DGFT Amnesty Scheme for Exporters: The government in March this year had launched an Amnesty scheme under the new Foreign Trade Policy (FTP) for one-time settlement of defaults by exporters who couldn’t meet their export obligations (EO) under the Advance Authorizations (AA) and Export Promotion Capital Goods (EPCG) schemes and were also burdened by high duty and interest costs associated with pending cases.
AA scheme allows exporters to import goods — to be mandatorily used in an export product — duty free. Other than such inputs imports, packaging material, fuel, oil, etc., used in the process of production of export products is also allowed. However, there is an EO for the exporter in terms of the value of export that is mandatory to be achieved within a particular time period. The validity period for import of Advance Authorisation is 12 months from the date of issue of Authorisation and obligation is usually stated in the Authorisation issued. Defaulting on EO despite extensions given to the exporter to fulfil it invites a penalty.
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Similarly, there is a penalty for defaulting on EO under the EPCG scheme. The exporter has to pay customs duties in addition to the interest proportionate to the unfulfilled value as prescribed by the customs authority. The scheme facilitates the import of capital goods for the production of goods and services at zero customs duty.
Under the Amnesty scheme, EO defaults under both schemes were allowed to be “regularized/closed on payment of duties that were exempted in proportion to unfulfilled EO with the interest component payable capped at 100 per cent,” according to the government’s notification in March. Exporters are required to complete the customs duty payment by September 30, 2023, to avail the scheme.
Steps to apply for DGFT’s Amnesty scheme for exporters:
- Login to dgft.gov.in and click on ‘Advance Authorisation/DFIA’ under the ‘Services’ tab
- Scroll down the page and click on ‘Closure of Advance Authorisation’ under ‘Services under Advance Authorisation’
- Similarly, for closure of EPCG, go to ‘EPCG’ under ‘Services’ and click on ‘Closure of EPCG/Issuance of Post Export Scrip’
- Click on ‘Start Fresh Application’ and check the box ‘Are you applying under Amnesty Scheme for one-time settlement of default in export obligation?’
- Select the concerned AA for closure and check the box ‘Yes’ for ‘Do you want to proceed without validation?’; click on ‘Save and Proceed’
- Enter the ‘Export Details’ such as ‘Export Product Group’, authorisation number, FOB (freight on board) value, etc.
- Enter the duty and interest value to be paid as per your self-assessment under the ‘Redemption Matrix’ tab; click on ‘Save and Proceed’
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- Attach the documents (maximum five attachments of 5 MB size in PDF format); click on ‘Save and Proceed’
- Check the box — ‘Tick the box as acceptance of declaration/undertaking and fill in the details below’; click on ‘Save and Proceed’
- On receipt of allocation, the regional authority (RA) of the DGFT will confirm the amount through an online letter
- Towards the end of the form, click on ‘Click here for payment’ with a fee amount of Rs 100 and click on ‘Submit’
- On successful payment, click on ‘Submit’ under ‘Payment Response’
- Your application for closure of AA or EPCG with a file number will be submitted to the DGFT and your e-payment receipt will be generated for download
- The RA will review the application and accordingly grant the Export Obligation Discharge Certificate (EODC) online