Composition Fee below 1 Lakh Specified for Regulation of EO Defaults in Advance Authorization

· Implementation of all PRC decisions involving levy of Composition Fee while allowing extension in EOP

· No refund of earlier paid Composition Fee admissible.

[DGFT Public Notice No.59/2015-2020 dated 28 February, 2023]

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.

Subject: Amendments in Para 4.42 of the Handbook of Procedures 2015-2020.

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:

CIFVALUEOF ADVANCE AUTHORIZATION (AA) LICENSES ISSUED	COMPOSITION FEE TO BE LEVIED (IN `)
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.

[Issued from File No. 01/94/180/012/AM23/PC-4]