DGFT grants power to Regional Authority to condone delay in payment of fee for excess utilization of duty saved amount

Aug 01, 2019 | by Avantis RegTech Legal Research Team


The Directorate General of Foreign Trade (DGFT) on July 31, 2019, has made amendments in Para 5.16 (a) of Hand Book of Procedures (HBP) of Foreign Trade Policy (FTP) 2015-20, which talks about the Automatic Reduction/ Enhancement upto 10% Duty saved amount and pro rata Reduction/ Enhancement in export obligation.

Existing Para 5.16 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 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.

[Public Notice No.22/2015-20]


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