Excess procurement of RM

[kamal chordia]

Dear Sir

We obtained advance authorisattion, in which first we export (SEZ) and thereafter we procured raw material for replenishment against Invalidation letter

in this regard we procured excess qty of RM, for which DGFT advise us to deposit custom duty on excess procurement.

Please advise where we have to deposit custom duty on excess procurement.

In Adv Authorisation Port of import mentioned as Mundra but Licence not registered at Mundra Port as we procured Raw Material indiginously.

Thanks & regards

Kamal

AI Summary

Excess Raw Material Procurement Raises Duty Payment Issue Under Advance Authorization; DGFT Advises on Customs Compliance. A query was raised about the excess procurement of raw materials under an advance authorization for export and subsequent replenishment. The issue involved paying customs duty on the excess quantity, as advised by the Directorate General of Foreign Trade (DGFT). The port of import was Mundra, but the license was not registered there due to indigenous procurement. Responses suggested either paying the duty to clear the raw materials to the factory or processing them at a customs bonded warehouse without duty payment. Another response advised updating KYC for port registration at Mundra.