Enhancement/ Reduction in the value of Authorisation

4.21

In respect of an Advance Authorisation, RA concerned (as per their financial powers) may consider a request for:

(a) enhancement / reduction in CIF value of advance authorisation;

(b) enhancement / reduction in CIF value, quantity of inputs, FOB value and quantity of exports of an advance authorization;

provided VA after such enhancement does not fall below minimum VA stipulated in FTP and HBP v1 laid thereunder and there is no change in input-output norms and FTP under which advance authorisation was issued.

However, in case of advance authorisations issued prior to 27.8.09 under the FTP, 2004-09, the following conditions shall apply for any enhancement in the value of the authorisation:

(i) Wherever, exports are subsequent to 27.8.09, enhancement in CIF/FOB values shall be subject to a minimum value addition (VA) of 15% for that component of exports.

(ii) Wherever, the exports are prior to 27.8.09, enhancement of CIF/ FOB value shall be subject to a minimum Value addition of 15% or the V.A. declared in the original Advance Authorization application, whichever is lower.

(Above Clause has been added vide PN. NO. 15/2009, DT. 27/10/2009)