Advance License - Extention

[SHOEB VAPIWALA]

Dear Sir

Advance License issued against export obligation for a period of 6 years. You are requested to guide us in the light on present Exim Policy whether

1. Can it be extend for another 2 years?

2. If once already extended can it extended for another term?

3. Is there any penalty on extending the terms on 1st or 2nd time?

Thanks

VAPIWALA S G

[Mahir S]

Sir,

In present scenario, it can be extended only once.

It can be extended only for six months period from the EO expiry date.

Such one time extension of EO for period of six months, is subject to payment of composition fee of 0.5% of the shortfall in EO.

[MUKUND THAKKAR]

Sir,

Advance License issued against export obligation for a period of 6 years.

please check no advance lic has been issued for 6 years,

it may be EPCG lic. In case of extension of EPCG lic. please refer when you have to obtain under which policy period. please follow the accordingly. any extension is permissible under composition fee.

[SHOEB VAPIWALA]

Dear Mr Mukund Thhakar

You are very much correct. The Advance License is issued but it is written as hypothetical 6 years instead of actual one.
We request you to to guide on the questions asked in the light of current laws applicable to the Advance License only.

Thanks with best regards.

VAPIWALA S G

[MUKUND THAKKAR]

Dear,

ok

In case of advance license two extension is permissible 1 first for the six month with the payment of composite fee guide line is given in chapter 4 for FTP and HBP v-I. and another extension is also permissible for the period of the six month. with the increase rate of composite payments. as per guide line of FTP and HBP. as per my view two extension is permissible.with two different rate of composite fee.

[Mahir S]

Sir,

Please refer the following para of Chapter 4 regarding Duty exemption under the Foreign Trade Hand Book of Procedure (RE - 2012) / 2009-14 (From 5-6-2012)

4.22 Export Obligation (EO) Period and its Extension

(a) Fulfilment Period of EO under an Advance Authorisation shall commence from Authorisation issue date, unless otherwise specified. EO shall be fulfilled within 18 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.

(b)RA may consider a re,,

quest of Advance Authorisation holder for one extension of EO upto six months from the EO expiry date subject to payment of composition fee of 0.5% of the shortfall in EO.

AI Summary

Advance Authorisation extension: one-time six-month extension permitted subject to composition fee for unfulfilled export obligation. Advance Authorisation EO ordinarily begins on issue and must be fulfilled within 18 months unless otherwise specified. RA may consider one extension of EO up to six months from the EO expiry date, and that one time extension is subject to payment of a composition fee of 0.5% of the shortfall in EO; a conflicting practitioner view in the discussion suggests two six month extensions with higher composition fees under FTP/HBP.