4.21

Enhancement/ Reduction in the value of Authorisation

(a) In respect of an Advance Authorisation, RA concerned (as per their financial powers) may consider a request for:

i. enhancement / reduction in CIF value of Advance Authorisation;

ii. enhancement / reduction in CIF value, quantity of inputs, FOB value and quantity of exports of an Advance Authorization;

provided VA after such enhancement does not fall below minimum VA stipulated in FTP and HBP v1 laid thereunder and there is no change in input-output norms and FTP under which Advance Authorisation was issued.

(b) However, in case of Advance Authorisation(s) issued prior to 27.8.2009 under the FTP, 2004-09, the following conditions shall apply for any enhancement in the value of the authorisation:

i. Wherever exports are on or subsequent to 27.8.09, enhancement in CIF / FOB values shall be subject to a minimum VA of 15% or the VA prescribed in Appendix 11B, whichever is lower, for that component of exports.

ii. Wherever exports are prior to 27.8.09, enhancement in CIF / FOB values shall be subject to a minimum VA of 15% or the VA prescribed in Appendix 11B, or the VA declared in the original Advance Authorisation application, whichever is lower.