Ct-3 despatch through advance licence

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2016 dear sir,

we have taken advance licence of 50 mt duty free on July-2015 to make dispatch against CT-3/ARE-3.

but till today we had dispatch ten Mt under this. and now we have only six month more to clear it

So please help in this regards to clear

Is any option to use this adv Licence in SEZ despatch or in Ct-1 despatch or in Direct Export

So please help me.

k garg
9845880630

Dr.RAMAKRISHNA. C

Dr.RAMAKRISHNA. C (Expert)
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10 August 2016 It appears you had obtain the Advance Authorization under Deemed Export category in terms of para 4.05 (c) (iii) of Foreign Trade Policy (FTP )2015-20 for supply of goods to EOUs. You have in all 30 months ( 18 months initial , 6 +6 months extended) period for fulfillment of export obligation. For further extension you have to approach Policy Relaxation Committee (PRC) in DGFT under para 2.58 of FTP 2015-20 for relaxation of Policy and Procedure. But such request are considered provided at least 50% of export obligation is fulfilled. Under Deemed exports third party supplies are not allowed for benefits and exemptions (7.07 FTP) . The one option left you is to effect the balance supplies to SEZ. But you require the permission of Policy Relaxation Committee.

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Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2016 dear sir

thanks,

and i like to know if we not fulfile the Obilgation then what we have to pay for it or any loss for this

please explain

and provide your number for more help

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Dr.RAMAKRISHNA. C

Dr.RAMAKRISHNA. C (Expert)
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11 August 2016 You have to go for regularization of bonafide default in export obligation. The detailed provisions are given at paragraphs 4.49 and 4.50 of Hand Book of Procedures of FTP 2015-20. In nut shell, for short fall in quantity you will have to pay customs duty on unutilized value of imported material along with 18% interest per annum. You have option to pay customs duty through valid duty credit scrips issued under Focus Market Scheme (FMS) , Focus Product Scheme (FPS) and MEIS. Interest requires to be paid in cash. These scrips are available in market for sale as they are free transferable. Pay an amount equivalent to 3% of CIF value of unutilized imported material if its import restricted on the date of import. For short fall in FOB value you will have to pay an amount equal to 1% short fall in FOB value in INR with reference to minimum value addition (15%) prescribed. In the event these provisions are not complied with penal provisions under sceion 11 of the Foreign Trade Development Regulation Act 1992, may be invoked for imposition of fiscal penalty with reference to unutilized CIF value of goods imported. My mobile no is +91 9 94 94 65 132 , you could call me on this numnber in the evening 8 pm to 9 pm

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2016 dear sir

Thanks in advance

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2016 dear sir,

we had taken 50MT under Advance Licence and now we had just despatch to EOU around 15 mt.

And now a day. all small EOU units issuing Form-I or Annexure-1 to purchase Exempted goods
that's the main reason that we are not getting order against CT-3

Is their any option to issue or convert the unutilized value to our direct Export Despatch for that we have taken separate adv licence
please Explain with example amount loss and custom duty with interest we had to pay to DGFT

please help in this regards

kailash garg

Dr.RAMAKRISHNA. C

Dr.RAMAKRISHNA. C (Expert)
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11 August 2016 The only Authority competent to consider your request for conversion of deemed exports authorization into Advance Authorization for physical and direct export is Policy Relaxation Committee headed by DGFT, New Delhi. You have to make out a genuine case for consideration by the Committee. In so far as penalty is concerned you will have to pay the principal amount of customs duty along with 18&% interest on the un utilized CIF value of goods from the date of clearance for home consumption.