DGFT Should Consider Re-credit of Advance Authorisations in Some Cases

For procurement of our raw material duty free from a Special Economic Zone (SEZ) unit, we had obtained 'certificate of supplies' for an item after invalidating our advance authorisation for import of that item, in accordance with Para 4.35(d) of the Handbook of Procedures (HBP).

- TNC RAJAGOPALAN

After supplying part quantity, the SEZ unit is unable to supply the item and so, the 'certificate of supplies' remains partly unutilised. We have obtained a certificate of non-utilization from the SEZ Customs and submitted it to the DGFT for re-credit of the advance authorisation. However, the DGFT says that there is no provision to give re-credit in such cases. Is this correct?