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The Directorate General of Foreign Trade (DGFT) has notified the amended rules for calculating Composition Fee for extending Export Obligation under Advance Authorization Scheme.
According to the Ministry of Commerce & Industry, simplifying calculations for Composition Fees will help in automation and faster service delivery by making the process more efficient and easier to understand. The revised Composition Fee formula, based on a specific rate for different levels of the ‘CIF value of Authorisation’, is more straightforward to calculate.
This will help automate the entire Export Obligation extension process with minimal human intervention, further eliminating the risk of errors and misconceptions. Automating the process will reduce the need for manual calculations and paperwork, ultimately leading to faster service delivery. This will benefit exporters, reducing the time and effort required to complete the Export Obligation extension process.
Additionally, as per the Ministry, simplifying calculations reduces the complexity and makes the process more straightforward for exporters, leading to trade facilitation and ease of doing business.
