DGFT gives clarification against Advance Authorisation issued prior to 1st April, 2023
The DGFT clarifies that:
- This Directorate is in receipt of some cases seeking relaxation in payment of 3% amount under Para 4.49 (b) and similar provisions of Handbook of Procedures 2023 against Advance Authorisation issued prior to 1st April, 2023.
- In this regard, attention is drawn towards Para 4.48 (a) of Handbook of Procedure 2023, which provides that, Advance Authorizations (AA) including Advance Authorizations for Annual Requirement issued up to 31st March, 2023 shall be governed by the respective provisions contained in the relevant HBPS, under which the subject AA was issued, excepting provisions relating to clubbing and extension in Export Obligation period.
- Accordingly, it is clarified that provisions relating to the payment of 10% of CIF value and 3% of shortfall in FOB value amounts specified in Para 4.49(a) (ii) and 4.49(b) respectively of Handbook of Procedures, 2023 are applicable only in cases where Advance Authorization is issued on or after 1st April, 2023.
- AAs issued prior to 1st April, 2023, will be governed by the relevant provisions of HBP (for the purpose of regularisation of bonafide EO default) under which such AAs were issued.
- However, this clarification will not constitute a ground for refund of fees already paid.
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