NEW
4.28
The cases of a bonafide default in
fulfillment of export obligation may be regularised by the licensing authority
in the manner indicated below:
(i) If the export obligation is fulfilled
in terms of value, but there is a shortfall in terms of quantity, the licence
holder shall, for the regularisation, pay:-
a) To the customs authority,
customs duty on the unutilised value of the imported material alongwith interest
at the rate of 15% per annum thereon; and
b) An amount equivalent to 3%
of the CIF value of unutilised imported material through a TR in the authorised
branch of central bank of India indicating the "Head Account: 1453, Foreign
Trade and Export Promotion and Minor Head 102". However, the provisions of this
sub paragraph shall not be applicable if the unutilised imported material was
freely importable on the date of import.
(ii) If the export obligation
is fulfilled in terms of quantity but there is shortfall in terms of value, no
penalty shall be imposed if the licence holder has achieved the positive value
addition. However, if the value addition falls below positive, the licence
holder shall be required to deposit an equivalent amount through TR in the
authorised branch of Central Bank of India indicating the "Head of Account-1453
Foreign Trade and Export Promotion- Minor Head –102" so that the 100 times the
deposited amount and the FOB value realised in Indian rupees together account
for positive value addition over the CIF value.
This shall be
calculated with reference to actual quantity of exports and FOB value of
realisation with reference to prorata quantity of imports and CIF value. For
example, if the export performance is only 50% quantitywise but import has been
for the complete CIF value permitted, then the value addition would be
calculated on a prorata basis, i.e with reference to 50% of the CIF value of
imports. This would accordingly imply that where the licence holder is unable to
export, no penalty on valuewise shortfall shall be imposed.
(iii) If
the export obligation is not fulfilled both in terms of quantity and value, the
licence holder shall, for the regularisation, pay as per (i) and (ii)
above.
(iv) In case an exporter is unable to complete the export
obligation undertaken in full and he has not made any import under the licence,
the licence holder will also have an option to get the licence canceled and
apply for drawback after obtaining permission from the Customs authorities for
conversion of shipping bills to Drawback Shipping Bills.
OLD
4.28
The cases of a bonafide default in fulfillment of export
obligation may be regularised by the licensing authority in the manner indicated
below:
(i) If the export obligation is fulfilled in terms of value, but
there is a shortfall in terms of quantity, the licence holder shall, for the
regularisation, pay:-
a) To the customs authority, customs duty on the
unutilised value of the imported material alongwith interest at the rate of 15%
per annum thereon; and
b) An amount equivalent to 3% of the CIF value of
unutilised imported material through a TR in the authorised branch of central
bank of India indicating the “Head Account: 1453, Foreign trade and export
promotion and minor head 102”. However, the provisions of this sub paragraph
shall not be applicable if the unutilised imported material was freely
importable on the date of import.
(ii) If the export obligation is
fulfilled in terms of quantity but there is shortfall in terms of value, no
penalty shall be imposed if the licence holder has achieved the positive value
addition. However, if the value addition falls below positive, the licence
holder shall be required to deposit an equivalent amount through TR in the
authorised branch of Central Bank of India indicating the “Head of Account-1453
Foreign Trade and Export Promotion- Minor Head –102” so that the 100 times the
deposited amount and the FOB value realised in Indian rupees together account
for positive value addition over the CIF value.
(iii) If the export
obligation is not fulfilled both in terms of quantity and value, the licence
holder shall, for the regularisation, pay as per (i) and (ii) above.
(iv)
In case an exporter is unable to complete the export obligation undertaken in
full and he has not made any import under the licence, the licence holder will
also have an option to get the licence cancelled and apply for drawback after
obtaining permission from the Customs authorities for conversion of shipping
bills to Drawback Shipping Bills.
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