Under the Export Promotion Capital Goods (EPCG) scheme, the commerce ministry has simplified various procedures.
The authorities has modified a number of processes underneath the Export Promotion Capital Goods (EPCG) scheme, which allows duty-free capital items imports topic to an export obligation, to cut back compliance burdens and make doing enterprise simpler.
In six years, exporters should export completed items price six occasions the precise responsibility financial savings in worth phrases.
Requests for export obligation extensions should now be made inside six months of the expiration date, relatively than the earlier 90 days, as per the revisions introduced by the commerce and business ministry. However, late charges of Rs 10,000 per authorization are charged for purposes submitted past six months and as much as six years.
The modifications additionally require yearly reporting of export obligation (EO) by June 30 as a substitute of April 30 annually, with specified particulars, and a late wonderful of Rs 5,000 for every delay.
“To improve ease of doing business and decrease the strain of people complaining, certain provisions of Chapter 5 of the Handbook of procedures (2015-20) related to the EPCG scheme are amended for EPCG authorizations issued under Foreign Trade Policy (2015-20),” the Directorate General of Foreign Trade mentioned in a public discover.
Furthermore, requests for block-wise export obligation extensions should be submitted inside six months of the expiration date, whereas purposes submitted after six months and for as much as six years shall be charged a late charge of Rs 10,000 per authorization.
After six years, purposes can be topic to a price of Rs 5,000 annually. Previously, there was no set time restrict, which led to thoroughly discretionary interpretations.
Furthermore, the choice to pay customs responsibility by way of scrips (MEIS/RoDTEP/RoSCTL) for EPCG default has been withdrawn.
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