The DGFT was informed by exporters that certain fraudulent scrip transfers have occurred. The online scrip transfer recording module was suspended.

Based on inputs/discussions with the Department of Revenue and in the interest of trade facilitation, the DGFT has decided to re-operationalise the IT module that was implemented via Trade Notice No. 42 dated January11, 2019 and Trade Notice No. 03 dated April03, 2019 with additional features/limitations.

Several new features have been introduced to the Scrip Transfer Recording Module.

To begin, a time lag is introduced for the transfer of scrip from the initial scrip owner to the next transferee, i.e. the original owner of the scrip will not be allowed to transfer the scrip to another entity immediately and will be able to do so after "n" number of days from the scrip issue date.

Secondly, the addition of a time lag for scrip transfers from one entity to another, i.e., the next scrip transfer from entity B to entity C can occur after 'x' number of hours after the previous transfer.

Thirdly, the introduction of a time-lag for the transfer of scrip subsequent to IEC Modification, i.e., once an IEC has been modified in the IT database, the IEC holder will be able to transfer scrips only after "x" number of hours of the IEC modification date and time.

Fourthly, the introduction of a 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 accepted by each IEC per day.

Fifthly, email and SMS notifications to IEC holder and Directors/Partners attached to IEC on the trigger points, namely transfer of scrips, modification of IEC- Change in email/mobile for correspondence and changes in director/partner section, and linking of users to IEC.

Sixthly, automatic de-linking of users from IEC every 6 months;

Seventh, every 90 days, the digital signature and Aadhaar Registration are automatically de-linked.

Lastly, certain IECs which have been 'flagged' in the IT database based on certain rules like the same mobile number linked to more than three (3) IECS, PAN mis-match, director/partner name mis-match, etc., will not be allowed to use the Scrip Transfer Recording Module until this flag is suitably rectified by the IEC holder.

The DGFT has advised the EXIM community to follow necessary due diligence as per Trade Notice No. 26 dated November 26, 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 cancellation of such DSC.

"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," the DGFT said.

Trade Notice No. 01/2022-23

Dated: 11.04.2022

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