CIRCULAR/NOTIFICATION FOR THE EXTENSION OF THE LICENSE VALUE

[GVSSR shankar]

Dear Sir,

we took the EPCG License for some value, unfortunately because of the fluctuation in the exchange rates the actual value of the shipment got increased and because of that we are unable to clear the shipment from the customs. Now please help / advise us the Circular /Notification for the extension of the value. I guess it can be done from 5% to 10% on the existing License Value.

[Gokul Agri]

Dear,

You may please to note point no. (2) & (b) of para 5.16 of HBP FTP 2015-20 , wherein mention "Automatic Reduction/Enhancment up 10% of Duty saved amount and pro rata reduction

AI Summary

Automatic enhancement of duty saved amount allows EPCG licence value adjustment for exchange rate driven shipment cost increases. The document explains that where exchange rate fluctuations increase shipment value and prevent customs clearance, the EPCG licence duty-saved amount can be modified. The HBP FTP provision cited allows an automatic enhancement or reduction of the duty-saved amount within prescribed limits and provides for pro rata reduction, enabling importers to adjust licence value to meet actual invoice costs under the automatic adjustment framework.