(TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY PART-I SECTION-I)

GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE DIRECTORATE GENERAL OF FOREIGN TRADE UDYOG BHAVAN

PUBLIC NOTICE No. 03/ 2015-2020 NEW DELHI, DATED THE /3” April, 2022

Subject: Amendments in Chapter 5 of the Handbook of Procedures 2015-20, related to Export Promotion Capital Goods Scheme to reduce ‘Compliance Burden' and enhance 'Ease of doing Business’ — reg.

In exercise of powers conferred under Paragraph 1.03 of the Foreign Trade Policy (FTP) 2015-2020, as amended from time to time, the Director General of Foreign Trade hereby makes the following amendments in Chapter 5 of the Handbook of Procedures (2015-20) with immediate effect. These amendments are applicable for EPCG authorizations issued under F°TP 2015-20.

|No.|No.||
|---|---|
|5.14|[5.14 Block-wise Fulfilment ofEO<br>5.14 Block-wise Fulfilment ofEO|
|(c)|;<br>.<br>(c) Request f**o**r extension of Export<br>fe) ereFOof thestprock 'S no! Jopiigation peri d of first block shall be<br>;<br>;<br>submitted within 6 months from the date<br>propernons, except in WABEE wirere ihe of expiry of first block EO period along<br>EO_ lor ast Dork > lwithcomposition fee of2%ondutysaved<br>ee ed<br>by the ow en non ae amount<br>proportionate<br>to<br>unfulfilled<br>.onom akin St amnéunt portionofEO pertaining to the block.RA<br>;<br>. lmay considerthe request forextension of<br>proportignsis to unfulfilled portion of block wise EO period, received after 6<br>HO<br>perauning<br>fel<br>Mae<br>bloeks<br>; ine months, but within 6 years from date of<br>AUORaUGNa nals within, 3 issue of authorization, with a late fee of<br>aoa ESE the expiry of the noe Rs. 10,000/- per authorization. Application<br>pay duties ae Saas (along with made beyond 6 years, for extension of<br>applicable interest as notifiedbyDOR) block-wise EO period for regularization<br>proportionate to duty saved amount on purpose, shall also be considered by RA<br>total unfulfilledEOofthe firstblock.<br>concerned, with an additional late fee of<br>Rs. 5,000/- for each year per authorization.|
||This<br>late<br>fee<br>is<br>in<br>addition<br>to<br>the|
||composition fee that may be payable on|
||account of shortfall in export obligation.|
||Where EO ofthe first block is not fulfilled|
||in terms ofpara (a) above, except in cases|
||where the EO prescribed for first block is|
||extendedbytheRegionalAuthority,the|

