| Policy | 4.1 | Policy relating to Duty Exemption / Remission Scheme is prescribed in Chapter 4 of FTP. |
| General Provision | 4.2 | An application for grant of an Advance Authorisation / Advance Authorisation for Annual Requirement / DEPB / DFIA may be made by Registered office or Head office or a branch office or manufacturing unit of eligible exporter, to RA concerned. |
| 4.3 | Where applicant is branch office or manufacturing unit(s) of an exporter, it shall furnish self certified copy of valid RCMC where name of branch office or manufacturing unit is given. |
| Advance Authorisation | 4.4 | Where SION have been published, an application in ANF 4A, along with documents prescribed therein, shall be submitted to RA concerned. |
| 4.4.1 | In case of export of gold / silver / platinum jewellery and articles thereof, quantity, wastage and value addition norms shall be as prescribed in paragraph 4A of FTP and HBP v1. |
| 4.4.2 | In case where norms have not been published, an application in ANF 4B, along with prescribed documents, shall be furnished to concerned Norms Committee (NC) at DGFT Headquarter for fixation of Norms.
In such cases, original copy of application along with prescribed fee shall be filed with RA concerned and a self attested copy of same shall be filed with NC. Authorisation in such cases shall be issued by RA as NC recommends.
NC shall also function as a recommendatory authority for SION. DGFT may notify such norms. |
| 4.4.3 | Applications, where Acetic Anhydride, Ephedrine and Pseudo- ephedrine is required as an input for import, shall be filed with RA concerned.
Copies of such applications shall also be simultaneously endorsed to the Drug Controller of India, Nirman Bhawan, New Delhi, Narcotics Commissioner, Central Bureau of Narcotics, Gwalior and respective Zonal Director of Narcotics Control Bureau, alongwith a declaration that applicant will maintain prescribed records and also submit prescribed returns. |
| 4.4.4 | RA, while issuing Advance Authorisation for import of Acetic Anhydride, Ephedrine and Pseudo- ephedrine, shall endorse a condition that before effecting imports, NOC shall be obtained from Narcotics Commissioner of India, Central Bureau of Narcotics, Gwalior and shall also endorse a copy of Authorisation to Drug Controller, Nirman Bhawan, New Delhi and concerned Zonal Director of Narcotics Control Bureau. |
| 4.4.5 | Deleted |
| Advance Authorisation for applicants with multiple units | 4.5 | Transfer of any duty free material imported or procured against Advance Authorisation from one unit of company to another for manufacturing purpose shall be done with prior intimation to jurisdictional Excise Authorities with a clear understanding that no benefit of CENVAT shall be claimed on such transferred inputs. In case of non-excisable company / products, units should maintain a proper record. However to avail facility, all such units should be available in IEC certificate and follow rules and regulation of Central Excise for job work. Large Taxpayer Units
(LTUs) having multiple units, may not follow above job work procedure, after fulfillment of EO. |
| Advance Authorisation for Free of Cost and Paid Material | 4.6 | For policy in paragraph 4.1.8, a specific endorsement shall be made on exchange control copy of Advance Authorisation disallowing remittances for material being supplied free of cost. All inputs imported shall be utilised in manufacturing of product except wastage. |
| Self Declared Authorisations where SION does not exist | 4.7 | RA may also issue Advance Authorisations, where SIONs are not fixed, based on self declaration and an undertaking by applicant for a final adjustment as per Adhoc / SION fixed byNC.
However, no Advance Authorisation shall be issued under this paragraph for import of following products:- - All vegetable / edible oils classified under Chapter - 15 and all types of oilseeds classified under Chapter - 12 of ITC (HS) book;
- All types of cereals classified under Chapter – 10 of ITC (HS) book;
- All spices other than light black pepper (light berries) having a duty of more than 30%, classified under Chapter- 9 and 12 of ITC (HS) book;
- All types of fruits/vegetables having a duty of more than 30%, classified under Chapter 7 and 8 of ITC (HS)
book; and - Horn, hoof and any other organ of animal.
- Honey. (This is Added byDGFT PUBLIC NOTICE NO.:57 (RE-2007)/2004-2009, Dated 01-10-2007.)
For export of perfumes, perfumery compounds and various feed ingredients containing vitamins, no Authorisation shall be issued by RA and applicants may apply under Para 4.4.2 above. Where export and / or import of biotechnology items are involved, Authorisation under this paragraph shall be issued by RA only on submission of a No Objection Certificate†from Department of Biotechnology. |
| Entitlement | 4.7.1 | CIF value of one or more such authorisations shall be maximum 500% of FOB and / or FOR value of preceding year exports and / or supplies in case of status holders and Rs. 5 crore or 500% of the FOB and / or FOR value of preceding year exports and / or supply, whichever is more, for others.
