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Corporate Laws Central Ministry of Commerce and Industry Foreign Trade (Development and Regulation) Act, 1992

Clarification on discharge of export obligation of Advance Authorisation (AA) bearing Customs Notification No.18/2015-Customs as amended and Customs Notification No.21/2015-Customs as amended both dated 01.04.2015 by making physical exports or by making domestic supplies

12-Apr-2024 | Policy Circular No. 01/2024

Director General of Foreign Trade has issued a Circular on Clarification on discharge of export obligation of Advance Authorisation (AA) bearing Customs Notification No.18/2015 - Customs as amended and Customs Notification No.21/2015-Customs as amended both dated 01.04.2015 by making physical exports or by making domestic supplies -reg.

By virtue of this notification following clarification is provided:-

(a) Advance Authorisation Holder holding an Advance Authorisation issued on or after 01.04.2015, under Customs Notification No. 18/2015-Customs, dated 01.04.2015 has option to fulfill the export obligation either by physical exports or by making domestic supplies under para 7.02(A) (a) of FTP 2015-2020 i.e. Supply of goods against Advance Authorisation/ Advance Authorisation for annual requirement/DFIA.
(b) As per the harmonious reading of Para 4.14 of FTP 2015-2020 with Customs Notification No.01/2019- Customs dated 10.01.2019 it is clarified that Advance Authorisation Holder holding an Advance Authorisation issued on or after 10.01.2019, under Customs Notification No. 18/2015-Customs, dated 01.04.2015 has
options as follows: ?

(i) To fulfill the export obligation either by physical exports or by making domestic supplies under Para 7.02 A (a) of FTP 2015-2020 i.e. Supply of goods against Advance Authorisation/Advance Authorisation for annual requirement/DFIA.
(ii) To make supplies under para 7.02A (b) of FTP 2015-2020 i.e. supply of goods to EOU/STP/EHTP/BTP.
(iii) To make supplies under para 7.02(A) (c) of FTP 2015-2020 i.~. supply of capital goods again.

For details please refer the attachment.

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