Specimen format of LUT for DGFT

The information provided here is part of Export import business Course online


Specimen format of Legal Undertaking to be executed with DGFT

 

Specimen format of LUT for DGFTThe following specimen format can be used as reference to execute legal under taking with Director General of Foreign Trade Office.

LEGAL AGREEMENT/UNDERTAKING FORMAT

To

The President of India

(acting through the Director General of Foreign Trade (which expression shall be deemed to include the Joint Director General of Foreign Trade/Deputy Director General of Foreign Trade) Ministry of Commerce, Udyog Bhavan, New Delhi - 110 011.

This DEED of Agreement made on ________________ day of ____________ month ___________ year

BETWEEN____________________________________________________ (full expanded name of the Importer/Exporter with complete address) hereinafter referred to as the party which expression shall be deemed to include his/her heirs, successors, administrators and assignee, if the firm is Sole Propreitory firm/jointly and severely all the Partners through their legal heirs, successors, administrators, and assignee as well as the portions where body corporate or not having the control of the affairs of the said firm, if it is Partnership firm/successors in business and assignee if firm is limited company.

AND

The President of India (hereinafter referred to as the Government which expression shall include his successors in office and assigns).

WHEREAS the party has made an application bearing Reference No. ____________________ dated ___________ for a Authorisation for a value of Rs.___________ for import under the _______________________ Scheme (fill up the actual Scheme) (hereinafter referred to as 'Scheme') notified by the Government under the Foreign Trade Policy, 2015-20 as amended from time to time with an Export Obligation of Rs._______________ .

AND WHEREAS the Government may grant a Authorisation to the party for the full value applied for or for a lesser value as it may be deemed fit and as per the terms and conditions of the Scheme.

AND WHEREAS one of the terms of the Authorisation, which may be issued as above, is that the party is to enter into an agreement/undertaking with the Government on the terms and conditions appearing hereinafter.

AND WHEREAS the party has furnished a Legal Agreement in anticipation of the Government issuing Authorisation as above for an amount of the export obligation imposable as per the Scheme.

AND WHEREAS the party has agreed to perform the export obligation for the quantity and or to the extent of FOB value shown in the aforesaid application or as may be fixed by the Government in the Authorisation/ Sanction/ Approval within the stipulated period by exporting the goods as required under the Authorisation which may be issued.

 

 

 

AND WHEREAS the party has agreed:

96

a) to perform the export obligations for the quantity and or FOB value within the period specified in the aforesaid Scheme/Authorisation/Sanction/Approval;

b) to fulfill all the conditions of _______________ Scheme under which the Authorisation/Sanction/ Approval may be issued;

c) to fulfill all the terms and conditions of the Authorisation/ sanction /approval which may be issued;

d) to fulfill the conditions subject to which the goods may be cleared by the Customs authorities including conditions imposed under the relevant Customs notification pertaining to the Scheme;

e) to send a 'Statement of Exports' to the Regional Authority in original, on a monthly/quarterly/half-yearly basis, within 15 days from the end of the period;

f) to furnish from a Nationalised / Scheduled bank, in original, a Bank certificate of exports evidencing the exports/ deemed exports of goods made in fulfillment of the export obligation(s) and such other documents as may be demanded by the Regional authorities as evidence for the exports/ deemed exports made;

g) that in the event of his default in meeting the aforesaid obligations / conditions, he shall pay an amount

equal to 15% interest per annum on the amount of duty saved from the date of import of the first consignment till the date of payment.

h) that the Government may modify the Scheme from time to time.

NOW, THEREFORE THE CONDITIONS OF THE AGREEMENT ARE AS FOLLOWS:

In anticipation of granting the said Authorisation by the Government as aforesaid, the party hereby declare(s) and agree(s):

(i) That the party shall comply with all the obligations under the aforesaid Scheme specified by the Government and the conditions specified in the Authorisation/Sanction/Approval to be issued for import/

export and other conditions specified herein above.

(ii) That if the party fails to fulfil the whole or part of the obligations under the Scheme, including the terms and conditions stipulated in the Authorisation / Sanction/ Approval/ Scheme or fails to furnish any information required under the Foreign Trade (Development & Regulation) Act, 1992, or the Orders made thereunder or the Rules framed thereunder, on the written demand made by the Government of the

amount, in whole or part, the party shall forthwith without any demur or protest, pay to the Government the sum demanded.

(iii) That notwithstanding any right Government may have against the party in any form and notwithstanding any dispute raised by the party in any form, the Government's written demand to the party shall be final and binding.

