We apprised you that the Central Government via Press Release dated September 9, 2021, announced fund allocation for disbursal of pending export incentives to exporters under various Export Promotion Schemes. Press Release also indicated that the last date of filing applications under various Export Incentive Schemes will be December 31, 2021.

The aforesaid time limit has been given legal sanction vide Notification No. 26/2015-20 dated September 16, 2021 (‘Notification’) issued by Directorate General of Foreign Trade (‘DGFT’). DGFT has inserted Para 3.13A in Foreign Trade Policy, 2015-20 (‘FTP’) and notified final cut-off date of December 31, 2021, post which all claims will become time barred.

Time limits for various export incentives for different Financial Years (FYs) along with applicable late cuts are tabulated below:

The Notification has also inserted Para 3.13B in FTP as per which credit scrips issued post September 16, 2021, will be valid only for 12 months from their issuance.

NITYA Comments: Exporters are advised to timely file export incentive applications before cut-off date to ensure smooth processing and timely issuance of export incentive scrips. 

It is pertinent to note that while last date of filing of SEIS for FY 2019-20 is just 3 months away, eligible services & rates are yet to be notified nor DGFT portal is accepting such applications. The Government is expected to shortly issue such Notification.