Date: 2022-04-13Category: Extra OrdinaryState: Union GovernmentCountry: India
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 reg
## Report on Amendments to Chapter 5 of Handbook of Procedures 2015-2020 Regarding Export Promotion Capital Goods (EPCG) Scheme
**1. Executive Summary:**
This report analyzes amendments to Chapter 5 of the Handbook of Procedures (HBP) 2015-2020, focusing on the Export Promotion Capital Goods (EPCG) Scheme. These amendments, effective immediately as of April 13, 2022, aim to reduce the 'Compliance Burden' and enhance 'Ease of Doing Business' for EPCG authorization holders. The key changes relate to block-wise export obligation (EO) fulfillment, annual reporting, automatic reduction/enhancement of EO, extension of EO periods, maintenance of annual average export obligation, redemption processes, and regularization of default. These amendments primarily impact exporters utilizing the EPCG scheme by providing greater flexibility and streamlined procedures.
**2. Introduction:**
The purpose of this report is to provide a comprehensive overview and analysis of the recent amendments to Chapter 5 of the Handbook of Procedures (HBP) 2015-2020 concerning the Export Promotion Capital Goods (EPCG) Scheme, based solely on the official policy text provided. This report is intended for exporters and stakeholders directly affected by these changes.
**3. Policy Overview:**
* **Original Policy:** Foreign Trade Policy (FTP) 2015-2020 and Chapter 5 of the Handbook of Procedures (HBP) 2015-2020 pertaining to the EPCG Scheme.
* **Core Objective(s):** The core objective of these amendments, as stated in the Public Notice, is to enhance the 'Ease of Doing Business' and reduce the 'Compliance Burden' for EPCG authorization holders. This is achieved through revisions to procedures and regulations governing the scheme.
**4. Background and Rationale:**
These amendments appear to address concerns regarding the complexity and rigidity of the existing EPCG scheme regulations. The amendments suggest that the original policy placed undue compliance burdens on exporters. By streamlining processes related to EO fulfillment, extending timelines, and providing greater flexibility in meeting obligations, the amendments seek to alleviate these burdens and encourage greater participation in the EPCG scheme. The frequency with which "late fee" and "extension" are mentioned suggests that exporters frequently missed the original deadlines, triggering the need for revisions.
**5. Key Provisions / Changes:**
This section details the specific changes introduced by the amendment:
* **5.14 Blockwise Fulfilment of EO:**
* **Original:** Required EO extension requests to be submitted within 6 months of the first block's expiry.
* **New:** Allows RA (Regional Authority) to consider requests received *after* 6 months, but within 6 years from authorization issue, subject to a late fee (Rs. 10,000 per authorization), in addition to the composition fee for the unfulfilled EO. Also, application beyond 6 years for extension of block wise EO period for regularization purpose, shall also be considered by RA concerned, with an additional late fee of Rs. 5,000 for each year per authorization.
* **Effect:** Provides exporters with a longer window to request EO extensions, albeit with late fees. Addresses situations where exporters missed the initial deadline.
* **5.15 Annual Reporting of EO fulfillment:**
* **Original:** Authorisation holders were to submit report on fulfillment of export obligation by secured electronic filing using digital signatures or hard copy thereof to RA concerned by 30th June of every year,
* **New:** Authorization holders shall submit to the RA concerned by 30th April of every year, a report on fulfillment of export obligation. The report should contain details such as Shipping billGST invoice number, date of exportsupply, description of product exportedsupplied and FOBFOR value of exportsupply for both specific as well as average export obligation. Any delay in filing such an annual report shall be regularised on payment of Rs. 5000 late fees for each financial year per authorisation.
* **Effect:** This appears to provide additional time to file report.
* **5.16 Automatic Reduction Enhancement:**
* **Original:** Allowed for automatic reduction/enhancement up to 10% of duty saved amount without RA endorsement.
* **New:** Clarifies the procedure for handling excess imports. It emphasizes that Customs shall automatically allow clearance of such goods without endorsement by RA concerned. The authorization holder shall furnish additional fee to cover excess imports effected, in terms of duty saved amount, to RA concerned, within one month of excess imports taking place. Export obligation shall automatically stand enhanced proportionately. RA concerned may also accept the additional fee to cover the excess imports effected, in terms of duty saved amount, if the same is furnished beyond one month but within two years of the excess import taking place, subject to payment of composition fee of Rs. 5000 per authorisation.
