4.38
Facility of Clubbing of Authorisations
(i) No clubbing of Authorisations issued on or before 31st March, 2009 shall be allowed.
(ii) Request for clubbing shall be made in ANF-4C to the concerned RA who has issued the Authorisations.
(iii) Facility of clubbing of Advance Authorisations shall be available only for redemption / regularisation of such Authorisations and no further import or export shall be allowed.
(iv) Facility of clubbing shall also be available for Advance Authorisations for Annual Requirement issued during Foreign Trade Policy period 2009- I4 and 20 I5-20, wherever exports and imports have taken place as per Standard Input Output Norms (SION) notified.
(v) Only Authorisations under which similar duty exemption has been availed shall only be allowed to be clubbed. Such Authorisations may pertain to different financial years.
(vi) In case, exports are made outside EO period of any Authorisation, EO extension may be allowed before clubbing of such authorisation, as per Para 4.42 of Handbook of procedures on payment of composition fee.
(vii) Only such Advance Authorisations shall be clubbed where exports under all Authorisations have been made within the initial/ extended EO period of the earliest issued Authorisation.
(viii) Clubbing shall be permitted only when there is shortfall in fulfillment of export obligation occurred in first authorisation and excess exports are made in subsequent Authorisations. However, this condition may not be insisted when validity period (for import) of Authorisations runs concurrently and imports made in subsequent authorisation falls within validity period (for import) of first authorisation and such import made within validity period of first authorisation are on pro-rata, equal to or in excess to the extent of exports made in first authorisation. Subsequent Authorizations issued after expiry of validity of first Authorisation shall not be allowed to be clubbed.
(ix) Clubbing of Authorisations issued with different EO periods shall also be allowed.
(x) Accounting of exports made outside expiry of initial or extended EO period of earliest issued authorisation shall not be taken into consideration for EO fulfillment after clubbing of such Authorisations.
(xi) Inputs which are common in all Authorisations shall only be clubbed and duty free inputs shall be accounted for as per SION/Ad-Hoc Norms fixed by NC. In other words all inputs covered in all Authorisations need not be same.
(xii) Minimum value addition as prescribed in FTP and Procedures for the export product will be required to be maintained on clubbing. Upon clubbing, if shortfall in value or quantity is noticed, the same shall be regularized under the provisions of Para 4.49 of HBP 2015-20.
(xiii) After clubbing, Authorisations shall for all purposes, be deemed to be one Authorisation. The value addition would be calculated on the basis of total CIF and total FOB arrived at after clubbing the Authorisations.
(xiv) No clubbing shall be permitted in respect of Authorisations where misrepresentation / fraud have come to the notice of RA. Further, no clubbing of Authorisations, where EODC/redemption letter has already been issued or adjudication orders have already been passed by RA/Customs Authority, shall be permitted.
(xv) Additional provisions for clubbing of Authorisations covered under Appendix-30A (issued under FTP 2009-14) / Appendix-4J (issued under FTP 2015-20) and Authorisations issued with EOP less than 18 months:
(a) Export obligation period of clubbed Authorisations shall be reckoned from the date of earliest import in any of the Authorisations proposed to be clubbed.
(b) Clubbing of such Authorisations shall be allowed provided all exports are completed within initial/extended Export Obligation period reckoned from date of earliest import in any of the Authorisations proposed to be clubbed.
(Above para has been amended vide PUBLIC NOTICE NO.32/2017, DT. 18/10/2017 )
[OLD- 4.38
Facility of Clubbing of Authorisations
(i) No clubbing of Authorisations issued on or before 31st March, 2009 shall be allowed. Cases already considered by PRC shall not be re-examined by RA under Para 4.38 of HBP for the purpose of clubbing. Applicant shall declare that he has not included any Advance Authorisation in respect of which request for clubbing has been considered earlier by PRC.
(ii) Request for clubbing shall be made in ANF - 4C to the concerned RA who has issued the Authorisations.
(iii) Clubbing of authorisations covered under Appendix 4 J and authorisations with EOP less than 18 months shall not be allowed.
(iv) Facility of clubbing of Advance Authorisations shall be available only for redemption / regularisation of such authorisations and no further import or export shall be allowed.
(v) Facility of clubbing shall also be available for Advance Authorisations for Annual Requirement issued during Foreign Trade Policy period 2009-14 and 2015-20, wherever exports and imports have taken place as per Standard Input output Norms (SION) notified (available in Handbook of Procedures).
(Above para 4.38 (v) has been revised vide PUBLIC NOTICE NO. 24/2016, DT. 04/08/2016)
[OLD- (v) Facility of clubbing shall not be available for Advance Authorisation for Annual Requirement. ]
(vi) For clubbing, Authorisations are required to have been issued under similar Customs notifications. Such Authorisations may pertain to different financial years.
(vii) (a) Clubbing of Authorisations issued before 05.06.2012:
Only such Advance Authorisations shall be clubbed which have been issued within 36 months from the date of issue of the earliest Authorisation.
(b) Clubbing of Authorisations issued on or after 05.06.2012:
Only such Advance Authorisations shall be clubbed which have been issued within 18 months from the date of issue of earliest Authorisation.
