Advance Authorisation

New DGFT Update: Electronic Submission of Appendix 4H Certificates for Advance Authorisation

by

For quite some time, the Directorate General of Foreign Trade (DGFT) has been transitioning its procedures to online platforms and digital systems. As per Para 1.04(f) of the Handbook of Procedures (HBP), electronic systems must be introduced to facilitate the uploading of digitally signed documents by certifying authorities such as Chartered Accountants (CAs), Company Secretaries (CSs), and Cost Accountants.

Now, through DGFT Trade Notice No. 21/2024-25, dated October 17, 2024, the DGFT has announced a new facility for certifying authorities (i.e., CAs, CSs, and Cost Accountants) to digitally link Appendix 4H for Advance Authorisation applications and DFIA (Duty-Free Import Authorisation) schemes.

The Trade Notice outlines the workflow for both exporters and certifying authorities. Key highlights include:

  1. Online Submission: Exporters can now fill in Appendix 4H-related data online through the DGFT website.
  2. Forwarding to Certifying Authorities: Exporters can forward draft Appendix 4H data to their certifying authority online via the certifying authority’s registration number.
  3. Registration of Certifying Authorities: Certifying authorities (CAs, CSs, Cost Accountants, etc.) can register on the DGFT platform under the category “Certifying Authority.”
  4. Viewing and Approval: Once the exporter submits the data to the certifying authority through the DGFT website, the certifying authority can view and approve the Appendix 4H using their DGFT credentials.
  5. Digital Signature: The certifying authority can digitally sign and approve Appendix 4H.
  6. Exporter Access: The approved Appendix 4H will be available for viewing and downloading by the exporter and will be automatically linked to the redemption application for the Advance Authorisation and DFIA schemes.

This new digital feature for Appendix 4H is a significant enhancement for exporters, as it streamlines the process and reduces the time required for application and redemption under the Advance Authorisation & DFIA Schemes.

*****

DGFT adds new IT based system for Ad-hoc Norms

by

In its continuous efforts to simply, automate and ease of doing business, DGFT has now added a new sub para under para 4.14 HBP 2023.

The new Sub Para (iii) of 4.14 states:

Ad-hoc Input Output Norms may also be decided in a rule-based IT environment without reference to Norms Committee. However, a certain percentage of cases as flagged by the RMS may be referred to NORMS Committee for validation/review.

This will ease the process of Ad-hoc Norms and also reduce the timeline for the same.

The Public Notice also further added new sub para 4.06(vii) which allowed Norms Committee to recommend cases which come for Ad-hoc Norms to be notified as SION on case-to-case basis.

Both the above provisions will really help exporters and smoothen the process of Ad-hoc Norms related activities under Advance Authorisation.

The Public Notice No. 51/2023 Dated 14.03.2024 can be downloaded from link below:
https://content.dgft.gov.in/Website/dgftprod/482e2b8e-a091-4266-b347-1646c08071f2/Public%20Notice%20English.pdf

*****

RoDTEP benefits extended to export made by AA holders, EOUs and SEZ Units

by

Finally, the long pending demand from the exporters and in recommendation of RoDTEP committee Report, the DGFT amends the Ineligible Supplies / items/Categories under RoDTEP Scheme there by allowing RoDTEP benefit to exports made by Advance Authorisation holders, EOUs and SEZ Units.

The DGFT Notification No. 70/2023 Dated 08th March 2024 issued in these respected amended certain provisions of the RoDTEP Scheme.

1. Sr. No. viii, x, xi and xii of Para 4.55 of FTP has been deleted w.e.f 11.03.2024

2. Sr. No. vii of Para 4.54 has been amended to added the rates of RoDTEP notified under Appendix 4RE (for exports of goods manufactured by AA holders, EOUs and SEZ Units)

3. A New Para 4.59A has been added which allows RoDTEP on eligible items at the rates and per unit value cap as applicable under Appendix 4RE as available on DGFT Portal (www.dgft.gov.in).  Click here to download Appendix 4RE.

