Amendments in Hand Book of Procedures of FTP 2015-2020, related to Facility of Clubbing of Authorisations

Circular No. ES/370/ 2018-19                                                                    February 1, 2019

To: Members of the Council

Sub: Amendments in Hand Book of Procedures of FTP 2015-2020, related to Facility of Clubbing of Authorisations

Dear Member,

We would like to inform you that O/o DGFT has issued Public Notice No. 70/ 2015-20 dated 30th January, 2019 by making amendments in Para 4.38  relating to Facility of Clubbing of Authorisations under Hand Book of Procedures of FTP 2015-2020.

Relevant extract of the Public Notice is given here-below: 

Sr. No.

Existing Para 4.38 of HBP 2015-20

Amended Para 4.38 of HBP 2015-20

i)

No clubbing of Authorisations issued on or before 31st March, 2009 shall be allowed.

No clubbing of Authorisations issued on or before 31st March, 2009 shall be allowed.

ii)

Request for clubbing shall be made in ANF - 4C to the concerned RA who has issued the Authorisations.

Request for clubbing shall be made in ANF - 4C to the concerned RA who has issued the Authorisations.

iii)

Facility of clubbing of Advance Authorisations shall be available only for redemption / regularisation of such Authorisations and no further import or export shall be allowed.

Facility of clubbing of Advance Authorisations shall be available only for redemption / regularisation of such Authorisations and no further import or export shall be allowed.

iv)

Facility of clubbing shall also be available for Advance Authorisations for Annual Requirement issued during Foreign Trade Policy period 2009-14 and 2015-20, wherever exports and imports have taken place as per Standard Input Output Norms (SION) notified

Facility of clubbing shall also be available for Advance Authorisations for Annual Requirement issued during Foreign Trade Policy period 2009-14 and 2015-20, wherever exports and imports have taken place as per Standard Input Output Norms (SION) notified.

v)

Only Authorisations under which similar duty exemption has been availed shall only be allowed to be clubbed. Such Authorisations may pertain to different financial years.

Only Authorisations under which similar duty exemption has been availed shall only be allowed to be clubbed. Such Authorisations may pertain to different financial years.

vi)

In case, exports are made outside EO period of any Authorisation, EO extension may be allowed before clubbing of such authorisation, as per Para 4.42 of Handbook of procedures on payment of composition fee.

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 regularised under Para 4.49 of the HBP.

 

vii)

Only such Advance Authorisations shall be clubbed where exports under all Authorisations have been made within the initial/ extended EO period of the earliest issued Authorisation.

Exports made during initial or extended EO period of individual authorisations (after payment of composition fee as per provisions of Para 4.42 of HBP) shall be clubbed.

viii)

Clubbing shall be permitted only when there is shortfall in fulfilment of export obligation occurred in first authorisation and excess exports are made in subsequent Authorisations. However, this condition may not be insisted when validity period (for import) of Authorisations runs concurrently and imports made in subsequent authorisation falls within validity period (for import) of first 120 authorisation and such import made within validity period of first authorisation are on pro-rata, equal to or in excess to the extent of exports made in first authorisation. Subsequent Authorizations issued after expiry of validity of first Authorisation shall not be allowed to be clubbed.

Upon clubbing, if shortfall in value or quantity is noticed, the same shall be regularized under the provisions of Para 4.49 of HBP 2015-20.

ix)

Clubbing of Authorisations issued with different EO periods shall also be allowed.

Clubbing of Authorisations issued with different EO periods shall also be allowed.

x)

Accounting of exports made outside expiry of initial or extended EO period of earliest issued authorisation shall not be taken into consideration for EO fulfilment after clubbing of such Authorisations.

Inputs which are common in all  authorisations shall be clubbed and duty free inputs shall be accounted for as per SION/ad-hoc norms fixed by NC. In other words all inputs covered in all authorisations need not be same.

xi)

Inputs which are common in all Authorisations shall only be clubbed

and duty free inputs shall be accounted for as per SION/Ad-Hoc Norms fixed by NC. In other words all inputs covered in all Authorisations need not be same.

Minimum value addition as prescribed in FTP and Procedures for the export product will be required to be maintained on clubbing.

xii)

Minimum value addition as prescribed in FTP and Procedures for the export product will be required to be maintained on clubbing. Upon clubbing, if shortfall in value or quantity is noticed, the same shall be regularized under the provisions of Para 4.49 of HBP 2015-20.

After clubbing, Authorisations shall for all purposes, be deemed to be one

Authorisation. The value addition would be calculated on the basis of total CIF and total FOB arrived at after clubbing the Authorisations.

xiii)

After clubbing, Authorisations shall for all purposes, be deemed to be one Authorisation. The value addition would be calculated on the basis of total CIF and total FOB arrived at after clubbing the Authorisations.

All cases clubbed, as per earlier provisions would not be reopened.

xiv)

No clubbing shall be permitted in respect of Authorisations where misrepresentation / fraud have come to the notice of RA. Further, no clubbing of Authorisations, where EODC/redemption letter has already been issued or adjudication orders have already been passed by RA/Customs Authority, shall be permitted.

No clubbing shall be permitted in respect of Authorisations where misrepresentation/ fraud have come to the notice of RA. Further, no clubbing of Authorisations, where EODC/redemption letter has already been issued or adjudication orders have already been passed by RA/Customs Authority, shall be permitted.

xv)

Additional provisions for clubbing of Authorisations covered under Appendix-30A (issued under FTP 2009-14) / Appendix-4J (issued under FTP 2015-20) and Authorisations issued with EOP less than 18 months:

 

(a) Export obligation period of clubbed Authorisations shall be reckoned from the date of earliest import in any of the Authorisations proposed to be clubbed.

 

(b) Clubbing of such Authorisations shall be allowed provided all exports are completed within initial/extended Export Obligation period reckoned from date of earliest import in any of the Authorisations proposed to be clubbed.

Additional provisions for clubbing of Authorisations covered under Appendix-30A (issued under FTP 2009-14) / Appendix-4J (issued under FTP 2015-20) and Authorisations issued with EOP less than 18 months:

 

(a) Export obligation period of clubbed Authorisations shall be reckoned from the date of earliest import in any of the Authorisations proposed to be clubbed.

 

(b) Clubbing of such Authorisations shall be allowed provided all exports are completed within initial/ extended Export Obligation period reckoned from date of earliest import in any of the Authorisations proposed to be clubbed.

Members may kindly make a note of the above amendments.

Thanking you,

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR

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