However, in cases where NC has already ratified norms for same export and import products in respect of an authorization obtained under paragraph 4.7, such norms shall be valid for a period of one year reckoned from the date of ratification. ( This Para amended byDGFT PUBLIC NOTICE NO.:37 (RE-2007)/2004-2009 Dated 23.08.2007).
[Old - However, in cases where NC has already ratified norms for same export and import products in respect of an Authorisation obtained under paragraph 4.7, such norms shall be valid for a period of six months reckoned from date of ratification.]
In such cases Authorisations shall be issued by RA concerned under Adhoc Norms Fixed category and application copies need not be forwarded to NC for fixation / ratification of norms.
Authorisation holder in such cases shall be entitled for further authorisation(s) as per norms ratified by NC without need for subsequent ratification by NC. In such cases applicant would file application under Adhoc Norms Fixed category. However, NC should ensure that such adhoc norm(s), if not notified already are notified within a period of one month after one year of ratification of such adhoc norms(s). (This Para Amended byDGFT PUBLIC NOTICE NO.56(RE-2007)/2004-2009, DATED 1-10-2007.)
[Old -However, NC should ensure that such adhoc norm(s), if not notified already, are notified within a period of one month after six months of ratification of such adhoc norm(s).](The Last Sentances of this Para of has amended byDGFT PUBLIC NOTICE NO.:37 (RE-2007)/2004-2009 Dated 23.08.2007) |
| 4.7.2 | Once norms are fixed by NC, value limits mentioned in above paragraph would not be applicable to advance authorisations issued under this paragraph. Such authorisations, subsequent to fixation of norms by NC, may be enhanced.
It is mandatory for industry to provide production data etc. as may be required by DGFT / EPC for fixation of SION. Otherwise, applicant shall not be allowed to take benefit of Advance Authorization scheme for taking repeat advance authorizations on self-declared basis. |
| Authorisation in Excess of Entitlement | 4.7.3 | An applicant shall be entitled for authorisation in excess of entitlement mentioned in paragraph 4.7.1 subject to furnishing of 100% Bank Guarantee to Customs authority to cover exemption from customs duties. A specific endorsement to this effect shall be made on authorisation. |
| Application | 4.7.4 | Original application with prescribed documents shall be submitted to concerned RA. RA shall forward a copy of application within 7 days from Authorisation issue date to NC for fixation of norms within prescribed time. |
| Undertaking | 4.7.5 | Applicant shall give an undertaking that he shall abide by norms fixed by NC and accordingly pay duty, together with interest, on unutilised inputs as per norms fixed by NC. However Authorisation holder has option to undertake additional EO in proportion to excess unutilized inputs. In case application is rejected by NC, authorization holder shall pay customs duty saved along with interest on imported inputs, as notified.
In addition, an amount as per Para 4.28(i)(b) below has to be deposited.
However, NC should ensure that such adhoc norm(s), if not notified already, are notified within six months of the ratification of such adhoc norm(s).
[Old - However in such cases where the NC decides adhoc norms based on information available to it and the exporter represents against the decision of the NC, time limit for filing representation, if any, before the Norms Committee shall be four months from the date of communication of decision of the fixation of adhoc norms by NC. (This Paragraph is added byDGFT PUBLIC NOTICE NO.:37 (RE-2007)/2004-2009 Dated 23.08.2007).] |
| 4.7.6 | In such cases, where norms are not finalised by NC within four months from Authorisation issue date, norms as applied for shall be treated as final and no adjustment will be made. However, where application for fixation of adhoc / SION is rejected on account of non-furnishing of required documents / information, Authorisation holder shall be liable for penalty as stated in above paragraph. In case SION for the said product is notified, SION would be made applicable for deciding wastage norm and EO.
In such cases, where export obligation is completed pending fixation of norms by NC, entitlement for authorisation as given in paragraph 4.7.1 may be re-credited upon production of documentary evidence (copies of Shipping bill / bill of export / Central Excise certified copies of invoices) showing fulfillment of export obligation in respect of previous authorisations. However, bond waiver / redemption shall not be allowed pending fixation of norms in such cases. |
| Financial Powers | 4.8 | Financial powers of RA and NC are given in table below:
| Category of Application | On published norms and under paragraph 4.7 of HBP v1 | | CIF value of Authorisation | | RA | | RA on recommendation of DGFT Hqr (SION cases) / NC (adhoc Norms cases). | | Petroleum /Petrochemical products& Advance Authorisationfor Annual Requirements | Others | | Petroleum /Petrochemical products& Advance Authorisationfor Annual Requirements | Others |
|
|
| Upto Rs. 500 crore | Upto Rs.100 crore | Rs. 500 crore or above | Rs. 100 croreor above |
|
| Standardisation of Adhoc Norms | 4.9 | For standardization of norms, an application may be made by manufacturer exporter or merchant exporter tied to supporting manufacturer, duly filled in with complete data. Such applications shall be made to NC in ANF 4B.
