The DGFT has simplified the composition fee for the extension of an export obligation under the Advance Authorization Scheme.

The Directorate General of Foreign Trade (DGFT) has notified the amended rules for calculating the Composition Fee for extending Export Obligation under the Advance Authorization Scheme by amending Paragraph 4.42 of the Handbook of Procedures (2015-20) via Public Notice No. 52/2015-20 dated January 18, 2023.

• The Composition Fee calculation’s simplicity facilitates automation and quicker service delivery by improving the procedure’s effectiveness and clarity. Exporters found the process to be more time-consuming and demanding because the prior Composition Fee calculation was complex and challenging to understand.

• With minimal human involvement, this will automate the entire export obligation extension procedure, significantly reducing the possibility of mistakes and misunderstandings.

• The DGFT is working toward this goal by streamlining Composition Fee computations to make the procedure more effective and understandable for exporters. In the end, this will result in easier corporate operations and trade facilitation.