DGFT prescribed the levy of composition fee in case of extension of EOP under Advance Authorisation Scheme

The DGFT vide Public Notice No. 59/2015-2020 dated February 28, 2023 has amended Para 4.42 of the Handbook of Procedures (“HBP”) 2015-2020 to integrate a uniform and transparent system for implementation of all Policy Relaxation Committee (“PRC”) decisions, including previous decisions involving the 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 the transaction cost.

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:

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 the 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 the transaction cost.

The Public Notice can be accessed at: https://content.dgft.gov.in/Website/dgftprod/898f7d6a-9cce-4cac-a7dd-2abe0c422dce/Public%20Notice%20no.%2059%20English.pdf