4.38 — Application fee for enhancement

Application fee payable for enhancement would be on the difference in CIF values of original and final Authorisation. However, no application fee would be charged if value of Authorisation is being reduced or applicant has already paid maximum fee of

pg. 9

Rs 1,00,000 for Advance Authorisation / DFIA.

• 4.39 Validity period for import and Revalidation of Authorisation

• (a) Validity period for import of Advance Authorisation shall be 12 months from the date of issue of Authorisation.

• (b) Validity of Advance Authorisation for supplies under Chapter-7 of FTP shall be co-terminus with contracted duration of project execution or 12months from the date of issue of Authorisation, whichever is later.

• (c) For Advance Authorisations not covered under Para 4.39(b) above, only one revalidation for twelve months from expiry date shall be allowed. No further revalidation would be allowed for such authorisations. Applications for any such revalidation may be submitted online to the concerned Regional Authority.

• 4.40 Export Obligation (EO) Period and its Extension

• (a) Period for fulfilment of export obligation under Advance Authorisation shall be 18 months from the date of issue of Authorisation. Period of EO fulfilment under an Advance Authorisation shall commence from date of issue of Authorisation, unless otherwise specified.

on shall be 18 months from the date of issue of Authorisation. Period of EO fulfilment under an Advance Authorisation shall commence from date of issue of Authorisation, unless otherwise specified.

• (b) In cases of supplies to projects in India under Chapter-7 of FTP or projects abroad, the Export Obligation period shall be co- terminus with contracted duration of the project execution or 18 months whichever is more.

• (c) Export Obligation for items falling in categories of defence, military store, aerospace and nuclear energy shall be 24 months from the date of issue of authorisation or co-terminus with contracted duration of the export order whichever is more.

• (d) Extension in export obligation period for Authorisations issued under Appendix-4J shall be allowed for a period not more than the half of the stipulated export obligation period. In such cases, composition fee shall be levied in such a manner as prescribed hereunder:

	CIF VALUE OF ADVANCE<br>(In AUTHORISATION (AA)<br>LICENSES ISSUED<br>Up to ₹2Crores	COMPOSITION FEE TO BE LEVIED<br> <br>Rupees)<br>5,000
	More than ₹2 Crores to 10	10,000
	Crores
	Above ₹10Crores	15,000

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• (e) Regional Authority may consider a request of Advance Authorisation holder for one extension of EO period upto six months from the date of expiry of EO period subject to the payment of composition fee as prescribed hereunder:

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extension of EO period upto six months from the date of expiry of EO period subject to the payment of composition fee as prescribed hereunder:

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|||
|---|---|
|CIF VALUE OF ADVANCE|COMPOSITION FEE TO BE|
|LEVIED AUTHORISATION (AA)|(In Rupees)|
|LICENSES ISSUED|
|Up to ₹2Crores|5,000|
|More than ₹2 Crores to 10|10,000|
|Crores|
|Above ₹10Crores|15,000|

----- End of picture text -----<br>

Authorisation holder will have to submit a self - declaration to RA stating that unutilised imported/domestically procured inputs are available with the applicant.

(f) Request for further extension of six months after first extension as in (e) above can be considered by Regional Authority, subject to the payment of composition fee as prescribed hereunder:

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|||
|---|---|
|CIF VALUE OF ADVANCE|COMPOSITION FEE TO BE|
|LEVIED AUTHORISATION (AA)|(In Rupees)|
|LICENSES ISSUED|
|Up to ₹2Crores|10,000|
|More than ₹2 Crores to 10|20,000|
|Crores|
|Above ₹10Crores|30,000|

----- End of picture text -----<br>

| |LEVIED AUTHORISATION (AA)|(In Rupees)| |LICENSES ISSUED| |Up to ₹2Crores|10,000| |More than ₹2 Crores to 10|20,000| |Crores| |Above ₹10Crores|30,000|

**----- End of picture text -----**<br>


No further extension shall be allowed by Regional Authority. However, only two extensions of six months each as mentioned above can be allowed subject to payment of composition fee and under no circumstance Regional Authority shall allow any extension beyond 12 months from date of expiry of EO period. At the time of filing application for second EO extension, the Authorisation holder will have to submit a self - declaration to RA stating that unutilised imported/domestically procured inputs are available with the applicant. 

- (g) Whenever a ban / restriction is imposed on export of any product, export obligation period in respect of Advance Authorisation already issued prior to imposition of ban, would stand automatically extended for a period equivalent to the duration of ban, without any composition fee. 

(h) The revised composition fee for EOP extension under para 4.40 of HBP (2023) will only be applicable for the requests made on or after 01.01.2023. 

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However, existing/pending applications shall be governed by the earlier provision of HBP (2015-20).

.40 of HBP (2023) will only be applicable for the requests made on or after 01.01.2023. 

pg. 9 

However, existing/pending applications shall be governed by the earlier provision of HBP (2015-20). 

- (i) For all Advance Authorisations where the Export Obligation Period is expiring between 01.02.2020 and 31.07.2020, the Export Obligation Period stands automatically extended by six months from the date of expiry. No separate application with composition fee, amendment/endorsement is required for this purpose. The option to avail further validity extensions under this para beyond this period would remain available for these authorisations as per eligibility. 

- (j) (a) For Advance Authorisations, where original or extended Export Obligation (EO) period is expiring during the period between 01.08.2020 and 31.07.2021, the Export Obligation period would be extended till 31.12.2021 without any composition fees. However, this extension is subject to 5% additional export obligation in value terms (in free Foreign Exchange) on the balance Export Obligation on the date of expiry of the original/extended export obligation period. 

(b) The option to avail EO extensions with payment of composition fees under this para (4.40(d), (e) (f)) would remain available for these authorisations as per eligibility. 

(c) In cases where Advance Authorisation Holder has already obtained EO extension upon the payment of composition fee, the refund of the composition fee will not be permitted.

as per eligibility. 

(c) In cases where Advance Authorisation Holder has already obtained EO extension upon the payment of composition fee, the refund of the composition fee will not be permitted. 

- (k) For implementation of all PRC decisions involving levy of Composition Fee while allowing extension in EOP and/or regularisation of exports already made, the applicable Composition Fee shall be as prescribed hereunder: 

|**CIF VALUE OF ADVANCE**<br>|**COMPOSITION FEE TO BE**|
|---|---|
|**LEVIED AUTHORISATION (AA)**<br>**(In Rupees)**<br>**LICENSES ISSUED**<br>**Up to ₹2Crores**<br>25,000||
|**More than ₹2 Crores to 10**|50,000|
|**Crores**||
|**Above ₹10Crores**|100,000|



No refund of earlier paid Composition Fee shall be admissible.