5.10

Automatic Reduction/ Enhancement upto 10% of CIF value and prorata Reduction/ Enhancement in export obligation

(a) If authorization issued has actually been utilized for import of a value in excess, upto 10% of CIF value /duty saved amount of authorization, authorization shall be deemed to have been enhanced by that proportion. Customs shall automatically allow clearance of goods in excess, upto 10% of authorization value/duty saved amount, without endorsement by concerned RA.

(b) In such case, authorization holder shall furnish additional fee to cover excess imports effected, in terms of CIF value/duty saved amount, to RA concerned, within one month of excess imports taking place. Export obligation shall automatically stand enhanced proportionately.

 (c) In case of utilization being more than 10%, concerned RA as per their financial powers, may endorse as per extant provisions. Authorization holder shall furnish additional BG/LUT to the customs authority.

[Para 5.10 has been subsituted vide PUBLIC NOTICE No.01/2013, DT. 18/04/2013 ]

[OLD 5.10

Automatic Reduction/ Enhancement upto 10% of CIF value and prorata Reduction/ Enhancement in export obligation

(a) If authorization issued has actually been utilized for import of a value in excess, upto 10% of CIF value /duty saved amount of authorization, authorization shall be deemed to have been enhanced by that proportion. Customs shall automatically allow clearance of goods in excess, upto 10% of authorization value/duty saved amount, without endorsement by concerned RA.

(b) In such case, authorization holder shall furnish additional fee to cover excess imports effected, in terms of CIF value/duty saved amount, to RA concerned, within one month of excess imports taking place. Export obligation shall automatically stand enhanced proportionately.

(Above sub-para (a) & (b) amended vide PN NO. 12/2012, DT. 26/07/2012)

[OLD- (a) If authorization issued has actually been utilized for import of a value in excess, upto 10% of value of authorization, authorization shall be deemed to have been enhanced by that proportion. Customs shall automatically allow clearance of goods in excess, upto 10% of authorization value, without endorsement by concerned RA.

(b) In such case, authorization holder shall furnish additional fee to cover excess imports effected, in terms of value, to RA concerned, within one month of excess imports taking place. Export obligation shall automatically stand enhanced proportionately. ]

(c) In case of utilization being more than 10%, concerned RA as per their financial powers, may endorse as per extant provisions. Authorization holder shall furnish additional BG/LUT to the customs authority.]