Moving along with the new GST System, DGFT now relax and eased the procedures for clubbing of advance authorisations issued under the periods of FTP Policy 2009-14 and 2015-20 and to facilitates the closure of EPCG Authorisation and older advance authorisation as One-time dispensations basis.

As per the Public Notices issued by the DGFT one exporter may apply for the clubbing of Advance Authorisation issued with pre-import conditions and advance authorisations issued following with an export obligation (EO) period of less than 18 months. Moreover, the cases being rejected by the Policy Relaxation Committees earlier can also be considered again.

However, clubbing will only be permitted wherein there is a shortfall of export obligation in first authorisation and excess export obligation made in the subsequent authorisation. This limitation is not limited to the authorisation where imports made within the validity period of the First authorisation and are proportional and equal to or in excess of exports made in the first authorisation. This incident is to be further explained with the example by DGFT.

Procedures for EO period extensions also being laid out by the DGFT. For the authorisation issued with pre-import conditions, an EO period extension up to half the stipulated EO Period will be granted. The composition fee payable for the EO extension will be calculated on the basis whether half of total EO has been fulfilled within the initial period or not.

Also, in case of import of drugs from unregistered sources under Advance authorisation with pre-import conditions, a certificate from the jurisdictional tax authorities certifying the destruction of the unutilised imported quantity in their presence or proof of re-export of the imported drugs to the same supplier is mandated for the regularisation of the cases. Also, the exports under the free shipping bill or under the same authorisation after the expiry of the EO period will be considered only after the payment of the Customs duty on imported quantity.

Keeping in view of past pending cases, DGFT comes up with a One-Time relaxation of Para 4.38 (i) of HBP 2015-20, for clubbing of Advance Authorisation and extension of EO period of the Advance Authorisation pertaining to the periods under FTP 2002-07 and 2004-09 and before June 5, 2012. The last date for submission of such application shall be 31.03.2018. Only shipping bills which bear file number / Advance Authorisation number in question shall be taken into account. No free shipping bills shall be allowed to be accounted.

Subsequently, for the authorisations issued under the Export Promotional Capital Goods Scheme (EPCG) all the Regional Authorities (RAs) have been directed by the DGFT to consider the requests from the exporters for Block-wise EO period extensions already submitted. For the applications submitted beyond the time period, request for extension may be submitted with a payment of an additional composition fee of Rs.5,000/-, in addition to the payment of composition fee, as applicable. The Installation Certificate submitted beyond the time limit may be now considered by the RAs on the payment of additional composition fee of Rs.5,000 per authorisation with a condition that Capital Goods were installed within 18 months from the date of import but submission to RAs delayed with a valid bona fide reason for the delay. These measures will not only ease the exports as well as avoid a need to approach the Policy Relaxation Committee or the EPCG Committee for relaxations.

Sources : Various News Agencies

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