In the latest notification issued by The Directorate General of Foreign Trade (DGFT) under Ministry of Commerce and Industry, India vide Public Notice No. 20/2023 dated June 30, 2023, the last date to apply for availing the benefits under the Amnesty Scheme for one-time settlement of non-compliance in export obligation for Advance Authorization and Export Promotion Capital Goods Scheme Holders has been extended for six months till December 31, 2023.

The Directorate General of Foreign Trade (DGFT) also extended the last date for payment of Customs Duty plus interest to March 31, 2024.

The Government of India announced the new foreign trade policy (FTP) on March, 31, 2023. It included an amnesty scheme for exporters for one-time settlement of default in export obligation by the holders of Advance and EPCG (Export Promotion for Capital Goods) Authorisations.

The amnesty scheme encompasses the following key highlights:

• The Extent of the scheme:
  • The aforementioned scheme encompasses AA and EPCG authorizations granted under the FTP policy from 2009 to 2014, valid until 31st March 2015.
  • The amnesty scheme also includes AA and EPCG authorizations issued under the FTP policy on or before 2009, with export obligation periods (original or extended) valid beyond 12th August 2013.
  • The scheme also allows for the regularization of cases that have already been adjudicated or are currently undergoing adjudication, whether in their original form or under appeal.
• The amnesty scheme does not extend to authorization holders who are ineligible.
  • Cases involving fraud, mis-declaration, or unauthorized diversion of material and/or capital goods, whether currently under investigation or already adjudicated, will not be eligible for participation under the scheme.
  • Authorization holders who have already paid the duty along with the applicable interest.
• The scheme offers several benefits, which include –
  • On the condition that all customs duties waived are paid in proportion to the unfulfilled Export Obligation (EO), regularization of the EO default can be achieved.
  • The maximum interest rate is limited to 100% of the duties exempted.
  • Interest is not required to be paid on the portion of additional customs duty and special additional customs duty.
• Other Factors to be taken into account –
  • To participate in the scheme, individuals who have defaulted should register on the DGFT website and submit a distinct application prior to December 31, 2023.
  • In order to take advantage of the scheme, the settlement of waived customs duties and interest must be completed by March 31, 2024.
  • Upon presenting proof of payment, the concerned authority has the authority to issue a letter that grants the Export Obligation Discharge Certificate (EODC).
  • CENVAT Credit or refund for the aforementioned payments will not be accessible.

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B.Com & LL.B. Anubhav Srivastava