* **Effect:** This amendment provides a clear mechanism for addressing situations where exporters exceed the permitted import value, thereby simplifying customs clearance.
* **5.17 Extension in Export Obligation Period:**
* **Original:** Requests for EO extensions had to be made within 90 days of the original EO period's expiry.
* **New:** Extends the timeframe to 6 months from the date of expiry of original EO Period. However, RA may consider the request for extension received after 6 months, but within 8 years from date of issue of authorization, with a late fee of Rs. 10,000. Application made beyond 8 years, for extension of EO period from 6 to 8 years for regularization purpose, shall also be considered by RA concerned, with an additional late fee of Rs. 5,000 for each year per authorization. However, EO extension, beyond 8 years from date of issue of authorisation, shall not be allowed by RA under this provision.
* **Effect:** Significantly increases the flexibility in seeking EO extensions, allowing for a longer application window (6 months). It allows for extensions after 6 months (up to 8 years) upon payment of a late fee.
* **5.19A Maintenance of Annual Average Export Obligation:**
* **Original:** The excess exports done towards the average export obligation fulfillment of an EPCG authorization during a year can be used to offset any shortfall in the Average EO done in other years of the EO period or the block period as the case may be
* **New:** The provision remains relatively unchanged. The amendment simply reiterates the ability to offset EO shortfalls in other years using excess exports, as long as the average EO is maintained on an overall basis within the EO period.
* **Effect:** No major change, this likely acts as a clarification.
* **5.22 Redemption:**
* **Original:** Authorisation holder shall apply for EODC redemption in ANF 5B with documents prescribed therein as a proof of EO fulfillment.
* **New:** Clarifies the procedure for issuing Export Obligation Discharge Certificates (EODC). The authorization holder must apply for the EODC in ANF 5B with documents prescribed therein as a proof of EO fulfillment. On being satisfied, RA concerned shall issue EODC to the EPCG authorisation holder and a copy of which will be forwarded to ICEGATE through online, for further action by Jurisdictional Customs Authorities with whom BGLUT has been executed.
* **Effect:** Streamlines the process by specifying the online forwarding of EODC copies to ICEGATE for customs authorities.
* **5.23 Regularization of Bonafide Default and Exit from EPCG Scheme:**
* **Original:** In case, EPCG authorisation holder fails to fulfill prescribed export obligation, he shall pay Customs Duty along with applicable interest as prescribed by Customs Authority.
* **New:** Retains the core provision allowing payment of customs duty and interest for failure to meet EO.
* **Effect:** There are no notable changes.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* Exporters utilizing the EPCG scheme under FTP 2015-2020.
* Regional Authorities (RAs) responsible for administering the EPCG scheme.
* Customs officials involved in the clearance of goods under the EPCG scheme.
* Directorate General of Foreign Trade (DGFT).
**7. Implementation Aspects (Inferred):**
* **Responsible agency/bodies:** Directorate General of Foreign Trade (DGFT), Regional Authorities (RAs), and Customs Authorities.
* **Timelines and procedures:** The amendments introduce revised timelines for submitting EO extension requests, annual reports, and for addressing excess imports. They also outline the procedures for online EODC forwarding to customs.
* **Specific to changes:** The implementation of the extended timelines for EO extension requests and the streamlined EODC forwarding will require RAs and customs authorities to adapt their processes and systems.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these amendments are:
* Reduced compliance burden for exporters participating in the EPCG scheme.
* Increased ease of doing business by providing greater flexibility and clarity in procedures.
* Improved utilization of the EPCG scheme due to reduced administrative hurdles.
* Streamlined customs clearance processes.
The overall impact should be positive, encouraging greater participation in export promotion through the EPCG scheme.
**9. Conclusion:**
The amendments to Chapter 5 of the Handbook of Procedures 2015-2020 concerning the EPCG scheme represent a significant effort to streamline procedures and reduce compliance burdens for exporters. By extending timelines, providing greater flexibility in meeting EO, and clarifying processes, these changes are expected to enhance the ease of doing business and promote greater participation in the EPCG scheme. These adjustments make the scheme more accessible and user-friendly for the export community.
Key Entities Referenced
Foreign Trade Policy FTP 2015-2020: A trade policy spanning the years 2015 to 2020, governing foreign trade regulations.