Import of fuel may also be allowed under SION by NC subject to following : - - Facility of import of fuel shall be allowed only to manufacturer having captive power plant.
- In cases where SION specifically allows fuel, same shall be permitted under advance Authorisation. However, If fuel is not covered specifically under SION, it may be allowed as per general fuel Policy for products covered under SION or under paragraph 4.7 above.
- Fuel should be allowed only against an actual user Authorisation. However in case of DFIA, fuel can only be transferred to agencies granted marketing rights by the Ministry of Petroleum and Natural Gas.
- Deleted
- Applications of fixation for fuel entitlement for new sectors and modification of the existing entitlement as per General Note for Fuel in HBP v2 would be made to NC along with requisite data in ANF 4C pertaining to Data Sheet for Fuel Rateâ€.
|
| Modification of SION | 4.10 | An application for modification of existing SION may be filed before the NC by manufacturer exporter or merchant-exporter, tied to supporting manufacturer, in form given in ANF 4B. |
| Amendment of Export item and inputs | 4.10.1 | An application for amendment of an export item or inputs under SION or under Adhoc Norms may be filed by any manufacturer or merchant exporter as per ANF 4B.
Applicant would give justification for seeking amendment and same would be considered by Regional Office with specific approval of Head of Office. In case of any major change in input or request for more wastage to that allowed under SION or adhoc norm, same should be referred to NC for ratification. |
| Revision of SION by NC | 4.10.2 | NC may identify SIONs which in its opinion are required to be reviewed. Exporters are required to submit revised data in ANF 4B for such revision. It is mandatory for industry / exporter(s) to provide production and consumption data etc. as may be required by DGFT / EPC for revision of SION.
Otherwise, applicant shall not be allowed to take benefit of Advance Authorization scheme. |
| Description of an Advance Authorisation | 4.11 | An Advance Authorisation shall specify: - names and description of items to be imported and exported / supplied;
- quantity of each item to be imported or wherever quantity cannot be indicated, value of item shall be indicated. However, if in SION, quantity and value of individual inputs is a limiting factor, same shall be applicable.
- aggregate CIF value of imports; and
- FOB / FOR value and quantity of exports / supplies.
|
| Exports in Anticipation of Authorisation | 4.12 | Exports / supplies made from date of EDI generated file number for an Advance Authorisation, may be accepted towards discharge of EO. Shipping / Supply document(s) should be endorsed with File Number or Authorisation Number to establish co-relation of exports / supplies with Authorisation issued. If application is approved, authorisation shall be issued based on input / output norms in force on the date of receipt of application by RA in proportion to provisional exports / supplies already made till any amendment in norms is notified. For remaining exports, Policy / Procedures in force on authorisation issue date shall be applicable. |
| 4.12.1 | Exports / supplies made in anticipation of grant of an Advance Authorisation shall be entirely on risk and responsibility of exporter. |
| 4.12.2 | Conversion of duty free shipping bills to drawback shipping bills may also be permitted by customs authorities in case application for an Advance Authorisation is rejected or modified by RA. |
| Advance Authorisation or DFIA for Intermediate Supplies | 4.13 | Application for grant of Advance Authorisation or DFIA for Intermediate supply may be made on the basis of a tie-up agreement with exporter (physical / deemed) holding an Advance Authorisation or DFIA. RA concerned shall consider such requests.
Advance Authorisation or DFIA for Intermediate supply shall be issued after making Authorisation invalid for direct import of items to be supplied by intermediate manufacturer. In such cases, a copy of the invalidation letter will be given to Authorisation holder and copy thereof will be sent to intermediate supplier as well as RA of intermediate supplier. Authorisation holder in such case has an option either to supply intermediate product to holder of Advance Authorisation DFIA or to export (physical / deemed) directly. However, once Electronic message transfer facility among the RAs becomes fully operational, sending copy of invalidation letter / ARO to jurisdictional RA shall not be required.
Facility of Advance Authorisation shall be available even in cases where intermediate supplier has supplied or intend to supply material subsequent to fulfilment of EO by exporter holding Advance Authorisation / DFIA from where invalidation letter was issued. |
| Advance Release Order | 4.14 | An application may be made to RA concerned for grant of ARO to procure inputs from indigenous sources / STEs. |
| 4.14.1 | Application shall specify: - name, description and quantity of items; and
- individual value of items to be procured. An ARO may be issued along with Advance Authorisation / DFIA or subsequently, and its validity shall be co-terminus with validity of Advance Authorisation / DFIA.
