Bonafide default in Export Obligation – DGFT amends HOP

By Vijay Kumar

As per para 4.28 of the Hand Book Of Procedure (HOP) of the Foreign Trade Policy,

Cases of bonafide default in fulfillment of EO may be regularised by RA as under:

( i ) If EO is fulfilled in terms of value, but there is a shortfall in terms of quantity, the Authorisation holder shall, for regularisation, pay:-

a) to customs authority, customs duty on unutilised value of imported material along with interest as notified; and xxxx

Now this is changed to

a) to customs authorities, customs duty on unutilized value of imported / indigenously procured material along with interest as notified; and

DGFT PN No. 120 (RE: 2008)/2004-2009, Dated: February 29, 2008