4.39

Enhancement/ Reduction i n t he value of Advance Authorisation

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

(i) for enhancement / reduction in CIF value of Advance Authorisation;

(ii) enhancement / reduction in CIF value, quantity of inputs, FOB value and quantity of exports of an Advance Authorization. However, VA after such enhancement does not fall below minimum VA stipulated (for the export product) in FTP and Hand Book of Procedures laid thereunder and there is no change in input-output norms and FTP under which Advance Authorisation was issued.

(b) However, in case of Advance Authorisation (s) issued prior to 27.8.2009 under the FTP, 2004-09, the following conditions shall apply for any enhancement in the value of the authorisation:

(i) Wherever exports are on or subsequent to 27.8.09, enhancement in CIF / FOB values shall be subject to a minimum VA of 15% or the VA prescribed in Appendix 4D of current HBP, whichever is lower, for that component of exports.

(ii) Wherever exports are prior to 27.8.09, enhancement in CIF / FOB values shall be subject to a minimum VA of 15% or the VA prescribed in Appendix 4D of current HBP, or the VA declared in the original Advance Authorisation application, whichever is lower.

(c) Request for pro-rata enhancement in value and quantity may be made either before or after exports. In such cases where there is a change in SION prior to export of said product, pro-rata enhancement shall be given after calculating entitlement on revised SION.

(d) Application for the enhancement in CIF or FOB value of Authorisation / reduction in the value of Authorisation / EOP Extension / Revalidation of Authorisation shall be filed online in ANF 4D to concerned Regional Authority.