To help exporters in view of the geopolitical developments impacting global trade and logistics, the government has extended the time period to meet their export obligations under schemes that allow duty-free imports of capital goods and inputs.
Automatic Relief
The schemes to which this relaxation will apply are Export Promotion Capital Goods (EPCG) Scheme and Advanced Authorisation (AA) Scheme. The export obligations (EO) period expiring between March 1 to May 31 shall be automatically extended to August 31. Exporters will not be required to file any application or submit a fee for this extension, said a notice by Directorate General of Foreign Trade on Saturday.
The EPCG scheme allows imports of machinery at zero customs duty. In return, the exporter must export goods or services worth six times the duty saved on the imported machinery.
At least 50% of the Specific Export Obligation should be met in the first four years and the remaining 50% must be met in the next two years.
The AA scheme allows duty-free import of inputs like raw materials, components, fuel that are physically incorporated into the final export product.
To avail duty-free inputs the exported products must have a minimum 15% value addition. The export obligation must usually be fulfilled within 18 months from the date of the authorisation.
Operational Support
The Shipping, Ports and Waterways Ministry has also proposed that ports may consider requests regarding reduction, waiver or remission of charges, including change of vessel charge, and also rolled out a standard operating procedure (SoP) for them to deal with issues arising from the West Asia crisis.