Undertaking

4.7.5

The applicant shall give an undertaking that he shall abide by the norms fixed by NC and accordingly pay duty, together with 15% interest, on the unutilised inputs as per norms fixed by NC. However the holder of the authorisation has the option to undertake additional export obligation in proportion to the excess unutilized inputs. In case the application is rejected by the NC, then the authorization holder shall pay the customs duty saved along with 15% interest on the imported inputs.

In addition, an amount equivalent to 3% of the CIF value of unutilised imported material shall be required to be deposited through a TR in the authorised branch of Central Bank of India indicating the “Head Account: 1453, Foreign Trade and Export Promotion and Minor Head 102”. The Authorisation holder shall also be required to obtain a separate import licence for regularisation of the excess imported input(s). However, the provisions of this sub-paragraph shall not be applicable if the unutilised imported material was freely importable on the date of import.