Policy
Circular No. 41(RE-08)/2004-2009 Dated 20.11.2008
Debit of advance authorization/DFIA based on balance CIF value of inputs in
freely convertible currency-regarding.
Trade & Industry have represented that at the time of
clearance of import consignment against DFIA/advance authorization, Customs
authority at some of the field formations are not allowing debit of CIF value in
freely convertible currency in case the CIF value in Rupee terms has been
exhausted.
The matter has been examined in this Directorate. It is informed that under
Advance Authorization and DFIA schemes, value addition is calculated in terms of
freely convertible currency and not in terms of Rupee. Further, in terms of para
9.2.1.1 of HBP v.1, “No enhancement in Rupee value shall be necessary if
remittance of foreign exchange is covered by CIF value of authorisation shown in
freely convertible currency.”
It is clarified that for the purpose of clearance of imported items against the
advance authorization/DFIAs, imports would be allowed as per the balance CIF
value in freely convertible currency irrespective of the fact as to whether the
CIF value of imports had exhausted in the said authorisation in terms of Rupee.
This is subject to other conditions of the Authorisation.
This issues with the approval of DGFT.(Tapan Mazumder)
Joint Director General of Foreign Trade
(issued from F.No. 01/94/180/555/AM09/PC-4)
ieport.com - India's Premier portal on Customs
matters