||||Authorization<br>holder<br>shall,<br>within<br>6|
|---|---|---|---|
||||months from the expiry of the block, pay|
||||duties of customs (along with applicable|
||||interest as notified by DOR) proportionate|
||||to duty saved amount on total unfulfilled|
||||EO ofthe first block.|
|2|48.15|5.15<br>Monitoring<br>of<br>Export|{5.15Annual reporting of EO fulfillment|
|||Obligation|Authorisation holders shall submit to the|
|||Authorisation holders shall submit to|[RA concerned by 30th June ofevery year,|
|||RA concerned by 30th April ofevery|ja<br>report<br>on<br>fulfillment<br>of<br>export|
|||year, report on fulfillment of export|jobligation<br>through online. Such a report|
|||obligation by secured electronic filing||shall<br>contain<br>details<br>such<br>as<br>Shipping|
|||using digital signatures/ or hard copy||bill/GST<br>invoice<br>number,<br>date<br>of|
|||thereof.|export/supply,<br>description<br>of<br>product|
||||exported/supplied and<br>FOB/FOR value of|
||||export/supply for both specific as well as|
||||average export obligation. Any delay in|
||||filing<br>such<br>an<br>annual<br>report<br>shall<br>be|
||||regularised on payment of Rs. 5000/- late|
||||fees<br>for<br>each<br>financial<br>year<br>per|
||||authorisation.|
|3|5.16<br>(a)|{5.16<br>Automatic<br>Reduction/ <br>Enhancement upto 10% Duty saved|{5.16<br>Automatic<br>Reduction<br> [Enhancement<br>upto<br>10%<br>Duty<br>saved|
|||amount<br>and<br>pro<br>rata<br>Reduction/||amount<br>and<br>pro<br>rata<br>Reduction|
|||Enhancement in export|Enhancement in export|
|||obligation|obligation|
||||(a) in excess of the duty saved amount|
|||(a)<br>in<br>excess<br>of<br>the<br>duty<br>saved||indicated on the authorization by not more|
|||amount indicated on the authorization||than<br>10%,<br>the<br>authorization<br>shall<br>be|
|||by<br>not<br>more<br>than<br>10%,<br>the|{deemed to have been enhanced by that|
|||authorization shall be deemed to have||proportion. Customs<br>shall automatically|
|||been<br>enhanced<br>by<br>that<br>proportion.|Jallow clearance of such goods without|
|||Customs<br>shall<br>automatically<br>allow<br>clearance<br>of<br>such<br>goods<br>without||endorsement<br>by<br>RA_<br>concerned.<br>The<br>/authorization<br>holder<br>shall — furnish|
|||endorsement by RA concerned. The|jadditional<br>fee to cover excess imports|
|||authorization<br>holder<br>shall<br>furnish|jaffected, in terms of duty saved amount,|
|||additional fee to cover excess imports||to<br>RA<br>concerned,<br>at<br>the<br>time<br>of|
|||effected,<br>in<br>terms<br>of<br>duty<br>saved|application for EODC. Export obligation|
|||amount, to RA concerned, within one||shall<br>automatically<br>stand<br>enhanced|
|||month ofexcess imports taking place.||proportionately.|
|||Export obligation shall automatically||
|||stand enhanced proportionately. RA||
|||concerned<br>may<br>also<br>accept<br>the||
|||additional<br>fee<br>to<br>cover<br>the<br>excess||
|||imports<br>effected,<br>in terms<br>of duty||
|||saved amount, ifthe same is furnished||
|||beyond one month but<br>within two||
|||years<br>of the<br>excess<br>import<br>taking||
|||place,<br>subject<br>to<br>payment<br>of||

||composition<br>fee of Rs.<br>5000/- per||
|---|---|---|
||authorisation.||
|5.17(d)|5.17 Extension in Export Obligation |5.17 Extension in Export Obligation<br>Period.<br>Period.|||
||(d) Request for extension inEO Period (d) Request for extension in EO P—<br>‘hall be made to RA within 90 days|Sball be made to RA concerned within 6<br>rom the date of expiry<br>of original EOmonths fromthe date ofexpiry oforiginal<br>piry<br>g<br>.<br>:<br>Period. However, RAmay consider theEO Period. However,RA may consider<br>request forextension receivedup to 180the request for <xtension received alicr 6<br>days with additional composition fee o months, pul witatt é years from date of<br>Rs. 5.000.<br>issue of authorization, with a late fee of<br>°<br>Rs. 10,000/-. Application made beyond 8||
|||years, for extension of EO period from 6|
|||to 8 years for regularization purpose, shall|
|||also be considered byRA concerned, with|
|||an additional late fee of Rs. 5,000/- for|
|||each year per authorization. This fee is in|
|||addition to the composition fee that may|
|||be payable on account of shortfall<br>in|
|||export<br>obligation.<br>However,<br>EO|
|||extension, beyond 8 years from date of|
|||issue<br>of<br>authorisation,<br>shall<br>not<br>be|
|||allowed byRA under this provision.|
|5.19A15.19A<br>-<br>Maintenance<br>of Annual|||5.19A - Maintenance ofAnnual Average|
||Average Export Obligation|Export Obligation|
||The excess exports done towards the<br>average export obligation fulfillment<br>of an EPCG authorization during a<br>year can be used<br>to<br>offset any<br>shortfall in the Average EO done in<br>other year(s) ofthe EO period or the<br>block period as the case may be_<br>provided Average EO imposed<br>is<br>maintained<br>on<br>an<br>overall<br>basis,||The<br>excess<br>exports done towards<br>the<br>|average export obligation fulfillment of an<br>|EPCG authorization during a year can be<br>jused to offset any shortfall in the Average<br>[EO done in other year(s) ofthe EO period<br>jor the block period as the case may be,<br>provided<br>Average<br>EO<br>imposed<br>is<br>{maintained on an overall basis, within the|
||within the block period or the EO||EO period.|
||period as applicable.||
|5.22|(5.22 Redemption|5.22<br>Export<br>Obligation<br>Discharge|
|is&<br>(b)|(a)<br>Authorisation holder shall apply <br>for redemption<br>in ANF 5B<br>with<br>documents<br>prescribed<br>therein<br>as<br>a<br>proofofEO fulfillment.<br>(b) On being satisfied, RA concerned <br>shall issue a certificate ofdischarge of <br>export<br>obligation<br>to<br>the<br>EPCG<br>authorisation<br>holder and forward<br>a|Certificate(EODC)<br>|(a) Authorisation holder shall apply for<br>EODC<br>in ANF<br>5B<br>with<br>documents<br> prescribed therein as a proof of EO<br> fulfillment.<br>|(b) On being<br>satisfied, RA concerned<br>|shall<br>issue<br>EODC<br>to<br>the<br>EPCG|
||copy<br>to Customs<br>Authorities<br>with<br>whomBG/LUThasbeenexecuted.A|authorisation holder and a copy ofwhich<br>|will be forwarded to ICEGATE through|

