Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi -110 011
Public Notice No. 14 /2009-2014 (RE- 2010)
The 2nd November, 2010
Subject: Amendment in paragraph 4.21 and 4.23 on enhancement in CIF / FOB values
and revalidation of advance authorisations.
In exercise of the powers conferred under Paragraph 2.4 of the Foreign Trade
Policy, 2009-14, the following amendments are being made in the Handbook of
Procedures, Vol. 1, 2009-2014(RE 2010).
1. Amendment of second sub-paragraph of paragraph 4.21 of HBP, Vol. 1:
Existing sub-paragraph:
However, in case of advance authorisations issued prior to 27.8.09 under the
FTP, 2004-09, the following conditions shall apply for any enhancement in the
value of the authorisation:
- Wherever, exports are subsequent to 27.8.09, enhancement in CIF/FOB values
shall be subject to a minimum value addition (VA) of 15% for that component of
exports.
- Wherever, the exports are prior to 27.8.09, enhancement of CIF/ FOB value
shall be subject to a minimum Value addition of 15% or the V.A. declared in the
original Advance Authorization application, whichever is lower.
Amended sub-paragraph:
“However, in case of advance authorisation(s) issued prior to 27.8.2009 under
the FTP, 2004-09, the following conditions shall apply for any enhancement in
the value of the authorisation:
- Wherever exports are on or subsequent to 27.8.09, enhancement in CIF / FOB
values shall be subject to a minimum value addition (VA) of 15% or the value
addition prescribed in Appendix 11B, whichever is lower, for that component of
exports.
- Wherever exports are prior to 27.8.09, enhancement in CIF / FOB values
shall be subject to a minimum value addition (VA) of 15% or the value addition
prescribed in Appendix 11B, or the VA declared in the original advance authorisation application, whichever is lower.”
Effect of this amendment:
- Ambiguity in treating exports made on 27.8.2009 has been removed.
- Value addition as prescribed in Appendix 11B has also been included both in
part (i) and (ii) of this sub-para.
2. Amendment of second sub-paragraph of paragraph 4.23 of HBP v1 stands replaced
by the following:
Existing sub-paragraph:
In case of revalidation of advance authorization issued prior to 27.8.2009, it
should be ensured that value addition is maintained at 15% (and as per details
mentioned in para 4.1.6 of FTP) or as stipulated in the advance authorization,
whichever is higher.
Amended sub-paragraph:
“In case of revalidation of advance authorization issued prior to 27.8.2009, it
should be ensured that value addition (VA) is maintained at 15% (and as per
details mentioned in para 4.1.6 of FTP) or as stipulated in the advance
authorization, whichever is higher. However, for advance authorisations for
products with VA as per Appendix 11B, the Value addition shall be as per the VA
stated in Appendix 11B or as stated in Advance Authorisation, whichever is
higher.”
Effect of this amendment: It incorporates the Value Addition of a specific
product as stated in Appendix 11B. There is no other change.
Sd/-
(Anup K. Pujari)
Director General of Foreign Trade
E-mail: [email protected]
(F. No. 01/94/180/Value addition/AA /AM11/PC-4)