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The Directorate General of Foreign Trade amends paragraph 4.49 (b) of the Handbook of Procedures 2023. The amendment reduces the penalty deposit rate for shortfalls in value addition. An Authorisation holder deposits an amount equal to 1 percent of the shortfall in FOB value in Indian Rupee online through the DGFT website if the value addition falls below the minimum value addition prescribed and the export obligation is fulfilled in quantity. The change applies when the holder achieves the export obligation in quantity but faces a value shortfall.
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[To be published in the Gazette of India Extraordinary (Part-I, Section-I)]
Government of India Ministry and Commerce and Industry Department of Commerce Directorate General of Foreign Trade Vanijya Bhawan, New Delhi
Public Notice: No. 14/2024-25 New Delhi, Dated: 16.07.2024
Subject: Amendment in Para 4.49 (b) of the Handbook of Procedures, 2023
In exercise of powers conferred under paragraph 1.03 and 2.04 of the Foreign Trade Policy 2023, as amended from time to time, the Director General of Foreign Trade hereby makes the following amendments in the provisions of Para 4.49 (b) of the Handbook of Procedures 2023:
| Existing para 4.49 (b) | Amended para 4.49 (b) |
|---|---|
| If the Export Obligation is fulfilled in quantity but there is shortfall in value, no penalty shall be imposed if Authorisation holder has achieved minimum Value Addition prescribed. However, if Value Addition falls below the minimum Value Addition prescribed, Authorisation holder shall be required to deposit an amount equal to 3% of shortfall in FOB value in Indian Rupee, online through DGFT website. | If the Export Obligation is fulfilled in quantity but there is shortfall in value, no penalty shall be imposed if Authorisation holder has achieved minimum Value Addition prescribed. However, if Value Addition falls below the minimum Value Addition prescribed, Authorisation holder shall be required to deposit an amount equal to 1% of shortfall in FOB value in Indian Rupee, online through DGFT website. |
Effect of the Public Notice: Para 4.49 (b) of the Handbook of Procedures, 2023 has been amended, reducing the composition fee, for ease of doing business and reducing compliances.
[Image omitted. See the official document.] (Santosh Kumar Sarangi) Director General of Foreign Trade Ex-officio Additional Secretary to Government of India E-mail: dgft@nic.in
[Issued from File No. 01/94/180/082/AM24/PC-4]
