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Extension of Import Validity Period and Export Obligation Period - IndiaFilings Last updated: December 8th, 2022 12:50 PM

Extension of Import Validity Period and Export Obligation Period

In view COVID-19 pandemic, the Directorate General of Foreign Trade (DGFT) has 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 of Import/Export extension. In this regard, the following procedural formalities must be followed by the 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 six 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 availing the extension of the 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 the export of a product, the export obligation period in respect of the Advance Authorization scheme already issued before 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

According to the notification, the following procedure applies to the exporter who has not yet availed of the revalidation or Export Obligation period extension of 6 months.
  • Suppose an exporter has not yet availed the extension (1st and 2nd) of import validity of the EO period earlier. In that case, the extended/evaluated import validity or EO period will automatically be updated in the ICEGATE or Customs System based on a defined protocol between the DGFT-NIC and Customs.
  • After successfully updating and transmitting authorization details, NIC will forward an RA-wise list to individual RAs with an updated 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 exceptional cases, if the revised updated import validity or EO extension is unavailable in the ICEGATE, the exporter needs to approach the DGFT RA with an email request for 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 the 1st or the 2nd re-validation or EO extension has been granted under the respective Hand Book Procedure, automatic transmission of extended dates is impossible 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 case details. 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:

  • The procedure for such authorizations will be similar to the amendment requests described above.
  • The authorizations must 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 to extend 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.