, the 8th January, 2014
^^2-25-2(d) ,d vkosnd tks chek ,tsalh ds ekè;e ls fu;kZr No. 47 (RE-2013)/ 2009-2014
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Subject :Processing of claims where an exporter gets
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of the powers conferred under Paragraph 2.4 of the
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Foreign Trade Policy, 2009-14, the Director General of
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Foreign Trade hereby makes the following amendment in
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paragraph 2.25.2 of the Handbook of Procedures (Vol. I)
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94 GI/2014 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]
2. After para 2-25-2 of HBP (Vol.I) two new (b) If the proof of payment issued by the
sub-para 2-25-2(a) & (b) are being added. The new Paras Insurance Agency mentions claim value both
in foreign exchange and INR, RA will use the
shall read as under :
foreign exchange value for processing. If the
‘‘2-25-2 (a) An applicant realizing export proceeds through claim value is mentioned only in equivalent INR,
RA will convert this INR value in equivalent
Insurance Agency will approach the concerned
US$ using the exchange rate (published by
RA with the proof of payment issued by the
CBEC) applicable on the date of settlement of
concerned Insurance Agency. RA after
insurance claim”.
satisfying itself of the bona fide of the claim will
Effect of this Public Notice: A procedure for
obtain approval of Additional DGFT (EDI) and
processing of claims in respect of realization of export
then will upload the valure (in lieu of eBRC
proceeds through insurance agency is being introduced.
value) in EDI system of DGFT for processing of
the case.
ANUP K. PUJARI, Director General of Foreign Trade
Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.