Advance Authorisation

[P S SATYA NARAYANA]

Dear Sir,

Request your kind feedback on :

Raw material imported under Advance Authorisation Scheme is not meeting the quality parametere.  Can we return (re-export) this material to the buyer.  What are the ramification on EO obligation. Should we inform to the JDGFT (issuing Authority). Procedure to be followed.

thanking you

P S SATYANARAYANA

 

[YAGAY and SUN]

Re-export of goods imported under Advance Authorization and Found Defective:-

Goods imported and found defective or unfit for use can be re-exported.  In such case, 95% of CIF value debited against advance authorization for such goods will be generated by Commissioner of Customs as an Authorization.  Based on such certificate, fresh DFIA will be issued by concerned RA.

Re-export should be within 6 months.  This period can be extended by further 6 months by Commissioner of  Customs - MF (DR) Circular No. 26/2009-Cus dated 30-09-2009.

Yes, you must inform the concerned authorities whether it is JDGFT, C.E., Customs or VAT Department.

[P S SATYA NARAYANA]

Dear Sir,

Thank you very much for your kind response.

I am not very clear on  

"In such case, 95% of CIF value debited against advance authorization for such goods will be generated by Commissioner of Customs as an Authorization"

Grateful, if you can bit elobarate it further.

Thanking you

P S SATYANARAYANA

[YAGAY and SUN]

Please check the para 4.35 (a) and (b) of the chapter 4 of the Hand Book of Procedure Vol.1 (2009-2014) in this regard.

[P S SATYA NARAYANA]

THANK YOU VERY MUCH, SIR.

AI Summary

Re-export of defective imports under Advance Authorisation permitted; authorization and fresh DFIA issued, timelines extendable and authorities must be notified.
Re-export of imported raw material under an Advance Authorisation due to defect is allowed; the Customs Commissioner issues an authorization crediting 95% of the CIF value debited against the Advance Authorisation, enabling the Regional Authority to issue a fresh DFIA. Re-export must occur within six months, extendable once for a further six months by the Commissioner; applicants must notify the issuing export authority, Customs and other concerned departments and follow the Handbook of Procedure provisions for procedural steps.