Amendments in Chapter 5 of the Handbook of Procedures HBP 2023 related to Export Promotion Capital Goods Scheme to reduce Compliance Burden and enhance Ease of doing Business

रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-29072024-255777 xxxGIDHxxx CG-DL-E-29072024-255777 xxxGIDExxx असाधारण EXTRAORDINARY भाग I—खण्ड 1 PART I—Section 1 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 197] नई दिल्ली, बहृ स्ट्प जतिार , िुलाई 25, 2024/ श्रािण 3, 1946 No. 197] NEW DELHI, THURSDAY, JULY 25, 2024/ SHRAVANA 3, 1946 ( ) ( ) नई दिल् ली, 25, िुलाई, 2024 a जिषय : फा.स.ं .— 1 5.04( ) 4609 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1] 2 5.04 3 5.13 , , , , , ,[भाग I—खण् ड 1] भारत का रािपत्र : असाधारण 3 , , , 4. 5.13( ) 5. 5.16 , , ,4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1] 6. 5.16( ) , , , , % O;kikj djus eas lqxerk dks c<+kus gsrq vkSj vuiq kyu cks> dks de djus dh nf`"V ls] izfØ;k iqLrd 2023 dh fu;kZr lao/kZu iatw hxr eky Ldhe ls lacaf/kr v/;k; 5 ds dfri; izko/kku fons'k O;kikj uhfr ds rgr tkjh fd, x, bZihlhth izkf/kdkj i= gsrq la'kksf/kr fd, x, gSaA larks"k dqekj lkjaxh] egkfuns'kd fons'k O;kikj] inus vij lfpo MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (DIRECTORATE GENERAL OF FOREIGN TRADE) PUBLIC NOTICE New Delhi, the 25th July, 2024 No. 15 /2024-25 Subject: Amendments in Chapter 5 of the Handbook of Procedures (HBP) 2023, related to Export Promotion Capital Goods Scheme to reduce 'Compliance Burden' and enhance 'Ease of doing Business' – reg. F. No. 18/19/AM-25/P-5.— In exercise of powers conferred under Paragraphs 1.03 and 2.04 of the Foreign Trade Policy, 2023, as amended from time to time, the Director General of Foreign Trade hereby makes the following amendments in Chapter 5 of the HBP, 2023 with immediate effect. S. Para No. Existing provision Revised provision No. 1 5.04(a) Authorisation holder shall produce, within six Authorization holder shall produce, within 3 years months from date of completion of import, to the from date of completion of import, to the concerned concerned RA, a certificate from the RA, a certificate from the jurisdictional Customs jurisdictional Customs authority or an authority or an independent Chartered Engineer, at independent Chartered Engineer, at the option of the option of the authorisation holder, confirming the authorisation holder, confirming installation installation of capital goods/spares at of capital goods at factory/premises of factory/premises of authorization holder or his authorisation holder or his supporting supporting manufacturer(s). The RA may allow manufacturer(s). The RA may allow one time extension of the said period for submission of extension of the said period for producing the certificate, upto valid EO period with a payment of a certificate by a maximum period of 12 months composition fee of Rs. 10,000/- per year by the with a composition fee of Rs. 5000/-. Where the authorisation holder. Where the authorisation holder authorisation holder opts for independent opts for independent Chartered Engineer’s[भाग I—खण् ड 1] भारत का रािपत्र : असाधारण 5 Chartered Engineer’s certificate, he shall send a certificate, he shall send a copy of the certificate to copy of the certificate to the jurisdictional the jurisdictional Customs Authority for Customs Authority for intimation/record. The intimation/record. The authorization holder shall be authorisation holder shall be permitted to shift permitted to shift capital goods during the entire capital goods during the entire export obligation export obligation period to other units mentioned in period to other units mentioned in the IEC and the IEC and RCMC of the authorization holder RCMC of the authorisation holder subject to subject to production of fresh installation certificate production of fresh installation certificate to the to the RA concerned within six months of the RA concerned within six months of the shifting. shifting. 2 5.04(b) In the case of import of spares, the installation Deleted. certificate shall be submitted by the Authorisation holder within a period of three years from the date of import. 