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FTP Amnesty Scheme – Action call before 30th June 2023

(Reference: Public Notice No 02/2023 dated 01.04.2023)

> Union Minister of Commerce and Industry, Shri Piyush Goyal, launched the dynamic Foreign Trade Policy 2023 (FTP 2023) which has been kept open-ended to accommodate the emerging needs of the time.

> FTP 2023 is based on the continuity of time-tested schemes facilitating exports as well as a document which is nimble and responsive to the requirements of the trade.

> The new FTP also introduces a one-time Amnesty Scheme for exporters to provide relief to the exporters who were unable to fulfil their Export Obligations against the EPCG and Advance Authorizations, in order to regularise the same.

> Through this document, you will get a closer look at the eligibility and ineligibility, Relief along with the conditions mentioned in the Amnesty scheme, Timeline and the Procedure for applying for Amnesty Scheme. It is important to note that the window to apply for this amnesty scheme benefits would be available only until 30th June 2023. The major benefit under the scheme would be a ceiling on the interest to the extent of 100% of the customs duty exemption claimed. Exporters are advised to evaluate the benefit of the scheme on their specific instance and due care to be taken to make the application much ahead of the last date.

Eligibility

For Advance Authorisation Licenses and EPCG License

Eligibility

Ineligibility
√ Foreign Trade Policy 2009-14 till 31 March 2015.

√ For licences issued under FTP 2004-09 and before, relief was eligible but limited to Export Obligations (EO) period (original or extended) which was valid beyond 12 August 2013. i.e., only if the EOP is beyond 12.08.2013.

√  Cases adjudicated or under adjudication or sin appeal.

* If duty and applicable interest has already been deposited in full.

* If cases are under Investigation or Adjudication which involve fraud, misdeclaration or unauthorized diversion of material or capital goods.

Relief along with the conditions mentioned in the Amnesty scheme.

All pending cases of default can be regularized by paying as follows:

> If the entire authorisation is under default, the applicants shall pay the entire exempted customs duty, plus interest subject to a maximum of 100% of such customs duties exempted.

> In case of Partial Default, pay proportionate exempted customs duties in proportion to unfulfilled Export obligation and Interest thereon, subject to a maximum of 100% of such customs duties exempted.

> In both the above cases, the interest calculated shall be excluding Additional Customs Duty (ACD) and Special Additional Customs Duty (SAD). i.e., interest is not calculated on ACD & SAD

> No CENVAT Credit or refund of such duties paid under any provision of law for any amount of duty paid under this scheme shall be available. Undertaking to be given in this regard. (Note: Contrary CESTAT judgement – CVD+SAD paid for regularisation of advance licence which was deposited after implementation of GST law i.e. 1st July 2017 was allowed as refund under GST transition provision Section 142(3) – New Age Laminators Pvt. Limited Vs Commissioner, Central Excise, Goods and Service Tax – CESTAT Delhi – Excise Appeal No.50991 of 2021)

Timeline

> To apply for amnesty scheme (registration) – on or before 30th June 2023.

> Customs duty remittance – on or before 30th September 2023.

Procedure –as prescribed in Circular No. 1/2023-24 dated 17th April 2023:

1. Procedure for applying for Amnesty Scheme:

i. Application for AVEPCG discharge/closure shall be filed online by logging onto the DGFT Website and navigating to Services-> Advance Authorisation/DFIA–> Closure of Advance Authorisation for EPCG please navigate to Services- EPCG Closure of EPCG.

ii. The applicant shall select the checkbox for the Amnesty scheme for one-time settlement of default in export obligation and proceed to file an application for closure against the concerned EPCG or AA authorisation as per the online proforma.

iii. The applicant, as per their calculations, shall indicate the duty and interest values to be paid under the Redemption Matrix tab and submit their application online.

iv. On receipt of the online application, the RA concerned shall examine and confirm the shortfall through an online letter.

v. The applicant shall make the required payment of duty and interest to the Jurisdictional Customs Authority and provide proof of payment in response to the said letter online.

vi. Based on the evidence of payments and other relevant documents prescribed concerned RA may examine and consider granting an Export Obligation Discharge Certificate (EODC) online

2. RAs are directed to process any such applications within 3 working days.

3. For further guidance, please refer to the Help Manual on DGFT Website –> Learn –> Application Help & FAQS Advance Authorisation Closure Help document or EPCG Help Document.

4. For additional assistance, you may either approach the concerned RA or utilize any of the following Helpdesk channels: –

  • Raise a service request ticket through the DGFT Helpdesk service.
  • Send an email to DGFT Helpdesk at dgftedi@nic.in.
  • Call the Toll-free DGFT Helpdesk numbers.

Author Bio

Popularly identified as "GSTwithSaradha", I’m CA Saradha Hariharan, Co-Founder Partner of GGSH & Co. LLP, where I lead the Indirect tax and GST practice with over a decade of experience in the field. With my multi-faceted expertise spanning Big4, industry and practice, I offer practical, solu View Full Profile

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