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

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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

Sanwa Diamond Tools seeks extension for fulfilling export obligation under Advance Authorisation; consults Handbook of Procedures for guidance. Sanwa Diamond Tools Pvt Ltd inquired about extending the export obligation period under an Advance Authorisation license, as they have only fulfilled 30% of their obligation within the initial three-year period. The response from Mangesh Lokre advises consulting the Handbook of Procedures to the Foreign Trade Policy (HBoP to FTP) regarding the Export Obligation (EO) period and its extension. Generally, the EO must be fulfilled within 36 months unless specified otherwise. Extensions are not allowed for certain inputs, but automatic extensions may apply if export bans are imposed. Additionally, customs may allow provisional clearance if an extension application is submitted.