Request for closure of Advance Authorisation licenses issued as per para 4.16 (a) of FTP, pending for want of payment to be received from Foreign Currency Account - SEZ - F. No. 01/94/180/80/AM14/PC4/294

F. No. 01/94/180/80/AM14/PC4/294 GOVERNMENT OF INDIA MINISTRY OF COMMERCE INDUSTRY DIRECTORATE GENERAL OF FOREIGN TRADE POLICY SECTION 4, ROOM NO. 210 UDYOG BHAVAN, NEW DELHI 110011 Dated 15.07.15 OFFICE MEMORANDUM Subject : Request for closure of Advance Authorisation licenses issued as per para 4.16 (a) of FTP, pending for want of payment to be received from Foreign Currency Account The undersigned is directed to say that a number of representations from exporters were received where they had supplied export products to SE units under Advance Authorisation but the SEZ units made payments to these exporters from the account other than Foreign Currency Account, as required under Rule 30(8) of SEZ Rules (copies enclosed). Hence, requests for closure/redemption of the Advance Authorisation holders were held up due to the reason that payments received by the Authorisation holders are not form Foreign Currency Account (FCA) of SEZ Units. 2. The issue had been discussed in the Senior officers meeting in this Directorate, when JS(GM), Department of Commerce was also present. Extracts from nothings of the concerned file in this regard is enclosed. 3. in pursuance of the decision taken in SOM, SEZ Division of Department of Commerce is requested to instruct all concerned SEZ units that as per Rule 30(8) of SEZ , that the unit were required to make payments from their FCA, in cases of supplies received by them towards fulfilment of export obligation against the Advance Authorisation of the DTA supplier. Therefore, all Development Commissioners may be directed to advise concerned SEZ Units to make payment from their FCA to the suppliers in respect of such cases, failing which they would be liable for action under FT (DR) Act, 1992 . 4. This issues with the approval of Competent Authority. (S. Latha) Dy. Director General of Foreign Trade Tel : 23061562/Ext. 395 E. Mail latha.s@nic.in Department of Commerce (Kind Attn: Dr. Guruprasad Mohapatra, Joint Secretary) SEZ Division Udyog Bhawan New Delhi