4.22.1

The request for extension in export obligation period may be made in the form given in Appendix-10G. The regional licensing authority shall grant one extension for a period of six months from the date of expiry of the original export obligation period to the licensee subject to payment of 2% of the duty saved on all the unutilized imported items as per licence;

However, the facility of extension of export obligation period shall not be allowed in case of advance licence wherein import of penicillin and its salts [ITC(HS) Code No. 29411010] and 6 - APA [ ITC(HS) Code No. 29411 050] have been allowed as an input. The licensing authority shall make an endorsement in the advance licence to this effect.

(Above sub-paragraph has been added vide PN. NO. 46/2004, DT. 18/01/2005)

Request for a further extension of six months may be considered by the regional licensing authorities subject to payment of composition fee of 5% of the duty based on all the unutilized imported items as per licence.

However any further extensions beyond 36 months upto a period of 48 months from the date of issue of the Advance Licence or the duration of the contracted project (in the case of Advance Licence for Deemed Exports) or on the lapse of any other extension (s) granted by this office would be permitted on payment of the composition fee of 2% per month of duty saved.

For all the three cases of export obligation extension above, the composition fee on the duty saved on all the unutilized imported items would be computed with reference to the actual exports and imports made by the licence holder.

However such extensions would not be permitted in the case of the erstwhile Value Based Advance Licences (VABALs) and Advance Licence for Annual Requirement. Additionally, no extension in export obligation would be allowed in respect of licences where misrepresentation/ fraud has come to the notice of the licencing authorities. Further, in respect of licences where adjudication orders have already been passed, no extension in export obligation period shall be admissible