Extension of EOP under Advance Authorisation Scheme: DGFT Prescribes Levy of Composition Fee

The public notice modifying Section 4.42 of the Manual of Procedures has been released by the Director General of Foreign Trade ( DGFT ). The authority has the right to occasionally make changes if they deem them essential as mentioned in para 1.03 and 2.04. Under Para 4.42 of Handbook of Procedures (HBP) 2015-2020, a new sub-para (j) is added. The notice also stated that no refund of the earlier paid Composition Fee shall be admissible.

The notification was published in order to incorporate a uniform and transparent system for implementation of all Policy Relaxation Committee (PRC) decisions, including prior decisions involving the process of levying Composition Fees in case of extension of the Export Obligation Period ( EOP ) and/or regularisation of exports already made under the Advance Authorization Scheme.

The notice states that a composition fee of 25,000 is levied for Advance Authorization licences valued up to 2 crores CIF. The composition fee ranges ₹50,000 for more than 2 crores to 10 crores. In addition, a fee of ₹1,00,000 is charged for CIF values over 10 crores.

For ease of doing business and a decrease in transaction costs, Para 4.42 of the Handbook of Procedures 2015-2020 has been revised to include a uniform and transparent system for implementing all PRC decisions, including earlier decisions involving the process of levying composition fees in cases of extension of the Export Obligation Period ( EOP ) and/or regularisation of exports already made under the Advance Authorization Scheme.

To Read the full text of the Order CLICK HERE

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