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Untitled 1
(TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY
PART-I SECTION-I)
GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE
DIRECTORATE GENERAL OF FOREIGN
TRADE
UDYOG BIIAVAN
PUBLIC NOTICE No. 03/2015-2020
NEW DELHI, DATED 13 TH April, 2022
Subject: Amendments in Chapter 5 of the Handbook of
Procedures 2015-20, related to Export Promotion Capital Goods Scheme to reduce
'Compliance Burden' and enhance 'Ease of doing Business' reg.
In exercise of powers conferred under Paragraph I .03 of
the Foreign Trade Policy (FTP) 2015-2020, as amended from time to time, the
Director General of Foreign Trade hereby makes the following amendments in
Chapter 5 of the Handbook of Procedures (2015-20) with immediate effect. These
amendments are applicable for EPCG authorizations issued under FTP 2015-20.
| S. No. |
Para No. |
Existing provsion |
Revised provision |
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(c) |
5.14 Block-wise Fulfilment of EO
(c) Where EO of the first block is not fulfilled in terms of the above
proportions, except in cases where the EO prescribed for first block is
extended by the Regional Authority subject to payment of composition fee
of 2% on duty saved amount proportionate to unfulfilled portion of EO
pertaining to the block, the Authorization holder shall, within 3 months
from the expiry of the block, pay duties of customs (along with
applicable interest as notified by DOR) proportionate to duty saved
amount on total unfulfilled EO of the first block. 5.14 Block-wise
Fulfilment of EO |
(c) Request for extension of Export Obligation period of first block
shall be submitted within 6 months from the date of expiry of first
block EO period along with composition fee of 2 0 0 on duty saved amount
proportionate to unfulfilled portion of EO pertaining to the block. RA
may consider the request for extension of block wise EO period, received
after 6 months, but within 6 years from date of issue of authorization,
with a late fee of Rs. 10,000/- per authorization. Application made
beyond 6 years, for extension of block-wise EO period for regularization
purpose, shall also be considered by RA concerned, with an additional
late fee of Rs. 5,000/- for each year per authorization. 'I-his late fee
is in addition to the composition fee that may be payable on
account of shortfall in export obligation. Where EO of the first block
is not fulfilled in terms of para (a) above, except in cases where the
EO prescribed for first block is extcndcd by the Regional Authority, the
Authorization holder shall, within 6 months from the expiry of the
block, pay duties of customs (along with applicable interest as notified
by DOR) proportionate to duty saved amount on total unfulfilled EO of
the first block.
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5.15 Monitoring of Export
Obligation
Authorisation holders shall submit to RA concerned by 30th April of
every year, report on fulfillment of export obligation by secured
electronic filing using digital signatures/ or hard copy thereof. |
5.15 Annual reporting of' EO fulfillment
Authorisation holders shall submit to the RA concerned by 30th June of
every year, a report on fulfillment of export obligation through online.
Such a report shall contain details such as Shipping bill/GST invoice
number, date of export/supply, description of product exported/supplied
and FOB/FOR value of export/supply for both specific as well as average
export obligation. Any delay in filing such an annual report shall be
regularised on payment of Rs. 5000/- late for each financial year per
authorisation. |
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(a) |
5.16 Automatic Reduction/ Enhancement upto 10% Duty saved amount and
pro rata Reduction/ Enhancement in export obligation
(a) in excess of the duty saved amount indicated on the authorization by
not more than 1 0 0 0, the authorization shall be deemed to have been
enhanced by that proportion. Customs shall automatically allow clearance
of such goods without endorsement by RA concerned. The authorization
holder shall furnish additional fee to cover excess imports effected, in
terms of duty saved amount, to RA concerned, within one month of excess
imports taking place. Export obligation shall automatically stand
enhanced proportionately. RA concerned may also accept the additional
fee to cover the excess imports effected, in terms of duty saved amount,
if the same is furnished beyond one month but within two years of the
excess import taking place, subject to payment of composition fee of Rs.
