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Advance Authorisation Scheme for Pre-Import Condition Clarification

The Ministry of Commerce & Industry, operating under the Department of Commerce under the Directorate General of Foreign Trade (DGFT), Government of India has issued Trade Notice No. 27/2023-DGFT on the 25th of September 2023. 

The notice gives important clarification related to the pre-import condition mentioned under the Advance Authorisation Scheme. This scheme streamlines imports and exports, and this notice mentions specific circumstances regarding its implementation.

Background

Trade Notice No. 27/2023-DGFT, dated 25th September 2023, refers to Trade Notice No. 07/2023-24 dated 08.06.2023. The latter notice mentioned the measures for regularising imports processed through the Advance Authorisation Scheme from 13.10.2017 to 09.01.2019 that failed to fulfil the ‘pre-import condition’. This regularisation process includes prescribed payments, as mentioned in the Customs Circular No. 16/2023 dated 07.06.2023.

Challenges For Regional Authorities

The Trade Notice recognises that Regional Authorities used to have difficulty in determining the right procedure in specific export-import scenarios regarding Advance Authorisations issued from 13.10.2017 to 09.01.2019.

Clarifications Provided

Addressing the aforementioned challenges, the Trade Notice puts forth clarifications on the essential issues raised by the Regional Authorities:

(I) The pre-import condition will not be referred to as violated if the exports under Advance Authorisations were made between the period 13.10.2017 and 09.01.2019, and imports processed on or after 10.01.2019.

(II) If Advance Authorisations were issued on or before 09.10.2019, and imports were done on or after 10.01.2019, the pre-import condition would not be applicable.

(III) If Advance Authorisation had imports that were partly made up to and including 09.01.2019, and the remaining import took place on or after 10.01.2019, then the imports done on or after 10.01.2019 are not subjected to the pre-import condition.

(IV) In cases where imports are processed under the Advance Authorisation with IGST and Compensation Cess being paid, the pre-import condition will not be applicable, regardless of the date when import took place.

To Sum Up

Trade Notice No. 27/2023-DGFT, issued by the Ministry of Commerce & Industry, under the Department of Commerce, DGFT, Government of India, contains crucial clarifications on the pre-import condition under the Advance Authorisation Scheme. These clarifications included various scenarios and aimed at facilitating easier implementation of the scheme for all stakeholders in international trade.

Click here to view the public notice dated 27/09/23

For more information contact – https://www.dgftguru.com/ 

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