DGFT:
Important amendments in Chapter 5 of Handbook of Procedure 2015-20 related to Export promotion Capital Goods Scheme to reduce “Compliance Burden” and enhance “Ease of doing business”.
- Block wise fulfilment of EO even after validity EPCG Authorisation and completion of EO period by payment of specified composition fees.
- Submission of Annual report for EO fulfilment by 30th June of every year otherwise late fees will be levied to the extent of Rs. 5000 for each financial year per authorisation.
- No need of making an application for enhancement of value to the extent of 10% additional than that of granted to the authorisation and proportionately obligation also will be enhanced automatically.
- EO period can be extended from 6 years to 8 years subject to payment of composition fees.
- Annual Average Export Obligation to be maintained for the period of EO which was earlier for the block period.
- EODC issues by DGFT for redemption of authorisation will be automatically forwarded to ICEGATE for releasing of Bank Guarantee and LUT.
- Henceforth, duty free scrip under Chapter 3 will not be allowed to utilise for payment of custom duty in case of bonafide default of export obligation.
[Public Notice No. 3 /2015-2020 dtd 13th April 2022]