An ARO issued for procurement of an individual item shall be automatically valid for procurement from one or more indigenous sources. |
| Back to Back Inland Letter of Credit (L/C) | 4.15 | Exporter may alternatively avail facility of a back to back inland letter of credit from banks. An Advance Authorisation / DFIA holder may approach a bank for opening an inland letter of credit (L/C) in favour of an indigenous supplier. |
| 4.15.1 | Before opening the L/C, bank will ensure that necessary BG / LUT has been executed by Advance Authorisation / Non Transferable DFIA holder and an endorsement to that effect has been made on the Authorisation.
However, execution of BG / LUT shall not be required against transferable DFIA. After opening inland L/C, bank shall make following endorsement on Exchange Control and Customs copy of Advance Authorisation/ DFIA;
Value of this Advance Authorisation / DFIA stands reduced by a sum of Rs. , being value of inland L/C No.________ opened today by authorisation holder in favour of M/s (name and address of indigenous supplier). |
| 4.15.2 | Authorisation shall be invalidated by bank for direct import only in respect of full quantity and value of item being sourced indigenously. |
| 4.15.3 | Original Letter of credit (L/C) may be retained by bank for negotiation and only non-negotiable copy of L/C may be given to indigenous supplier. |
| 4.15.4 | Responsibility of bank shall be confined to making endorsement. Bank shall not be liable for any misrepresentation or false statement made by authorisation holder while requesting bank to make endorsement. Inland L/C opened by bank in favour of indigenous supplier shall not be cancelled for any reason whatsoever. |
| 4.15.5 | Non negotiable copy of inland L/C together with photocopy of Advance Authorisation / DFIA duly carrying endorsements made by bank shall be sufficient for indigenous supplier to claim deemed export benefits. L/C issued shall be entitled to benefits given in paragraph 8.3 (b) and (c) of FTP. |
| 4.15.6 | Where import is permitted as an input under this scheme, gold / silver can be sourced through nominated agencies as given in FTP (Chapter 4) for supply against the Advance Authorisations/ DFIA issued. Before supply of material, nominated agencies should follow same procedure as given in paragraph 4.15.1 above. |
| Facility of Supporting Manufacturers / Jobber / co-licensee m | 4.16 | Imported material may be used in any unit of holder of Advance Authorisation or Non Transferable DFIA or jobber / supporting anufacturer provided same is endorsed on authorisation by RA. If applicant desires to have name of any manufacturer or jobber added to authorisation, he may apply. Such endorsement shall be mandatory where prior import before export is a condition for availing Advance Authorisation / DFIA scheme and authorisation holder desires to have material processed through any other manufacturer or jobber.
Upon such endorsement made by RA, authorisation holder and co- authorisation holder shall jointly and severally be liable for completion of EO. Any one of co-authorisation holders may import goods in his name or in joint names. BG/LUT shall also be furnished in their joint names.
However if authorisation holder is registered with Central Excise, he has an option of getting names of jobber endorsed by Central Excise as per Central Excise Rules in lieu of RA’s endorsement. In case manufacturer exporter holding authorisation is not registered / not required to be registered with Central Excise authority, job work may be allowed as per Central Excise Rules and regulations without insisting for endorsement of supporting manufacturer’s name. However, authorisation holder shall be solely responsible for imported items and fulfillment of EO.
In case BG / LUT has been redeemed, advance authorization holder can get duty free inputs processed from any manufacturer under Actual User condition as per job work regulations prescribed under Central Excise Rules. However such restriction shall not be applicable in case of transferable DFIA holder. |
| Facility Of Co-Licensee | 4.17 | Deleted. |
| Acceptance of BG / LUT | 4.18 | At the time of issue of authorisation, acceptance of undertaking given by applicant to RA concerned in relevant ANF will be endorsed on the reverse of Advance Authorisation. Authorisation holder shall execute Bank Guarantee / Legal Undertaking, as the case may be, in terms of para 2.20 of HBP v1. |
| Port of Registration | 4.19 | Advance Authorisation shall be issued for purpose of import and export through one of sea ports or airports or ICDs or LCS specified below. Authorisation holder shall register authorisation at the port specified in authorisation and thereafter all imports against said authorisation shall be made only through that port, unless the authorisation holder obtains permission from customs authority concerned to import through any other specified port. However, exports may be made through any of the specified ports.
Sea Ports: Mumbai, Kolkata, Cochin, Kakinada, Kandla, Mangalore, Marmagoa, Chennai, Nhavasheva, Paradeep, Pipavav, Sikka, T uticorin Vishakhapatnam, Dahej, Nagapattinam, Okha, Mundhra , Surat (Magdalla), Jamnagar, Nhava Sheva, Bedi (including Rozi-Jamnagar), Muldwarka, Porbander, Dharamtar and Vadinar.
