DGFT issues Re-operationalization of Scrip Transfer Recording Module [Read Circular]

The Director-General of Foreign Trade (DGFT) has issued a circular on the re-operationalization of the scrip transfer recording module.

As per the circular, additional features have been added to the Scrip Transfer Recording Module, namely;

a. Introduction of time-lag for transfer of scrip from the original scrip owner to the next transferee, i.e. the 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. the 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, the IEC holder will be able to transfer scrips only after ‘x’ number of hours of IEC modification date/time;

d. Introduction of limit on the 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:

“EXIM community is advised to follow necessary due diligence as per Trade Notice No. 26 dated 26.11.2021, ensure safe custody of their digital dongles (DSCs) and review their IEC user profile, SMS/Email communications being sent to them on a regular basis, and report any untoward incident to the concerned authorities. Trade is also required to get in touch with the concerned Certifying Agencies (CA) authorised by the 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 the cancellation of such DSC,” the circular said.

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.

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.