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 of a value in excess of 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 upto 10% of the licence value/duty saved amount 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 to the licensing authority within one month of the excess imports taking place. The export obligation shall automatically stand enhanced proportionately.