Director General of Foreign Trade: The head of the Directorate General of Foreign Trade, responsible for making amendments to trade procedures.
Handbook of Procedures 2015-20: A procedural manual related to the Foreign Trade Policy 2015-2020, specifically Chapter 5 concerning the Export Promotion Capital Goods Scheme.
Export Promotion Capital Goods Scheme: A scheme designed to promote exports by allowing import of capital goods with reduced or zero duty, subject to an export obligation.
EPCG authorizations: Authorizations issued under the Export Promotion Capital Goods scheme, allowing for certain benefits and subject to specific obligations.
Regional Authority: Authority that can extend the Export Obligation period.
Customs: Customs Authority that can automatically allow clearance of goods without endorsement by RA concerned.
ICEGATE: The portal which facilitates electronic filing of documents related to export/import.
New Delhi: Location of publication of the notification
Ministry of Commerce and Industry: The ministry under which the Directorate General of Foreign Trade operates.
Santosh Kumar Sarangi: Director General of Foreign Trade & Ex-officio Addl. Secy.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-13042022-235136
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CG-DL-E-13042022-235136
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असाधारण
EXTRAORDINARY
भाग I—खण्ड 1
PART I—Section 1
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 105] नई दिल्ली, बुधवार, अप्रलै 13, 2022/चत्रै 23, 1944
No. 105] NEW DELHI, WEDNESDAY, APRIL 13, 2022/CHAITRA 23, 1944
ubZ fnYyh] 13 vizSy] 2022
5.—le;≤ ij ;Fkk la'kksf/kr fon's k O;kikj uhfr ¼,QVhih½] 2015&2020
ds iSjk 1-03 ds rgr iznÙk 'kfDr;ks a dk Ikz;ksx djr s gq,] egkfuns'kd fons'k O;kikj ,rn~}kjk rRdky izHkko ls izfØ;k
iqLrd ¼2015&20½ ds v/;k; 5 eas fuEufyf[kr la'kks/ku djr s gSaA ;s la'kks/ku fon's k O;kikj uhfr 2015&20 ds rgr tkjh
bZihlhth izkf/kdkj i= gsrq ykxw gaSA
ekStwnk izko/kku Lka'kkfs/kr izko/kku
1
¼x½ tgka mu ekeyks a eas ftlesa CykWd ls ¼x½ izFke CykWd dh fu;kZr nkf;Ro vof/k ds
lacaf/kr fu;kZr nkf;Ro viw.kZ Hkkx ds vuiq kr foLrkj ds fy, vuqjks/k CykWd ls lacaf/kr bZvks ds
eas cpkbZ xbZ 'kqYd dh jkf'k ij 2 izfr'kr viw.kZ Hkkx ds vuqikr es a cpkbZ xbZ 'kqYd dh
la?kVu 'kqYd ds Hkqxrku ds v/khu {ks=h; jkf'k ij 2 izfr'kr la?kVu 'kqYd ds lkFk izFke
izkf/kdkjh }kjk izFke CykWd ds fy, fu/kkZfjr CykWd bZvks vof/k ds lekIr gksus dh frfFk ls 6
2665 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1]
