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Sugar Development Fund (Amendment) Act, 2002.

MINISTRY OF CONSUMER AFFAIRS AND PUBLIC DISTRIBUTION

(Department of Food and Public Distribution)

NOTIFICATION

New Delhi, the 21st June, 2002

G.S.R. 442 (E).- In exercise of the powers conferred by Sub-section (2) of section 1 of the Sugar Development Fund (Amendment) Act, 2002 (30 of 2002), the Central Government hereby appoints the 21st day of June, 2002 as the date on which the said Act shall come into force.

[F.No. 1-6/99-SDF]

R.N.DAS, Jt. Secy.

NOTIFICATION

New Delhi, the 21st June, 2002

G.S.R. 443(E).- In exercise of the power conferred by Section 9 of Sugar Development Fund Act.1982 (4 of 1982), the Central Government hereby makes the following rules further to amend the Sugar Development Fund Rules,1983, namely:-

1.         (1) These rules may be called the Sugar Development Fund (Amendment) Rules, 2002.
            (2) They shall come into force on the date of their publication in the Official Gazette.

2.         In the Sugar Development Fund Rules, 1983 (hereinafter referred to as the said rules), after CHAPTER-VIII relating to Buffer Stock, the following CHAPTER-IX shall be inserted, namely:-

CHAPTER-IX

Defraying Expenditure on Internal Transport and Freight Charges to the Sugar factories on export shipments of sugar.

20. (1) The Central Government may, having regard to the stock of sugar held by the sugar factories, prospects of sugar production and requirement of sugar for consumption in the country, domestic and international prices of sugar and such other factors as may be considered necessary, and after consultation with the Committee, decide from time to time, to defray expenditure on internal transport and freight charges to sugar factories on export shipments of domestically manufactured sugar with a view to promoting its export for such period as it deems proper.

(2) Subject to the decision of the Central Government under sub-rule (1), the expenditure on internal transport and freight charges on export shipment shall be defrayed from the Fund.

(3) Any sugar factory which after obtaining release order issued under clause 5 of the Sugar (Control) Order, 1966, has transported its manufactured sugar for export shipments, and the same has been exported either by the sugar factory or through an exporter, shall be eligible to apply for reimbursement of expenditure incurred on the internal transport and freight charges on such export shipments of sugar.

Explanation I. Where a sugar factory has delivered the export consignment of sugar ex-factory to an exporter and the exporter has, after complying with the legal requirements exported the sugar, it shall be construed to be an export of sugar by that sugar factory through an exporter and that sugar factory shall be eligible for reimbursement of expenditure incurred on internal transport and freight charges on such export shipments of sugar, provided that the agreement entered into by the sugar factory with the exporter of sugar stipulates that the expenditure on internal transport and freight charges shall be borne by that sugar factory.

Explanation II. Where a sugar factory has exported sugar through an exporter, the customs attested Export Promotion (EP) copy of the Shipping Bill shall indicate the name of the exporter as well as that of the sugar factory.

Explanation III. An exporter means a person who holds an Importer-Exporter Code number allotted to him by the Director General of Foreign Trade of the Central Government.

(4) A sugar factory eligible under sub-rule (3) shall prefer a claim for reimbursement of expenditure incurred on the internal transport and freight charges on export shipments of sugar in Form VI within thirty days of the issue of Bank Certificate of Export and Realization as given in Appendix 22 of the Handbook of Procedure (Vol. I) for the period 1st April, 2002 – 31st March 2007 issued by the Central Government in the Ministry of Commerce and Industry, Department of Commerce.

Provided that if a sugar factory fails to prefer the claim within the thirty days, such sugar factory may submit the claim in another thirty days but there shall be late cut at the rate of 10% on the entitlement and no claim shall be entertained after expiry of sixty days from the issue of the said Bank Certificate.

(5) The claim referred to in sub-rule (4) shall be accompanied by the following documents failing, which the claim, in the absence of valid reason, shall to be disallowed:

(a)    a certified copy of the release order issued under clause 5 of the Sugar (Control) Order, 1966;

(b)   a certified copy of the contract entered into by the sugar factory with the exporter where the sugar factory itself is not the exporter;

(c)    a certified copy of the Application made for Removal of Excisable Goods (FORM A.R.E. 1) certifying that the consignment of sugar has been shipped of;

(d)   a certified copy of  customs attested Export Promotion (EP) copy of the Shipping Bill;

(e)    a certified copy of the Bank Certificate of Export and Realization as given in Appendix 22 of the Handbook of Procedure (Vol. I) for the period 1st April 2002 – 31st March 2007 issued by the Central Government in the Ministry of Commerce and Industry, Department of Commerce.

(f)     and a certified copy of the distance Certificate issued under in sub-rule(8) regarding the distance between the sugar factory and the loading railhead;

(g)    a certified copy of the railway freight receipt from loading railhead to railhead nearest to the port;

(h)    a certified copy of the certificate of railway freight chargeable as specified in sub-rule(9);

(i)      a certified copy of the certificate issued by the port authorities certifying the distance between the railway station nearest to the port and loading point at the port as specified in sub-rule (10);

(j)     a certified copy of the receipt and challan of the road transporter indicating the vehicle number and quantity transported where the sugar factory has transported the export consignment of sugar by road.

(6) A sugar factory shall be free to transport export consignment of sugar either by rail or road or both but the reimbursement of expenditure shall be restricted in the manner prescribed in sub-rule (7).

(7) The reimbursement of expenditure on internal transport and freight shall be restricted as under:

(i)      for the distance from sugar factory to the nearest loading railhead, the transportation rate as specified in the Sugar (Price Determination for Production) Order of the relevant sugar season.

(ii)    for the distance from loading railhead nearest to the sugar factory to the railhead nearest to the port, the railway freight by the shortest route;

(iii)   for the distance from railhead nearest to the port to the point of loading at port, the transportation rate as specified in the Sugar (Price Determination for Production) Order of the relevant sugar season;

(iv)  where a sugar factory has preferred to transport export consignments of sugar by road instead of railway, the claim for reimbursement of expenditure on internal transport and freight charges shall be restricted to the total of transportation charges and railway freight charges as specified in (I) to (iii) above or the actual transportation charges by road incurred by the sugar factory, whichever is less.

Explanation – The restriction imposed in the Sugar (Price Determination for Production) Order of any relevant sugar season, as regards the transportation charges, shall not apply for the purpose of this sub-rule and the sugar factory shall get reimbursement for the full distance between the sugar factory the nearest railhead.

(8) A sugar factory claiming reimbursement of expenditure in respect of sub-rule 7(i) above shall produce a distance certificate from the District Collector or any officer authorized by him in this behalf, of the District where the sugar factory is situated, as a proof of distance between the sugar factory and the nearest loading railhead.

(9) A sugar factory claiming reimbursement of expenditure in respect of sub-rule 7(ii) above shall produce a certificate from the concerned Railway authorities specifying the railway freight chargeable from the railhead nearest to the sugar factory to the railhead nearest to the port by the shortest route for the quantity of sugar transported.

(10) A sugar factory claiming reimbursement of expenditure in respect of 7(iii) above shall produce a distance certificate from the concerned Port authorities specifying the distance between railhead nearest to the port and the point of loading at the port

 

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