Advance Authorisation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 November 2010 We have availed Advance Licence for RAW COTTON import for the year 2004 (duty saved value is Rs.49,80,534/=) and unfortunately we have not fulfilled the Export Obligation for the same.

Hence we have paid the duty value of Rs.49,80,534/- after several notices received from DGFT (by way of Demand Draft to the Customs in the year 2007 & 2008) and still the case has not finalised and DGFT request us to pay interest of Rs. 24,92,293/- (interest charges from the import date & duty paid date).

Now we have started the yarn exports again and we are willing fulfill the Export obligation against these Licences. Hence please clairfy us,

- Is it possible to get licence Obligation period extension from DGFT (ie. upto 84 months with certain penalty)

- Such case, shall we eligible to reclaim the Duty amount paid to the Customs against this case (If yes, we may eligible to waive the duty interest)

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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04 November 2010 MR. JAFAR,

WHENEVER YOU COULD NOT FULFILLED THE EXPORT OBLIGATION AS PER HANDBOOK OF PROCEDURE VOL-1 (IST SEPTEMBER, 2004- 31 MARCH 2009) PARA 4.28, THE CASE OF BONAFIDE DEFAULT IN FULFILLMENT OF EXPORT OBLIGATION MAY BE REGULARISED BY THE LICENSING AUTHORITYIN THE FOLLOWING MANNER: ---
(A)IF THE EXPORT OBLIGATION IS FULFILLED IN TERMS OF VALUE, BUT THERE IS SHORTFALL IN THE TERMS OF QUANTITY, THE LICENCE HOLDER SHALL, FOR THE REGULARISATION PAID:
TO THE CUSTOM AUTHORITY, CUSTOM DUTY ON UNUTILISED VALUE OF THE IMPORTED MATERIALALONG WITH THE INTEREST OF 15% PER ANNUM,

(B) AN AMOUNT EQUAL TO 3% OF CIF VALUE OF UN UTILISED MATERIAL

AND PARA 4.28(III) SAYS THAT "IF THE EEXPORT OBLIGATION IS NOT FULFILLED BOTH IN THE TERMS OF QUANTITY AND VALUE, THE LICENCE HOLDER SHALL, FOR THE REGULARISATION, PAY THE ABOVE SAID DUTY.

PARS 4.28 (IV) SAYS THAT " IN CASE AN EXPORTER IS UNABLE TO COMPLETE THE EXPORT OBLIGATION UNDERTAKEN IN FULL AND HAS NOT MADE ANY IMPORT UNDER THE LICENCE THE EXPORTER HAS OPTION THAT GET THE LICENCE CANCELLED AND APPLY FOR DRAWBACK AFTER OBTAINING PERMISSION FROM THE CUSTOM AUTHORITY FOR CONVERSION OF SHIPPING BILL TO DRAWBACK SHIPPING BILLS.

IN VIEW OF ABOVE, CONDITION IT SEEMS THAT YOU HAVE DEPOSIT DUTY ONLY AND NOT DEPSIT THE INTEREST, THE CONCERNED REGIONAL LICENSING AUTHORITY INTENTION IS RIGHT.

PLEASE TELL ME,:-

HAVE YOU ALREADY APPLY THIS CASE FOR REDEMPTION??? IF NOT, TELL ME WHY HAVE YOU NOT DEPOSIT THE INTEREST ALSO WITH THE DUTY??

AS PER HBP VOL-1, PARA 4.23 THE LICENSING AUTHORITY MAY CONSIDER A REQUEST OF THE ORIGINAL LICENCE HOLDER AND GRANT ONE REVALIDATION FOR A PERIOD OF SIX MONTH FROM THE DATE OF EXPIRY OF ORIGINAL LICENSE .

THEREFORE NO CHANCE IS AVAILABLE FOR SEEING THE CONDITION THE CASE ,PLEASE FOR RE-VALIDATION OF LICENCE ALTHOUGH PROVIDE ME THE SCANNED COPY OF ADVANCE LICENCE AND 10 LETTER HEAD SO THAT IN "UDYOG BHAWAN" NEW DELHI I CAN TALK IN THE MINISTRY .

ALSO PLEASE PROVIDE ME:-

THEREFORE THE CASE PROVIDED ME THE SCANNED COPY OF THE ABOVE SAID ADVANCE LICENCE PHOTO COPY.

Although i have Reply given you today on my email .

RAMESH VERMA

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