Air-ports: Ahmedabad, Bangalore, Bhubaneshwar Mumbai, Kolkata Coimbatore Air Cargo Complex, Cochin, Delhi, Hyderabad, Jaipur, Srinagar, Trivandrum, Varanasi, Nagpur, Chennai, Raja Sansi (Amritsar), Lucknow (Amausi) and Indore. (This word is added by DGFT PUBLIC NOTICE NO.:21 (RE-2007)/2004-2009 Dated 17-07-2007.
ICDs: Agra, Bangalore, Coimbatore, Delhi, Faridabad, Gauhati (Amingaon), Guntur, Hyderabad, Jaipur, Jallandhar, Kanpur, Ludhiana, Moradabad, Nagpur, Pimpri (Pune), Pitampur (Indore), Surat, Tirupur, Varanasi, Nasik, Rudrapur(Nainital), Dighi (Pune), Vadodara, Daulatabad, (Wanjarwadi and Maliwada), Waluj (Aurangabad), Anaparthy, Salem Mallanpur, Singanalur, Jodhpur, Kota, Udaipur, Ahmedabad, Bhiwadi, Madurai, Bhilwara, Pondicherry, Garhi Harsaru Bhatinda, Dappar, Chheharata (Amritsar), Karur, Miraj, Rewari, Bhusawal, Jamshedpur, Surajpur and Dadri, Tuticorin, Bhadoi, Raipur, Mandideep (Distt. Raisen), Durgapur (Export Promotion Industrial Park) and Babarpur.
LCS: Ranaghat , Singhabad , Raxaul, Jogbani, Nautanva (Sonauli), Petrapole, Mahadipur, Hilly, Chengrabanda, Dawki, Atari, Nepalganj Road, Agartala, Sutrakhandi, Amritsar Rail Cargo and Atari Road, Ghojadanga(Ghojadanga newly added by DGFT PUBLIC NOTICE No.: 89(RE-2007)/2004-09, Dated 10-12-2007)
SEZ: As notified by Central Government any SEZ can be a specified port for import and export. |
| 4.19.1 | Commissioner of Customs may permit imports and exports from any other seaport / airport / ICD or LCS .
|
| 4.19.2 | In such cases, where authorisation has not been registered at specified port (in Authorisation) and no import has taken place, request for change in Port of Registration may be considered by RA provided the Authorisation has not been redeemed.
|
| 4.19.3 | For imports from Airport / Seaport / ICD / LCS other than port of registration, a TRA shall also be issued by the customs authority at the port of registration to customs authority at port of import. |
| Facility of Clubbing | 4.20 | Facility of clubbing shall be available only for redemption / regularisation of cases and no further import or export shall be allowed. For this facility, authorisations are required to have been issued under similar Customs notification even pertaining to different financial years. However in case of Authorisations issued in 2004-09 period, Advance Authorisations with different customs notification can be clubbed. |
| 4.20.1 | RA, under whose jurisdiction authorisation is issued or NC in other cases, shall consider a request in ANF 4D for clubbing all imports and exports of more than one Advance Authorisation provided imported inputs are properly accounted for as per norms. Value addition of the authorisations so clubbed shall be average of minimum value addition prescribed in FTP and Procedure laid thereunder, imposed on individual authorisations. Upon clubbing, authorisations shall, for all purposes, be deemed to be one Authorisation and thereafter shortfall, if any, shall be regularized in terms of para 4.28 of HBP v1. |
| 4.20.2 | Accountability of imports and exports shall be restricted in relation to individual categories of Advance Authorisations including Advance Authorisation for annual requirements. |
| 4.20.3 | Facility is available only for Advance Authorisation(s) where there is shortfall in fulfillment of EO, and which is sought to be clubbed with an advance Authorisation(s) which is valid for imports. For expired Authorisation(s) with EO shortfall and which is sought to be clubbed with an advance Authorisation(s) which is valid for imports, applicant shall pay composition fee for EO period extension as per paragraph 4.22 below. |
| 4.20.4 | Wherever exports are effected beyond EO extension period (allowed vide paragraph 4.22 below) of earlier authorisation, no clubbing shall be permitted. |
| 4.20.5 | Notwithstanding provisions of para 4.20.3 and 4.20.4 above, Clubbing of all expired Authorisations may also be permitted provided all expired Authorisations have been issued during Exim Policy period 1992-1997 & 1997-2002 i.e., 1st April 1992 to 31st March, 2002. However clubbing of erstwhile Value Based Advance licences shall not be allowed. |
| Enhancement / Reduction in the Value of Authorisation | 4.21 | In respect of an Advance Authorisation, RA concerned (as per their financial powers) may consider a request for: - enhancement / reduction in CIF value of advance authorisation;
- enhancement / reduction in CIF value, quantity of inputs, FOB value and quantity of exports of an advance authorisation;
provided VA after such enhancement does not fall below minimum VA stipulated in FTP and HBP v1 laid thereunder and there is no change in input-output norms and FTP under which advance authorisation was issued. |
| 4.21.1 | Deleted. |
