Executive Summary:
This notification issued by the Directorate General of Foreign Trade, extends the Export Obligation (EO) period for specified Advance and EPCG Authorisations expiring between 01.08.2020 and 31.07.2021, until 31.12.2021, without composition fees. This extension requires an additional 5% export obligation in value terms in free Foreign Exchange. No refund of composition fees will be permitted for extensions already obtained.
Key Points / Main Content:
Advance Authorisations:
* EO period expiring between 01.08.2020 and 31.07.2021 is extended to 31.12.2021 without composition fees.
* This extension is subject to a 5% additional export obligation in value terms in free Foreign Exchange.
* The option to avail EO extensions with composition fees remains available as per eligibility.
* Refund of composition fees will not be permitted for extensions already obtained with payment.
EPCG Authorisations:
* EO period expiring between 01.08.2020 and 31.07.2021 is extended to 31.12.2021 without composition fees.
* This extension is subject to a 5% additional export obligation in value terms in free Foreign Exchange.
* The option to avail EO extensions with composition fees remains available as per eligibility.
* Refund of composition fees will not be permitted for extensions already obtained with payment.
General:
* Customs authorities will allow export accordingly.
* Regional Authorities (RA) will check/verify EO fulfillment details at the time of EODC/Closure/Regularisation.
* Authorisation holders need not approach RA or make any application to avail this benefit.
Impact Analysis:
Advance and EPCG Authorisation Holders:
* Impact: Benefit from extended EO period without composition fees, subject to additional export obligation. Those who have already paid composition fees will not get a refund.
* Action Required: Fulfill the additional 5% export obligation to comply with the extended EO period.
Customs Authorities:
* Impact: Required to allow exports in accordance with the extended EO period.
* Action Required: Facilitate exports based on the notification.
Regional Authorities (RA):
* Impact: Responsible for verifying EO fulfillment.
* Action Required: Check and verify EO fulfillment details at the time of EODC/Closure/Regularisation.
Key Entities Referenced
Ministry of Commerce and Industry: The Indian government ministry responsible for formulating and implementing policies related to foreign trade and commerce.
Directorate General of Foreign Trade: The agency of the Ministry of Commerce and Industry responsible for implementing the Foreign Trade Policy.
Udyog Bhawan: The location of the Ministry of Commerce and Industry in New Delhi.
New Delhi: The capital city of India, where the notification was issued.
FTDR Act, 1992: Foreign Trade (Development and Regulation) Act, 1992, an act of the Parliament of India to provide for the development and regulation of foreign trade.
Foreign Trade Policy, 2015-2020: The export-import policy framework of India for the period 2015-2020.
Hand Book of Procedure 2015-20: A handbook detailing the procedures related to the Foreign Trade Policy 2015-20.
Advance EPCG Authorisations: Authorizations related to Export Promotion Capital Goods scheme and Advance Authorisations, allowing duty-free import of capital goods and inputs for export production.
[To be Published in the Gazette of India Extraordinary Part-I, Section -3, Sub-section
(ii)]
Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan
OK 3K BK OK
Notification No. 99/ 2015-2020
New Delhi, Dated 23 September 2021
Subject: Extension in the Export Obligation period of specified Advance & EPCG
Authorisations till 31.12.2021 reg.
S.O(E): In exercise of powers conferred by Section 5 of FT(D&R) Act, 1992, read with
Paragraph 1.02 of the Foreign Trade Policy, 2015-20, as amended from time to time, the
Central Government hereby makes following amendments in the Hand Book of the
procedure 2015-20.
2. The following sub-para is added after Subpara 4.42(1) of HBP :
“4.42 (j):
a. For Advance Authorisations, where original or extended Export Obligation (EO)
period is expiring during the period between 01.08.2020 and 31.07.2021, the Export
Obligation period would be extended till 31.12.2021 without any composition fees.
However this extension is subject to 5% additional export obligation in value terms
(in free Foreign Exchange) on the balance Export Obligation on the date of expiry of
the original/extended export obligation period.
The option to avail EO extensions with payment of composition fees under this para
(4.42 (d),(e),(f)) would remain available for these authorizations as per eligibility.
In cases where Advance Authorisation Holder has already obtained EO extension
upon the payment of composition fee, the refund of the composition fee will not be
permitted.
3. The following Sub para is added after Subpara para 5.17 (ec) of HBP :
“5.17 (PD):
For EPCG Authorisations, where original or extended Export Obligation (EO) period
is expiring during the period between 01.08.2020 and 31.07.2021, the Export
Obligation period would be extended till 31.12.2021 without any composition Fees.
However this extension is subject to 5% additional export obligation in value terms
(in free Foreign Exchange ) on the balance Export Obligation on the date of expiry of
the original/extended export obligation period.b. The option to avail EO extensions with payment of composition fees under this para
(5.17(c)) would remain available for these authorisations as per eligibility.
c. In cases where EPCG Authorisation Holder has already obtained EO extension upon
the payment of composition fee, the refund of the composition fee will not be
permitted.
4. Customs authorities shall allow export accordingly and EO fulfillment details as per
above provisions will be checked/verified by the RA at the time of
EODC/Closure/Regularisation. Authorisation Holders need not approach RA or make any
application to avail this benefit.
Effect of the Notification: Another option to avail extension in Export Obligation period
till 31.12.2021 in case of specified Advance Authorisations and EPCG Authorisations is
provided without any composition fees subject to 5% additional export obligation on balance
exports to be fulfilled..This is in addition to EO extensions facility (upon payment of the
composition fees ) already provided in F TP/HBP.
(Ami 2t3 1o0a9 )\202\
Director General of Foreign Trade,
Ex-officio Secretary, Government of India
dgft@nic.in
(Issued from file no. 01/94/180/501/AM20/PC-4)