Extension of one-time condonation of EPCG Scheme procedural compliances

by | Jan 17, 2020 | Insight

This is to apprise you regarding Public Notice No. 55/2015-20-DGFT dated January 3, 2020 (‘Public Notice 55’) issued by the Directorate General of Foreign Trade (‘DGFT’) extending one-time condonation on various procedural aspects under the Export Promotion Capital Goods (‘EPCG’) Scheme. The Government vide various Public Notices[1], had previously granted one-time condonation (with subsequent extensions) on the following procedural aspects of EPCG Scheme:

S. No.

Particulars

Requirement

Relaxation

1

Obtaining block-wise extension in Export Obligation (EO) period

[Para 5.14(c) and Para 5.14(d) of the Handbook of Procedures 2015-20 (‘HBP’)]

 

Where EO of first block is not fulfilled, the Authorization Holder needs to pay applicable duties or obtain extension by Regional Authority (RA) within 3 months from the expiry of the block

The RA were directed to consider belated requests for  the same subject to payment of additional composition fee of Rs. 5,000

2

Extension in EO period

(Para 5.17(a) and Para 5.17(c) of the HBP)

A request for extension in EO period needs to be made to the RA within 75 days from the date of expiry of original EO period

 

3

Submission of installation certificate

(Para 5.04  of the HBP)

An Authorization holder needs to produce an installation certificate from the jurisdictional Central Excise Authority / independent Chartered Engineer within six months (subject to an extension of 12 months) from date of completion of import

 

The Government vide Public Notice 55, has once again extended receipt of above requests till March 31, 2020. The said extension shall be subject to the requirements of the original condonation Public Notices.

NITYA’s Comments: The above extension serves as a great relief to exporters operating under the EPCG Scheme. This seems to be the last option for exporters to set right these procedural lapses in respect of EPCG scheme.

[1] Public Notice No. 35/2015-20 dated October 25, 2017, Public Notice No. 36/2015-20 dated October 25, 2017 Public Notice No. 37/2015-20 dated October 25, 2017 (amended vide Public Notice No. 30/2015-20 dated August 14, 2018).

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