3 5.13(c) Request for extension of Export Obligation Request for extension of Export Obligation period period of first block shall be submitted within 6 of first block shall be submitted within 6 months months from the date of expiry of first block EO from the date of expiry of first block EO period period along with composition fee of 2% on duty along with composition fee as under :- saved amount proportionate to unfulfilled portion Duty Saved value of Composition fee to be of EO pertaining to the block. RA may consider EPCG Authorisation levied (in Rupees) the request for extension of block wise EO issued period, received after 6 months, but within 6 years from date of issue of authorisation, with a Up to ₹2 Crores 5,000 late fee of Rs. 10,000/- per authorisation. Application made beyond 6 years, for extension More than ₹2 Crores to 10,000 of block-wise EO period for regularization 10 Crores purpose, shall also be considered by RA Above ₹10 Crores 15,000 concerned, with an additional late fee of Rs. 5,000/- for each year per authorisation. This late fee is in addition to the composition fee that may RA may consider the request for extension of block- be payable on account of shortfall in export wise EO period, received after 6 months, but within obligation. Where EO of the first block is not 6 years from date of issue of authorisation, with fulfilled in terms of para (a) above, except in composition fee as under :- cases where the EO prescribed for first block is extended by the RA, the Authorisation holder Duty Saved value of Composition fee to shall, within 6 months from the expiry of the EPCG Authorisation be levied (in block, pay duties of customs (along with issued Rupees) applicable interest as notified by DOR) proportionate to duty saved amount on total Up to ₹2 Crores 10,000 unfulfilled EO of the first block. More than ₹2 Crores to 20,000 10 Crores Above ₹10 Crores 30,000 Application made beyond 6 years, for extension of block-wise EO period for regularization purpose, shall also be considered by RA concerned, with composition fee as under :- Duty Saved value of Composition fee EPCG Authorisation to be levied (in issued Rupees) Up to ₹2 Crores 15,000 More than ₹2 Crores to 30,000 10 Crores Above ₹10 Crores 45,000 No refund of earlier paid Composition Fee shall be6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1] admissible. 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 RA, the Authorisation 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. 4. 5.13(e) New provision Notwithstanding sub-para (d) above, sub-para (c) above shall also be applicable for authorisations issued under FTP (2015-20). 5. 5.16(b) In case of extension of Export obligation period In case of extension of Export obligation period beyond 6 years, two extensions, from date of beyond 6 years, two extensions, from date of expiry, expiry, of one year each may be considered by of one year each or two years in one go at the choice RA concerned, on payment of composition fee of authorisation holder, may be considered by RA equal to 2% of proportionate duty saved amount concerned with composition fee as under :- on unfulfilled export obligation for each year of Duty Saved value of Composition fee to be extension. However, minimum composition fee EPCG Authorisation levied for each year (in shall be Rs. 10,000/-. issued Rupees) Up to ₹2 Crores 20,000 More than ₹2 Crores to 10 30,000 Crores Above ₹10 Crores 60,000 No refund of earlier paid Composition Fee shall be admissible. 6. 5.16(e) New provision For implementation of all PRC decisions involving levy of Composition Fee while allowing extension in block-wise/EO period and/or regularisation of exports already made, the applicable Composition Fee shall be as under :- Duty Saved value of Composition fee to be EPCG Authorisation levied (in Rupees) issued Up to ₹2 Crores 30,000 More than ₹2 Crores to 10 60,000 Crores Above ₹10 Crores 1,00,000 No refund of earlier paid Composition Fee shall be admissible. 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, 2023 are amended for EPCG authorizations issued under Foreign Trade Policy. 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.