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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|statement|giving|details|of|the||online,|for|further|action|by|Jurisdictional|
|documents|submitted|by|—|the|)Customs|Authorities|with whom BG/LUT|
|authorisation|holder|towards|evidence||has|been|executed.|Where|EODC|is|
|of|EO|fulfillment|shall|also|be|granted|to|the|EPCG|authorisation|holder|
|enclosed with the|certificate.|based|on|online|application,|a|copy|of|
|EODC|will|be|forwarded|online|to|
|ICEGATE|for|further|action|by|
|Jurisdictional|Customs|Authorities|with|
|whom|BG/LUT|has|been|executed.|
|5.23|Regularization|of|Bonafide||5.23|Regularization|of Bonafide|Default|
|Default|and|Exit|from|EPCG||and|Exit from EPCG|Scheme|
|Scheme(a)A In case, EPCG authorisationoo.:|holder|(f|a|)ils aIto|fulfillvase|_|prescribedEPCGwoeauthorisationexportCHa|obligation,holdeee,|
|fails|to|fulfill|prescribed|export|Ihe|shall|pay|Customs|Duty/taxes/Cess|
|obligation,oe|he|shall|pay|Customs.|Duty|.|:|
|alongprescribed.|P|withnye.|byapplicableCustoms7;|interest.|Authority.;|_|*|as|alongIprescribedfacility[e..:7;|.|withcanbyalsoCustoms;applicable.be|availedAuthority..|interestby:|EPCGSuchas|
|Such|facility|can|also|be|availed|by|authorisation|holder to|exit|at his|option.|
|EPCG|authorisation|holder|to|exit|at|
|his|option.|The|authorisation|holder|
|will|have|the|option|to|furnish|valid|
|duty|credit|scrips,|issued|under|
|Chapter|3|or|Chapter|5|of|FTP,|for|
|payment|of|the|Customs|duty|
|component.|
|Effect|of|this|Public|Notice:|With|a|view|to|enhance|ease|of doing|business|and|reduce|the|
|compliance|burden,|certain|provisions|of|Chapter|5|related|to|the|Export|Promotion|Capital|
|Goods|Scheme|of the Handbook|of Procedures|(2015-20)|are|amended|for EPCG|authorizations|
|issued under Foreign Trade Policy (201 5-20).|’|port|
|(Santosh|Kumar|Sarangi)|
|Director|General|of Foreign Trade &|
|Ex-officio|Additional|Secretary, Government|of India|
|Email:|dgft@nic.in|
|[Issued|from|File No.|18/79/AM-21/P-5]|

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