DGFT gives clarification on discharge of export obligation of Advance Authorisation
DGFT gives clarification on discharge of export obligation of the Advance Authorisation by making physical exports or by making domestic supplies.
This is further clarified as follows:
- Advance Authorisation Holder holding an Advance Authorisation issued on or after 1st April, 2015, has option to fulfill the export obligation either by physical exports or by making domestic supplies i.e. Supply of goods against Advance Authorisation or Advance Authorisation for annual requirement or DFIA.
- As per the harmonious reading of Para 4.14 of the Foreign Trade Policy 2015-2020, it is clarified that Advance Authorisation Holder holding an Advance Authorisation issued on or after 10th January, 2019, has options as follows:
- To fulfill the export obligation either by physical exports or by making domestic supplies i.e. Supply of goods against Advance Authorisation or Advance Authorisation for annual requirement or DFIA.
- To make supplies i.e. supply of goods to EOU or STP or EHTP or BTP.
- To make supplies i.e. supply of capital goods against EPCG authorisation provided exemption from payment of applicable Anti-Dumping Duty, Countervailing Duty, Safeguard Duty and Transition Product Specific Safeguard Duty if any has not been availed.
- Similarly Advance Authorisation Holder holding an Advance Authorisation for deemed export issued only for above mentioned supplies with above stipulated conditions has an option to fulfill their export obligation either by way of supplies or by making physical exports.
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