Advance Authorisation — EODC Using the Clubbing Route

Who Can Use the Clubbing Route for EODC?

• Excluded: authorizations where an EODC letter has already been issued, or where adjudication orders have already been passed by the RA / Customs Authority — Para 4.36(xiv) of HBP, 2023.

Typical Situations for Clubbing

• Multiple Advance Authorizations issued to the same exporter
• Authorizations issued within the permitted time relationship
• Similar duty exemption having been availed
• Exports having been made against the individual authorizations
• Imports having been made against the individual authorizations
• Different authorizations having different levels of import utilisation
• Exports made under different authorizations are capable of being considered together
• Different EO periods, which are permitted under Para 4.36(ix) of HBP, 2023
• A need to determine value addition on the combined CIF and FOB values
• A situation where, after consolidation, any shortfall can be dealt with through the regularisation provisions

Conditions for Using the Clubbing Procedure

1. a

   Authorizations should be issued after 31st March 2009

   Authorizations issued on or before 31st March 2009 cannot be clubbed under the current clubbing provisions. The first screening exercise is to check eligibility based on the date of issue of each proposed authorization.

2. b

   Requirements of the ANF-4C form

   The request for clubbing is made online to the concerned Regional Authority using the prescribed ANF-4C form, which requires:

   • IEC
   • Regional Authority
   • Authorizations proposed to be clubbed
   • Issue dates of the authorizations being considered
   • Customs notification
   • Export product
   • Port of registration
   • Initial and extended EOP
   • Exports made against each authorization
   • Imports allowed and made
   • Consolidated exports
   • Consolidated imports
   • Excess imports, if any, requiring duty / interest payment
3. c

   Advance Authorizations issued from the same Regional Authority

   The authorizations should have been issued by the same Regional Authority — an important practical check before preparing the application.

4. d

   Advance Authorizations should have similar duty exemption

   Authorizations under which similar duty exemption has been availed can be clubbed. The authorizations may belong to different financial years.

5. e

   Time limit based on the date of issue

   The authorizations proposed to be clubbed should have been issued within 18 months from the date of issue of the earliest authorization sought to be clubbed.

   Para 4.36(vi) of HBP, 2023
6. f

   Eligible period for imports

   Only imports made within 30 months from the date of issue of the earliest authorization can be considered for clubbing.

   Para 4.36(vi) of HBP, 2023
7. g

   Eligible period for exports

   Exports made during the initial or extended Export Obligation Period of the individual authorizations are eligible to be clubbed.

   Para 4.36(vii) of HBP, 2023
8. h

   Advance Authorizations with different EOPs

   Advance Authorizations having different Export Obligation Periods can also be clubbed, subject to the other conditions of Para 4.36.

   Para 4.36(ix) of HBP, 2023
9. i

   Inputs need not be identical

   The inputs covered by all the authorizations need not necessarily be identical.

   Para 4.36(x) of HBP, 2023
10. j

    Maintenance of minimum value addition

    The prescribed minimum value addition applicable to the export product must be maintained after clubbing.

    Para 4.36(xi) of HBP, 2023

Can Your Authorisations Be Clubbed?

Procedure for Clubbing Advance Authorisations for EODC

1. Identify the authorizations proposed for clubbing

   Prepare a list of all Advance Authorizations proposed to be clubbed and check:

   • Authorization number
   • Issue date
   • Customs notification
   • Export product
   • EOP
   • Imports
   • Exports
   • Value addition
   • Existing closure / regularisation status

2. Check eligibility for clubbing

   Before filing ANF-4C, verify that:

   1. None of the authorizations was issued on or before 31 March 2009
   2. The authorizations satisfy the prescribed issue-date window
   3. They were issued by the same RA
   4. Similar duty exemption was availed
   5. The import and export transactions satisfy the applicable clubbing time limits
   6. No EODC has already been issued
   7. There is no disqualifying fraud / misrepresentation issue
   8. There is no adjudication order preventing clubbing

3. Reconcile imports

   For each authorization, identify:

   • Input item
   • Quantity allowed
   • CIF value allowed
   • Bill of Entry number
   • Bill of Entry date
   • Quantity imported
   • CIF value utilised
   • Percentage utilisation

4. Reconcile exports

   For each authorization, identify:

   • Export product
   • Shipping Bill / Bill of Export / other applicable document
   • Date of export
   • Quantity exported
   • FOB / FOR value
   • Direct export / deemed export / third-party export status

5. Prepare the consolidated position

   After individual reconciliation, prepare the consolidated position of total eligible imports, total eligible exports, applicable input consumption and the value addition — the position after treating all the authorizations as one.

6. Check value addition

   Value addition is calculated on the total CIF and total FOB after clubbing. The applicant needs to establish that the applicable minimum value addition is achieved on the consolidated basis.

7. Identify any shortfall

   Check whether clubbing results in a shortfall in:

   • Export value
   • Export quantity
   • Input accounting
   • Other relevant obligation

8. File the online ANF-4C application

   The current ANF-4C provides that the application is filed online using a digital signature.

9. Submit the original authorizations

   The ANF-4C guidelines require the original Advance Authorization(s) to be submitted to the concerned Regional Authority.

10. RA processes clubbing and closure

    The Regional Authority examines the application and the supporting reconciliation. Where the requirements are satisfied, the authorizations are clubbed for closure. Where a shortfall requiring regularisation is identified, the relevant regularisation provisions and payments must be complied with before final closure.

Documents Required for the Clubbing Process

Where the Rules Come From

• HBP 2023, Para 4.36 — Facility of Clubbing of Authorisations