Advance Authorisation – One time relaxation for Export Obligation Extension and Clubbing of Authorisations
Nov. 1, 2017
Members of the Council,
Sub : Advance Authorisation – One time relaxation for Export Obligation Extension and Clubbing of Authorisations
As members are kindly aware, the Advance Authorization scheme under Foreign Trade Policy allows duty free import of inputs which are physically incorporated in any export product, as per quantity restrictions prescribed under Standard Input Output Norms (SION). In addition, import of fuel, oil, catalyst which is consumed / utilized in the process of production of export product is also allowed under Advance Authorization. The Advance Authorization scheme is subject to export obligation as prescribed by DGFT depending on the value of authorization.
Para 4.38 of Handbook of Procedures has a provision for clubbing of authorization i.e merging the export obligation of different advance authorizations issued to an exporter, for the purpose of fulfillment of export obligation. However Para 4.38.1 states that No clubbing of Authorisations issued on or before 31st March, 2009 shall be allowed. The DGFT has now issued a Public Notice No.34/2015-2020 dated 24.10.2017 stating the following.
a. Onetime relaxation of Para 4.38(i) of Handbook of Procedures 2015-2020, for clubbing of Advance licenses /Authorisations issued under Foreign Trade Policy 2002-2007 and 2004-09 is hereby permitted. Request for clubbing shall be made in ANF-4C to the respective Regional Authorities (RAs) of DGFT along with prescribed documents. RA shall process the cases as per Para 4.38 of Handbook of Procedures 2015-2020. The last date for submission of such application shall be 31.3.2018.
b. Exports made under Advance Licences/ Authorisations issued under Foreign Trade Policy 2002-07, Foreign Trade Policy 2004-2009 and Advance authorisations issued prior to 5.6.2012 under Foreign Trade Policy 2009-14 shall be regularized by way of extension of Export Obligation Period subject to certain conditions.
Copy of the said Public Notice No.34 is enclosed herewith for ready reference.
Thanks & regards,
R. Ramesh Kumar