DGFT Introduces Amendment to Advance Authorization scheme, allows Clubbing of Authorizations within 24 Months [Read Notification]

The Directorate General of Foreign Trade ( DGFT ) has introduced amendments to Para 4.36 of the Handbook of Procedures 2023 through Public Notice No. 40/2023 dated February 12, 2024. These changes aim to streamline the Advance Authorization Scheme by allowing the clubbing of authorizations issued within a 24-month period, thereby easing conditions for exporters.

Under the revised provision, imports and exports authorised within 30 and 48 months respectively from the earliest authorization will be eligible for clubbing. This amendment is designed to simplify compliance requirements and promote ease of doing business for exporters participating in the Advance Authorization Scheme.

In accordance with the powers vested under Paragraph 1.03 and 2.04 of the Foreign Trade Policy, 2023, as amended, the DGFT has implemented this amendment to enhance procedural efficiency and facilitate smoother operations for exporters.

By enabling the clubbing of authorizations within a specified timeframe, the DGFT aims to reduce administrative burden and provide exporters with greater flexibility in managing their trade activities. This proactive measure underscores the government's commitment to fostering a conducive business environment and promoting trade facilitation initiatives.

Existing para 4.36

Amended para 4.36

(vi) Only such authorisations shall be clubbed which have been issued within 18 months from the date of issue of earliest authorisation that is sought to be clubbed, whether such authorisations are valid or not. This is further subject to condition that upon clubbing only imports made within 30 months from the date of issue of earliest authorisation shall be considered. Any imports made beyond 30 months of earliest authorisation shall be regularized under Para 4.49 of the HBP.

(vi) Only such authorisations shall be clubbed which have been issued within 24 months from the date of issue of earliest authorisation that is sought to be clubbed, whether such authorisations are valid or not. This is further subject to the condition that upon clubbing only imports made within 30 months from the date of issue of earliest authorisation shall be considered. Any imports made beyond 30 months of earliest authorisation shall be regularized under Para 4.49 of the HBP. This is further subject to the condition that upon clubbing only exports made within 48 months from the date of issue of earliest authorisation shall be considered. Any exports made beyond 48 months of earliest authorisation shall not be acceptable for clubbing.

To Read the full text of the Notification CLICK HERE

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