Circular No.ES/124/2016-17 September 28, 2016
To: Members of the Council
Sub: Guidelines for Issuance of Duty Credit Scrips under Incremental Export
Incentivisation Scheme (IEIS)
Dear Member,
As you are aware, the Incremental Export Incentivisation Scheme (IEIS) for Quarterly basis (01.01.2013 to 31.03.2013) was introduced vide Notification No.27 dated 28.12.2012. Under this scheme, an IEC holder was entitled for duty credit scrip @ 2% on the incremental growth during the period 01.01.2013 to 31.03.2013 compared to the period from 01.01.2012 to 31.03.2012 on the FOB value of export subject to conditions prescribed therein.
In pursuance of the Trade Notice No.4 dated 05.05.2016, changes in entitlement in the online system for the IEIS Quarterly cases has been incorporated and list of such cases where Supplementary Scrip is to be issued is made available in the Online Application Menu of the Quarterly IEIS Scheme.
All the concerned RAs now have facility to re-open the files in such cases for issue of the balance claim pending after deducting the initial Scrip value and process such cases for issuance of Scrips for the balance entitlement after ensuring due diligence as indicated in the Trade Notice 4/2016 dated 05.05.2016 and earlier instructions on scrutiny of claims.
DGFT has instructed the Regional Authorities (RAs) to carry due diligence while processing such claims by following guidelines of greater scrutiny as prescribed in Public Notice No. 28 dated 25.09.2013 to check claims having high growth percentage and/or value and against irregularities if any. Where the export growth or total claim under the Scheme is excessive and out of trend, RA would check claims in detail, including where necessary by seeking help from Customs, DRI etc. In this regard Notification No.27 dated 28.12.2012 may also be carefully seen, in addition to other relevant FTP/HBP provisions, Inter alia, transfer of export performance from any other IEC holder is not permitted under the scheme as per Para 3.14.4 (d) of FTP 2009-14. Similarly disclaimer provision of Para 3.17.10(b) of FTP 2009-14 is also not admissible as per Para 3.14.4(e) of FTP 2009-14. Therefore, applicants who have purchased goods from another legal entity who is also having IEC are not entitled for benefit under the Scheme on such purchases of goods. More generally, no right is vested in cases where irregularities have been resorted to by applicants.
Further the RAs are also informed that applicant firms who have given reduced export performance details once at any time will not be given any benefit of re-applying with changed export performance.
For latest update and guidelines on the IEIS you may download DGFT Trade Notice No. 16/2016 dated September 14 2016.
Thanking you,
V.ANIL KUMAR
EXECUTIVE DIRECTOR