4. The benefit of RoDTEP for exports done by Advance Authorsation Holders(except deemed exports) and EOUs will be from 11.03.2024 till 30.09.2024 only. 

5. The benefit of RoDTEP for exports done by SEZ units will be once IT Integration of SEZ units is done with ICEGATE System. This same is expected from 01.04.2024. The benefit will be available from date of implementation till 30.09.2024 only.

6. RoDTEP Rates for 25 HS Codes are revised to manage the budgetary outlay for RoDTEP benefits for export of goods manufactured by Advance Authorsation Holders, EOUs and SEZ Units. Click here to download the List: 25 Items Revised Appendix 4R

7. The RoDTEP Scheme is now extended to exports till 30.09.2024

*****

DGFT enables provision for Import of Inputs without QCOs under AA and EOU

by

In a move to assist and enable exporters importing inputs without mandatory compliance under various Quality Control Orders (QCO) under AA or by EOU Units, the DGFT issued notification and added a new para 4.18A and amended para 6.07 (k).

The Notification No. 69/2023 Dated 07.03.2024 can be downloaded from the DGFT Website or link here: https://content.dgft.gov.in/Website/dgftprod/4c0e420c-70dd-488f-8b88-5b9a7347bad2/Noti69%20eng.pdf

The Conditions to be fulfilled for the exemption under AA are:

1. Import without compliance to mandatory QCOs will be subject to Pre-Import Condition

2. Exemption from Mandatory QCOs will be specifically endorsed on AA upon request of the AA holder.

3. Inputs imported with mandatory QCOs will not be transferred to DTA event after regularization of export default.

4. If unutilized, required procedure of destruction and duty payment with interest needs to be followed.

5. Exemption from QCO will be available only for Physical Exports and not for Deemed Exports.

6. Facility of Clubbing is not available for these authorisations.

Also, the Notification amends the para 4.24 of FTP not allowing Import of Inputs without mandatory QCOs under DFIA.

For EOUs, amendment is done to para 6.07 to allow import of inputs without mandatory QCOs subject to conditions and undertakings.

DGFT has also issued Public Notice No. 47/2023 dated 07.03.24 which notified Appendix 2Y which provides list of Ministries/Departments who’s notification on Mandatory QCOs are exempted by the above notification.

Currently 2 Ministry / Departments are notified
1. Ministry of Steel (Mos)
2. Department of Promotion and Industry and Internal Trade (DPITT)

Public Notice can be downloaded from the link here:
https://content.dgft.gov.in/Website/dgftprod/e345325b-70a9-4796-ba24-183fc0bcb8be/PN47%20eng.pdf

*****

DGFT clarifies issues related to “Pre-Import Condition” under Advance Authorisation

by

This is with reference to a specific period from 13.10.2017 to 09.01.2019, where the imports under Advance Authorisation Scheme with IGST Exemption were under “Pre-Import Condition”. The said condition is no more applicable.

There have been issues with various RA’s for certain export-import scenarios in respect of applicablity of the said “Pre- Import Condition” for Advance Authorisations issued in the said period.

DGFT Vide Trade Notice No. 27 Dated 25.09.2023 has clarified the same. 

The Trade Notice has clarified 4 specific scenarios and the applicablity of the “Pre Import Condition” being not violated in each of the cases.

Exporters may download & refer to the said Trade Notice from DGFT Website from link below
https://content.dgft.gov.in/Website/dgftprod/a44faa69-c408-417e-ad61-679c4c7f92a0/Trade%20Notice%2027.pdf

The circular also states that cases which could not meet the ‘pre-import condition’ may be regularized by making payments as prescribed in the Customs Circular No. 16/2023 dated 07.06.2023

The clarification will certainly help exportes and the RA’s to close the pending cases at the earliest.

*****