Executive Summary:
This trade notice from the Directorate General of Foreign Trade (DGFT) announces an online procedure for transferring Advance Authorizations and EPCG Authorizations following amalgamation, demerger, or acquisition. It outlines the steps for online filing and transfer of authorizations from the old to the new entity. The procedure is implemented as per Public Notice 34/2015-2020 dated 24.12.2020.
Key Points / Main Content:
Online Transfer Procedure:
* Applicants must request amalgamation/demerger/acquisition of IEC via the DGFT website under Services > IEC Profile Management > 'Request for Merger/Demerger'.
* Post-IEC request approval, firms apply for amendment of each AA/EPCG authorization separately via DGFT Website Services > AA or EPCG > Transfer of Authorisation.
* Authorization amendment requests are auto-submitted to the relevant jurisdictional RA.
* Upon approval, the authorization is amended, and updated details are electronically transmitted to Customs.
EPCG Authorizations - Annual Average Export Obligation (AEO):
* For EPCG authorizations, when Company A (EPCG authorization holder) merges into Company B, the new entity's AEO is: AEO of Company A + AEO of Company B, based on the merger date.
* Company B must submit a Chartered Accountant Certificate (CAC) to the RA as part of the online amendment request for AEO calculation.
* Shipping Bills (SBs) and Bills of Entry (BEs) under the earlier IEC will be available under the Bills Repository of the new IEC during authorization closure.
Assistance:
* For difficulties, notify the Directorate immediately.
* Refer to the Help manual/FAQs on the DGFT Website under Learn > Application Help/FAQs.
* Further assistance is available via: DGFT Helpdesk service (Services > DGFT Helpdesk Service), toll-free helpline, or email at dgftedi@gov.in.
Impact Analysis:
Advance Authorisation/EPCG Authorisation Holders:
* Impact: Need to use the new online procedure for transferring authorizations during amalgamation/demerger/acquisition/insolvency.
* Action Required: Follow the outlined steps for requesting IEC merger/demerger and subsequent authorization amendments.
DGFT Regional Authorities:
* Impact: Will receive and process online requests for authorization amendments related to mergers/demergers/acquisitions.
* Action Required: Process the online requests for amendment of the Authorisations.
Export Promotion Councils:
* Impact: Awareness of the new procedure to guide and support their member exporters.
* Action Required: Inform member exporters about the updated online transfer procedure.
Key Entities Referenced
Ministry of Commerce and Industry: The Indian government ministry responsible for international trade and commerce.
Directorate General of Foreign Trade: A department under the Ministry of Commerce and Industry, responsible for implementing the foreign trade policy of India.
Udyog Bhawan, New Delhi: The location of the Directorate General of Foreign Trade (DGFT) headquarters in New Delhi, Delhi.
Advance Authorisation: An authorization that allows duty-free import of inputs that are physically incorporated in the export product.
EPCG Authorisation: Export Promotion Capital Goods scheme authorisation that allows import of capital goods at zero or concessional duty subject to an export obligation.
Public Notice 34/2015-2020: A notification issued by the DGFT, related to procedures or regulations, specifically dated 24.12.2020.
Regional Authority: The regional offices of the DGFT responsible for implementing and monitoring foreign trade policies at the regional level.
Annual Average Export Obligation: The average value of exports that an EPCG authorisation holder must achieve annually.
Government of India
. Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, Maulana Azad Road, New Delhi-llOOll
Policy - IV Division
Trade Notice 14/2021-22
Date: 04 August 2021
To,
1. All Advance Authorisation Holders/EPCG Authorisation Holders/ Other Members of
Trade
2. DGFT Regional Authorities
3. Export Promotion Councils
Subject: Online Proc'edure for transfer of Advance Authorisation/EPCG Authorisation
in case of amalgamation/de-merger/acquisition etc. -reg
In continuation to Public Notice 34/2015-2020 dated 24.12.2020, it is stated that in
case of amalgamationlde-mergerlacquisitionlinsolvency the export obligation(s)/contingent
liability(s) are required to be transferred from the earlier entity to the new entity as required
under the related laws and rules on the amalgamationlde-merger/acquisitionlinsolvency
process.
2. An online procedure is accordingly being notified to provide for online filing and
transfer of Advance Authorization(s) and EPCG Authorisation(s) from the earlier entity to the
new entity(s). The detailed steps are presented as follows for perusal -
(i) Applicant would request for amalgamation/de-merger/ acquisition of IEC by
navigating to DGFT Website -- >Services -- >IEC Profile Management -- > 'Request
for Merger/De-merger'. The given process is implemented as per Public Notice
34/2015-2020 dated 24.12.2020
(ii) Post approval of the given IEC request, the firm may apply for amendment of each
of their AAlEPCG authorizations separately. The request may be submitted on the
DGFT Website -- >Services -- >AA (or EPCG) -- >Transfer of Authorisation
(iii) The request for amendment of the Authorisation(s) would be auto-submitted to
the concerned jurisdictional RA from the which the Authorisation was issued.
(iv) On approval of the request the given authorization would be amended and
updated details would be transmitted electronically to Customs.
(v) For EPCG authorizations, for the Annual Average Export Obligation (AEO)
mentioned on EPCG authorizations, Company A (EPCG authorization holder merginginto Company B) the AEO of new entity =AEO of Company A +AEO of company B
based on date of merger.
..
(vi) For the purpose of AEO of company B, firm would be required to submit
Chartered Accountant Certificate (CAC) to the concerned RA as part of the online
amendment request.
(vii) SIBs and B/Es under the earlier IEC would be available under Bills Repository
of the new IEC during the authorization closure process.
3. Difficulties, if any, in implementation of these provisions may please be brought to
the notice of this Directorate immediately. For guidance on these new processes, the Help
manual & FAQs may be·accessed on the DGFT Website -- > Learn -- > 'Application Help &
FAQs'. For any further assistance you may utilize any of the following channels -
Raise a ticket through the DGFT Helpdesk service under Services -- >'DGFT
1.
Helpdesk Service'
Call the toll-free IIelpdesk number
11.
Send an email to the Helpdesk on dgftedi@gov.in
111.
4. This issues with the approval of the Competent Authority.
(~~~
Additional Director General of Foreign Trade
(Issued from File No. Ol/941180/37/AM21/PC-4)