| The decision will greatly help exporters make it difficult for their competitors to know the names and addresses of the foreign buyers through their connections in the licensing offices. |
| The DGFT has issued Policy Circular no. 18/2006 dated September 4, 2006 conveying the above decision. |
| The decision was taken in response to representations relating to leakage of confidential information viz name and address of the foreign buyer, etc. from the export documents such as shipping bills when they are submitted to various departments as part of export/import documentation procedure. |
| The regional licensing authorities can now accept shipping bills where the name and address of the foreign buyers are so defaced, for processing under various export promotion schemes, if the applications are otherwise in order. |
| A few months earlier, the exporters had represented that while applying for Certificate of Origin (NP) to an agency listed in Appendix 4-C, they have to provide the entire details of the buyer abroad in column 2 of the certificate and only then the certificate is signed by the authorised agency. |
| By disclosing the address of the buyer abroad and the details of product being exported, the confidential and sensitive business information becomes public, claimed the exporters. |
| In response, the DGFT had allowed exporters to submit application to authorised agencies for issue of Certificate of Origin (NP), by leaving the Column No. 2 of the certificate blank and allowed this column to be filled up after the same was certified and signed by the authorised agency competent to issue such a certificate. |
| The system of defacing the names and addresses of the foreign buyers in the copies of documents is not something new. Many merchant exporters who give the supporting manufacturers copies of documents such as shipping bills or bills of lading for submission to the excise authorities have been following the practice of such defacing. |
| However, where the supporting manufacturers had to submit the original shipping bills to the licensing authorities as proof of discharge of export obligation against advance licence or for any other claims, the merchant exporters had to part with the originals without any alteration. |
| Their prayers to find a way by which the particulars of the buyers can be kept confidential have now been answered. |
| Having now taken a very sensible and practical decision to accept shipping bills where the names and addresses of the foreign buyers are defaced, the DGFT should take up the matter with the Central Board of Excise and Customs (CBEC) and ask for issue of similar instructions in regard to submission of documents as proof of exports. |
| Similar instructions are also needed from the sales tax authorities wherever exports are made by merchant exporters. They issue Form 'H' but quite often, the sales tax officials ask for supporting documents such as export invoice and raise difficulties when invoices are presented where the names and addresses of the supporting manufacturers are defaced. |
| Banks should also try to institute systems whereby the names and addresses of the foreign buyers do not leak to the competitors of the exporters. e-mail: tncr@sify.com |
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