EODC for Advance Authorisation - Physical Export, Customs - Exim - SEZ

[BRIJ MOHAN GOYAL]

Dear All,

We had taken Advance License for import of Raw material and components against  Physical Export Order. We had executed the order in time . During EODC,  EO is fulfilled in terms of Value but in terms of qty, Out of 4 nos. items , short fall is by 1 no. only.

So, Please advise how to regularize AA in this case.

B M GOYAL

Posts / Replies

[Pradeep Khatri]

Dear Brij,

Please refer following para of the HBP Vol 1 read with FTP.

4.28 Regularization of Bona fide Default

Cases of bonafide default in fulfillment of EO may be regularized by RA as under:

a) If EO is fulfilled in terms of value, but there is a shortfall in terms of quantity, the Authorization holder shall, for regularization, pay:

(i) to customs authorities, customs duty on unutilized value of imported/ indigenously procured material along with interest as notified; however, for the customs duty component, the authorization holder has the option to furnish valid duty credit scrips issued under Chapter 3 of FTP and DEPB; and

(ii) an amount equivalent to 3 percent of the CIF value of unutilized imported material through a TR in authorized branch of Central Bank of India indicating the "Head Account: 1453, Foreign Trade and Export Promotion and Minor Head 102". Authorization holder shall also be required to obtain a separate authorization for regularization of excess imported input. However, provisions of this sub paragraph shall not be applicable if unutilized imported material was freely importable on the date of import.

Regards

Team YAGAY & SUN

(Management & Indirect Tax Consultants)