Under export advance authorization, DGFT streamlines composition fees
The Directorate General of Foreign Trade (DGFT) has announced the rules for calculating the collection fee for the extension of the export bond based on the prior authorization system.
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The revised rules for calculating the composition fee for extending the export obligation under the advance authorization scheme have been made public by the Directorate General of Foreign Trade (DGFT) on 18th January 2023.
The procedure is made more effective and simple to understand by the simplification of calculations for composition fees, which contributes to automation and quicker service delivery.
Prior Composition Fee calculation was complex and challenging to understand, the exporters found the process to be more time-consuming and demanding. The updated Composition Fee formula, which is based on a particular rate for various levels of the “CIF value of Authorization,” is simpler to understand and more straightforward to compute.
With minimal human involvement, this will automate the entire export obligation extension procedure, significantly reducing the possibility of mistakes and misunderstandings.
The process will be automated, which will eliminate the need for manual computations and paperwork, resulting in a quicker service delivery. Exporters will benefit from this because it will take less time and work to complete the Export Obligation Extension process.
The DGFT’s IT-revamp project is incorporating the automation process, which will be independently announced. The “Ease of Doing Business” objective is also aided by computation simplification because it makes the process less complicated and more user-friendly for exporters.
The DGFT is working toward this goal by streamlining Composition Fee calculations to make the procedure more effective and understandable for exporters. Ultimately, this will result in easier corporate operations and trade facilitation.