Extension-of-Import-Validity-Period-and-Export-Obligation-Period

Extension of Import Validity Period and Export Obligation Period – Covid 19

Extension of Import Validity Period and Export Obligation Period

In the view COVID-19 pandemic, the Directorate General of Foreign Trade (DGFT) had extended the Import Validity period and Export obligation period for existing Advance authorizations/Duty-Free Import Authorization (DFIA) from February to July 20. The DGFT now issued Policy Circular No. 35/2015-20 dated 23/04/2020 guiding Regional Authorities (RA) of DGFT and Exporters with the process Import/Export extension. In this regard, the following procedural formalities need to be followed by RA of DGFT and Exporter.

Extension of Import Validity and EO Period

The government has extended the Import Validity period and Export Obligation Period by 6 months for Advance authorizations according to Hand Book Procedure Para 4.41(e) and Para 4.42(h) by considering the COVID -19 impact in the country. The new policy circular of DGFT explains the procedure for avail the extension of Import Validity Period and Export Obligation Period in the following cases:

  • Extension of Import Validity and EO Period where no revalidation or EO period extension has been granted till date extension of Import Validity and EO Period where the revalidation/EO period extension has been granted
  • Extension of Import Validity and EO Period where authorizations are Physical (Non-EDI) in nature:
  • Procedure extension of validity of the DFIAs for import

Hand Book Procedure – Export Obligation (EO) Period and its Extension

The HandBook Procedure Para 4.42(h) dealt with the procedure for Export Obligation (EO) Period and its Extension. According to this whenever a ban restriction is imposed on export of product, export obligation period in respect of Advance Authorization scheme already issued prior to the imposition of the ban, will stand automatically extended for a period equivalent to the duration of the ban, without imposing any composition fee.

Automatic Extension of Import Validity period and Export Obligation Period

As per the notification, the following procedure is applicable for the exporter who has not yet availed the revalidation or Export Obligation period extension of 6 months.

  • If an exporter has not yet availed the extension (1st and 2nd) of import validity of the EO period earlier, the extended/revaluated import validity or EO period will be updated in the ICEGATE or Customs System automatically based on a defined protocol between the DGFT-NIC and Customs.
  • After successful updating and transmission of authorizations details, NIC will forward an RA-wise list to individual RAs with an update script to be run on the local server (available in the Downloads section of the local server).
  • All RAs of DGFT need to run this script immediately for further extensions or re-validations on the authorizations to be carried out.
  • In some special cases, if the revised updated import validity or EO extension is not available in the ICEGATE, the exporter needs to approach the DGFT RA with an email request for carrying out an amendment in the Advance authorizations/Duty-Free Import Authorization.
  • DGFT RA will accordingly examine the request expeditiously and endorse the extended validity/EO as per the provisions of the Foreign Trade Policy /Hand Book Procedure and transmit the amendment message electronically to DGFT/ICEGATE server.

Manual Amendment Request for revalidation/EO extension

For Advance authorizations where 1st or the 2nd re-validation or EO extension has been granted under the respective Hand Book Procedure, automatic transmission of extended dates is not possible due to system architecture issues. In such cases, the exporters need to make an amendment request through email/letter to the concerned Regional Authority providing the details of the case. RAs, upon receiving the amendment requests from the exporters, will expeditiously verify the eligibility of the extension request, and then carry out the amendments for Revalidation or EOP Extension in the customs local server.

Extension of Import Validity period and Export Obligation Period for Authorizations are Physical (Non-Electronic data interchange) in nature:

  • For such authorizations, the procedure will be similar to amendment requests as described above.
  • The authorizations need to be submitted physically at the prescribed Regional Authority with a request for an extension in EO or re-validation.
  • The concerned RA of DGFT will examine the request and endorse the extended validity/EO based on eligibility as per provisions of foreign trade policy.

Procedure for Extension of Validity of the DFIAs for Import

The above-mentioned procedure will apply for an extension of the validity of the DFIAs for import. The exporter may take note of this procedure related to the extension of the validity/ Export Obligation period of Advance authorizations and do the needful, if applicable. The same procedure will be followed for DFIA also.

Post by Renu Suresh

Renu is experience content writer specialised in compliances and company rules.