Foreign Trade Procedures 2008-2009 - Directorate General of ...

against Authorisation holder for any misrepresentation, misdeclarationand default detected subsequently.Further RA shall also take action against authorisation holder incase of non-submission of Appendix 23, duly filled in, as stipulatedin Paragraph 4.30 below or for any misrepresentation,misdeclaration and default detected subsequently in details declaredand furnished in Appendix 23. An endorsement to this effect shallbe made by RA in the redemption certificate.Transitional Arrangement 4.27 Advance Licences, including Advance Licences for Annualfor AuthorisationsRequirement issued upto 31.8.2004, shall be governed byissued upto 31.8.2004provisions contained in Chapter-7 of HBP v1 (RE-2001) andChapter 4 of HBP v1 (2002-2007) as Notified on 31.3.2002respectively as amended from time to time, excepting provisionsrelating to clubbing and extension in E.O. period which shall begoverned by provisions of paragraphs 4.20 and 4.22.1respectively above, and any other provision, as notified by DGFT.However, wherever Customs duty is to be paid on unutilisedmaterial, same shall be paid alongwith interest thereon as notified.Regularisation of 4.28 Cases of bonafide default in fulfillment of EO may be regularisedBonafide Defaultby RA as under:(i)If EO is fulfilled in terms of value, but there is a shortfallin terms of quantity, the Authorisation holder shall, forregularisation, pay:-a) to customs authorities, customs duty on unutilizedvalue of imported / indigenously procured materialalong with interest as notified; andb) an amount equivalent to 3% of the CIF value ofunutilised imported material through a TR inauthorised branch of Central Bank of India indicatingthe “Head Account: 1453, Foreign Trade and ExportPromotion and Minor Head 102”. Authorisationholder shall also be required to obtain a separateAuthorisation for regularisation of excess importedinput. However, provisions of this sub-paragraphshall not be applicable if unutilised imported materialwas freely importable on the date of import.(ii)If the EO is fulfilled in quantity but there is shortfall invalue, no penalty shall be imposed if Authorisation holderhas achieved minimum value addition prescribed.However, if value addition falls below the minimum valueaddition prescribed, Authorisation holder shall be required69