bZvks dk foLrkj fd;k x;k gS] dk s NksM+dj eghu s ds Hkhrj izLrqr fd;k tk,xkA vkj, 6
izFke CykWd ds bZvks dks mi;qZDr vuqikr ds eghu s ds ckn yfsdu izkf/kdkj i= tkjh gksus dh
vuqlkj iwjk ugha fd;k x;k gS] izkf/kdkj&i= frfFk ls 6 lky ds Hkhrj izkIr 10]000@& #i;s
/kkjd CykWd ds lekIr gksus ds rhu eghu s ds izfr izkf/kdkj i= ds foyca 'kqYd ds lkFk CykWd
Hkhrj izFke CykWd ds dqy viw.kZ bZvks ij okj bZvks vof/k ds foLrkj ds vuqjks/k ij fopkj
cpkbZ xbZ 'kqYd dh jkf'k ds vuqikr ds dj ldrk gSA fu;ferhdj.k ds iz;kstu gsrq
lhek'kqYd ¼jktLo foHkkx }kjk ;Fkk CykWd&okj bZvks vof/k ds foLrkj ds fy, 6 lky
vf/klwfpr ykxw C;kt lfgr½ dk Hkqxrku ds ckn fd, x, vkosnu ij Hkh izR;sd o"kZ ds
djsxkA fy, 5]000@& #i;s izfr izkf/kdkj i= ds
vfrfjDr foyac 'kqYd ds lkFk lacaf/kr vkj, }kjk
fopkj fd;k tk,xkA ;g foyca 'kqYd la?kVu
'kqYd ds vfrfjDr gS tks fu;kZr nkf;Ro es a deh
ds dkj.k ns; gks ldrk gSA tgka izFke CykWd dk
bZvks mijksDr iSjk ¼d½ ds vulq kj iwjk ugha gksrk
gS] flok, mu ekeyks a ds tgka izFke CykWd ds
fy, fu/kkZfjr bZvks dk {ks=h; izkf/kdkjh }kjk
foLrkj fd;k tk,] dk s izkf/kdkj i= /kkjd] CykWd
dh lekfIr ls 6 eghus ds Hkhrj] izFke CykWd ds
dqy viw.kZ bZvks ij cpkbZ xbZ 'kqYd dh jkf'k ds
vuqikr ds lhek 'kqYd ¼jktLo foHkkx }kjk ;Fkk
vf/klwfpr ykxw C;kt lfgr½ dk Hkqxrku djsxkA
2
izkf/kdkj i= /kkjd] fu;kZr nkf;Ro dk s iwjk
dju s laca/kh fjikVs Z lacaf/kr {ks=h; izkf/kdkjh izkf/kdkj i= /kkjd izR;sd o"kZ 30 twu rd
dks izR;sd o"kZ 30 vizSy rd fMftVy lacaf/kr {ks=h; izkf/kdkjh dk s vkWuykbu ek/;e ls
gLrk{kj dk mi;ksx djds lqjf{kr fu;kZr nkf;Ro dh iwfrZ ij ,d fjiksVZ izLrqr
byDs VªkWfud Qkbfyax }kjk@vFkok bldh djsxa sA bl rjg dh fjikVs Z eas f'kfiax
gkMZ dkWih }kjk izLrqr djsxkA fcy@th,lVh chtd la[;k] fu;kZr@vkiwfrZ dh
rkjh[k] fu;kZr@ vkiwfrZ fd, x, mRikn dk
fooj.k vkSj fof'k"V ds lkFk&lkFk
vkSlr fu;kZr nkf;Ro nksuks a ds fy,
fu;kZr@vkiwfrZ ds fy, ,Qvksch@ ,Qvksvkj
eYw ; tSls fooj.k 'kkfey gksxa sA ,slh okf"kZd
fjikVs Z izLrqr dju s eas fdlh Hkh rjg ds foyca dks
izR;sd foÙkh; o"kZ ds fy, 5]000@& #i;s ds
foyca 'kqYd ds Hkqxrku ij fu;fer fd;k
tk,xkA
3
¼d½ ,sl s ekeyks a eas tgka izkf/kdkj i= ij ¼d½ ,sl s ekeyks a eas tgka izkf/kdkj i= ij n'kkZ;h
n'kkZ;h xbZ cpk;h xbZ 'kqYd jkf'k dk xbZ cpk;h xbZ 'kqYd jkf'k dk vkf/kD; 10
vkf/kD; 10 izfr'kr ls vf/kd u gks] izfr'kr ls vf/kd u gks] izkf/kdkj&i= ml
izkf/kdkj&i= ml vuiq kr }kjk c<+k;k gqvk vuqikr }kjk c<+k;k gqvk ekuk tk,xkA lhek
ekuk tk,xkA lhek”'kqYd izkf/kdkjh lacaf/kr 'kqYd izkf/kdkjh lacaf/kr {ks=h; izkf/kdkjh ds
{ks=h; izkf/kdkjh ds i`"Bkadu ds fcuk] i`"Bkadu ds fcuk] izkf/kdkj i= ds ,sl s eky dh
