Re-operationalisation of Scrip Transfer Recording Module

To: Members of the Council   

Sub:  Re-operationalisation of Scrip Transfer Recording Module 

Dear Member,       

This is to inform you that O/o DGFT has issued Trade Notice No. 01/2022-23 dated 11^th April, 2022 on the above subject. 

On receiving certain information from exporters about the fraudulent scrip transfers taking place, the Online scrip transfer recording module was suspended. Thereafter, based on inputs/discussions with Dept. of Revenue and in the interest of trade facilitation, DGFT has decided to re-operationalise the IT module with additional features/limitations. 

Members please make a note of the additional features added in the Scrip Transfer Recording Module – 

a)  Introduction of time-lag for transfer of scrip from the original scrip owner to the next transferee, 

      i.e. original owner of the scrip (A) will not be able to transfer the scrip to another entity (B) on an immediate basis and will be able to do that after ‘n’ number of days from the scrip issue date;  

b)  Introduction of time-lag for scrip transfer from one entity to another,                           i.e. next scrip transfer from entity B to entity C can take place after ‘x’ number of hours of the last transfer; 

c)  Introduction of time-lag for transfer of scrip subsequent to IEC Modification,                  i.e. once IEC has been modified in the IT database, IEC holder will be able to transfer scrips only after ‘x’ number of hours of IEC modification date/time;  
 

d) Introduction of limit on number of scrip transfers which can be initiated for transfer or accepted by each IEC per day,                                                                                                i.e. ‘y’ number of scrips can only be initiated for transfer or transfer accepted by each IEC per day;   
 

e) Email and SMS notifications to IEC holder and Directors/Partners attached to IEC on the following trigger points: 

1) Transfer of Scrips,  

2) Modification of IEC- Change in email / mobile for correspondence and changes in  

    director / partner section,   

3) Linking of Users to IEC 

f)   Automatic de-linking of Users from IEC every 6 months;   

     g)   Automatic de-linking of Digital Signature and Aadhaar Registration every 90 days;   

Following has been advised by the DGFT to the EXIM community-   

• To follow necessary due diligence as per Trade Notice No. 26 dated 26^th November, 2021,  
• Ensure safe custody of their digital dongles (DSCs), 
• Review their IEC user profile, SMS/Email communications being sent to them on a regular basis  
• Report any untoward incident to the concerned authorities.  
• Get in touch with the concerned Certifying Agencies (CA) authorised by Controller of Certifying Authority (CCA) under the IT Act if any unauthorised issuance/usage of DSC in your name is noticed for corrective actions including cancellation of such DSC. 

Please note that the original duty scrip holder is required to register the duty credit scrip at the Port of Registration with Customs and the ‘transfer’ of scrips from one IEC to another IEC will be as per the negotiated terms & conditions between the buyer and the seller.  

DGFT/Customs shall not be responsible for any lapse between the transferor or the transferee (old or new owner of the scrips) or any dispute in this regard. 

Members may kindly make a note of the above.  

Thanking you,                

Yours faithfully,                 

S. BALARAJU           

EXECUTIVE DIRECTOR