(c) Clubbing of Authorisation issued before 5.6.2012 with authorisation issued on or after 5.6.2012:
Only such Advance Authorisations shall be clubbed which have been issued within 18 months from the date of issue of the earliest Authorisation.
(viii) Accounting of exports made outside the export obligation period of earliest Authorisation shall be regularized, on payment of composition fee, in the following manner:
(a) Where Authorisations were issued with initial obligation period of 36 months and last date of shipment is within 48 months:
In such cases, exports made upto 48 months from the date of issuance of earliest authorization shall only be taken into consideration for clubbing. Accounting of exports made shall be subject to payment of a composition fee @ 0.5% of FOB value of exports made after 36 months from the date of issue of earliest authorisation but upto 42 months. For the exports effected after 42nd month till 48th month from the date of earliest Authorisation, the composition fee will be @ 0.5% per month of FOB value of exports made.
(b) Where Authorisations are issued with initial obligation period of 18 months and last date of shipment is within 30 months:
In such cases, exports made upto 30 months from the date of issuance of earliest authorization only will be taken into consideration for clubbing. Accounting of exports shall be subject to payment of a composition fee @ 0.5% of FOB value of exports made after 18 months from the date of earliest authorisation but upto 24 months. For the exports effected after 24th month till 30th month from the date of earliest Authorisation, the composition fee will be @ 0.5% per month of FOB value of exports made.
(c) Where Authorisation(s) with initial obligation period of 36 months is clubbed with authorization(s) with initial obligation period of 18 months.
In such cases, exports made upto 30 months from the date of issuance of earliest authorization only will be taken into consideration for clubbing. Accounting of exports shall be subject to payment of a composition fee @ 0.5% of FOB value of exports made after 18 months from the date of earliest authorisation but upto 24 months. For the exports effected after 24th month till 30th month from the date of earliest Authorisation, the composition fee will be @ 0.5% per month of FOB value of exports made.
(Above (b) & (c) has been corrected vide PN. NO.20/2015, DT. 09/06/2015)
[OLD- (b) Where Authorisations are issued with initial obligation period of 18 months and last date of shipment is within 30 months:
In such cases, exports made upto 30 months from the date of issuance of earliest authorization only will be taken into consideration for clubbing. Accounting of exports shall be subject to payment of a composition fee @ 0.5% of FOB value of exports made after 18 months from the date of earliest authorisation but upto 24 months. For the exports effected after 24th month till 30th month from the date of earliest Authorisation, the composition fee will be @ 0.5% of FOB value of exports made.
(c) Where Authorisation(s) with initial obligation period of 36 months is clubbed with authorization(s) with initial obligation period of 18 months.
In such cases, exports made upto 30 months from the date of issuance of earliest authorization only will be taken into consideration for clubbing. Accounting of exports shall be subject to payment of a composition fee @ 0.5% of FOB value of exports made after 18 months from the date of earliest authorisation but upto 24 months. For the exports effected after 24th month till 30th month from the date of earliest Authorisation, the composition fee will be @ 0.5% of FOB value of exports made.]
(ix) Minimum value addition as prescribed in FTP and Procedures for the export product will be required to be maintained. Upon clubbing, if shortfall in value or quantity is noticed, the same shall be regularized under the provisions of Para 4.49 of HBP. However, clubbing of authorisations issued with different minimum value addition criteria shall not be allowed by RA.
(x) After clubbing, authorisations shall for all purposes, be deemed to be one Authorisation. The value addition would be calculated on the basis of total CIF and total FOB arrived at after clubbing the Authorisations.
(Above para 4.38 has been amended vide PN. NO.16/2015, DT. 04/06/2015)]
[OLD- 4.38
Facility of Clubbing of Authorisations
(i) Clubbing of Authorisations issued on or before 27th August, 2009 shall be governed by paragraph 4.20 of HBP (2009-2014).
(ii) Regional Authority which issued Authorisations, sought to be clubbed, or DGFT headquarters in other cases, shall consider requests for clubbing in ANF 4C of Hand Book of Procedures. All imports and exports of more than one Advance Authrisation can be considered provided imported inputs are common and properly accounted for as per norms.
(iii) Clubbing of authorisations covered under Appendix 4 J and authorisations with EOP less than 18 months shall not be allowed.
(iv) Facility of clubbing of Advance Authorisations shall be available only for redemption / regularisation of such authorisations and no further import or export shall be allowed.
(v) Facility of clubbing shall not be available for Advance Authorisation for Annual Requirement.
(vi) For clubbing, Authorisations are required to have been issued under similar Customs notifications. Such Authorisations may pertain to different financial years.
(vii) Only such Advance Authorisations shall be clubbed which have been issued within 18 months from the date of issue of the earliest authorisation that is sought to be clubbed, whether such authorisations are valid or not.
(viii) Upon clubbing wherever exports are accounted beyond the EO period of the earlier Authorisation, a composition fee of 0.5% of the shortfall in EO shall be levied.
(ix) Minimum value addition as prescribed in FTP and Procedures for the export product will be required to be maintained. Thereafter, shortfall if any, shall be regularized in terms of this paragraph.
(x) After clubbing, authorisations shall for all purposes, be deemed to be one Authorisation. The value addition would be calculated on the basis of total CIF and total FOB arrived at after clubbing the Authorisations. ]