izkf/kdkj i= ds ,sl s eky dh fudklh dh fudklh dh vuqefr Lor% gh ns nxs kA
vuqefr Lor% gh ns nxs kA izkf/kdkj&i= izkf/kdkj&i= /kkjd lacaf/kr {ks=h; izkf/kdkjh dks
/kkjd lacaf/kr {ks=h; izkf/kdkjh dks cpkbZ xbZ cpkbZ xbZ 'kqYd jkf'k ds vulq kj bZvksMhlh gsrq
'kqYd jkf'k ds vqulkj vk;kr eas ,d eghu s fd, x, vkosnu ds le;] fd, x, vfrfjDr
ds Hkhrj] fd, x, vfrfjDr vk;kr dks vk;kr dks 'kkfey djus ds fy, vfrfjDr Qhl
'kkfey djus ds fy, vfrfjDr Qhl nsxkA nxs kA fu;kZr nkf;Ro Loa; vkuqikfrd :i ls
fu;kZr nkf;Ro Loa; vkuqikfrd :i ls c< + c< + tk,xkA
tk,xkA lacaf/kr vkj,] cpkbZ xbZ 'kqYd dh
jkf'k ds lanHkZ eas] fd, x, vfrfjDr vk;kr[भाग I—खण् ड 1] भारत का रािपत्र : असाधारण 3
dks doj djus ds fy, vfrfjDr 'kqYd Hkh
Lohdkj dj ldrk gS] ;fn og 5000@&
#i;s izfr izkf/kdkj i= ds la?kVu 'kqYd ds
Hkqxrku ds v/khu ,d eghu s ls vf/kd yfsdu
vfrfjDr vk;kr gksus ds nks o"kZ ds Hkhrj
izLrqr fd;k tkrk gSA
4
¼?k½ fu;kZr nkf;Ro dh vof/k dks c<k+u s ¼?k½ fu;kZr nkf;Ro dh vof/k dk s c<+ku s dk
dk vuqjks/k {ks=h; çkf/kdkjh dks eyw fu;kZr vuqjks/k {ks=h; çkf/kdkjh dk s eyw fu;kZr nkf;Ro
nkf;Ro vof/k ds lekIr gks tku s dh frfFk ls vof/k ds lekIr gks tku s dh frfFk ls 6 eghus ds
90 fnuks a ds vUnj fd;k tk,xkA rFkkfi] vUnj fd;k tk,xkA rFkkfi] {ks=h; çkf/kdkjh
{ks=h; izkf/kdkjh 5000 :- ds vfrfjDr 10]000@& #i;s ds foyEc 'kqYd ds lkFk 6
la?kVu 'kqYd ds lkFk 180 fnuks a rd izkIr eghu s ds i'pkr ijUrq çkf/kdkj i= tkjh gksus
fd, x, foLrkj gsrq vuqjks/k ij fopkj dj dh frfFk ls 8 lky ds vUnj foLrkj gsrq çkIr
ldr s gSaA fd, x, vuqjks/k ij fopkj dj ldrk gSA
fu;ferhdj.k ds mís'; ls bZvks vof/k dks 6 ls
c<k+ dj 8 o"kZ dju s ds fy, 8 o"kZ ds i'pkr
fd, x, vkosnu ij Hkh lacaf/kr {ks=h; çkf/kdkjh
}kjk çfr çkf/kdkj i= çR;sd o"kZ ds fy,
5000@& #i;s ds vfrfjDr foyEc 'kqYd ds
lkFk fopkj fd;k tk,xkA ;g 'kqYd la?kVu
'kqYd ds vfrfjä gS tks fu;kZr nkf;Ro es a
fxjkoV ds dkj.k ns; gks ldrk gSA gkykafd] bl
çko/kku ds rgr {ks=h; çkf/kdkjh }kjk çkf/kdkj
i= tkjh gksus dh frfFk ls 8 lky ls vf/kd bZvks
ds foLrkj dh vuqefr ugha nh tk,xhA
5
fdlh o"kZ ds nkSjku bZihlhth izkf/kdkj i= fdlh o"kZ ds nkSjku bZihlhth izkf/kdkj i= dh
dh vkSlr fu;kZr nkf;Ro iwfrZ ds fy, fd, vkSlr fu;kZr nkf;Ro iwfrZ ds fy, fd, x,
x, vfrfjä fu;kZr dk mi;ksx bZvks vof/k vfrfjä fu;kZr dk mi;ksx bZvks vof/k ds vU;
ds vU; o"kksZa eas ;k Cy‚d vof/k eas tSlk Hkh o"kksZa es a ;k Cy‚d vof/k es a tSlk Hkh ekeyk gks]
ekeyk gks] fd, x, vkSlr bZvks eas fdlh Hkh fd, x, vkSlr bZvks eas fdlh Hkh deh dks iwjk
deh dk s iwjk dju s ds fy, fd;k tk ldrk dju s ds fy, fd;k tk ldrk gS c'krsZ fd jksfir
