Advance license
This query is : Resolved
11 August 2016
I need to know following things related to Advance License:
1)if under advance license my export obligation quantity is fulfilled but value of the same exceeds the license value.. whether the same is allowed or not.
2) my export obligation quantity is fullfilled but value of the same is less than license value, whether i can export more under that license.
3) my export obligation quantity is still pending but license value is fulfilled can i export under that license.
1)if under advance license my export obligation quantity is fulfilled but value of the same exceeds the license value.. whether the same is allowed or not.
2) my export obligation quantity is fullfilled but value of the same is less than license value, whether i can export more under that license.
3) my export obligation quantity is still pending but license value is fulfilled can i export under that license.
Dr.RAMAKRISHNA. C
(Expert)
12 August 2016
Where exports are made 100% in quantity and more than 100% in terms of FOB value, export obligation stands discharges.
Where exports are made 100% in quantity , but where there is shortfall in value , no penalty will be imposed if, you have achieved minimum value addition (VA) 10% prescribed. However, if value addition achieved less than you will have to pay an amount equal to 1% of short fall in FOB value in Indian Rupees.
For quantity wise short fall you will have to pay Customs Duty along with interest on the un utilized imported raw materials. Further you have to pay an amount equal to 3% of CIF value of un utilized raw material if, the item of import is restricted for import.
You may refer to provisions of paragraphs 4.49 and 4.50 of Hand Book of Procedures of current FTP 2015-20.
Where exports are made 100% in quantity , but where there is shortfall in value , no penalty will be imposed if, you have achieved minimum value addition (VA) 10% prescribed. However, if value addition achieved less than you will have to pay an amount equal to 1% of short fall in FOB value in Indian Rupees.
For quantity wise short fall you will have to pay Customs Duty along with interest on the un utilized imported raw materials. Further you have to pay an amount equal to 3% of CIF value of un utilized raw material if, the item of import is restricted for import.
You may refer to provisions of paragraphs 4.49 and 4.50 of Hand Book of Procedures of current FTP 2015-20.
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