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Simpler composition fee for exporters under AAS notified by DGFT

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NEW DELHI : The Directorate General of Foreign Trade (DGFT) notified the amended rules for calculation of Composition Fee for extending Export Obligation under Advance Authorization Scheme (AAS) to boost trade facilitation and ease of doing business.

This move has been initiated by amending Para 4.42 of Handbook of Procedures (2015-20) vide Public Notice No.52/2015-20 dated 18 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 convoluted and 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.

According to the Ministry of Commerce & Industry, the process of automation is being taken up under the IT-revamp project of DGFT and shall be notified separately.

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