Indirect Tax Alert -Amnesty scheme - Procedure for applying for one-time settlement of default in Export Obligation

The Directorate General of Foreign Trade (DGFT) via Public Notice No. 2/2023, dated 1 April 2023, has announced a one-time facility for the grant of Export Obligation Discharge Certificate (EODC)/regularisation of cases of Export Obligation (EO) defaults of Advance Authorisation (AA) and Export Promotion Capital Goods (EPCG) licence holders. The Government has released a Policy Circular outlining the procedure for filing applications under the Amnesty Scheme for one-time settlement of default in EO by eligible AA and EPCG Authorisation holders. The process is summarised below:

  • Steps for filing an online application by logging onto the DGFT portal and navigating to Services:
    • For AA: Services → Advance Authorisation/ DFIA → Closure of Advance Authorisation
    • For EPCG: Services → EPCG → Closure of EPCG.
  • The “Amnesty scheme for one-time settlement of default in export obligation” checkbox is to be selected, and then the applicant should proceed to file an application for closure against the concerned AA or EPCG Authorisation, as per the online proforma
  • The applicant (as per its calculation) to indicate duty and interest values to be paid under the “Redemption Matrix” and then submit the application
  • Regional Authority of DGFT (RA) to examine the application and confirm the shortfall through an online letter
  • The applicant is to discharge applicable duty and interest and furnish the proof of payment in response to the aforesaid letter (online)
  • Based on the evidence of payments and other prescribed documents, RA may examine and consider granting EODC online
  • RAs have been directed to process such applications within 3 working days.

[Source – Policy Circular No.01/2023-24 dated 17 April 2023]

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