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.

(TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY PART-I SECTION-I) GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE DIRECTORATE GENERAL OF FOREIGN TRADE VANIJYA BHAVAN, NEW DELHI PUBLIC NOTICE No. /5 /2024-25 NEW DELHI, DATED THE 25”July, 2024 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. 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_ |Existing provision Revised provision No.|No. 1 |5.04(a) |Authorisation holder shall produce, [Authorization holder shall produce, within six months from date of |within 3 years from date of completion completion of import, to the concerned lof import, to the concerned RA, a RA, a certificate from the jurisdictional certificate from the jurisdictional Customs authority or an independent Customs authority or an independent (Chartered Engineer, at the option of the Chartered Engineer, at the option of the authorisation holder, confirming authorisation holder, confirming installation of capital goods at installation of capital goods/spares at factory/premises of authorisation holder factory/premises of authorization holder lor his supporting manufacturer(s). The or his supporting manufacturer(s). The RA may allow one time extension of the RA may allow extension of the said said period for producing the certificate period for submission of certificate, upto lby a maximum period of 12 months with valid EO period with a payment of a la composition fee of Rs. 5000/-. Where composition fee of Rs. 10,000/- per year the authorisation holder opts for |by the authorisation holder. Where the independent Chartered —_ Engineer’s authorisation holder opts for certificate, he shall send a copy of the jindependent Chartered _—_ Engineer’s certificate to the jurisdictional Customs certificate, he shall send a copy of the Authority for intimation/record. The certificate to the jurisdictional Customs authorisation holder shall be permitted Authority for intimation/record. The to shift capital goods during the entire authorization holder shall be permitted export obligation period to other units to shift capital goods during the entire mentioned in the IEC and RCMC of the export obligation period to other units authorisation holder — subject —_ to mentioned in the IEC and RCMC of the roduction of fresh __ installation authorization holder _ subject __to vacertificate to the RA concerned within production of — fresh installation six months of the shifting. certificate to the RA concerned within six months of the shifting. 5.04(b) In the case of import of spares, the Deleted. installation certificate shall be submitted lby the Authorisation holder within a period of three years from the date of import. 5.13(c) Request for extension of Export Request for extension of Export Obligation period of first block shall be Obligation period of first block shall be submitted within 6 months from the submitted within 6 months from the date of expiry of first block EO period date of expiry of first block EO period along with composition fee of 2% on along with composition fee as under :- duty saved amount proportionate to unfulfilled portion of EO pertaining to Duty Saved value Composition fee lof EPCG to be levied (in the block. RA may consider the request Authorisation Rupees) for extension of block wise EO period, received after 6 months, but within 6 issued years from date of issue of Up to 2 Crores 5,000 authorisation, with a late fee of Rs. More than &2 10,000 10,000/- per authorisation. Application Crores to 10 Crores made beyond 6 years, for extension of Above 210 Crores 15,000 block-wise EO period for regularization purpose, shall also be considered by RA concerned, with an additional late fee of RA may consider the request for Rs. 5,000/- for each year per extension of block-wise EO period, authorisation. This late fee is in addition received after 6 months, but within 6 to the composition fee that may be years from date of issue of authorisation, payable on account of shortfall in export with composition fee as under :- obligation. Where EO of the first block is not fulfilled in terms of para (a) Duty Saved value of Composition above, except in cases where the EO IEPCG Authorisation fee to be levied prescribed for first block is extended by issued (in Rupees) the RA, the Authorisation holder shall, Up to 2 Crores 10,000 within 6 months from the expiry of the More than 22 Crores 20,000 block, pay duties of customs (along to 10 Crores with applicable interest as notified by Above 210 Crores 30,000 DOR) proportionate to duty saved amount on total unfulfilled EO of the first block. 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 Composition fee lof EPCG to be levied (in Authorisation Rupees) issued Up to 22 Crores 15,000 More than =2 30,000 Crores to 10 (Crores Above %10 Crores 45,000 INo refund of earlier paid Composition| Fee shall be 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 |In case of extension of Export obligation obligation period beyond 6 years, two period beyond 6 years, two extensions, extensions, from date of expiry, of one from date of expiry, of one year each year each may be considered by RA lor two years in one go at the choice of concerned, on payment of composition authorisation holder, may be considered| fee equal to 2% of proportionate duty by RA concerned with composition fee as saved amount on unfulfilled export under :- obligation for each year of extension. However, minimum composition fee Duty Saved value of/Composition — fee shall be Rs. 10,000/-. EPCG Authorisation}to be levied for issued each year (in Rupees) Up to 22 Crores 20,000 More than %2 Crores 30,000 to 10 Crores Above %10 Crores 60,000 No refund of earlier paid Composition Fee shall be admissible. Qe6. |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 EPCG Authorisation}to be levied (in issued Rupees) Up to %2 Crores 30,000 More than 22 Crores 60,000 to 10 Crores Above %10 Crores 1,00,000 INo 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. 0m (Santosh Rinar Sarangi) Director General of Foreign Trade & Ex-officio Additional Secretary, Government of India Email: dgft@nic.in [Issued from File No. 18/19/AM-25/P-5]