Date amended to apparel and clothing under export obligation period
The Dollar Business Bureau
The DGFT issued a notification on 28 Sept via notice no.- 35/2015-2020, detailing that the “Export Obligation Period for Special Advance Authorization Scheme for export of articles of apparel and clothing accessories” has been amended to read as
14 Feb 2014 and not 2013 as mentioned in notification no- 29/2015-2020.
In other words, this gives exporters of apparel and clothing accessories 18 months of EO from the date of clearance by the customs authority as allowed in Para 4.22(i) of FTP ie, from the date of issue of Authorisation and not from the date of import as specified earlier.
In addition the apparel and clothing accessories exporters shall enjoy the privileges already specified in Para 4.42 (a) - wherein Period of export obligation fulfilment under an Advance Authorisation shall commence from date of issue of Authorisation, Para 4.42 (b)- the RA may consider an Advance Authorisation holder for one extension of EO period upto 6 months with a composition fee of 0.5%, Para 4.42 (c) wherein a request for further extension of 6 months after the first extension will be considered by the RA provided the exporter has fulfilled 50% export obligation in quantity as well as in value and Para 4.42 (e) wherein if a ban is imposed on any product, the EO period in respect of Advance Authorisation issued would get automatically extended to the duration of the ban without any composition fee.