The Foreign Trade Policy (FTP) 2023-28 has introduced a special one-time amnesty scheme for exporters who are unable to fulfill their export obligations against the EPCG and Advance Authorizations. This scheme has been introduced in the interest of trade and industry and to motivate the exporters. Let’s take a closer look at the scheme and its benefits.
Relief to Exporters
Exporters who are unable to fulfill their Export Obligation (EO) against the EPCG and Advance Authorizations will now be provided relief. The amnesty scheme for one-time settlement of default in export obligation by Advance Authorization and EPCG authorization holders is being introduced. This means that all pending cases of default in Export Obligation of authorizations mentioned can be regularized by the authorization holder on payment of all customs duties exempted in proportion to unfulfilled Export Obligation.
Maximum Interest Cap
The maximum interest payable under this scheme is capped at 100% of such duties exempted. However, no interest is payable on the portion of Additional Customs Duty and Special Additional Customs Duty. This means that the amnesty scheme will provide relief to the exporters who were unable to fulfill their export obligation due to various reasons such as change in market conditions or unforeseen circumstances.
Limited Period Availability
The amnesty scheme shall be available for a limited period, up to 30.09.2023. Therefore, exporters who wish to avail of this scheme should act quickly and take advantage of this opportunity.
It is important to note that cases under investigation for fraud and diversion are not eligible under this scheme. The scheme is only applicable to cases where there has been a default in export obligation due to genuine reasons.
In conclusion, the special one-time amnesty scheme for default in export obligations under FTP 2023-28 is a much-needed relief for exporters who are unable to fulfill their Export Obligation against the EPCG and Advance Authorizations. The scheme provides a one-time settlement of default in export obligation and is available for a limited period. It is important for eligible exporters to take advantage of this scheme before the deadline expires.