what is the purpose of Value addition

[Asked by Guest]

Dear Sir,

I want to know the term VALUE ADDITION in under Advance Authorization,

what is the purpose of Valued Addition,

how can calculate value addition,

Please solve my query,

Thanks

Kalsariya Nilesh

AI Summary

Value addition requirement ensures export FOB exceeds input CIF to secure Advance Authorisation compliance and remedies.
Value addition for Advance Authorisation requires a minimum prescribed increase of export FOB over CIF value of inputs; it is computed by comparing realised FOB exports with CIF value of inputs (including those on which duty drawback is or will be claimed). Shortfalls attract a composition fee payable at DGFT redemption. Applications for Advance Authorisation/EPCG are filed online in ANF 4A with digital signature, attaching RCMC and relevant documents; status certificates exempt from bank guarantee.