Date: 2023-01-20Category: Not ApplicableState: Union GovernmentCountry: India
Amendments in Chapter 5 of the Handbook of Procedures, 2015-20 -
One time relaxation from maintenance of Average Export
Obligation and extension in Export obligation period for
specified EPCG Authorisations – reg.
Executive Summary:
This Public Notice from the Directorate General of Foreign Trade amends the Handbook of Procedures 2015-2020, providing a one-time relaxation from maintaining Average Export Obligation and extending the Export Obligation (EO) period for specific EPCG authorizations due to the COVID-19 pandemic. These relaxations apply to the Hotel, Healthcare, and Educational sectors, with extensions available under certain conditions. The notice also addresses situations where EO extensions were previously obtained with composition fees.
Key Points / Main Content:
Average Export Obligation:
* For EPCG authorizations issued to the Hotel, Healthcare, and Educational sectors, no Average Export Obligation is required for the years 2020-21 and 2021-22.
Export Obligation Period Extension (Hotel, Healthcare, and Educational Sectors):
* The EO period for these sectors may be extended by the number of days falling between 01.02.2020 and 31.03.2022, without composition fees.
* EO extensions already granted under Public Notice No. 67/2015-20 and Notification No. 28/2015-20 will be deducted from the extendable period.
* Refunds of composition fees, penalties, duties, and taxes already paid for previous EO extensions are not permitted.
Export Obligation Period Extension (Other Sectors):
* EO periods for EPCG authorizations issued to sectors other than Hotel, Healthcare, and Education, can be extended.
* The option to avail EO extension with payment of composition fees remains available as per eligibility.
* Refunds of composition fees, penalties, duties, and taxes already paid for previous EO extensions are not permitted.
Ineligibility for Benefit:
* The benefits mentioned above are not applicable if EO period extensions were obtained under Public Notice No. 67 dated 31.03.2020 and Notification No. 28 dated 23.09.2021 or through policy relaxation under para 2.58 of the Foreign Trade Policy.
Impact Analysis:
EPCG Authorisation Holders in Hotel, Healthcare, and Educational Sectors:
* Impact: Benefit from the relaxation of Average Export Obligation for 2020-21 and 2021-22 and potential extension of the EO period without composition fees.
* Action Required: Determine eligibility for EO period extension, considering any previous extensions availed, and apply accordingly.
EPCG Authorisation Holders in Sectors Other Than Hotel, Healthcare, and Educational:
* Impact: Potential extension of EO period; however, existing provisions for extension with composition fees remain available.
* Action Required: Evaluate the option for EO extension and comply with the requirements, noting that previously paid fees are non-refundable.
Directorate General of Foreign Trade:
* Impact: Implementation and monitoring of the amended procedures.
* Action Required: Ensure effective communication and application of these amendments.
Key Entities Referenced
Directorate General of Foreign Trade: The issuing authority for the public notice, responsible for foreign trade policy.
Foreign Trade Policy, 2015-2020: The governing policy framework under which the public notice is issued.
Handbook of Procedures, 2015-2020: A supplementary document to the Foreign Trade Policy, detailing procedures for implementation.
EPCG Authorizations: Export Promotion Capital Goods authorizations, a scheme to facilitate imports of capital goods for export production.
Hotel, Healthcare and Educational sectors: Specific sectors mentioned as beneficiaries of the relaxation in export obligations.
Public Notice No. 67 2015-20: A previous public notice related to Export Obligation extensions.
Notification No. 28 2015-20: A previous notification related to Export Obligation extensions.
COVID19 pandemic: The reason cited for the one-time relaxation in export obligations.
sOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
DIRECTORATE GENERAL OF FOREIGN TRADE
VANIJYA BHAVAN, NEW DELHI
PUBLIC NOTICE No. 53/2015-2020
NEW DELHI, DATED THE 20" January, 2023
Subject: Amendments in Chapter 5 of the Handbook of Procedures, 2015-20 -
One time relaxation from maintenance of Average Export Obligation and
extension in Export obligation period for specified EPCG Authorisations — reg.
In exercise of powers conferred under Paragraphs 1.03 and 2.04 of the Foreign Trade
Policy, 2015-2020, as amended from time to time, the Director General of Foreign Trade hereby
makes the following amendments in the Handbook of Procedures (2015-20) :-
1. The following sub-para is added after para 5.13(c) of Handbook of Procedures :-
Ҥ.13(d): For the years 2020-21 and 2021-22, no Average Export Obligation
is required to be maintained for EPCG authorizations issued for Hotel,
Healthcare and Educational sectors"
2. The following sub-paras are added after para 5.17(f) of Handbook of Procedures :-
“SAF (ge):
i) For EPCG authorizations issued for Hotel, Healthcare and
Educational sectors, Export Obligation (EO) period may be extended from the
date of expiry for the duration equivalent to the number of days EO period
falls within 01.02.2020 and 31.03.2022. Such extension shall be granted
without payment of composition fees. EO extension already granted if any in
terms of Public Notice No. 67/2015-20 dated 31.3.2020 and Notification No.
28/2015-20 dated 23.9.2021 shall be deducted from the extendable EO
extension period.
ii) In case where EPCG authorisation holder has already obtained EO
extension on payment of composition fees, the refund of the composition fees
will not be permitted. In addition, any penalties, duties and taxes already paid
would also not be refunded.
5.17 (h):
i) For EPCG authorisations, issued for other than Hotel, Healthcare and
Educational sectors, Export Obligation (EO) period may be extended from the,
eoii) The option to avail EO extension with payment of composition fees
under the para 5.17(c) would remain available Jor these authorizations as per
eligibility.
iti) In case where EPCG authorisation holder has already obtained EO
extension on payment of composition fees, the refund of the composition fees
will not be permitted. In addition, any penalties, duties and taxes already paid
would also not be refunded.
5.17 (i): The benefit under (h) shall not be applicable in cases where
extension of Export Obligation period has been obtained in terms of Public
Notice No. 67 dated 31.03.2020 and Notification No. 28 dated 23.09.2021.
5.17 (i): The benefit under paras (g) and (h) shall not be applicable in case
where extension of Export Obligation period has been obtained through policy
relaxation in terms of the para 2.58 of Foreign Trade Policy.
Effect of this Public Notice : One-time relaxation from maintaining Average Export Obligation
and option to avail extension in Export Obligation Period for specified EPCG authorizations is
provided on account of COVID-19 pandemic, subject to fulfillment of conditions. This is in
addition to EO extensions facility (upon payment of the composition fees) already provided in
FTP/HBP.
Bove
1%
(Santosh Kumar Sarangi)
Director General of Foreign Trade &
Ex-officio Additional Secretary, Government of India
Email: dgft@nic.in
(Issued from File No. 01/36/218/52/AM-22/EPCG-Part
1)