TMI BlogLEGAL AGREEMENT/UNDERTAKING FORMAT FOR DEPB SCHEME AND FREELY TRANSFERABLE INCENTIVE SCHEMES OF CHAPTER 3X X X X Extracts X X X X X X X X Extracts X X X X ..... tions where body corporate or not having the control of the affairs of the said firm, if it is Partnership firm/successors in business and assignee, if firm is limited company. AND The President of India (hereinafter referred to as the Government which expression shall include his successors in office and assigns). WHEREAS the party desires to apply for scrip(s) (herein after referred to as scrip(s) for import of goods allowed under the Scheme) on fulfilling the terms and condition of the Scheme, which inter-alia stipulates production of a Legal Undertaking (herein after referred to as LUT ) in case the party applies for the scrip(s) without submission of the Bank Realisation Certificate or other documents evidencing realisation of export proceeds as required under the _____ Scheme (Fill up the actual specific Scheme*) (herein after referred to as Scheme ) notified by the Government under the Foreign Trade Policy, 2009-14, as amended from time to time, with an obligation to realize the export proceeds (FOB value of exports based on which duty credit shall be allowed under the Scheme) within the time period endorsed on the scrip(s). AND WHEREAS the Government may g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay an amount equal to the duty credit issued. If the party does not pay the amount within 60 days of the expiry of 12 months time period from the date of issue of the scrip, the party shall be required to pay the said amount alongwith 15% interest per annum from the date of issuance of Scrip(s) for the duty credit for which BRC or Documentary evidence (evidencing realisation of export proceeds), as required under FTP or Procedure laid thereunder, could not be produced by the party. In case the party surrenders the unutilized/partially unutilized Duty Credit Scrip, then unutilized/partially unutilized credit shall be deducted from the payable amount. g) that the Government may modify the Scheme from time to time. NOW, THEREFORE THE CONDITIONS OF THE AGREEMENT ARE AS FOLLOWS: In anticipation of granting the said Scrip(s) by the Government as aforesaid, the party hereby declare(s) and agree(s): (i) That the party shall comply with all the obligations under the aforesaid Scheme specified by the Government and the conditions specified in the Scrip(s) to be issued for import and other conditions specified herein above. (ii) That if the party fails to realise the whole o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15% interest per annum from the date of issuance of Scrip(s) for the duty credit for which BRC or Documentary evidence (evidencing realisation of export proceeds), as required under FTP or Procedure laid thereunder, could not be produced by the party. In case the party surrenders the unutilized / partially unutilized Duty Credit Scrip, then unutilized / partially unutilized credit shall be deducted from the payable amount. (x) That the party shall also abide by the conditions imposed by the relevant Customs notification for the Scheme in addition to the aforesaid conditions. (xi) That the party unconditionally and irrevocably undertakes that in the event of his default in meeting the aforesaid condition of export proceeds realisation, they shall execute a Bank Guarantee for an amount as required by the Government. (xii) The party further agrees with the Government that the Government shall have the fullest liberty without any consent of the party and without effecting in any manner the obligations of the party hereunder: (a) to vary any of the terms and conditions of the scrip(s) and modify the said scheme from time to time or (b) to extend time of performance by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of the Govt. as per policy and till such written consent is communicated to the party. ] NOTE FOR GUIDANCE IN THE MATTER OF EXECUTING BANK GUARANTEE (BG) / LEGAL AGREEMENT(LUT) 1. The Bank Guarantee /Legal Agreement is to be executed and signed by the importer/exporter (party) and the surety Bank (Guarantor) on a non-judicial stamp paper of the minimum value of ₹ 15/-, or any amount as may be prescribed by the concerned State Government under the Indian Stamp Act, 1899 or State Act, as the case may be. 2. Any stamp duty payable on the B.G./LUT or any document executed thereunder shall be borne by the party. 3. If the party is a sole proprietary firm, the Bond/Legal Agreement shall be executed by the Sole Proprietor of the firm, along with his permanent and complete residential address. In such a case, the expression Importer/Exporter or Party used in the opening paragraph of the Legal Agreement should include his/her heirs, successors, administrators and assignee . 4. If the party is a partnership firm, the B.G./LUT shall be executed in the name of the partnership firm, through the partners to be specified, or the Managing partner, if so spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be utilized for BG/LUT to be filed in another RA for different application. The revolving BG / LUT shall remain valid till all the obligations of the party are fulfilled to the 'Full' and 'Final' satisfaction of the Govt. as per policy and till such written consent is communicated to the party or the Guarantor, as the case may be. ] -------------------------------- Notes:- 1. Substituted vide Public Notice No. 8/(RE: 2010)/2009-2014, Dated 06/09/2010 , before it was read as:- ** The LUT shall be valid for a time period of 24 months from the date of export (Let Export Order Date). In case of a number of S/Bs filed against one application either for DEPB or for any specific freely transferable Incentive Schemes under Chapter 3 of FTP, 24 months time period shall be from the LEO date of latest S/Bs. 2. Substituted vide Public Notice No. 8/(RE: 2010)/2009-2014, Dated 06/09/2010 , before it was read as:- Applicant shall have the option to file BG/ LUT against each application or a Revolving BG / LUT. Such a revolving BG / LUT shall be valid at least for a period as stated in the guidelines issued for the purpose. Furt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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