Central Government: The central government has taken strict steps to ban the export of wheat. The commerce ministry on Monday tightened the rules for obtaining registration certificate for wheat export. The move is aimed at curbing fraudulent activities by erring traders through false documents.
The Directorate General of Foreign Trade (DGFT) issued all its guidelines on May 19, asking eligible exporters to strictly follow the rules before issuing the registration certificate. The DGFT had received information from sources that some exporters were fraudulently submitting letters of credit with a date dated May 13, 2022 or earlier for the issuance of registration certificate.
DGFT said this thing
After the information received from the sources, DGFT issued the guidelines. Exporters have to submit the LC issued on or before May 13, the date of exchange of messages with foreign banks, for obtaining RC for export. The government is allowing export of wheat in cases for which letters of credit (LoCs) were issued on or before May 13. The export of food grains was banned on 13 May.
According to a DGFT notice, despite these steps and due process of investigation by the regional authorities, it is feared that some exporters are applying for certificate of registration on the basis of ‘inappropriate documents’. In such a situation, further investigation is needed in the system. It said, “In order to remove the shortcomings, it has been decided that the regional authorities will verify all the letters of credit. Whether it has been approved or is under process. For this, if needed, the help of a professional agency can be taken.