Advance Authorization Scheme Pre-Import Condition Clarifications

Editor2 25 Sep 2023 2,406 Views 0 comment Print DGFT | Notifications/Circulars, Trade Notices

Introduction: The Ministry of Commerce & Industry, Department of Commerce, Directorate General of Foreign Trade (DGFT), Government of India, has issued Trade Notice No. 27/2023-DGFT on 25th September 2023. This notice provides essential clarification regarding the pre-import condition under the Advance Authorization Scheme. The scheme aims to streamline imports and exports, and this notice addresses specific scenarios related to its implementation.

1. Background of the Trade Notice: Trade Notice No. 27/2023-DGFT, dated 25th September 2023, references Trade Notice No. 07/2023-24 dated 08.06.2023. The latter notice introduced measures for regularizing imports made under the Advance Authorization Scheme between 13.10.2017 and 09.01.2019 that did not meet the ‘pre-import condition.’ The regularization process involves prescribed payments, as outlined in Customs Circular No. 16/2023 dated 07.06.2023.

2. Regional Authorities’ Challenges: The Trade Notice acknowledges that Regional Authorities have encountered challenges in determining the appropriate treatment for specific export-import scenarios concerning Advance Authorizations issued during the period from 13.10.2017 to 09.01.2019.

3. Clarifications Provided: To address these challenges, the Trade Notice offers clarifications on key issues raised by Regional Authorities:

(I) If exports were made under Advance Authorizations between 13.10.2017 and 09.01.2019, and imports occurred on or after 10.01.2019, the pre-import condition will not be considered violated.

(II) If Advance Authorizations were issued on or before 09.01.2019, and imports took place on or after 10.01.2019, the pre-import condition will not be applicable.

(III) If an Advance Authorization involved imports partly made up to and including 09.01.2019, with the remaining imports occurring on or after 10.01.2019, the imports made on or after 10.01.2019 will not be subject to the pre-import condition.

(IV) In cases of imports made under Advance Authorization with payment of IGST and Compensation Cess, the pre-import condition will not apply, regardless of the import date.

Conclusion: Trade Notice No. 27/2023-DGFT, issued by the Ministry of Commerce & Industry, Department of Commerce, DGFT, Government of India, provides valuable clarifications regarding the pre-import condition under the Advance Authorization Scheme. These clarifications address various scenarios and aim to facilitate smoother implementation of the scheme for all stakeholders involved in international trade.

Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi

Trade Notice No. 27/2023-DGFT Dated: 25^th September, 2023

To,
1. All Regional Authorities of DGFT
2. All Export Promotion Councils
3. All Advance/EPCG Authorisation Holders

Subject: Implementation of the Trade Notice No. 07/2023-24 dated 08.06.2023 in reference to the pre-import condition under Advance Authorisation Scheme -reg.

This is in reference to the implementation of the Trade Notice 07/2023-24 dated 08.06.2023 according to which all the imports made under Advance Authorization Scheme on or after 13.10.2017 and up to and including 09.01.2019 which could not meet the ‘pre-import condition’ may be regularized by making payments as prescribed in the Customs Circular No. 16/2023 dated 07.06.2023.

2. In this regard, it is noticed that Regional Authorities are facing difficulties in determining the treatment to be given for certain export-import scenarios in respect of Advance Authorisations issued in the period between 13.10.2017 to 09.01.2019.

3. In view of the above, the issues raised are accordingly clarified as follows:

S. No.	Issue raised	Clarification
I.	In case Advance Authorizations under which exports have been made in the period 13.10.2017 to 09.01.2019 and the import is made on or after 10.01.2019, whether pre-import condition will be considered to have been violated.	Pre-import condition will not be considered to have been violated.
II.	If Advance Authorizations were issued on or prior to 09.01.2019 and imports were made on or after 10.01.2019, whether pre-import condition will be applicable.	Pre-import condition will not be applicable.
III.	If against an Advance Authorization, import were partly made up to and including 09.01.2019 and remaining imports were made on or after 10.01.2019, whether imports made on or after 10.01.2019 will be subject to pre- import condition.	In such a scenario, the imports made on or after 10.01.2019 will not be subject to pre-import condition.
IV.	In case of imports made under Advance Authorisation on payment of IGST and Compensation Cess, whether pre-import condition will be applicable.	In such a scenario, the imports will not be subject to pre-import condition irrespective of date of import.