The Policy Circular No. 01/2024 issued by the Directorate ...

New Policy Clarifies Export Obligations for Advance Authorisation Holders Under Customs Notifications.

May 22, 2024

Circulars     DGFT

The Policy Circular No. 01/2024 issued by the Directorate General of Foreign Trade provides clarification on the discharge of export obligations of Advance Authorisation (AA) under specific Customs Notifications. Advance Authorisation holders have the option to fulfill export obligations through physical exports or domestic supplies as per FTP 2015-2020 guidelines. The circular harmonizes Para 4.14 of FTP 2015-2020 with Customs Notification No. 01/2019-Customs, allowing AA holders issued after 10.01.2019 to choose various options for fulfilling export obligations, including supplies to specific entities and capital goods supply against EPCG authorization. Holders of Advance Authorisation for deemed exports under Customs Notification No. 21/2015-Customs can also fulfill obligations through specified supplies or physical exports. The circular is approved by the DGFT and provides clarity on compliance options for AA holders.

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