The Government of India has introduced a special one-time amnesty scheme to address non-compliance in export obligations by Advance Authorization and EPCG authorization holders. This scheme is in line with the “Vivaad se Vishwaas” initiative that aimed to settle tax disputes amicably.
Key Highlights of the Scheme
1. Eligible Authorizations
The amnesty scheme covers pending cases of default in export obligations for advance authorizations and EPCG authorizations.
The scheme will be available for a limited period until 30th September 2023.
3. Settlement Process
i) Authorization holders can regularize pending export obligation defaults by paying customs duties exempted in proportion to the unfulfilled amount.
ii) The maximum interest payable is capped at 100% of exempted customs duties.
iii) No interest is payable on Additional Customs Duty and Special Additional Customs Duty portions.
4. Ineligible Cases
Export obligation default cases under investigation for fraud and diversion are not eligible under this amnesty scheme.
Benefits of the Scheme
The key benefit of this scheme is that it provides an opportunity for exporters to settle long pending export obligation default cases. It will help them get relief from litigation and penalties.
The capping of maximum interest at 100% of exempted duties also provides major relief to exporters. Further, no interest is charged for additional customs duties portions.
The special amnesty scheme is a progressive step by the Government of India to reduce litigation and provide relief to exporters facing non-compliance issues. Eligible exporters facing export obligation defaults should utilize this opportunity to settle their cases within the limited timeline. Prompt settlement will help get complete amnesty and avoid future litigation.