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Date: 31-07-2019
Notification No: Public Notice No.22/2015-20
Issuing Authority: DGFT  
Type: Public Notice
File No: F.No.l8/215/AM-19/P-5
Subject: Automatic Reduction Enhancement upto 10% Duty saved amount and pro rata reduction Enhancement in export obligation

Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade

Public Notice No.22/2015-20

New Delhi; 31thJuly, 2019

Subject: Automatic Reduction/Enhancement upto 10% Duty saved amount and pro rata Reduction / Enhancement in export obligation - reg. In exercise of the powers conferred under Paragraph 1.03 of the Foreign Trade Policy (FTP), 2015-20, the Director General of Foreign Trade in public interest hereby makes the following amendments in para 5.16 (a) of Hand Book of Procedures (HBP) of FTP 2015-20:

Existing Para 5.16(a) of HBP 2015-20:
If authorization issued has been utilized for import of goods: -
(a) in excess of duty saved amount indicated on the authorization by not more than 10%, the authorization shall be deemed to have been enhanced by that proportion. Customs shall automatically allow clearance of such goods without endorsement by RA concerned. The authorization holder shall furnish additional fee to cover excess imports effected, in terms of duty saved amount, to RA concerned, within one month of excess imports taking place. Export obligation shall automatically stand enhanced proportionately.

Amended Para 5.16(a) of HBP 2015-20:
If authorization issued has been utilized for import of goods: -
(a) in excess of duty saved amount indicated on the authorization by not more than 10%, the authorization shall be deemed to have been enhanced by that proportion. Customs shall automatically allow clearance of such goods without endorsement by RA concerned. The authorization holder shall furnish additional fee to cover excess imports effected, in terms of duty saved amount, to RA concerned, within one month of excess imports taking place. Export obligation shall automatically stand enhanced proportionately. RA concerned may also accept the additional fee to cover the excess imports effected, in terms of duty saved amount, if the same is furnished beyond one month but within two years of the excess import taking place, subject to payment of composition fee of Rs. 5000/- per authorisation.
Effect of this Public Notice: Power to condone delay in payment of fee for excess utilisation of duty saved amount has been granted to the RA.

(Issued from F.No.l8/215/AM-19/P-5)

(Alok Vardhan Chaturvedi)
Director General of Foreign Trade
Email: [email protected]

       

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