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

## Report on Amendment to Foreign Trade Policy (FTP) 2015-2020 **1. Executive Summary:** This report analyzes a specific amendment to the Foreign Trade Policy (FTP) 2015-2020, as detailed in Public Notice No. 13/2015-2020, issued by the Directorate General of Foreign Trade (DGFT) on June 9, 2022. The amendment pertains to the Export Promotion Capital Goods (EPCG) scheme and focuses on reducing compliance burdens and enhancing ease of doing business. The key change involves extending the deadline for filing annual returns for the year 2022-23 under Paragraph 5.15 of the Handbook of Procedures 2015-20 and clarifying the applicability of late fees for delayed filings. This extension and clarification aim to provide businesses with additional time and clarity regarding compliance requirements. **2. Introduction:** The purpose of this report is to provide a comprehensive analysis of the amendment to the Foreign Trade Policy (FTP) 2015-2020 concerning the Export Promotion Capital Goods Scheme, as described in Public Notice No. 13/2015-2020. The analysis is based solely on the information provided in the official notification. **3. Policy Overview:** * **Original Policy Being Amended:** Foreign Trade Policy (FTP) 2015-2020 and the Handbook of Procedures 2015-20. * **Core Objective(s):** As stated in the provided text, the core objectives of this amendment are to "reduce Compliance Burden and enhance Ease of doing Business" related to the Export Promotion Capital Goods Scheme. **4. Background and Rationale:** The amendment addresses potential challenges businesses face in meeting the original deadline for filing annual returns under the EPCG scheme. The extension of the deadline and clarification regarding late fees suggest a need to provide businesses with more time to comply, potentially due to administrative difficulties or unforeseen circumstances. The amendment aims to alleviate pressure on businesses and improve the overall ease of doing business within the framework of the EPCG scheme. **5. Key Provisions / Changes:** This section details the specific changes introduced by the amendment. * **Specific Part of the Original Policy Being Changed:** Paragraph 5.15 of the Handbook of Procedures 2015-20, related to the filing of annual returns under the EPCG scheme. * **New Rule/Provision:** * The deadline for filing annual returns for the year 2022-23 is extended to September 30, 2022. * Late fees of Rs. 5000 are applicable for returns due to be filed from the year 2022-23 onwards. * **Difference/Effect of the Change:** * The extension provides businesses with additional time to prepare and file their annual returns for the year 2022-23, potentially reducing the risk of incurring late fees. * The clarification explicitly states that the penalty for late filing of annual returns applies starting from the year 2022-23, ensuring consistent application of the penalty. **6. Target Audience and Stakeholders:** The direct target audience and stakeholders affected by this amendment are businesses holding Export Promotion Capital Goods (EPCG) authorizations issued under FTP 2015-20. These businesses are required to file annual returns under Paragraph 5.15 of the Handbook of Procedures. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Directorate General of Foreign Trade (DGFT) is responsible for implementing and overseeing the amended policy. * **Timelines:** The extended deadline for filing annual returns for the year 2022-23 is September 30, 2022. The application of late fees is effective for returns due from the year 2022-23 onwards. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of these changes is to reduce the compliance burden on businesses holding EPCG authorizations. By extending the deadline and clarifying the penalty structure, the amendment aims to: * Provide businesses with more flexibility and time to comply with filing requirements. * Reduce the potential for inadvertent late filings and associated penalties. * Enhance the overall ease of doing business for EPCG authorization holders. **9. Conclusion:** The amendment to the Foreign Trade Policy (FTP) 2015-2020, detailed in Public Notice No. 13/2015-2020, represents a targeted effort to streamline compliance procedures for businesses operating under the Export Promotion Capital Goods Scheme. The extension of the filing deadline and clarification of late fee applicability are significant changes expected to alleviate compliance burdens and improve the ease of doing business for affected stakeholders.

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