PXL/HO/Cir-087/2023-24                                                                            Date: 15.12.2023

Hyderabad

Dear Sir/Madam,

Subject: Amnesty Scheme for Advance Authorization and EPCG Scheme

In continuation of our circular dt: 03.April.2023, your attention is invited to Public Notice No. 2/2023 dated 1st April 2023  read with Public Notice 7/2023 dated 18th April 2023 and Policy Circular No. 1/2023-24 dated 17.04.2023 issued by Directorate General of Foreign Trade under Ministry of Commerce and Industries, Government of India wherein “Amnesty Scheme for One Time Settlement of Default in Export obligation by Advance and EPCG Authorization holders” has been announced. The deadline to file applications to DGFT offices under the Amnesty Scheme was initially 30.06.2023 and was extended to 31.12.2023 vide Public Notice 20 dated 30.06.2023.

Therefore, the deadline for submission of applications now is 31.12.2023

1.      This scheme covers the Advance Authorization Scheme (all variants) and EPCG Scheme (all variants), of the following categories:

i.   Authorizations issued under Foreign Trade Policy 2009-14 from 27.08.2009 till 31.03.2015.

ii. Authorizations issued under Foreign Trade Policy 2004-2009 and before, wherein the Export Obligation period (Original or Extended) are valid beyond 12.08.2013.

2.      Benefit allowed under the Scheme: If you have defaulted in meeting the Export Obligation (EO), partially or fully of Authorization(s) then you may regularize the same by making payment of all applicable Customs Duties that were exempted with respect to your Authorization issued in proportion to unfulfilled EO and interest payable thereon provided the interest value shall not exceed 100% amount of the exempted duty applicable. Also, you are not required to pay the interest on the portion of Additional Customs Duty and Special Additional Customs Duty.  May note that any penalty liable under FT(D&R) Act has also been waived off, for authorization holders opting for the Scheme.

3.      Procedure for Registration & Application; For applying under the said Scheme subject to provisions of the Amnesty Scheme, Authorization(s) holders are requested to refer to Policy Circular No. 1/2023-24 dated 17.04.2023, wherein the filing of the online application has been prescribed which is reproduced herein below for your convenience:

i. Application for Advance Authorization/ EPCG discharge/ closure shall be filed online by logging onto the DGFT website and navigating to the services-à Advance authorizations/DFIA--à Closure of Advance authorization. For EPCG please navigate to services--à EPCG-à Closure of EPCG.

ii.  The Applicant shall select the checkbox for “Amnesty Scheme for One Time Settlement of Default in Export obligation” and proceed to file an application for closure against the concerned EPCG or Advance Authorization(s) as per the online proforma. 

iii.For further guidance, please refer to the Help Manual on DGFT website-à Learn-à Application help & FAQs -à Advance Authorization Closure Help document or EPCG Help Document.

4.      An option of manual submission is also available which has been explained in the Policy Circular 02/2023-24 dated 23.06.2023.

5.      Timelines under the Scheme: The benefits of the scheme can be availed by registering as per above mechanism on or before 31.12.2023 and payment of Customs Duty plus interest should be completed by 31.03.2024.

6.      This golden opportunity for Authorization Holders to regularize their cases must not be missed. Exporters who have defaulted in completion of EO may note that under this scheme the interest payable on the Customs Duty will not exceed the amount of exempted Custom Duty. Further, there is no penalty and also interest payable on the portion of Additional Customs Duty and Special Additional Customs Duty is not required to be paid.

7.      Please assess your accounts and apply for this Scheme if eligible, before 31.12.2023.

Member companies are aware that a one-time opportunity was provided under the Amnesty Scheme, announced by the Government of India on 01.04.2023, to regularize cases of Advance Authorization and Export Promotion Capital Goods (EPCG) in which there is an Export Obligation default Considering the substantive benefit being provided by this Amnesty Scheme, member exporters are requested to take maximum advantage of this opportunity.

With regards,

Uday Bhaskar
Director General