4.21
- Document type
- Procedure
- Reference no.
- O
- Dated
Enhancement/ Reduction in the value of Authorisation
4.21
Enhancement/ Reduction in the value of Authorisation
In respect of an Advance Authorisation, RA concerned may consider a request for:
(a) enhancement / reduction in CIF value of advance authorisation;
(b) enhancement / reduction in CIF value, quantity of inputs, FOB value and quantity of exports of an advance authorization;
provided VA after such enhancement does not fall below minimum VA stipulated in FTP and HBP v1 laid thereunder and there is no change in input-output norms and FTP under which advance authorisation was issued.
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 value addition (VA) of 15% or the value addition prescribed in Appendix 11B, 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 value addition (VA) of 15% or the value addition prescribed in Appendix 11B, or the VA declared in the original advance authorisation application, whichever is lower.
Effect of this amendment:
(a) Ambiguity in treating exports made on 27.8.2009 has been removed.
(b) Value addition as prescribed in Appendix 11B has also been included both in part (i) and (ii) of this sub-para.
(Above second sub-paragraph has been amended vide PN. NO. 14/2010, DT. 02/11/2010)
[OLD-
However, in case of advance authorisations issued prior to 27.8.09 under the FTP, 2004-09, the following conditions shall apply for any enhancement in the value of the authorisation:
(i) Wherever, exports are subsequent to 27.8.09, enhancement in CIF/FOB values shall be subject to a minimum value addition (VA) of 15% for that component of exports.
(ii) Wherever, the exports are prior to 27.8.09, enhancement of CIF/ FOB value shall be subject to a minimum Value addition of 15% or the V.A. declared in the original Advance Authorization application, whichever is lower.]