| 4.21.2 | Request for prorata enhancement in value and quantity may be made either before or after exports. In such cases where there is a change in SION prior to export of said product, pro-rata enhancement shall be given after calculating entitlement on revised SION. |
| 4.21.3 | The application for the enhancement / reduction in the value of Authorisation shall be made in ANF 4E. |
| Application fee for enhancement | 4.21.4 | Application fee leviable for enhancement would be on the difference in CIF values of original and final Authorisation. However, no application fee would be charged if value of Authorisation is being reduced or applicant has paid maximum fee of Rs 150,000 (for manual applications) and Rs 75,000 (for digitally signed applications) respectively in original application for Advance Authorisation. |
| Export Obligation (EO) Period and its Extension | 4.22 | Fulfillment Period of EO under an Advance Authorisation shall commence from Authorisation issue date. EO shall be fulfilled within 24 months except in case of supplies to projects / turnkey projects in India / abroad under deemed exports category where EO must be fulfilled during contracted duration. [Old - In case of Spices {(covered by chapter 9 of ITC (HS)}, EO shall be fulfilled within 90 days from the date on which first import consignment is cleared by Customs Authorities.] This is amended by DGFT PUBLIC NOTICE NO.: 06 (RE-2007)/2004-2009.
However, in case of import of spices for VA purpose like crushing / grinding / sterlisation or for manufacture of oils and oleoresins of pepper, cardamom and chillies and not for simple cleaning, grading, repacking etc., EO shall be fulfilled within 120 days from the date of importation of first consignment. In case of import of spices (other than pepper, cardamom and chillies) for manufacture of spice oils and oleoresins, EO shall be fulfilled within 12 months from the date of issuance of advance authorisation. (This Sub-Para Amended byDGFT PUBLIC NOTICE NO.:60 (RE-2007)/2004-2009, Dated 4-10-2007.)
[Old- However, in case of import of spices for VA purpose like crushing / grounding / sterlisation or for manufacture of oils and oleoresins and not for simple cleaning, grading, re-packing etc., EO shall be fulfilled within 120 days.
EO Period for import of drugs (with a specific export order and pre-import condition) and for import of tea shall be 6 months.] |
| 4.22.1 | Request for extension in EOP may be made in ANF 4E. RA shall grant one extension for six months from expiry date with payment of composition fee of 2% of duty saved on all unutilized imported items as per Authorisation.
Request for a further extension of six months may be considered by RA with payment of composition fee of 5% of duty based on all unutilized imported items as per Authorisation.
Facility of extension of EOP shall not be allowed in case of advance authorisation wherein import of penicillin and its salts (ITC (HS) Code No. 29411010) and 6 – APA (ITC (HS) Code No. 29411 050) have been allowed as an input and also for import of spices and tea. RA shall make an endorsement in advance authorisation to this effect.
Such extensions would not be permitted in erstwhile Value Based Advance Authorisations (VABALs). Additionally, no extension in EO would be allowed in respect of Authorisations where misrepresentation / fraud has come to notice of RA. Further, in respect of Authorisations where adjudication orders have already been passed, no extension in EOP shall be admissible.
The period for discharge of export obligation against advance authorisations (erstwhile licences) issued for Export of Sugar stands automatically extended for one year (without payment of Composition Fee) w.e.f the date on which their export obligation period expires provided the export obligation period did not expire prior to 19-4-2007. (This Para added byDGFT PUBLIC NOTICE NO.:34 (RE-2007)/2004-2009 Dated : 17.08.2007).
|
| 4.22.2 | Customs may allow provisional clearance of export consignment as and when Authorisation holder produces documentary evidence of having applied for EO extension to concerned RA. |
| Revalidation of Authorisation | 4.23 | RA may consider a request of original Authorisation holder and grant one revalidation for six months from expiry date. Request(s) for revalidation of Authorisation shall be made in ANF 4I. |
| Monitoring of Obligation | 4.24 | RA, with whom undertaking is executed by Advance Authorisation holder, shall maintain a proper record in a master register indicating starting and closing dates of obligation period and other particulars to monitor EO.
Within two months from date of expiry of period of obligation, Authorisation holder shall submit requisite evidence in discharge of export obligation in accordance with paragraph 4.25 below.
