Provision related to grant of extension of EO amended

By Vijay Kumar

DGFT has amended paragraph 5.11 of the HBP V.I which provides for grant of extension of export obligation for the first two years as follows:

“Concerned Regional Authority may consider request for grant of first extension in E.O. period on payment of composition fee equal to 2% of proportionate duty saved (earlier this was 2% on total duty saved) amount on unfulfilled export obligation or an enhancement in export obligation imposed to the extent of 10% of total export obligation imposed under authorization, as the case may be at the choice of exporter, for each year of extension sought. Such first extension in EO period can be for a maximum period of two years”.

DGFT Public Notice No. 126 (RE-2008)/ 2004-2009, Dated: January 6, 2009