5000/- per authorisation. |
5.16 Automatic Reduction/ Enhancement upto 10% Duty saved amount and
pro rata Reduction/ Enhancement in export obligation
(a) in excess of the duty saved amount indicated on the authorization by
not more than 10 0 0, the authorization shall be deemed to have been
enhanced by that proportion. Customs shall automatically allow clearance
of such goods without endorsement by RA concerned. The authorization
holder shall furnish additional fee to cover excess imports affected, in
terms of duty saved amount, to RA concerned, at the time of application
for EODC. Export obligation shall automatically stand enhanced
proportionately. |
| 4 |
5.17(d) |
5.17 Extension in Export Obligation Period.
(d) Request for extension in E() Period shall be made to RA within 90
days from the date of expiry of original EO Period. However, RA may
consider the request for extension received up to 180 days with
additional composition fee o IQs. 5,000.
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5.17 Extension in Export Obligation Period.
(d) Request for extension in EO Period shall be made to RA concerned
within 6 months from the date of expiry of original EO Period. However,
RA may consider the request for extension received after 6 months, but
within 8 years from date of issue of authorization, with a late fee of
Rs. Application made beyond 8 years, for extension of EO period from 6
to 8 years for regularization purpose, shall also be considered by RA
concerned, with an additional late fee of Rs. 5,000/- for each year per
authorization. This fee is in addition to the composition fee that may
be payable on account of shortfall in export obligation. However, EO
extension, beyond 8 years from date of issue of authorisation, shall not
be allowed by RA under this provision. |
| 5. |
5.19 A |
5.19A - Maintenance of Annual Average Export Obligation
The excess exports done towards the average export obligation
fulfillment of an EPCG authorization during a year can be used to offset
any shortfall in the Average EO done in other year(s) of the E() period
or the block period as the case may be provided Average E() imposed is
maintained on an overall basis, within the block period or the EO period
as applicable. 5.19A - Maintenance of Annual Average Export Obligation |
5.19A - Maintenance of Annual Average Export Obligation
The excess exports done towards the average export obligation
fulfillment of an EPCG authorization during a year can be used to offset
any shortfall in the Average EO done in other year(s) of the EO period
or the block period as the case may be, provided Average EO imposed is
maintained on an overall basis, within the EO period. |
| 6 |
5.22 |
5.22 Redemption
(a) Authorisation holder shall apply for redemption in ANF 5B with
documents prescribed therein as a proof of EO fulfillment
.
(b) On being satisfied, RA concerned shall issue a certificate of
discharge of export obligation to the EPCG authorisation holder and
forward a copy to Customs Authorities with whom BG/LUT has been
executed.statement giving details of the documents submitted by the
authorisation holder towards evidence of EO fulfillment shall also be
enclosed with the certificate. |
5.22 Export Obligation Discharge Certificate (EODC)
(a) Authorisation holder shall apply for EODC in ANF 5B with documents
prescribed therein as a proof of EO fulfillment.
(b) ()n being satisfied, RA concerned shall issue EODC to the EPCG
authorisation holder and a copy of which will be foronline, for further
action by Jurisdictional Customs Authorities with whom BG/LUT has been
executed. Where EODC is granted to the EPCG authorisation holder based
on online application, a copy of EODC will be forwarded online to
ICEGATE for further action by Jurisdictional Customs Authorities with
whom BG/LUT has been executed. |
| 7. |
5.23 |
(a) 5.23 Regularization of Bonafide Default and Exit from EPCG
Scheme
(a) In case, EPCG authorisation holder fails to fulfill prescribed
export obligation, he shall pay Customs Duty along with applicable
interest as prescribed by Customs Authority. Such facility can also be
availed by EPCG authorisation holder to exit at his option. The
authorisation holder will have the option to furnish valid duty credit
scrips, issued under Chapter 3 or Chapter 5 of FTP, for payment of the
Customs duty component |
(a) 5.23 Regularization of Bonafide Default and Exit from EPCG
Scheme
(a) In case, EPCG authorisation holder fails to fulfill prescribed
export obligation, he shall pay Customs Duty/taxes/Cess along with
applicable interest as prescribed by Customs Authority, Such facility
can also be availed by EPCG authorisation holder to exit at his option. |
Effect of this Public Notice: With a view to enhance ease of doing business
and reduce the compliance burden, certain provisions of Chapter 5 related to the
Export Promotion Capital Goods Scheme of the Handbook of Procedures (2015-20)
are amended for EPCG authorizations issued under Foreign Trade Policy (2015-20).
(Santosh Kumar Sarangi)
Director General of Foreign Trade & Ex-officio Additional Secretary,
Government of India Email: [email protected]
[Issued from File No. 18/79/AM-21/P-51
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