gS c'krsZ fd jksfir vkSlr fu;kZr nkf;Ro dk vkSlr fu;kZr nkf;Ro dk lexz vk/kkj ij fu;kZr
lexz vk/kkj ij] ;Fkk ykxw Cy‚d vof/k ;k nkf;Ro vof/k ds Hkhrj j[kj[kko fd;k tk,A
fu;kZr nkf;Ro vof/k ds Hkhrj j[kj[kko
fd;k tk,A
6
¼d½ fu;kZr nkf;Ro dh iwfrZ ds çek.k ds
#i eas] çkf/kdkj i= /kkjd vk;kr&fu;kZr ¼d½ fu;kZr nkf;Ro dh iwfrZ ds çek.k ds #i eas]
izi= 5[k eas fu/kkZfjr fd, x, nLrkostks a çkf/kdkj i= /kkjd vk;kr&fu;kZr izi= 5[k es a
lfgr ekspu vkosnu çLrqr djsxk A fu/kkZfjr fd, x, nLrkostks a lfgr ekspu vkosnu
¼[k½ lacaf/kr {ks=h; çkf/kdkjh] lUrq`"V gksus çLrqr djsxkA
ij] bZ-ih-lh-th çkf/kdkj i= /kkjd dk s ¼[k½ larq"V gksus ij] lacaf/kr vkj, bZihlhth
fu;kZr nkf;Ro ds fuoZgu dk çek.ki= tkjh çkf/kdkj i= /kkjd dks bZvksMhlh tkjh djsxk
djsxk vkSj mldh ,d çfr] lhek'kqYd vkSj bldh ,d çfr v‚uykbu ek/;e ls
çkf/kdkfj;ks a dk s Hkstsxk ftuds lkFk cSad {ks=kf/kdkj izkIr lhek 'kqYd çkf/kdkfj;ks a ftuds
xkjUVh@fof/kd opuc)rk fu"ikfnr dh xbZ lkFk chth@,y;wVh fu"ikfnr fd;k x;k gS] }kjk
gSA çkf/kdkj&i= /kkjd }kjk fu;kZr nkf;Ro vkxs dh dkjZokbZ ds fy, vkbZlxVs dks çsf"kr dh
iwfrZ ds çek.k ds fy, lkSais x, nLrkostks a dk tk,xhA tgka v‚uykbu vkosnu ds vk/kkj ij
C;kSjk nus s okyk ,d fooj.k çek.k&i= ds bZihlhth çkf/kdkj i= /kkjd dks bZvksMhlh çnku
lkFk layXu fd;k tk,xkA fd;k tkrk gS] ogka bZvksMhlh dh ,d çfr
vkbZlxVs dks vxzsf"kr dh tk,xh rkfd {ks=kf/kdkj4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1]
izkIr lhek 'kqYd çkf/kdkjh ftuds lkFk
chth@,y;wVh fu"ikfnr fd;k x;k gS vkxs dh
dkjoZ kbZ dj ldsAa
7
¼d½ ;fn bZihlhth izkf/kdkj i= /kkjd fofgr ¼d½ ;fn bZihlhth izkf/kdkj i= /kkjd fofgr
fu;kZr nkf;Ro dk s iwjk dju s eas foQy jgrk fu;kZr nkf;Ro dks iwjk dju s eas foQy jgrk gS
gS rks og lhek'kqYd izkf/kdkjh }kjk fu/kkZfjr rks og lhek'kqYd izkf/kdkjh }kjk fu/kkZfjr ykxw
ykxw C;kt ds lkFk lhek'kqYd dk Hkqxrku C;kt ds lkFk lhek'kqYd@dj@midj dk
djsxkA bl lqfo/kk dk ykHk izkf/kdkj i= Hkqxrku djsxkA bl lqfo/kk dk ykHk izkf/kdkj i=
/kkjd }kjk vius fodYi ij Ldhe ls ckgj /kkjd }kjk viu s fodYi ij Ldhe ls ckgj
fudyus ds fy, Hkh mBk;k tk ldrk gSA fudyus ds fy, Hkh mBk;k tk ldrk gSA
izkf/kdkj i= /kkjd ds ikl lhek'kqYd ?kVd
ds Hkqxrku ds fy, ,QVhih ds v/;k; 3 ;k
v/;k; 5 ds rgr tkjh oS/k M~;wVh ØsfMV
fLØIl izLrqr dju s dk fodYi gksxkA
O;kikj djus dh lqxerk dks c<+kok nus s vkSj vuiq kyu cks> dk s de dju s ds fy,]
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MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF FOREIGN TRADE)
PUBLIC NOTICE
New Delhi, the 13th April, 2022
No. 03/2015-2020
Subject : 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' – reg.
