The Directorate has recently received several requests for relaxation in the payment of the 3% amount under Para 4.49(b) and similar provisions of the Handbook of Procedure 2023 ( HBP 2023 ) against Advance Authorisations issued before a certain date.
In response to these queries, attention has been drawn to Para 4.48(a) of the HBP 2023, which outlines the Transitional Arrangement for Authorisations issued up to 31.03.2023. This provision states that Advance Authorisations, including Advance Authorisations for Annual Requirement, issued before 31.03.2023, shall be governed by the respective provisions contained in the relevant HBPs under which the authorisation was issued, except for provisions related to clubbing and extension in the Export Obligation period.
Consequently, it was clarified that the provisions concerning the payment of 10% of CIF value and 3% of shortfall in FOB value, as specified in Para 4.49(a)(ii) and 4.49(b) of the Handbook of Procedures 2023, are applicable only to cases where Advance Authorisation is issued on or after 01.04.2023.
Advance Authorisations issued prior to 01.04.2023, will be governed by the relevant provisions of the HBP for the purpose of regularisation of bonafide Export Obligation default.
It’s important to note that this clarification does not constitute grounds for the refund of fees already paid. This Policy Circular has been issued with the approval of the Authority to provide clarity on the application of payment provisions for Advance Authorisations under HBP 2023.
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