Time for Advance Authorisation license

[Sanwa Diamond Tools Pvt Ltd]

We have taken advance authorisation license for export on 30/01/2008. The import of inputs is already done but expot obligation are unable to complete with in 3 year, but obligation is only compleeted 30%. Now, can we go for further extended period time. Byrappa KG Sanwa Diamond Tools Pvt Ltd

[Snehal Kulkarni]

 

Please go through the relevant Para of HBoP to FTP

 

Export Obligation

(EO) Period and

its Extension

4.22 Fulfillment Period of EO under an Advance Authorisation shall

commence from Authorisation issue date, unless otherwise

specified. EO shall be fulfilled within 36 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.

EO period for Advance Authorizations issued with input(s) as

mentioned in Appendix 30A shall be as per the period stipulated

against each entry therein. Facility of extension of EOP shall not

be allowed in case of Advance Authorisation issued for these

inputs. RA shall make an endorsement in Advance Authorisation

to this effect.

4.22.1 Whenever a ban / restriction is imposed on export of any product,

export obligation period in respect of Advance Authorisation

already issued prior to imposition of ban, would stand

automatically extended for a period equivalent to the duration of

ban, without any composition fee.

For the Advance Authorisation (erstwhile licences) where raw

sugar has been imported between 21.09.04 and 15.4.08, but the

export obligation is yet to be fulfilled, the export obligation

69

period stands automatically extended upto 31.03.2011 without

payment of composition fee. Advance licence / authorisation

holder has the option to pay the customs duty as applicable, on

the date of import for the quantity of import proportionate to

unfulfilled E.O. and get the case regularized accordingly.

4.22.2 Customs may allow provisional clearance of export consignment

as and when Authorisation holder produces documentary

evidence of having applied for EO extension to concerned RA.

AI Summary

Export obligation period under advance authorisation typically fixed; extensions allowed during export bans and specified exceptions. Export Obligation under an Advance Authorisation commences from the authorisation issue date and must be fulfilled within thirty-six months except where EO aligns with contracted durations for projects or deemed exports. Inputs listed in Appendix 30A carry stipulated periods and are not eligible for EO extension, to be endorsed by the Regional Authority. If an export ban/restriction is imposed after issue, the EO period is automatically extended for the ban's duration without composition fee. Holders with certain raw sugar imports have an extended EO period or may regularise by paying customs duty proportionate to unfulfilled EO; customs may allow provisional clearance upon proof of EO extension application.