Advance and EPCG Authorisation Scheme

The finance ministry has introduced an amnesty scheme aimed at offering relief to traders who have defaulted on their export obligations. This scheme provides an opportunity for traders to rectify past defaults and fulfill their export obligations by paying customs duty and interest.

Providing Relief for Defaulted Obligations

The primary purpose of the amnesty scheme introduced by the finance ministry is to alleviate the burden faced by traders who have defaulted in meeting their export obligations. This initiative aims to support and provide a way forward for traders who have encountered challenges in fulfilling their export commitments.

Covered Authorisation Schemes

The amnesty scheme encompasses two important authorisation schemes: the Advance and EPCG (export promotion for capital goods) authorisation schemes. Traders who have defaulted under these schemes can avail themselves of the benefits offered by the amnesty scheme.

Payment of Customs Duty and Interest

To benefit from the amnesty scheme, traders are required to pay the outstanding customs duty and interest accrued on their defaulted export obligations. The scheme allows them to settle their dues by paying customs duty and interest, with a maximum limit set at 100% of the dues.

Monitoring and Efficient Handling

The Central Board of Indirect Taxes and Customs (CBIC) is responsible for monitoring and tracking the cases falling under the amnesty scheme. Principal commissioners and commissioners play a crucial role in ensuring that exporters approaching for duty payment are duly registered with the Directorate General of Foreign Trade (DGFT). This streamlined monitoring process aims to expedite the closure of old cases related to bona fide defaults.

Timeline for Payment

To avail the benefits of the amnesty scheme, the authorisation holders must complete the payment of customs duty by September 30, 2023. This provides a specified timeframe for traders to rectify their defaults and fulfill their export obligations.

Significance for Traders

The amnesty scheme holds significant importance for traders who have faced challenges in meeting their export obligations. It offers them an opportunity to rectify past defaults and fulfill their obligations by paying customs duty and interest within the specified timeframe. This enables traders to regain compliance and move forward with their export activities, fostering growth and stability in the trade sector.

Month: Current Affairs - May, 2023

Category: Government Schemes Current Affairs