Generally goods  including capital goods or raw material can be imported on payment of custom duty. However, as per Foreign Trade Policy exporters can import capital goods or raw material without payment of custom duty, if they take EPCG/Advance Authorisation from DGFT, however for taking advantage of duty-free import, it is required to fulfil certain export obligations as per conditions given in Foreign Trade Policy.

It was seen that some of the exporters could not fulfil their export obligation due to some reasons. Now, to grant relaxation to such exporters DGFT has issued amnesty scheme vide Public Notice number 02/2012 dated 01/04/2023. Key highlights of the amnesty are given hereunder:

Coverage:

• The Authorisations issued under Advance Authorisation Scheme and EPCG Scheme issued under Foreign Trade Policy, 2009-14 till 31.03.2015 are covered under the Scheme.
• For Authorizations issued under Advance Authorisation Scheme and EPCG Scheme issued under Foreign Trade Policy, 2004-2009 and before, the coverage is limited to those authorizations whose Export Obligation Period (original or extended) was valid beyond 12.08.2013.

The scheme

1. All pending cases of the default in meeting Export Obligation (EO) of authorizations above can be regularised by the authorisation holder on payment of all customs duties that were exempted in proportion to unfulfilled Export Obligation and interest at the rate of 100% of such duties exempted. However, no interest is payable on the portion of Additional Customs Duty and Special Additional Customs Duty.
2. Authorisation holder opting to avail this benefit must register themselves in website: https://www.dgft.gov.in and fill the relevant form.
3. Authorisation holder is required to make payment of Customs duty plus interest with the concerned Jurisdictional Customs Authorities by 30.09.2023.
4. Authorisation holder is also required to submit proof of payment of custom duty to the Regional Authority of DGFT.
5. Based on the evidence of such payment and other relevant documents, concerned RA may examine the request and issue a letter granting Export Obligation Discharge Certificate (EODC).
6. Even cases which have already been adjudicated (or pending adjudication), either originally or in appeal, can also be regularized under this Public Notice.

 Exclusion:

1. Cases under investigation or cases adjudicated for/involving fraud, misdeclaration or unauthorised diversion of material and/or capital goods will be excluded from the coverage.
2. If duty along with applicable interest has already been deposited in full, the case would not be eligible for coverage.

Other Conditions:

Neither CENVAT Credit nor Refund, under any provision of law, of any amount shall be allowed on duties paid under this scheme. The applicant shall also give an undertaking that they will not file any application for CENVAT Credit or refund of any duty paid under this scheme before any authority and/or before any court of law.

The notification can be accessed at button below: