Traders must furnish all information called for by authorities: Expert

Q. We are a research institute promoted by Government of India. Our affairs are managed by a Governing Council, whose members are appointed by GOI. Our director is also appointed by government and he is authorised to act on behalf of the institute. We are now trying to modify our Importer Exporter Code (IEC) and we have now been asked to furnish details regarding our Governing Council members (23 council members), as their names have to be displayed in IEC. Is this a mandatory requirement?  Can we get a waiver of this condition? Currently, the only name disclosed in IEC is that of the director of the institute.
 

Para 9.04 of HBP says, “Every importer/exporter shall furnish such information within the stipulated time as may be called for by DGFT or any officer duly authorised. Failure to furnish the requisite information within the stipulated time shall warrant Penal action as laid down in the FTP or as per the FT (D&R) Rules, 1993.” So, you have to furnish the information called for. 

Q. Can we count exports under free shipping bills in discharge of export obligation (EO) against EPCG authorisations? If so, why does the last sentence of CA certificate at S.No.III in Appendix-5C call for a certification that the shipping bills mentioned in the Affidavit are not third party shipping bills/free shipping bills?
 

Free shipping bills as well as third party exports can be counted towards discharge of EO against EPCG authorisations. DGFT Policy Circular no. 7/2002-07 dated July 11, 2002, prescribing the procedure for condonation of procedural lapse of not mentioning the EPCG licence number and date on the shipping bills relating to exports effected towards fulfillment of EO called for an affidavit in case of direct exports as well as third party exports. So, it is difficult to understand the restriction placed through the CA certificate as pointed out by you. I think you should bring the matter to the attention of DGFT. 

Q. Our buyer in USA, who has placed the order and will send us payment, wants us to send the goods to a named consignee in Mexico through courier. Can we do so?
 

Yes. The practice of a buyer in one country asking the seller to deliver the goods to a consignee in another country is not uncommon. 

Q. We are utilising only 13 per cent of installed capacity in our SEZ unit. We have achieved the stipulated NFE. Now, we have job-work order from DTA units (not EOU) that can help better utilisation of capacity. Can we get permission?
 

Yes, as per Rule 43 of the SEZ Rules, 2006; but the finished goods must be exported directly from the SEZ. The export document must be jointly in the name of the DTA exporter and the SEZ unit. The DTA exporter shall be eligible for refund of duty paid on the inputs by way of brand rate of duty drawback. All the raw material including semi-finished goods, consumables and fuel must be supplied by the DTA unit.