04-02-2007, 01:53 AM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Dal scam: Plot left escape route for swindlers </b>
Pioneer.com
Navin Upadhyay | New Delh
Commerce Ministry amended vital provision after eight months of ban
The genesis of the multi-crore dal scam that has created a political upheaval within the UPA Government goes back to the undue concessions given to exporters under Foreign Trade Policy (2004-2009).
<b>Clause 1.5 of the Foreign Trade Policy (2004-09) says that "In case an export or import that is permitted freely under this policy is subsequently subjected to any restriction or regulation, such export or import will ordinarily be permitted notwithstanding such restriction or regulation, unless otherwise stipulated, provided that the shipment of the export or import is made within the original validity of an irrevocable Letter of Credit established before the date of imposition of such restriction."Â </b>Â <!--emo&
--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->
In simpler terms, it means that even after the imposition of a ban, export of goods contracted under a predated LC would be permitted.
While banning the export of pulses from June 22 onwards, the Commerce Ministry did not take any step to keep in abeyance this provision, which allowed exporters to flout the ban. They opened backdated Letters of Credit after June 22 when the ban was imposed and cited the FTP provision to ship out Rs 250 crore worth of pulses.
After allowing exporters opportunity to take advantage of the FTP provision, the DGFT issued a notification No. 53 (RE-06)/2004-2009 dated March 3, 2007 amending the July 4, 2006 export ban notice.
The notification said that, "The transitional arrangements under para 1.5 of the Foreign Trade Policy, 2004-2009, as amended from time to time, shall not be applicable to export of pulses."
The DGFT said that amendments were introduced in public interest. However, it is baffling why the Commerce Ministry took eight months to realise that steep hike in pulse prices had created an uproar among the 'public'.
Sources say that one of the crucial aspects before the CBI, which is probing the dal scam, will be to look into the Commerce Ministry's failure to revoke the FTP Clause 1.5 at the time of the ban.
<b>"There seems to be a clear design in letting the exporters flout the ban. Such policy loopholes could only have been allowed by very senior high-ups or political decision-makers,"</b> said a senior official.
Incidentally, while the Cabinet Committee of Prices announced a blanket ban on pulses export on June 22, 2006, in another meeting of the CCP held on July 4, 2006, it was decided that export of pulses, contracted/LC opened between June 22 and June 27 will not be permitted by DGFT. Consequently, the DGFT issued the following notification on July 4:
"Further, the transitional arrangements notified under para 1.5 of the Foreign Trade Policy, 2006 shall not be applicable for export of pulses against irrevocable Letters of Credit opened on or after June 22 as the decision of the Government prohibiting the export of pulses was announced and got widely publicised on 22.6.2006 in the electronic and print media."
Clearly, while the Commerce Ministry was empowered not to allow export of pulses even contracted before June 22, 2006, it chose to look the other way.Â
<!--QuoteEnd--><!--QuoteEEnd-->
One should salute Babus of commerce Ministry, these crooks can beats anyone in corruption.
Pioneer.com
Navin Upadhyay | New Delh
Commerce Ministry amended vital provision after eight months of ban
The genesis of the multi-crore dal scam that has created a political upheaval within the UPA Government goes back to the undue concessions given to exporters under Foreign Trade Policy (2004-2009).
<b>Clause 1.5 of the Foreign Trade Policy (2004-09) says that "In case an export or import that is permitted freely under this policy is subsequently subjected to any restriction or regulation, such export or import will ordinarily be permitted notwithstanding such restriction or regulation, unless otherwise stipulated, provided that the shipment of the export or import is made within the original validity of an irrevocable Letter of Credit established before the date of imposition of such restriction."Â </b>Â <!--emo&
--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo--> In simpler terms, it means that even after the imposition of a ban, export of goods contracted under a predated LC would be permitted.
While banning the export of pulses from June 22 onwards, the Commerce Ministry did not take any step to keep in abeyance this provision, which allowed exporters to flout the ban. They opened backdated Letters of Credit after June 22 when the ban was imposed and cited the FTP provision to ship out Rs 250 crore worth of pulses.
After allowing exporters opportunity to take advantage of the FTP provision, the DGFT issued a notification No. 53 (RE-06)/2004-2009 dated March 3, 2007 amending the July 4, 2006 export ban notice.
The notification said that, "The transitional arrangements under para 1.5 of the Foreign Trade Policy, 2004-2009, as amended from time to time, shall not be applicable to export of pulses."
The DGFT said that amendments were introduced in public interest. However, it is baffling why the Commerce Ministry took eight months to realise that steep hike in pulse prices had created an uproar among the 'public'.
Sources say that one of the crucial aspects before the CBI, which is probing the dal scam, will be to look into the Commerce Ministry's failure to revoke the FTP Clause 1.5 at the time of the ban.
<b>"There seems to be a clear design in letting the exporters flout the ban. Such policy loopholes could only have been allowed by very senior high-ups or political decision-makers,"</b> said a senior official.
Incidentally, while the Cabinet Committee of Prices announced a blanket ban on pulses export on June 22, 2006, in another meeting of the CCP held on July 4, 2006, it was decided that export of pulses, contracted/LC opened between June 22 and June 27 will not be permitted by DGFT. Consequently, the DGFT issued the following notification on July 4:
"Further, the transitional arrangements notified under para 1.5 of the Foreign Trade Policy, 2006 shall not be applicable for export of pulses against irrevocable Letters of Credit opened on or after June 22 as the decision of the Government prohibiting the export of pulses was announced and got widely publicised on 22.6.2006 in the electronic and print media."
Clearly, while the Commerce Ministry was empowered not to allow export of pulses even contracted before June 22, 2006, it chose to look the other way.Â
<!--QuoteEnd--><!--QuoteEEnd-->
One should salute Babus of commerce Ministry, these crooks can beats anyone in corruption.