However, in respect of shipments where six months period (one year in case of status certificate holder) for realisation of foreign exchange has not become due, RA shall not take action for non submission of bank certificate of exports and realisation provided other document substantiating fulfillment of EO have been furnished. |
| 4.24.1 | In case Authorisation holder fails to complete EO or fails to submit relevant information / documents, RA shall take action by refusing further Authorisations, enforce condition of Authorisation and Undertaking and also initiate penal action as per law. |
| Advance Authorisation for Annual Requirement | 4.24A | - Exporters eligible for such Authorisations shall file an application in ANF 4A to RA concerned. All provisions
as to Advance Authorisation given above would apply except the following: - RA while issuing Authorisation shall mention technical characteristics quality and specifications in respect of such inputs:-
Alloy steel including stainless steel, copper alloy, synthetic rubber, bearings, solvents, perfumes/ essential oils / aromatics chemicals, surfactants, relevant fabrics and marble. - Authorisation holder shall have flexibility to export any product falling under export product group using duty exempted material.
- Within eligible entitlement, an exporter may apply for one or more than one authorisations in a licensing year, subject to condition that against one port of registration only one authorisation can be
issued for same product group. One time enhancement / reduction of the authorisation shall be available in terms of paragraph 4.21 above. - On completion of EO against one or more authorisations, all issued in same licensing year, entitlement of an exporter for that licensing year shall be deemed to be revived by an amount equivalent to EO completed against authorisation(s).
- Deleted.
- Deleted.
- Deleted.
- Deleted.
- Deleted.
- Deleted.
|
| 4.24B | Deleted. |
| Fulfillment Of Export Obligation | 4.25 | Authorisation holder shall furnish prescribed documents in ANF 4F in support of fulfillment of EO.
A (i) to (iv) Deleted.
B (i) to (iv) Deleted. |
| Redemption / No Bond Certificate | 4.26 | In case EO has been fulfilled, RA shall redeem the case. After redemption, RA shall forward a copy of redemption letter indicating shipping bill number(s), date(s), FOB value in Indian rupees as per shipping bill(s) and description of export product in respect of shipment which were taken into account for the purpose of fulfillment of EO to Customs authority at port of registration. Such details shall also be placed by the Zonal Offices in their website immediately after issuance of export obligation discharge/redemption letter / No Bond Certificate (in case of No BG / LUT†facility) and by DGFT Hqr in DGFT website on monthly basis for customs authority to access it from website.
Cancellation / redemption of BG / LUT would be undertaken by Customs within 30 days of issue of Export Obligation Discharge Certificate (EODC) / bond waiver by RA.
Ordinarily, redemption of BG / LUT shall not preclude customs authority from conducting random checks and from taking action against Authorisation holder for any misrepresentation, mis- declaration and default detected subsequently.
Further RA shall also take action against authorisation holder in case of non-submission of Appendix 23, duly filled in, as stipulated in Paragraph 4.30 below or for any misrepresentation, misdeclaration and default detected subsequently in details declared and furnished in Appendix 23. An endorsement to this effect shall be made by RA in the redemption certificate. |
| Transitional Arrangement for Authorisations issued upto 31.8.2004 | 4.27 | Advance Licences including Advance Licences for Annual Requirement issued upto 31.8.2004 shall be governed by provisions contained in Chapter-7 of HBP v1 (RE-2001) and Chapter 4 of HBP v1 (2002-2007) as Notified on 31.3.2002 respectively as amended from time to time, excepting provisions relating to clubbing and extension in E.O. period which shall be governed by provisions of paragraphs 4.20 and 4.22.1 respectively above and any other provision, as notified by DGFT.
However, wherever Customs duty is to be paid on unutilised material, same shall be paid alongwith interest thereon as notified. |
| Regularisation of Bonafide Default. | 4.28 | Cases of bonafide default in fulfillment of EO may be regularised by RA as under: - If EO is fulfilled in terms of value, but there is a shortfall in terms of quantity, the Authorisation holder shall, for regularisation, pay:-
- to customs authorities, customs duty on unutilized value of imported / indigenously procured material along with interest as notified; and (This para amended by DGFT Public Notice No. 120(RE-2007)/2004-2009, Dated 29th February, 2008).
[Old-to customs authority, customs duty on unutilised value of imported material alongwith interest as notified; and] - an amount equivalent to 3% of the CIF value of unutilised imported material through a TR in authorised branch of Central Bank of India indicating the Head Account: 1453, Foreign Trade and Export Promotion and Minor Head 102â€. Authorisation holder shall also be required to obtain
a separate authorisation for regularisation of excess imported input. However, provisions of this sub paragraph shall not be applicable if unutilised imported material was freely importable on date of import.