(iv) That this Agreement shall continue and shall not be discharged by any change in the constitution of the party.

(v) That in the event of the non-fulfillment of export obligations mentioned in the Authorisation as aforesaid, the party shall on the instructions of the Government hand over the unutilised imported goods to any agency as the Government may nominate, for disposal in any manner. The amount so recovered by sale shall be deposited with

97

the Government towards the fulfillment of export obligations/conditions, after deducting the normal commissions and other expenses incurred by the said agency. The decision of the agency as to the said amount shall be final and binding on the party. The Bank Guarantee/ Bond executed with the Customs authorities, in such an event, shall also be forfeited.

(vi) The party undertakes to pay simultaneously a sum equivalent to the value of the Authorisation / Sanction/ Approval or to the extent of the value of the imported goods against the said Authorisation / Sanction/ Approval, whichever is higher, by way of liquidated damages to the Government. The decision

of the Government shall be final and binding on the party.

(vii) That this Agreement is executed by the party in public interest.

(viii) That the payment of the amount demanded by the government under this Agreement shall not affect

the liability of the party to any other action, including the initiation of legal proceedings for confiscation of the imported material and refusal of further Authorisations, and all other liabilities, penalties and consequences under the provisions of the Foreign Trade (Development and Regulation) Act, 1992, and the Orders and Rules made thereunder, that may be decided by the Government.

(ix) That this Agreement shall remain in full force until all the obligations of the party are fulfilled to the full and final satisfaction of the Government as specified above and till such satisfaction is communicated to the party.

(x) That the party irrevocably undertakes that in the event of his default in meeting the aforesaid export obligations / conditions, they shall pay the applicable Customs Duties, 15% interest per annum on the amount of customs duties saved from the date of import of the first consignment till the date of payment to meet the shortfall in the export obligations as may be imposed on the Authorisation/ sanction/ approval /scheme. In addition to the aforesaid the party shall also abide by the conditions imposed by the relevant Customs notification for the Scheme.

(xi) That the party irrevocably undertakes that in the event of his default in meeting the aforesaid export obligation / conditions, they shall execute a Bank Guarantee for an amount as required by the Government.

(xii) Nothing in this Agreement shall debar the Government from modifying the said Scheme from time to time and/or from implementing any such modified Scheme as if it is in force at the date of this Agreement.

IN WITNESS WHEREOF the party hereto has duly executed this Agreement on this ______________ day of ______year_______ signed, sealed and delivered by the party in the presence of:

**(Signature)_________________________

___________________________________

(full and expanded description of the party with

residential address)

Witness: _____________________

98

(Signature)

1. Name ___________________

Residential________________

Address ___________________

(Signature)

2. Name ___________________

Residential________________

Address ___________________

(To be authenticated/affirmed by 1st Class Magistrate/Notary Public)

Accepted by me on behalf of the President of India.

( )

Asstt. DGFT/ Foreign Trade Development Officer

** in the light of guidelines for execution of Legal Undertaking

 

The above information is a part of Online international business guide course

 

How to obtain a duplicate BL, if original bill of lading lost.
Why, best attention while preparing Export Invoice?
Importing procedures for Sanitary, Engines and Management ,Environment quality.
How to import Works Of Art. Collectors' Pieces, Antiques
How to import Goods under chapter 96 of HS Code
What is Test Report in Import clearance
What is Shut out in export trade
What is CT3 form. How to get CT3. Why CT3 required
What is customs bonded area in exports and imports
What is Rummaging
How does First Appraisement system of import customs clearance procedures work?
Use of ventilated containers
Difference between normal dry container and Plat form container
Import customs processes for importation of milling industry products
Importation of Cereals
Types of Export Containers
Dimension of Cargo Containers
Import documents required for Tea,Coffee,Mate and Spices
Reduction of BCD on Ships imported for breaking up, Indian Budget 2014
Reduction of import duties on LED,LCD,Television, Computer, Laptop,Tablets etc in Budget 2014
Import of milk,cheese,curd, Kephir and other milk products
Importation processes of Fish and crustaceans
How to import Meat and Edible meat offal
When can an exporter release bill of lading from shipping company?
When does exporter get EP copy of shipping bill after customs clearance
How does CFR term of delivery work in Export Import business
How does comprehensive policy of ECGC work for exporters?
The term FCL. What is FCL means
How to differentiate CPT and DAP in shipping terms
How to divert cargo from one port to another?
How transshipment bill of lading works?
Import customs clearance procedures
Use of Hard top Container

 

 



Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers