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Date: 28-Feb-2023 Category: Extra Ordinary State: Union Government Country: India

Amendments in Para 4.42 of the Handbook of Procedures 2015 2020.

Issued by Ministry of Commerce and Industry · Directorate General of Foreign Trade

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Executive Summary & Key Takeaways

What it means

  • The gazette notification issued by the Director General of Foreign Trade (DGFT) introduces amendments to Para 4.42 of the Handbook of Procedures 2015-2020. These amendments pertain to the implementation of decisions related to the levy of composition fees for the extension of Export Obligation Periods (EOP) and/or regularization of exports already made under the Advance Authorisation (AA) Scheme.

Key Changes

  • A new sub-para (j) is added to Para 4.42 of the Handbook of Procedures 2015-2020.
  • The notification prescribes a fixed composition fee based on the CIF value of Advance Authorizations (AA) licenses issued.
  • The composition fee structure is as follows:
  • - Up to ₹2 Crores: ₹25,000
  • - More than ₹2 Crores to ₹10 Crores: ₹50,000
  • - Above ₹10 Crores: ₹1,00,000
  • The notification clarifies that no refund of previously paid composition fees will be admissible.
  • The amendment aims to integrate a uniform and transparent system for implementing decisions related to composition fees for EOP extensions and regularization of exports under the Advance Authorization scheme, promoting ease of doing business and reducing transaction costs.

Impact Analysis

Impact on DGFT and PRC

  • The uniform system should reduce ambiguity and potential disputes related to composition fee calculations.

Impact on Exporters

  • The 'no refund' policy for previously paid composition fees should be noted by exporters.

Suggested Action Items

  • The DGFT should ensure clear communication and training for its officers on the implementation of the amended regulations.

Key Entities Referenced

Director General of Foreign Trade (DGFT): The issuing authority of the gazette notification and responsible for implementing the Foreign Trade Policy. Handbook of Procedures 2015-2020: A document outlining the procedures and guidelines for implementing the Foreign Trade Policy. Para 4.42 of Handbook of Procedures 2015-2020: The specific section of the Handbook of Procedures that is being amended, related to Export Obligation Period (EOP) and its extension. Advance Authorization (AA) Scheme: A scheme under the Foreign Trade Policy that allows duty-free import of inputs for export production. PRC: Committee or authority within DGFT Foreign Trade Policy 2015-2020: The overarching policy framework governing India's foreign trade.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-28022023-243965 xxxGIDHxxx CG-DL-E-28022023-243965 xxxGIDExxx असाधारण EXTRAORDINARY भाग I—खण्ड 1 PART I—Section 1 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 56] नई दिल्ली, मगं लवार, फरवरी 28, 2023/फाल्ग नु 9, 1944 No. 56] NEW DELHI, TUESDAY, FEBRUARY 28, 2023/PHALGUNA 9, 1944 ubZ fnYyh] 28 Qjojh] 2023 01@94@180@012@,,e&23@ihlh&4 le;≤ ij ;Fkk la”kksf/kr fons'k O;kikj uhfr ds iSjk 1-03 vkSj 2-04 ds rgr iznÙk 'kfDRk;ks a dk iz;ksx djr s gq,] egkfun's kd fon's k O;kikj ,rn~}kjk izfØ;k iqLrd 2015&2020 ds iSjk 4-42 ds izko/kkuks a eas fuEufyf[kr la”kks/ku djr s gaS% ¼>½ izfØ;k iqLrd 2015&2020 ds iSjk 4-42 ds rgr ,d u, mi&iSjk ¼¥½ dk s fuEukuqlkj tksM+k tkrk gS% ¼¥½ fu;kZr nkf;Ro vof/k eas foLrkj vkSj@vFkok igy s gh fd, x, fu;kZrks a ds fofu;eu dks vuqer djr s le; la;kstu “kqYd yxku s ds laca/k eas lHkh ihvkjLkh fu.kZ;ks a ds dk;kZUo;u gsrq] ykxw la;kstu “kqYd ;gka uhps ;Fkk fu/kkZfjr gksxk% 2 djksM+ #i; s rd 25]000 2 djksM+ #i; s ls vf/kd 10 djksM+ #i;s 50]000 rd 10 djksM+ #- ls vf/kd 1]00]000 1341 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1] igy s Hkqxrku fd, x, la;kstu “kqYd dk dksbZ Hkh fjQaM vuqer ugha gksxkA izfØ;k iqLrd 2015&2020 ds iSjk 4-42 dks O;kikj dju s eas lqxerk vkSj dkjksckj ykxr dks de dju s gsrq vfxze izkf/kdkj i= Ldhe ds rgr fu;kZr nkf;Ro vof/k ¼bZvksih½ eas fOkLrkj vkSj@vFkok igy s gh fd, x, fu;kZrks a ds fofu;eu ds ekeys esa la;kstu “kqYd yxk, tkus dh izfØ;k ls lacaf/kr iwoZ ds fu.kZ;ks lfgr LkHkh ihvkjlh fu.kZ;ks a ds dk;kZUo;u gsrq ,dleku vkSj ikjn”khZ iz.kkyh dk s ,dh—r dju s ds fy, la”kksf/kr fd;k x;k gSA larks’k dqekj lkjaxh] egkfuns'kd fons'k O;kikj ,oa inus vij lfpo MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (DIRECTORATE GENERAL OF FOREIGN TRADE) PUBLIC NOTICE New Delhi, the 28th February, 2023 No. 59 /2015-2020 Subject: Amendments in Para 4.42 of the Handbook of Procedures 2015-2020. F. No. 01/94/180/012/AM23/PC-4.— In exercise of powers conferred under Paragraph 1.03 and 2.04 of the Foreign Trade Policy 2015-2020, as amended from time to time, the Director General of Foreign Trade hereby makes the following amendments in the provisions of Para 4.42 of the Handbook of Procedures 2015-2020: (i) Under Para 4.42 of HBP 2015-2020, a new sub-para (j) is added, as mentioned below: 4.42 Export Obligation (EO) Period and its Extension: (j) For implementation of all PRC decisions involving levy of Composition Fee while allowing extension in EOP and/or regularisation of exports already made, the applicable Composition Fee shall be as prescribed hereunder: CIF VALUE OF ADVANCE COMPOSITION FEE TO BE AUTHORIZATION (AA) LICENSES LEVIED (IN ₹) ISSUED Up to ₹2 Crores 25,000 More than ₹2 Crores to ₹10 Crores 50,000 Above ₹10 Crores 1,00,000 No refund of earlier paid Composition Fee shall be admissible. Effect of this Public Notice: Para 4.42 of the Handbook of Procedures 2015-2020 has been amended to integrate a uniform and transparent system for implementation of all PRC decisions including previous decisions involving process of levying Composition Fee in case of extension of Export Obligation Period (EOP) and/or regularisation of exports already made under Advance Authorization Scheme, for ease of doing business and reduction of transaction cost. SANTOSH KUMAR SARANGI, Director General of Foreign Trade & Ex-officio Addl. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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