The Director-General of Foreign Trade (DGFT) has announced that the export obligation term for certain Advance and Export Promotion Capital Goods (EPCG) Authorisations has been extended.
Paragraphs 4.42(j) and 5.17(f) have been added to Chapters 4 and 5 of the Foreign Trade Procedure 2015-2020, respectively, to extend the period of Advance Authorisations (AA) and EPCG Authorisations until December 31, 2021, for the original or extended Export Obligation that expires between August 1, 2020, and July 31, 2021, without the payment of a composition fee. However, on the balance of the original or extended Export Obligation, this extension is subject to a 5% extra Export Obligation.
In addition, the opportunity to claim SEIS benefits on payments made in Indian rupees would not be accessible for services given in 2019-20. SEIS applications for 2019-20 will become time-barred after December 31 this year, and SEIS applications for 2019-20 will become time-barred after December 31 this year.
The option of extending the Export Obligation with the payment of composition costs would continue to be available. The reimbursement of the composition charge will not be authorized when an Advance Authorisations Holder or an EPCG Holder has already acquired an Export Obligation Extension upon payment of the composition fee.