Introduction: In a significant move aimed at bolstering trade facilitation and enhancing the ease of doing business, the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, Government of India, has announced amendments to Para 4.36 of the Handbook of Procedures, 2023. This amendment, detailed in Public Notice No. 40/2023-DGFT dated 12th February 2024, reflects the government’s commitment to streamlining procedural requirements for exporters and importers under the Advance Authorization Scheme.
Detailed Analysis: The existing provision of Para 4.36 in the Handbook of Procedures 2023 specified the conditions under which authorizations could be clubbed for the purpose of the Advance Authorization Scheme. Prior to the amendment, authorizations issued within 18 months from the date of the earliest authorization sought to be clubbed were eligible for consideration. Moreover, imports made within 30 months from the issuance of the earliest authorization were only considered for clubbing, with imports beyond this timeframe needing regularization under Para 4.49 of the Handbook.
The amended provision extends the issuance window for clubbing authorizations from 18 to 24 months, maintaining the 30-month period for considering imports. A significant addition is the inclusion of exports, where only exports made within 48 months from the date of the earliest authorization will be considered for clubbing. Any exports beyond this 48-month period will not be acceptable for clubbing purposes.
This amendment is poised to provide much-needed flexibility to exporters and importers, facilitating a smoother and more efficient management of their authorizations. It acknowledges the practical challenges faced by businesses in navigating the complexities of international trade and aims to reduce bureaucratic hurdles.
Conclusion: The amendment to Para 4.36 of the Handbook of Procedures 2023 is a testament to the Indian government’s proactive approach in fostering a conducive business environment. By extending the timeframe for clubbing authorizations and including exports in the clubbing provisions, the DGFT has taken a significant step towards simplifying trade processes. This move is expected to enhance operational efficiencies, encourage compliance, and ultimately contribute to the growth of India’s foreign trade sector. Stakeholders in the export-import community are encouraged to familiarize themselves with these changes to fully leverage the benefits of the Advance Authorization Scheme.
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Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Public Notice No. 40/2023-DGFT | Dated: 12th February, 2024
Subject: Amendments in Para 4.36 of the Handbook of Procedures, 2023.
F. No. 01/94/180/046/AM24/PC-4).— 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 amendment in the provision of Para 4.36 of the Handbook of Procedures 2023:
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Existing para 4.36 |
Amended para 4.36 |
| (vi) Only such authorisations shall be clubbed which have been issued within 18 months from the date of issue of earliest authorisation that is sought to be clubbed, whether such authorisations are valid or not. This is further subject to condition that upon clubbing only imports made within 30 months from the date of issue of earliest authorisation shall be considered. Any imports made beyond 30 months of earliest authorisation shall be regularized under Para 4.49 of the HBP. | (vi) Only such authorisations shall be clubbed which have been issued within 24 months from the date of issue of earliest authorisation that is sought to be clubbed, whether such authorisations are valid or not. This is further subject to condition that upon clubbing only imports made within 30 months from the date of issue of earliest authorisation shall be considered. Any imports made beyond 30 months of earliest authorisation shall be regularized under Para 4.49 of the HBP. This is further subject to condition that upon clubbing only exports made within 48 months from the date of issue of earliest authorisation shall be considered. Any exports made beyond 48 months of earliest authorisation shall not be acceptable for clubbing. |
Effect of the Public Notice: Para 4.36 of the Handbook of Procedures 2023 has been amended, to ease the clubbing provisions in respect of Advance Authorization Scheme, for ease of doing business.
(Santosh Kumar Sarangi)
Director General of Foreign Trade
Ex-officio Addl. Secretary to the Government of India
E-mail: [email protected]
(Issued from File No. 01/94/180/046/AM24/PC-4)
