Check List for Clubbing and Redemption of Advance Authorisation

[Addl. DGFT Trade Notice No. 16 dated 4th October 2012]

Subject: Check List for Clubbing and Redemption of Advance Authorisation(s)/Annual Advance Authorisation

In order to bring transparency and uniformity in the office working, a Check-list for submission of application in regard to Clubbing and Redemption of Advance Authorisation(s)/Annual Advance Authorisation has been formulated. This check-list is as per Chapter 4 of the Foreign Trade Policy 2009-14, Chapter 4 of the Hand Book of Procedures 2009-14 (Vol.I) (Para 4.20) and ANF-4D as given in Appendices to the Handbook of Procedures (Volume I).

The Check-list has four sections as follows:

1.  Documents Section: Section giving the list of documents which are required to be submitted by the applicant.

2.  Additional Documents Section: Documents which are required to be submitted by some of the applicants as is relevant.

3.  Note Section: Exporters have been indicated certain points which they should check on, before submitting the application and the relevant documents in the said regard.

Check List for Clubbing and Redemption of Advance Authorisation(s)/Annual Advance Authorisation

(Para 4.20 of HBP)

(Prepared by Addl. DGFT, Mumbai)

Name of the applicant:

IEC No.

Licence No. & Date

File No.

 

Whether following documents have been submitted

Total number of pages in the relevant document

I

Documents

 

1

Covering letter signed by authorised signatory

2

All Advance Authorisations (in original)

3

Two copies of ANF 4D duly filled in, each individual page signed by the applicant

4

Consumption register as per Appendix 23 duly signed by CA/CWA *(note) (Para 4.30 of HBP, Vol.1)

 

5

In case of any CENVAT credit facility on inputs availed for exported goods, an independent Chartered Accountant or Central Excise Superintendent certification in the said regard should certify that the imported material has been/would be utilised only in the manufacture of dutiable goods even after completion of export obligation

 

I-A

For Physical exports

6

Original Bank Certificate of Exports & Realisation as per Appendix 22-A or Appendix 22-D/ FIRC/ Irrevocable Letter of Credit (Status holder)/ Confirmed irrevocable Letter of Credit (non-status holder)/ proof of RBI write off on export realisation (as applicable) duly signed by the bankers

 

7

In case of direct negotiation of documents, copy of RBI permission (as per Para 2.26.2 of HBP)

 

8

In case of offsetting of export proceeds, specific permission of RBI (refer Para 2.57 of HBP)

 

9

In case of RBI write off on export realisation, the following documents:

 

Copy of letter from RBI

 

Copy of certificate from Foreign Mission of India regarding fact of non-recovery of export products

 

10

EP copy of shipping bills/ Bills of exports as relevant with File No./Authorisation No.

 

11

In case export product details/any other required details are missing/incomplete in the shipping bill(s), custom/ excise attested invoices/ARE 1

 

I-B

For deemed exports

 

12

Copy of invoice/ statement of invoices / ARE-3, duly signed by jurisdictional excise authorities of recipient unit

 

13

In case of supply of non-excisable goods or supply of excisable items to a unit producing non-excisable items, original certificate from buyer (PAC) having received the supplies

 

14

Payment certificate as per Appendix 22B or 22C/confirmed irrevocable L/C (non-status holder) as applicable

 

II

Additional Documents

 

1

Invalidation letter (in original) - if not submitted at the time of issuance of authorization.

 

2

LOP/ Green Card of 100% EOU and Legal Undertaking executed by EOU with Development Commissioner (self attested copies) -- if not submitted at the time of issuance of authorization.

 

3

In case of third party exports, disclaimer from third party

 

4

Copy of minutes of Norms Committee relevant to the authorisation (in case of authorisation issued under Para 4.7 of HBP)

 

5

For regularization of cases as per Para 4.28 of HBP – the following documents as relevant:

 

(i)

Proof of payment of customs duty & interest (TR-6 Challan) & Calculation sheet along with photocopies (Para 4.28(i) of HBP, Vol.1)

 

(ii)

In case import item is restricted as per Import Policy, then

a)Proof of payment equivalent to 3% of CIF value of unutilized imported material and

b) Separate authorisation for import of that restricted item. (Para 4.28(a)(ii) of HBP, Vol.1)

 

(iii)

In case of shortfall in Value Addition, TR for amount equal to 1% of shortfall in FOB (Para 4.28 (b) & (c) of HBP, Vol.1)

 

Note:

1.  Kindly ensure that all advance authorisations to be clubbed are issued after 1.4.2004?

2.  Kindly ensure that all authorisations are issued within 18 months of earliest authorisation proposed to be clubbed?

3.  Kindly ensure that EO fulfilled in all authorisations are within EO period of earliest authorisation? If not, ensure that composition fee at the rate of 0.5% of shortfall in EO has been paid.

4.  Kindly ensure that the Value Addition of authorisation proposed to be clubbed should be at least equal to weighted average of minimum Value Addition prescribed in FTP (Please refer to Policy Circular No.9 dated 1.10.2009).

5.  In case EO fulfilled in all authorisations sought to be clubbed are not within valid EO period of earliest authorisation, composition fee @ 0.5% of shortfall in EO should be furnished by TR Challan in the “Head Account:1453, Foreign Trade and Export Promotion and Minor Head 102’.

6. Kindly ensure that all advance authorisations sought to be clubbed must have at least one common input.

7. Kindly ensure that all advance authorisations proposed to be clubbed are issued by the same RA.

8. Kindly note that if any input(s) specified in Appendix 30A are allowed for import in the advance authorisations proposed to be clubbed, the same are disallowed for clubbing (Para 4.20.5).

9.    Kindly ensure that the net content of input is properly accounted for as per norms stipulated in the authorisation, and the same indicated in (a) shipping bills (for physical exports) and (b) invoices (in cases of deemed exports)

10. Kindly ensure File No./Authorisation No. has been endorsed on the export/supply documents furnished

11. In case of exports through third party, names of both authorisation holder and third party are indicated in export documents

12. FOB value of exports shall be arrived at after excluding the Foreign Agency Commission, if any. This provision shall be applicable for authorisation issued on or after 1.4.2008.

The check-list would facilitate exporters to carryout due diligence before submitting her/his application so that the application which are complete in all respects are available for processing in the Department within the specified timelines. The check-list would also ensure that the processing of the case is not delayed for want of certain documents/additional documents/information on which the office may have to issue deficiency letters.

The applicants are requested to kindly adhere to the check-list in full while submitting their applications for Clubbing and Redemption of Advance Authorisation(s)/Annual Advance Authorisation in order to enable the office to process their applications expeditiously.

The Addl. DGFT office, Mumbai has strengthened Counter Assistance and provided a facility to the exporters which can be utilised free of cost by the exporters. The exporters can go to the Counter Assistants and get their application(s) checked for their completeness in terms of submission of documents. If an application is okayed by the Counter Assistant, the sections will not issue deficiency for non-submission of any documents regarding the said authorisation/scrip/benefit.

For any queries/clarifications regarding the case, the exporters are requested to come directly to the office and not through their agents/consultants.

The above said check list is also attached in PDF format as a downloadable document which may be submitted along with the covering letter of the application. [Download PDF]

*This is required to be submitted to the RA at the beginning of each licensing year for all those authorisations which have been redeemed in previous licensing year. (The relevant file number wherein it has been submitted should be indicated)