Corrections allowed in unutilized Duty-Free Import Authorization
Ease of Doing Business: Corrections Allowed in Unutilized Duty-Free Import Authorization (DFIAs)
This amendment is part of the Handbook of Procedures, 2023, which guides how foreign trade activities are conducted in India. It aims to simplify processes and correct system-related errors without causing unnecessary delays.
Key Points of the Amendment
- What’s being amended
A new sub-paragraph, 4.53(e), has been added to the procedures to allow easier correction of errors in DFIA (Duty-Free Import Authorization) applications. - Scope of the amendment
The changes apply to unutilized and un-transferred DFIAs, meaning the corrections are allowed only in cases where the duty-free authorization hasn’t been used or assigned to someone else. - Nature of allowed corrections
The amendment is meant for system-related and corrective issues, not for altering the intent or purpose of the import authorization. - Process to follow
The applicant must file the correction request through ANF 4G, which is the prescribed form in the online system. - Approval requirement
Any correction made under this rule must be approved by the Head of Office, ensuring proper oversight.
Examples of corrections allowed
Some common cases where corrections can be made include:
- Fixing a mistake in the Unit of Measurement (e.g., kilograms instead of liters).
- Correcting the HS code, which is used for classifying the import item.
- Adjusting the value of the import item, such as correcting an input error.
Why this amendment matters
- It simplifies processes and avoids delays due to minor clerical mistakes.
- It helps businesses correct errors without having to cancel or restart the authorization process.
- It maintains regulatory oversight while providing operational flexibility.
This amendment is a step toward improving ease of doing business in foreign trade by reducing unnecessary hurdles while ensuring proper controls are in place.
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