4.22.1

The request for extension in export obligation period may be made in the form given in Appendix-10G. The regional licensing authority shall grant one extension for a period of six months from the date of expiry of the original export obligation period to the licensee subject to payment of 2% of the duty saved on all the unutilized imported items as per licence;

Request for a further extension of six months may be considered by the regional licensing authorities subject to payment of composition fee of 5% of the duty saved on all the unutilized imported items as per licence;

However any further extensions beyond 30 months upto a maximum period of 36 months from the date of issue of the Advance Licence or the duration of the contracted project (in the case of Advance Licence for Deemed Exports) or on the lapse of any other extension (s) granted by this office would be permitted on payment of the composition fee of 2% per month of the duty saved on unutilized quantity of all imported items as per licence;

However such extensions would not be permitted in the case of the erstwhile Value Based Advance Licences (VABALs). Additionally, no extension in export obligation would be allowed in respect of licences where misrepresentation/ fraud has come to the notice of the licencing authorities. Further, in respect of licences where adjudication orders have already been passed, no extension in export obligation period shall be admissible.

(Above para has been amended vide PN. No. 41/2003, DT. 28/01/2004)

[OLD -
The request for extension in export obligation period may be made in the form given in Appendix-10G. The regional licensing authority shall grant one extension for a period of six months from the date of expiry of the original export obligation period to the licensee subject to payment of

a) Composition fee of 1% of the unfulfilled FOB value of export obligation with reference to CIF value of imports made for which extension is being sought

Or

b) unfulfilled FOB value of quantitywise exports to be completed for fulfilling export obligation vis a vis the imports made ( in case of multiple inputs, the input with the highest import percentage quantitywise made is to be taken)whichever is higher.

Request for a further extension of six months may be considered by the regional licensing authorities subject to payment of composition fee of 5% of

a) the unfulfilled FOB value of export obligation with reference to CIF value of imports made for which extension is being sought

or

b) unfulfilled FOB value of quantitywise exports to be completed for fulfilling export obligation vis-à-vis the imports made (in case of multiple inputs, the input with the highest import percentage quantitywise made is to be taken)whichever is higher.

However any further extensions beyond 30 months from the date of issue of the Advance Licence or the duration of the contracted project (in the case of Advance Licence for Deemed Exports) or on the lapse of any other extension (s) granted by this office would be permitted on payment of the composition fee of 1% per month of

a) the unfulfilled FOB value of export obligation with reference to CIF value of imports made for which extension is being sought

or

b) unfulfilled FOB value of quantitywise exports to be completed for fulfilling export obligation vis-à-vis the imports made (in case of multiple inputs, the input with the highest import percentage quantitywise made is to be taken)whichever is higher.

However such extensions would not be permitted in the case of the erstwhile Value Based Advance Licences (VABALs) and Advance Licence for Annual Requirement. Additionally, no extension in export obligation would be allowed in respect of licences where misrepresentation/ fraud has come to the notice of the licencing authorities. Further, in respect of licences where adjudication orders have already been passed, no extension in export obligation period shall be admissible ]

(Please refer Cir. No. 15/2003, Dt. 17/09/2003 - Period of six months from the date of import of the first consignment)

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