Advance licence enhancement
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 June 2013
Dear all,
I have taken advance licence to import of RM for manufacturing the goods to export. of CIF USD 100 @ INR 55 , CIF INR = 5500 value
But due to indian rupee depreciation, custom rate is INR 56, so CIF USD 100 @ 56 CIF INR: 5600 value . there is not differ in quanity and cif value USD but CIF value INR is less in advance licence
There is requirement of enhance ment of advance licence.
Please advise....
regards,
sunny
I have taken advance licence to import of RM for manufacturing the goods to export. of CIF USD 100 @ INR 55 , CIF INR = 5500 value
But due to indian rupee depreciation, custom rate is INR 56, so CIF USD 100 @ 56 CIF INR: 5600 value . there is not differ in quanity and cif value USD but CIF value INR is less in advance licence
There is requirement of enhance ment of advance licence.
Please advise....
regards,
sunny
04 June 2013
as per para 4.21 OF EXIM PROCEDURES
**********************************
However,in case of advance authorisations issued prior to 27.8.09 under the FTP, 2004-09, the following conditions shall apply for any enhancement in the value of the authorisation.
(i) Wherever, exports are subsequent to 27.8.09, enhancement in CIF/FOB values shall be subject to a minimum value addition (VA) of 15% for that component of exports.
(ii) Wherever, the exports are prior to 27.8.09, enhancement of CIF/ FOB value shall be subject to a minimum Value addition of 15% or the V.A. declared in the original Advance Authorization application, whichever is lower. (This para is added by DGFT PUBLIC NOTICE No 15/2009-14, Dated : 27-10-2009)
The application for the enhancement/ reduction in the value of Authorisation shall be made in ANF 4E.
Application fee leviable for enhancement would be on the difference in CIF values of original and final Authorisation. However, no application fee would be charged if value of Authorisation is being reduced or applicant has paid maximum fee of Rs 100,000.
for manual applications) and Rs 50,000 (for digitally signed applications) respectively in original application for Advance Authorisation/DFIA.
Export Obligation (EO) Periodits Extension
Fulfillment Period of EO under an Advance Authorisation shall commence from Authorisation issue date, unless otherwise specified. EO shall be fulfilled within 36 months except in case of supplies to projects / turnkey projects in India / abroad under deemed exports category, where EO must be fulfilled during contracted duration.
**********************************
However,in case of advance authorisations issued prior to 27.8.09 under the FTP, 2004-09, the following conditions shall apply for any enhancement in the value of the authorisation.
(i) Wherever, exports are subsequent to 27.8.09, enhancement in CIF/FOB values shall be subject to a minimum value addition (VA) of 15% for that component of exports.
(ii) Wherever, the exports are prior to 27.8.09, enhancement of CIF/ FOB value shall be subject to a minimum Value addition of 15% or the V.A. declared in the original Advance Authorization application, whichever is lower. (This para is added by DGFT PUBLIC NOTICE No 15/2009-14, Dated : 27-10-2009)
The application for the enhancement/ reduction in the value of Authorisation shall be made in ANF 4E.
Application fee leviable for enhancement would be on the difference in CIF values of original and final Authorisation. However, no application fee would be charged if value of Authorisation is being reduced or applicant has paid maximum fee of Rs 100,000.
for manual applications) and Rs 50,000 (for digitally signed applications) respectively in original application for Advance Authorisation/DFIA.
Export Obligation (EO) Periodits Extension
Fulfillment Period of EO under an Advance Authorisation shall commence from Authorisation issue date, unless otherwise specified. EO shall be fulfilled within 36 months except in case of supplies to projects / turnkey projects in India / abroad under deemed exports category, where EO must be fulfilled during contracted duration.
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