Supreme Court Flags Excess Records as Cause of Delays in Corruption Case Prosecutions  ||  Supreme Court: Outgoing Partner’s Share Valued on Assessment Date, Not Dissolution Date  ||  Supreme Court Acquits Two Murder Convicts, Finds Prosecution Story Suspicious  ||  SC Restores SEBI Fraud Proceedings against Vedanta over 2014 Share Buyback  ||  CCI Rejects Kerala Private Bus Operators’ Challenge to Free KSRTC Travel for Women  ||  Chhattisgarh HC: Sharia Body can't Decide Muslim Woman's Marital Status or End Marriage  ||  MP High Court: Adult Woman Can Become Jain Saadhvi Despite Parents’ Opposition  ||  MP High Court Quashes 70%-80%-90% Pay Rule for Class III, IV Staff during Probation  ||  SC: Pre-2015 NH Act Awards Must Follow 1894 Act for Solatium and Interest  ||  SC: Service Rendered Before Regularization Must Be Counted for Pension Benefits    

DGFT simplifies Composition Fee for Export Obligation Extension under Advance Authorization Scheme - (18 Jan 2023)

Customs

The Directorate General of Foreign Trade (DGFT) has notified the amended rules for calculation of Composition Fee for extending Export Obligation under Advance Authorization Scheme by amending Para 4.42 of Handbook of Procedures (2015-20) vide Public Notice No.52/2015-20 dated 18th January, 2023. The simplification of calculations for Composition Fee helps in automation and faster service delivery by making the process more efficient and easier to understand.

The previous formula for Composition Fee was difficult to understand, which made the process more tedious and strenuous for exporters. However, the revised Composition Fee formula, which is based on a specific rate for different levels of the 'CIF value of Authorisation', is more straightforward and easier to calculate. This will help automate the entire Export Obligation extension process with minimal human intervention, further eliminating the risk of errors and misconceptions.

Automation of the process will reduce the need for manual calculations and paperwork, which will ultimately lead to faster service delivery. This will be beneficial to exporters as it will reduce the time and effort required to complete the Export Obligation extension process. Additionally, automation will also reduce the risk of errors and misconceptions, which will further improve the efficiency of the process. The process of automation is being taken up under the IT-revamp project of DGFT and shall be notified separately. Simplification of calculations also helps in the "Ease of Doing Business" objective by reducing the complexity and making the process more straightforward for exporters. This will ultimately lead to trade facilitation and ease of doing business.

Tags : COMPOSITION FEE   SIMPLIFICATION   EXPORT  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved