Executive Summary:
This Public Notice amends the Handbook of Procedures 2015-2020 regarding Advance Authorizations and the maintenance of accounts for duty-free imported/domestically procured goods. It limits revalidation for certain Advance Authorizations and mandates online filing of records. The changes regarding revalidation are effective for authorizations issued on or after August 15, 2020, with online applications accepted from August 1, 2021.
Key Points / Main Content:
Advance Authorizations Revalidation:
* For Advance Authorizations issued on or after August 15, 2020, and not covered under Para 4.41b, only one revalidation is allowed, with a validity of twelve months from the expiry date.
* Further revalidation or provisions under Para 4.41c are not applicable for these authorizations.
* Online applications for revalidation can be submitted to the Regional Authority on or after August 1, 2021.
Maintenance of Proper Accounts:
* Advance Authorisation holders must maintain accounts of consumption/utilization of duty-free imported/domestically procured goods as per Appendix 4H or 4I.
* Records must be filed online at the beginning of each licensing year for authorizations redeemed in the previous licensing year, accessible on the DGFT Website under Dashboard Repository CA/CE Repository.
* Online record submission is mandatory for authorizations issued on or after March 8, 2005.
* Original DFIA holders must maintain accounts of consumption/utilization of duty-free imported/domestically procured goods as per Appendix 4H.
* DFIA records must be filed online with the Regional Authority alongside requests for bond waiver/transferability.
* All records must be preserved for at least three years from the date of redemption.
Impact Analysis:
Advance Authorisation Holders:
Impact: Revised revalidation rules apply to Advance Authorizations issued on or after August 15, 2020, potentially limiting the extension period. Online submission of records is now mandatory.
Action Required: Ensure compliance with the new revalidation rules and file records online as required.
Original DFIA Holders:
Impact: Online submission of records is now mandatory.
Action Required: File records online with the Regional Authority when requesting bond waiver/transferability.
Regional Authorities:
Impact: Must process online applications for revalidation and online record submissions.
Action Required: Prepare to receive and process online applications and submissions.
Key Entities Referenced
Directorate General of Foreign Trade: An organization under the Department of Commerce, Ministry of Commerce and Industry, responsible for implementing the Foreign Trade Policy.
Foreign Trade Policy 2015-2020: A set of guidelines and regulations governing India's import and export activities during the period 2015-2020.
Handbook of Procedures 2015-2020: A document providing detailed procedures and guidelines related to the Foreign Trade Policy 2015-2020.
Advance Authorisations: A type of export promotion scheme that allows duty-free import of inputs required for export production.
Regional Authority: A regional office of the Directorate General of Foreign Trade responsible for implementing trade policies at the regional level.
DFIA: Duty Free Import Authorisation
Appendix 4H: Appendix mentioned in the context of maintaining records of consumption and utilisation of duty-free imported goods
Amit Yadav: Director General of Foreign Trade and Ex-Officio Additional Secretary to the Government of India.
(To be published in the Gazette of India Extraordinary Part-I Section-I)
Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi - 110011
PUBLIC NOTICE NO. 16/2015-2020
New Delhi, Dated the 22 July, 2021
Subject: Amendments in Handbook of Procedures 2015-20- reg.
In exercise of powers conferred under Paragraph 1.03 of the Foreign Trade Policy
201S-2020, as amended from time to time, the Director General of Foreign Trade makes the
following amendment in Hand Book of Procedures 201S-20:
(i) Under Para 4.41 ofHBP 201S-20, a new sub-para (e) is added, as mentioned below:
4.41 Validity period for import and Revalidation of Authorisation
(e) For Advance Authorizations issued on or after IS.08.2020 and not covered under
Para 4.41(b) above, only one revalidation for twelve months from expiry date shall be
allowed. No further revalidation would be allowed for such authorisations. The
provision for revalidation as under Para 4.41(c) shall also not be applicable for such
Advance Authorisations.Applications for any such revalidation may be submitted
online to the concerned Regional Authority on or after 0l.08.2021.
(ii) Existing Paras 4.S1 and Para 4.S7 are replaced with the new Paras as mentioned
below:
Existing Para New Para
4.51 Maintenance of Proper Accounts 4.51 Maintenance of Proper Accounts
Every Advance Authorisation holder shall Every Advance Authorisation holder shall
maintain a true and proper account of maintain a true and proper account of
consumption and utilisation of duty free consumption and utilisation of duty free
imported 1 domestically procured goods imported 1 domestically procured goods
against each authorisation as prescribed in against each authorisation as prescribed in
Appendix 4H or 41, as applicable. These Appendix 4H or 41, as applicable. These
records are required to be sent to the records are required to be filed online at
concerned Regional Authority at the the beginning of each licensing year for all
beginning of each licensing year for all those authorisations, which have been
those authorisations, which have been redeemed in previous licensing year. The
redeemed In previous . licensing year. same may be submitted on the DGFT
However, these records in said format are Website under Dashboard---- Repository->-
required to be submitted for authorisations - CAiCE Repository.
issued on or after l3-0S-200S. Such records
should be preserved for a period of at least
three years from date of redemption.Existing Para New Para
4.57 Maintenance of proper accounts of 4.57 Maintenance of proper accounts
import and its utilisation- of import and its utilisation-
Original DFIA holder shall maintain a true Original DFIA holder shall maintain a
and proper account of consumption and true and proper account of consumption
utilisation of duty free imported I and utilisation of duty free imported I
domestically procured goods against each domestically procured goods against
authorisation as prescribed in Appendix 4H. each authorisation as prescribed
III
These records are required to be sent to Appendix 4H. These records are
Regional Authority concerned along with required to be filed online to Regional
request for bond waiver I redemption I Authority concerned along with request
discharge of export obligation I for bond waiver I transferability.
transferability. Such records should be
preserved for a period of at least three years
from date of redemption.
Effect of this Public Notice: With this Public otice -
Para 4.41 of Handbook of Procedures 2015-20 is amended to allow only one
1.
revalidation for a period of 12 months to Advance Authorisations issued on or after
15.08.2020 (instead of 2 revalidation of 6 months each, provided earlier).
Para 4.51 and 4.57 of Handbook of Procedures 2015-20 are amended to allow
11.
submission of record in online mode.
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(Amit Yadav)
Director General of Foreign Trade
Ex-Officio Additional Secretary to the Government of India
Email: dgft@nic.in
[Issued from File No. 01/94/180/492/AM20/PC-4]