F. No. 18/79/AM-21/P-5.—In exercise of powers conferred under Paragraph 1.03 of the Foreign
Trade Policy (FTP) 2015-2020, as amended from time to time, the Director General of Foreign Trade
hereby makes the following amendments in Chapter 5 of the Handbook of Procedures (2015-20) with
immediate effect. These amendments are applicable for EPCG authorizations issued under FTP 2015-20.
S. Para Existing provsion Revised provision
No. No.
1 5.14 (c) 5.14 Block-wise Fulfilment of EO 5.14 Block-wise Fulfilment of EO
(c) Where EO of the first block is not fulfilled (c) Request for extension of Export Obligation
in terms of the above proportions, except in period of first block shall be submitted within 6
cases where the EO prescribed for first block is months from the date of expiry of first block EO
extended by the Regional Authority subject to period along with composition fee of 2% on duty
payment of composition fee of 2% on duty saved amount proportionate to unfulfilled portion of
saved amount proportionate to unfulfilled EO pertaining to the block. RA may consider the
portion of EO pertaining to the block, the request for extension of block wise EO period,
Authorization holder shall, within 3 months received after 6 months, but within 6 years from
from the expiry of the block, pay duties of date of issue of authorization, with a late fee of Rs.
customs (along with applicable interest as 10,000/- per authorization. Application made[भाग I—खण् ड 1] भारत का रािपत्र : असाधारण 5
notified by DOR) proportionate to duty saved beyond 6 years, for extension of block-wise EO
amount on total unfulfilled EO of the first period for regularization purpose, shall also be
block. considered by RA concerned, with an additional late
fee of Rs. 5,000/- for each year per authorization.
This late fee is in addition to the composition fee
that may be payable on account of shortfall in export
obligation. Where EO of the first block is not
fulfilled in terms of para (a) above, except in cases
where the EO prescribed for first block is extended
by the Regional Authority, the Authorization holder
shall, within 6 months from the expiry of the block,
pay duties of customs (along with applicable interest
as notified by DOR) proportionate to duty saved
amount on total unfulfilled EO of the first block.
2 5.15 5.15 Monitoring of Export Obligation 5.15 Annual reporting of EO fulfillment
Authorisation holders shall submit to RA Authorisation holders shall submit to the RA
concerned by 30th April of every year, report concerned by 30th June of every year, a report on
on fulfillment of export obligation by secured fulfillment of export obligation through online.
electronic filing using digital signatures/ or hard Such a report shall contain details such as Shipping
copy thereof. bill/GST invoice number, date of export/supply,
description of product exported/supplied and
FOB/FOR value of export/supply for both specific
as well as average export obligation. Any delay in
filing such an annual report shall be regularised on
payment of Rs. 5000/- late fees for each financial
year per authorisation.
3 5.16 (a) 5.16 Automatic Reduction/ Enhancement 5.16 Automatic Reduction/ Enhancement upto
upto 10% Duty saved amount and pro rata 10% Duty saved amount and pro rata Reduction/
Reduction/ Enhancement in export Enhancement in export
obligation obligation
(a) in excess of the duty saved amount indicated on
(a) in excess of the duty saved amount the authorization by not more than 10%, the
indicated on the authorization by not more than authorization shall be deemed to have been
10%, the authorization shall be deemed to have enhanced by that proportion. Customs shall
been enhanced by that proportion. Customs automatically allow clearance of such goods without
shall automatically allow clearance of such endorsement by RA concerned. The authorization
goods without endorsement by RA concerned. holder shall furnish additional fee to cover excess
The authorization holder shall furnish imports affected, in terms of duty saved amount, to
additional fee to cover excess imports effected, RA concerned, at the time of application for EODC.
in terms of duty saved amount, to RA Export obligation shall automatically stand
concerned, within one month of excess imports enhanced proportionately.
taking place. Export obligation shall
automatically stand enhanced proportionately.
