Wait...

Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

Date: 01-10-2009
Notification No: DGFT Policy Circular No 09/2009-2014 DT.01/10/2009
Issuing Authority: DGFT  
Type: Circular
File No: 01/94/180/ Open House Meet -Amritsar /AM10/PC-4
Subject: Clarification with regard to: A: Deemed Export Benefits on supplies against Invalidation Letter / ARO. B: Value Addition requirement on clubbing - regarding.

GOVERNMENT OF INDIA
DEPARTMENT OF COMMERCE
DIRECTORATE GENERAL OF FOREIGN TRADE
UDYOG BHAWAN, NEW DELHI – 110 011

Policy Circular No. 9/2009-2014
Dated: 1st October, ’09.

To
All Regional Authorities;
All Commissioners of Customs;
Exporting Community

Subject: Clarification with regard to:
A. Deemed Export Benefits on supplies against Invalidation Letter / ARO.

B. Value Addition requirement on clubbing - regarding.

Attention is invited to paragraph 4.1.11 of FTP wherein the reference has been made to the facility of Invalidation Letter and Advance Release Order (ARO) for domestic procurement of the inputs for export production. Trade and Industry have represented that for want of specific provision stating the FTP benefits to the domestic supplier against Invalidation Letter / ARO, field formations at times raise objections.

In this regard, it is informed that the purpose of Invalidation letter / ARO is to facilitate duty neutralisation or inputs procured from the domestic market, in lieu of duty free imports allowed under the authorisation. Accordingly, it is clarified that against invalidation letter, the supplier can avail Advance Authorisation for Intermediate supplies and TED refund (wherever Excise exemption is not available against such supplies), whereas against ARO, the supplier is entitled for deemed export duty drawback, as applicable. Provision of Paragraph 4.1.11 of FTP has to be read with Paragraphs 8.3 and 8.4.1 of FTP.

  1. Value addition requirement on clubbing of Advance Authorisations of Paragraph 4.20 of HBP v1:-

    Trade and Industry have represented that since the minimum prescribed value addition under Advance Authorisation Scheme has been enhanced to 15% in the FTP 2009-14, the required minimum value addition for the purpose of clubbing of advance authorisations issued during the pre-2009-14 policy and that of 2009-14 policy, needs to be clarified for a uniform application by the Regional Authorities.

    In this regard, it is clarified that the value addition on clubbing should be the prescribed minimum value addition stated in the FTP and not the declared value addition given in the application. In case of clubbing of authorisations with different minimum prescribed value addition, the aggregate value addition should be the weighted average based on CIF value utilized in the respective authorisations.

    For clarity, an illustration is given below with reference to two Authorisations issued with different V.A Norms:
    1. CIF Value utilized under Authorisation A (issued under positive V.A provision): say, Rs. 1000/-.

    2. CIF value utilized under Authorisation B (issued under 15% V.A provision): say Rs. 2000/-.

    3. Minimum FOB Value required under Authorisation A shall be: Rs. 1000/-.

    4. Minimum FOB value required under Authorisation B shall be: Rs. 2300/-.

    5. Upon Clubbing, CIF value of the clubbed authorisation would be Rs. 3000/- and the minimum FOB value of the clubbed authorisation would be Rs. 3300/-.

      This will ensure that the prescribed minimum value addition on the respective authorisations is achieved indicating that the weighted average value addition for the clubbed authorisation is maintained.

      This issues with the approval of Competent Authority.

(Tapan Mazumder)
Joint Director General of Foreign Trade
Tel: 011-23061050
E-mail: [email protected]
(Issued from F.No. 01/94/180/ Open House Meet -Amritsar /AM10/PC-4)

       

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 28-02-2021
Notification No. 04/2021 – Central Tax
Seeks to extend the time limit for furnishing of the annual return specified under section 44 of CGST Act, 2017 for the financial year 2019-20 till 31.03.2021.

Date: 26-02-2021
A.P. (DIR Series) Circular No. 12
Investment by Foreign Portfolio Investors (FPI) in Defaulted Bonds - Relaxations

Date: 26-02-2021
Notification No. 25/2021-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seed, Areca nut, Gold & Silver - reg.

Date: 25-02-2021
Notification No. 09/2021 -Customs (ADD)
Seeks to amend notification no 29/2017-Customs (ADD) dated 14.06.2017 so as to extend the said notification up to 28.06.2021.

Date: 25-02-2021
Notification No. 10/2021-Customs (ADD)
Seeks to further amend notification No. 2/2016-Customs (ADD) dated 28th Jan, 2016 to extend the levy of Anti-Dumping duty on Melamine originating in or exported from China PR, up to and inclusive of 31st March, 2021.

Date: 25-02-2021
Public Notice No. 40/2015-20
Amendment in Appendix 1B, Hand Book of Procedure 2015-20

Date: 24-02-2021
Notification No. 22/2021-Customs (N.T./CAA/DRI)
Appointment of CAA by Pr. DGRI

Date: 23-02-2021
Notification No. 03/2021-Central Tax
Seeks to notify persons to whom provisions of sub-section (6B) or sub-section (6C) of section 25 of CGST Act will not apply.

Date: 23-02-2021
Trade Notice No. 43/2020-2021
Electronic filing and Issuance of Preferential Certificate of Origin (CoO) for India’s Exports under India-Mercosur PTA and India-Thailand EHS w.e.f. 25th February 2021

Date: 23-02-2021
Notification No. 20/2021-Customs (N.T./CAA/DRI)
Appointment of CAA by Pr. DGRI



Exim Guru Copyright © 1999-2021 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001