- If the EO is fulfilled in quantity but there is shortfall in value, no penalty shall be imposed if Authorisation holder has achieved minimum value addition prescribed. However, if value addition falls below the minimum value addition prescribed Authorisation holder shall be required to deposit an amount equal to 1% of shortfall in FOB value in Indian Rupee through TR in authorised branch of Central Bank of India as above or through EFT mode.
Value wise shortfall shall be calculated with reference to actual quantity of exports and FOB value of realisation with reference to prorata quantity of imports and CIF value. For example, if export performance is only 50% quantitywise but import has been for complete CIF value permitted, then value addition would be calculated on a prorata basis, i.e with reference to 50% of CIF value of imports. This would accordingly imply that where Authorisation holder is unable to export, no penalty on valuewise shortfall shall be imposed. - If EO is not fulfilled both in terms of quantity and value, the Authorisation holder shall, for the regularisation, pay as per (i) and (ii) above.
- In case an exporter is unable to complete EO undertaken in full and he has not made any import under Authorisation, Authorisation holder will also have an option to get the Authorisation canceled and apply for drawback after obtaining permission from Customs authorities for conversion of shipping bills to Drawback Shipping Bills.
- RA shall compare relevant portion of Appendix 23 duly verified and certified by Chartered Accountant with that of norms allowed in Authorisation(s) and actual quantity imported against Authorisation(s) in the beginning of licensing year for all such Authorisations redeemed in preceding licensing year. In this verification process, in case it if found that Authorisation holder has consumed lesser quantity of inputs than imported, authorisation holder shall be liable to pay customs duty on unutilized value of imported material alongwith interest thereon as notified or effect additional export within the EO period.
|
| Time Period For Depositing Fines, Customs Duty, etc. | 4.29 | Customs duty with interest to be recovered from Authorisation holder on account of regularisation or enforcement of BG / LUT, shall be deposited by Authorisation holder in relevant Head of Account of Customs Revenue i.e., Major Head 0037 - Customs and minor head 001- Import Duties†in prescribed T.R. Challan within 30 days of demand raised by regional / customs authority and documentary evidence shall be produced to this effect to RA / customs authority immediately.
On receipt of such documentary evidence from Authorisation holder, RA shall intimate details of recovery / deposits made to Customs Authority at port of registration under intimation to Joint Secretary (Drawback), Department of Revenue, Ministry of Finance, Jeevan Deep Building, New Delhi.
Payment of amount of duty, interest and any dues for regularisation shall, however, be without prejudice to any other action that may be taken by Customs Authorities at any stage under Customs Act, 1962. |
| Maintenance of Proper Accounts. | 4.30 | Every Advance Authorisation holder shall maintain a true and proper account of consumption and utilisation of duty free imported / domestically procured goods against each authorisation as prescribed in Appendix 23. These records are required to be sent to the concerned RA at the beginning of each licensing year for all those authorisations, which have been redeemed in previous licencing year. However, these records in said format are required to be submitted for authorisations issued on or after 13-05-2005. Such records should be preserved for a period of at least three years from date of redemption. |
| | 4.30A | In case where Original EP copy of Shipping Bill / original BRC has been lost, request for EODC, No BG / LUT condition under Advance Authorisation / DFIA scheme or endorsement of transferability under DFIA scheme can be considered subject to submission of following documents in lieu of those original documents: -
a) A duplicate / certified copy of concerned document issued by Customs Authority / Bank in lieu of original;
b) An application fee equivalent to 1% of duty saved amount. However, no fee shall be charged when such document is lost by Government agencies and a documentary proof to this effect is submitted;
c) An affidavit by exporter about loss of document and an undertaking to surrender it immediately to concerned RA, if found subsequently;
d) An indemnity bond by exporter to the effect that he would indemnify Government for financial loss, if any, on account of duty free import entitlement availed / allowed against lost Shipping Bills / BRC. Customs Authority, before allowing redemption of BG / LUT or clearance after endorsement of No BG / LUT condition or endorsement of transferability, shall ensure that no double benefit against such shipping bill has been availed.
However, in case of submission of reconstructed copy of shipping bill in lieu of original shipping bill, conditions at b), c) and d) above shall not be applicable.(This New Para is inserted by DGFT Public Notice No.:79(RE-2007)/2004-2009, Date 5th, November, 2007) |
Duty Free Replenishment
Certificate(DFRC) | 4.31 | Deleted. |
| 4.31A | Deleted. |
| 4.32 to 4.34 | Deleted. |
| 4.34.1 to 4.34.3 | Deleted. |
| 4.35 | Deleted |
| 4.35.1 | Deleted |
| 4.36 | Deleted |
| 4.36A | Deleted. |