RA concerned may also accept the additional
fee to cover the excess imports effected, in
terms of duty saved amount, if the same is
furnished beyond one month but within two
years of the excess import taking place, subject
to payment of composition fee of Rs. 5000/- per
authorisation.
4 5.17(d) 5.17 Extension in Export Obligation Period. 5.17 Extension in Export Obligation Period.
(d) Request for extension in EO Period shall be (d) Request for extension in EO Period shall be
made to RA within 90 days from the date of made to RA concerned within 6 months from the
expiry of original EO Period. However, RA date of expiry of original EO Period. However, RA
may consider the request for extension received may consider the request for extension received
up to 180 days with additional composition fee after 6 months, but within 8 years from date of issue
of Rs. 5,000. of authorization, with a late fee of Rs. 10,000/-.
Application made beyond 8 years, for extension of
EO period from 6 to 8 years for regularization
purpose, shall also be considered by RA concerned,6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1]
with an additional late fee of Rs. 5,000/- for each
year per authorization. This fee is in addition to the
composition fee that may be payable on account of
shortfall in export obligation. However, EO
extension, beyond 8 years from date of issue of
authorisation, shall not be allowed by RA under this
provision.
5 5.19 A 5.19A - Maintenance of Annual Average 5.19A - Maintenance of Annual Average Export
Export Obligation Obligation
The excess exports done towards the average The excess exports done towards the average export
export obligation fulfillment of an EPCG obligation fulfillment of an EPCG authorization
authorization during a year can be used to offset during a year can be used to offset any shortfall in
any shortfall in the Average EO done in other the Average EO done in other year(s) of the EO
year(s) of the EO period or the block period as period or the block period as the case may be,
the case may be provided Average EO imposed provided Average EO imposed is maintained on an
is maintained on an overall basis, within the overall basis, within the EO period.
block period or the EO period as applicable.
6 5.22 (a) 5.22 Redemption 5.22 Export Obligation Discharge Certificate
& (b) (a) Authorisation holder shall apply for (EODC)
redemption in ANF 5B with documents
prescribed therein as a proof of EO fulfillment. (a) Authorisation holder shall apply for EODC in
(b) On being satisfied, RA concerned shall ANF 5B with documents prescribed therein as a
issue a certificate of discharge of export proof of EO fulfillment.
obligation to the EPCG authorisation holder (b) On being satisfied, RA concerned shall issue
and forward a copy to Customs Authorities with EODC to the EPCG authorisation holder and a copy
whom BG/LUT has been executed. A statement of which will be forwarded to ICEGATE through
giving details of the documents submitted by online, for further action by Jurisdictional Customs
the authorisation holder towards evidence of Authorities with whom BG/LUT has been executed.
EO fulfillment shall also be enclosed with the Where EODC is granted to the EPCG authorisation
certificate. holder based on online application, a copy of EODC
will be forwarded online to ICEGATE for further
action by Jurisdictional Customs Authorities with
whom BG/LUT has been executed.
7 5.23 (a) 5.23 Regularization of Bonafide Default and 5.23 Regularization of Bonafide Default and Exit
Exit from EPCG Scheme from EPCG Scheme
(a) In case, EPCG authorisation holder fails to (a) In case, EPCG authorisation holder fails to fulfill
fulfill prescribed export obligation, he shall pay prescribed export obligation, he shall pay Customs
Customs Duty along with applicable interest as Duty/taxes/Cess along with applicable interest as
prescribed by Customs Authority. Such facility prescribed by Customs Authority. Such facility can
can also be availed by EPCG authorisation also be availed by EPCG authorisation holder to exit
holder to exit at his option. The authorisation at his option.
holder will have the option to furnish valid duty
credit scrips, issued under Chapter 3 or Chapter
5 of FTP, for payment of the Customs duty
component.
Effect of this Public Notice: With a view to enhance ease of doing business and reduce the compliance
burden, certain provisions of Chapter 5 related to the Export Promotion Capital Goods Scheme of the
Handbook of Procedures (2015-20) are amended for EPCG authorizations issued under Foreign Trade
Policy (2015-20).
SANTOSH KUMAR SARANGI, Director General of Foreign Trade
& Ex-officio Addl. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.