(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 VANIJYA BHAVAN, NEW DELHI

PUBLIC NOTICE No. /5 /2024-25 NEW DELHI, DATED THE 25"Suly, 2024

Subject: Amendments in Chapter 5 of the Handbook of Procedures (HBP) 2023, related to Export Promotion Capital Goods Scheme to reduce 'Compliance Burden' and enhance "Ease of doing Business' — reg.

In exercise of powers conferred under Paragraphs 1.03 and 2.04 of the Foreign Trade Policy, 2023, as amended from time to time, the Director General of Foreign Trade hereby makes the following amendments in Chapter 5 of the HBP, 2023 with immediate effect. -

No.|No. 5.04(a) |Authorisation holder shall produce, |Authorization holder shall produce, within six months from date of {within 3 years from date of completion completion of import, to the concerned jof import, to the concerned RA, a RA, a certificate from the jurisdictional |certificate from the jurisdictional . Customs authority or an independent {Customs authority or an independent Chartered Engineer, at the option of the [Chartered Engineer, at the option of the authorisation holder, confirming |authorisation holder, confirming installation of capital goods at installation of capital goods/spares at factory/premises of authorisation holder |factory/premises of authorization holder or his supporting manufacturer(s). The jor his supporting manufacturer(s). The RA may allow one time extension of the [RA may allow extension of the said said period for producing the certificate |period for submission of certificate, upto by a maximum period of 12 months with |valid EO period with a payment of a a composition fee of Rs. 5000/-. Where |composition fee of Rs. 10,000/- per year the authorisation holder opts for |by the authorisation holder. Where the independent Chartered — Engineer’s Jauthorisation holder opts for certificate, he shall send a copy of the jindependent Chartered —_Engineer’s certificate to the jurisdictional Customs |certificate, he shall send a copy of the Authority for intimation/record. The |certificate to the jurisdictional Customs authorisation holder shall be permitted |Authority for intimation/record. The to shift capital goods during the entire jauthorization holder shall be permitted export obligation period to other units |to shift capital goods during the entire mentioned in the IEC and RCMC of the Jexport obligation period to other units authorisation holder — subject _ to |mentioned in the IEC and RCMCofthe roduction _of fresh __ installation jauthorization holder subject __ to

||||certificate to the RA concerned within||production<br>of — fresh _ installation|
|---|---|---|---|---|
||||six monthsofthe shifting.|certificate to the RA concerned within|
|||||six monthsofthe shifting.|
||2||5.04(b)|[In<br>the<br>case of import<br>of spares,<br>the||Deleted.|
||||installation certificate shall be submitted||
||||by<br>the<br>Authorisation<br>holder within<br>a||
||||period of three years from the date of||
||||import.||
||3||5.13(c)||Request<br>for<br>extension<br>of<br>Export|[Request<br>for<br>extension<br>of<br>Export|
||||Obligation period of first block shall be||Obligation period of first block shall be|
||||submitted<br>within<br>6<br>months<br>from<br>the||submitted<br>within<br>6<br>months<br>from<br>the|
||||date of expiry of first block EO period||date of expiry of first block EO period|
||||along with composition fee of 2% on|Jalong with composition fee as under :-|
||||duty<br>saved<br>amount<br>proportionate<br>to||
||||unfulfilled portion of EO pertaining to <br>the block. RA may consider the request <br>for extension ofblock wise EO period, <br>received after 6 months, but within 6 <br>years<br>from<br>date<br>of<br>issue’<br>of <br>authorisation,<br>with a<br>late<br>fee of Rs. <br>10,000/- per authorisation. Applicationee<br>made beyond 6 years, for extension of|/Duty Saved value<br>Composition<br>fee<br> fofEPCG<br>—<br>to be levied<br>(in<br> [Authorisation<br>Rupees)<br> issued<br> [Upto®2Crores |<br>5,000 |<br> |More than 22<br>10,000<br>ee<br>ee|
||||block-wise EO period for regularization||
|:|||purpose, shall also be considered by RA||
||||concerned, with an additional late fee of|RA<br>may<br>consider<br>the<br>request<br>for|
||||Rs.<br>5,000/-<br>for<br>each<br>year<br>per||extension<br>of<br>block-wise EO<br>period,|
||||authorisation. This late fee is in addition||received after 6 months, but within 6|
||||to<br>the composition<br>fee<br>that may be|lyears from date ofissue ofauthorisation,|
||||payable on accountofshortfall in export<br>obligation. Where EO of the first block||with composition fee as under :-|
||||is<br>not<br>fulfilled<br>in<br>terms of para<br>(a)||
||||above, except in cases where the EO|JEPCG Authorisation|<br>fee to be levied|
||||prescribed for first block is extended by|[issued<br>(in Rupees)|
||||the RA, the Authorisation holder shall,||
||||within 6 months from the expiry of the<br>block, pay duties of customs (alonga<br>with applicable interest as notified by <br>DOR)<br>proportionate<br>to<br>duty<br>saved|[More than 22 Crores<br>20,000<br>a<br>ee<br> [Above 210Crores |<br>30,000_||
||||amount on total<br>unfulfilled EO of the|;|
||||first block.|Application made beyond 6 years, for|
|||||extension of block-wise EO period for|
|||||regularization<br>purpose,<br>shall<br>also<br>be|
|||||considered<br>by<br>RA _ concerned,<br>with|
|||||compositionfeeasunder:-|

[Duty Saved value | Composition fee lof EPCG to be levied (in |Authorisation Rupees) lissued IMore than 22 30,000 Crores to 10 Crores [Above 210 Crores [45,000 No refund of earlier paid Composition Fee shall be admissible. Where EO of the first block is not fulfilled in terms of para (a) above, except in cases where the EO prescribed for first block is extended by the RA, the Authorisation holder shall, within 6 months from the expiry ofthe block, pay duties of customs (along with applicable | proportionateinterest as to notifiedduty savedbyamountDOR)on total unfulfilled EO of the first block. 4. |5.13(e) |New provision Notwithstanding sub-para (d) above, subpara (c) above shall also be applicable fo - authorisations issued under FTP (201520). 5. |5.16(b) |In case of extension of Export |In case of extension of Export obligation obligation period beyond 6 years, two |period beyond 6 years, two extensions, extensions, from date of expiry, of one |from date of expiry, of one year each year each may be considered by RA jor two years in one go at the choice of concerned, on payment of composition |authorisation holder, may be considered fee equal to 2% of proportionate duty |by RA concerned with composition fee as saved amount on unfulfilled export funder :- obligation for each year of extension. | However, minimum composition fee }Duty Saved value of/Composition — fee shall be Rs. 10.000/-. IEPCG Authorisationjto be levied for Rupees) {to 10 Crores AboveNo refund 210 Crores_|of earlier[60.000] paid Composition_| Fee shall be admissible.

6. |5.16(e) |New provision For implementation of all PRC decisions involving levy of Composition Fee while allowing extension in block-wise/EO period and/or regularisation of exports already made, the applicable Composition Fee shall be as under :- [Duty Saved value of Composition fee EPCG Authorisation|to be levied (in issued Rupees) lUpto%2Crores_ [30,000 _| {More than %2 Crores 60,000 [AboveBlige| ee No 210 Crores [1,00,000| refund of earlier paid Composition Fee shall be admissible.

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, 2023 are amended for EPCG authorizations issued under Foreign Trade Policy.

:

(Santosh Kumar Sarangi) Director General of Foreign Trade & Ex-officio Additional Secretary, Government of India Email: dgft@nic.in

[Issued from File No. 18/19/AM-25/P-5]