Amendments in Para 5.15, 5.16, 5.19A, 5.22 and 5.23 of Chapter 5 (EPCG Scheme) of the Hand Book of Procedures 2015-20
Introduction
Today, we are going to ponder over the amendments that in chapter 5 of the “Exports Promotion Capital Goods” EPCG Scheme. You can give a quick read to the Para 5.15, 5.19A, 5.22 (a) and (b) of Chapter 5 in the EPCG Scheme of the Handbook of Procedures 2015-20 to acquire a better understanding of the different EPCG scheme provisions.
It is very essential to closely pay attention to the changes that have been made in the previous provisions.
More details about the Amendments in Para 5.15, 5.19A, 5.22 (a) and (b) of Chapter 5 (EPCG Scheme) of the Handbook of Procedures
Now we are going to discuss Para 5.15, it’s all about monitoring of export obligation. Before, the authorisation holders were asked to submit the report of the fulfillment of the export obligation by 30th April of every year by either electronic filing using digital signatures or hard copy. Now, the license holders have to submit the report to the authority by 30th June every year though online. Such a report shall contain details such as shipping bill/GST invoice number, date of export /supply, description of product exported /supplied and FOB/FOR value of export / supply for both specific as well as average export obligation. The authorisation holder will have to pay a late fee of Rs. 5000 in case of any delay for each financial year per authorisation.
Ladies and gentlemen, Para 5.19 A is about the maintenance of the annual average export obligation. No major change has been made in this Para. When we talk about Para 5.19 A, it revolves around the excess exports done towards the average export obligation fulfillment of an EPCG Scheme authorisation during the span of a year that can be used to offset any shortfall in the average export obligation done in other year(s) of the export obligation period or the block period as the case may be provided, the average export obligation that is imposed shall be maintained on an overall basis and that too within the export obligation period.
Beforehand Para 5.22 (a) and (b) swirled around redemption but it has now been changed to Export Obligation Discharge Certificate (EODC). Under Para 5.22, the authorisation holder is expected to apply for redemption in ANF 5B along with the list of documents that are prescribed therein as proof of fulfillment of the export obligation.
And then after being satisfied, the regional authority shall issue the EODC to the EPCG Scheme authorisation holder and then a copy of the certificate is forwarded to the ICEGATE through online mode for further action by Jurisdictional custom authorities with whom BG/LUT has been executed.
Conclusion
By making changes in the previous provisions of Chapter 5 related to the EPCG Scheme of the Handbook of Procedures 2015-20, the main authority just wants to enhance the ease of doing business and reduce the compliance burden for the people in the field of export obligation.
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