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Debiting of advance/dfia licence by customs

raj (proprietor) (27 Points)

06 October 2011

Dear All,

We have imported goods against Advance licence and also against DFIA licence.The CIF value is always mentioned IN LICENCES both in INR and USD at the exchange rate prevailing at time of issue. We have placed the order in USD for the full value of the licence. Now due to Exchange rate fluctuation the Custom Authorities are saying that they will not allow import by full USD value because in that case the INR value will exceed with the INR VALUE mentioned in the licence..

CAN ANY ONE TELL ME THE CUSTOM NOTIFICATION/CIRCULAR WHERE IT IS MENTIONED THAT THE LICENCE WILL BE DEBITED ACCORDING TO THE USD VALUE.

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2 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 07 October 2011

Enhancement/ Reduction In the Value of DFIA

In respect of a DFIA, the Regional Authority concerned (as per their financial powers) may consider a request for enhancement/ reduction in the CIF value, FOB value, quantities of import or export of the certificate, provided the value addition after such amendment does not fall below the stipulated minimum value addition (as per the policy and the procedure laid thereunder) and provided there is no change in the input-output norms and the Policy under which the authorization was issued.

The request for pro-rata enhancement in value and quantity may be made either before or after exports. In such cases where there is a change in the SION prior to the export of the said product, the pro-rata enhancement shall be given after calculating the entitlement on the revised SION.

The application for the enhancement/ reduction in the value or quantity of the authorisation shall be made in ‘Aayaat Niryaat Form’ of the Handbook of Procedure (Vol. 1)

https://www.indiaexim.com/dfia_schme.htm

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raj (proprietor) (27 Points)
Replied 07 October 2011

Dear Mr. Sharma,

Thanks for reply. But I need some custom notification/circular because after Discharge of Export obligation / endorsement of transferability DGFT will not entertain any request for enhancement.

There must be some Custom notification/circular to solve this problem.

Please let me know if possible, Thx again,