POLICY CIR NO. 33/2007, DT. 17/03/2008

Clarification regarding request of firms for extension in export obligation period

Reference is invited to Paras 5.8.2 & 5.8.3 of HBP (Vol.I) as amended vide Public Notice No. 54 dated 1.10.2007. According to which authorization holder are required to intimate the Regional Authorities about the export obligation fulfilled in a particular block of years within three months from the expiry of block of years and in case the authorization holder fails to do so, except in such cases where the export obligation is extended for a particular period by the Competent Authority, he is required to pay customs duty with interest.

2. It has since been observed that some of Regional Authorities have been sending the request for extension of block of years to the Headquarters. In this regard, reference is invited to the provisions contained in Para 5.11 of HBP whereby Regional Authorities have been authorized for considering the request for extension in export obligation period. The issues relating to extension in Export Obligation period and extension in block of years are thus interlinked and hence have been re-examined and it has been decided as under:

"The request of the firm for extension of Block of years for fulfillment of export obligation may be considered by the concerned Regional Authorities, subject to payment of 2% of duty saved on unfulfilled E.O. for each block, in respect of the licenses up to Rs.50 crores; on a similar basis as contained in Para 5.11 of HBP Vol.I for extension of export obligation period. All Cases above Rs.50 crores may be forwarded to DGFT (HQ) for consideration of EPCG Committee".

3. The above provisions will be applicable to all licenses irrespective of date of issue.

4. The above shall come into force from the date of issue.

5. This issues with the approval of Director General of Foreign Trade (DGFT).

(G. Seetharam Reddy)
Jt. Director General of Foreign Trade

F.NO.01/36/218/83/AM08/EPCG.I/PoL V

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