Automatic Reduction/ Enhancement upto 10% of CIF value and Prorata Reduction/ Enhancement in Export Obligation

5.10

If the licence issued under the scheme has actually been utilized for import in excess up to 10% of the CIF value/Duty saved amount of the licence, licence shall be deemed to have been enhanced by that proportion. The Customs shall automatically allow the clearance of goods in excess up to 10% of the licence value/Duty saved amount, as the case may be, without endorsement by the licensing authority.

In such cases, the licence holder shall furnish additional fee to cover the excess imports effected in terms of CIF value/Duty saved amount subsequently. The export obligation shall automatically stand enhanced proportionately.

(Para 5.10 has been amended vide PN NO. 45/2004, DT. 14/01/2005)

[OLD-
If the licence issued under the scheme has actually been utilized for import of a value in excess of 10% of the CIF value of the licence, licence shall be deemed to have been enhanced by that proportion. The Customs shall automatically allow the clearance of goods in excess of 10% of the licence value without endorsement by the licensing authority.

In such cases, the licence holder shall furnish additional fee to cover the excess CIF value of imports effected subsequently. The export obligation shall automatically stand enhanced proportionately.]

(Above para has been amended vide P.N. No.21/2004, DT. 08/11/2004)

[OLD-
If the licence issued under the scheme has actually been utilized for import of a value in excess/deficit of 10% of the CIF value of the licence, licence shall be deemed to have been enhanced by that proportion. The Customs shall automatically allow the clearance of goods in excess/deficit of 10% of the licence value without endorsement by the licensing authority.

In such cases, the licence holder shall furnish additional fee to cover the excess CIF value of imports effected subsequently. The export obligation shall automatically stand enhanced proportionately. ]