Exporters must export completed items value six occasions of the particular obligation saved in worth phrases in six years.
As per the modifications notified by the commerce and trade ministry, requests for export obligation extension needs to be made inside six months of expiry as a substitute of the sooner prescribed interval of 90 days. Nonetheless, functions made after six months and upto six years are topic to a late price of Rs 10,000 per authorization.
The modifications additionally embody annual reporting of export obligation (EO) by June 30 yearly as a substitute of April 30 with specified data however any delay can be topic to a late price of Rs 5,000.
“With a view to reinforce ease of doing enterprise and scale back complaince burden, sure provisions of chapter 5 associated to the EPCG scheme of the Handbook of procedures (2015-20) are amended for EPCG authorisations issued below International Commerce Coverage (2015-20),” the Directorate Common of International Commerce mentioned in a public discover.
Additional, requests for block sensible export obligation extension have to be made inside six months of expiry however functions made after six months and upto six years are topic to a late price of Rs 10,000 per authorization.
Purposes made after six years shall be topic to a price of Rs 5,000 per 12 months. Earlier, no specified time restrict was prescribed resulting in discretionary interpretations.
Additional the ability to pay customs obligation via scrips (MEIS/RoDTEP/RoSCTL) for default below EPCG has been withdrawn.