Direct ATF import plan sent to GoM

Mumbai: The Cabinet will soon meet to decide on allowing domestic airline companies to import aviation turbine fuel (ATF) directly, without routing it through the oil companies acting as canalising agent.
Official sources say the Directorate General of Foreign Trade (DGFT), the body for handling trade issues, has already given the in-principle approval to the proposal and sent its comments to cabinet. “The Group of ministers’ meeting to decide on this issue will be held very soon”, sources said. Thereafter, DGFT will issue a notification to this effect.
The DGFT has offered three options on this issue. First, to allow all airline companies to import ATF directly by amending the rule. Second, to allow companies on a case-to-case basis without amending the law. The second option will not be a relaxation for all airline companies across the board. Each company will have to take permission to import individually, after submitting enough justification for the action. The third option is to allow direct import of ATF without routing it through trading agents and thus abolishing the law.
The permission in the first and second option for direct import has one rider through. “The permission for direct import is only for own use of airline companies and not for selling elsewhere, even among themselves. This is called “actual user basis”. The onus of proving the end use lies on the airline companies who will be required to submit a monthly report to the regional offices of DGFT detailing their usage. Severe penalty will be imposed if there is any default amounting to a loss to the exchequer”, explained the source.
22/01/12 Anindita Dey/Business Standard

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Categories: Foreign Jan 2012, Indian Aviation- In General Jan 2012